CED Committee
September 30, 2025
AGENDA REPORT
TO: Jestin D. Johnson FROM: Emily Weinstein
City Administrator Director
SUBJECT: Affordable Housing Funding –
Program Income and FY2025-26 HCD
Capital Funds
DATE: September 4, 2025
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends That The City Council Approve A Resolution:
1) Authorizing The Appropriation Of Accumulated Net Revenue Of Affordable Housing Program Funding Revenue From The Low and Moderate Income Housing Asset Fund And The HUD-Home Investment Partnership Fund To Fund The New Construction Of Multifamily Rental Affordable Housing Program, Rapid Response Homeless Housing, Acquisition And/Or Conversion to Affordable Housing And Rehabilitation Of Existing Affordable Housing (Collectively, Affordable Housing Programs);
2) Authorizing The Annual Appropriation Of Net Revenue Of Affordable Housing Program Funding Revenue From The Low and Moderate Income Housing Asset Fund And The HUD-Home Investment Partnership Fund For Affordable Housing Programs For A Period Of Five Years,
3) Allocating Funds From Measure U Housing Bond And Other Non-bond Funds In a Total Amount Not To Exceed $66 Million for Affordable Housing Programs, 4) Reallocating Impact Fees And Other Affordable Housing Capital Sources Funds Approved Through the FY2025-26 Revenue to Affordable Housing Programs, And 5) Authorizing The City Administrator To Make Development Loans And Grants Under The Affordable Housing Programs, Contingent On Funding Availability
EXECUTIVE SUMMARY
The Department of Housing and Community Development (HCD) invests in deed-restricted affordable housing as loans and grants. The City of Oakland (City) has issued loans to over 140 affordable housing developments over the past 40 years. Loans are repaid by borrowers over time on a residual receipts basis, after the payment of all project expenses and senior debt obligations. Funds collected by HCD in loan repayments, along with miscellaneous fees Jestin Johnson (Sep 25, 2025 20:03:34 PDT)
Sep 25, 2025
Jestin D. Johnson, City Administrator
Subject: Affordable Housing Funding – Program Income and FY2025-26 HCD Capital Funds Date: September 4, 2025 Page 2
CED Committee
September 30, 2025
collected and interest earnings on fund balances, is known as program income. Repayments fluctuate based on individual property operating characteristics, such as vacancy rate and annual operating expenses.
Program income generated from project loans is restricted to the original housing use and must serve the income levels the original funding source required. In order to most expeditiously use and leverage the City funds, staff is recommending that the City Council adopt the proposed resolution authorizing HCD staff to annually, for a period of five years, reappropriate existing and to-be-received affordable housing program income to pipeline projects evaluated through the City’s NOFA processes, from the Low and Moderate Income Housing Asset (LMIHAF) Fund and HUD-HOME Investment Partnership (HOME) funds without returning to City Council.
In addition, staff is recommending that the City Council authorize the appropriation and allocation of Measure U tranche 2 funding approved in the Fiscal Year (FY) 2025-2026 budget, as well as other affordable housing budgeted revenue from impact fees and other affordable housing capital sources in the FY 2025-26 HCD budget, to support HCD’s capital investments in the following affordable housing development programs:
- New Construction of affordable housing with long-term affordability restrictions (New Construction NOFA)
- Homekey and Rapid Response Homeless Housing (R2H2)
- Acquisition and Conversion to Affordable Housing (ACAH) - Preservation of Existing restricted affordable housing properties (Rehab NOFA)
Full funding sources are delineated in the Fiscal Impact section below.
BACKGROUND / LEGISLATIVE HISTORY
HCD is dedicated to improving Oakland's neighborhoods and to ensuring all Oaklanders have safe and affordable housing. HCD’s Housing Development Division is the administrative body that oversees affordable housing production and preservation through funding investments that serve very-low, low-, and moderate-income residents.
Program Income and Other Housing Sources
The Housing Development Division can be thought of as a lending institution, soliciting applications for funding, underwriting, reviewing and evaluating application responses, making funding awards across various programs, managing the funding award and construction draw down process, and ongoing regulatory monitoring of the funded projects. Most loans are repaid by borrowers over time on a residual receipts basis, after the payment of all project expenses and senior debt obligations. Funds collected by HCD in loan repayment is known as program income. Repayments fluctuate based on individual property operating characteristics, such as vacancy rate and annual operating expenses, as well as trends in interest rates (lower interest rate environments often yield more refinances and payments). Program income is generally restricted to use in the same manner as the original funds and to serve households at the same income levels as the original funds. Both the LMIHAF and HOME funds, as well as the majority of HCD’s capital funding sources, have legal restrictions on the use of funding, making re-use of program income funds appropriate for targeting extremely to low-income developments.
Jestin D. Johnson, City Administrator
Subject: Affordable Housing Funding – Program Income and FY2025-26 HCD Capital Funds Date: September 4, 2025 Page 3
CED Committee
September 30, 2025
Attachment A provides a summary of the eligible uses and income levels for City affordable housing funding sources.
Repayments of affordable housing loans that were funded through: (a) the Low and Moderate Income Housing Asset Fund (LMIHAF) (Fund 2830, Project 1000388, Org 89929) and (b) HOME Fund (Fund 2109, Project 1000394, HOME-ARP Project 1006277, both Org 89929) via the U.S. Department of Housing and Urban Development (HUD) have been collected by HCD’s Loan Servicing function and are tracked when received. Currently, HCD does not have appropriation authority from Council to redeploy the funding to current projects in the pipeline.
The balance of LMIHAF and HOME program income accrued since 2021 are detailed in the Fiscal Impact section below.
Additional funds used for capital development include:
• Affordable Housing Trust Fund (AHTF) (Fund 1870, 1871, 1872) is made up of the following sources:
a. Jobs/Housing Impact Fees (JHIF) (Project 1001664, Org 89929). The Jobs/ Housing Impact Fee is assessed on construction of buildings for office and warehouse/distribution uses per Ordinance No. 12242 codified as Chapter 15.68 of the Oakland Municipal Code.
b. Affordable Housing Impact Fees (AHIF) (Project 1001667, Org 89929). The Affordable Housing Impact Fee is assessed on construction of new market-rate housing units including live/work and work/live units per Chapter 15.72 of the Oakland Municipal Code.
c. Former Redevelopment Funds (Project 1000386, Org 89929) “Boomerang funds” are former property tax increment financing payments that are received by the City and specifically designated for affordable housing. In 2013, after the dissolution of redevelopment, the City committed to setting aside 25 percent of the funds distributed to the City as a taxing entity under the Redevelopment dissolution and deposit them into the Affordable Housing Trust Fund.
• 2011A-T Subordinated Housing (Fund 1885): Interest earnings from an older affordable housing bond fund, available for deployment for affordable housing loans.
• Measure U Bond Tranche 2 (Fund 5343). Up to $180 million from the second affordable housing tranche, contingent on the issuance and sale of Measure U Bonds.
Much of tranche 2 Measure U bond funds have already been allocated to affordable housing projects and programs, leaving $40,000,000 for allocation via this report. The actions recommended in this report will authorize the allocation and spending of the remaining tranche 2 funds.
• State HCD LHTF (Fund 2144). As noted previously, the City applied for $5 million in the State’s 2024 LHTF NOFA to fund the development of new construction affordable rental housing through the New Construction NOFA. The LHTF dollars must be “matched” one- for-one with funds from the City’s AHTF per the requirements of the LHTF program.
Those matching funds have been identified from budgeted AHIF and JHIF funds, and if the State awards funding, will be appropriately matched to the State funds.
Jestin D. Johnson, City Administrator
Subject: Affordable Housing Funding – Program Income and FY2025-26 HCD Capital Funds Date: September 4, 2025 Page 4
CED Committee
September 30, 2025
• Central District and Central City East (Funds 5610/5613/5614/5643). Excess bond proceeds. In June 2024, Economic and Workforce Development Staff identified $4,328,096 in Excess Bond proceeds from older Redevelopment Agency bonds that have been made available for use on affordable housing development projects in HCD.
Measure U
In November 2022, Oakland voters passed Measure U, the Affordable Housing Infrastructure Bond, with 75.33% in support – surpassing the required 66.67%. Of the $850M total from Measure U, $350M was dedicated specifically for affordable housing.
On March 21, 2023, June 28, 2023, and February 20, 2024, Council adopted Resolutions No. 89646 C.M.S., No. 89809 C.M.S. and No. 90118 C.M.S., which authorized the Oakland HCD to allocate up to $92 million of Measure U and other local funds for projects through the City’s New Construction NOFA, as well as the ability to fund down the pipeline of selected projects as resources became available.
In 2024, the City Council approved the advance allocation of tranche 2 (Fund 5343) of Measure U and other local sources in a total amount not to exceed $113,400,039 pursuant to Resolution No. 90419 C.M.S. On December 9, 2024 City Council allocated an additional $10 million of Measure U tranche 2 to HCD to award through the NOFA process pursuant to Resolution No. 90552 C.M.S. After receiving authorization to award Measure U tranche 2, HCD released the New Construction Pipeline NOFA on September 2024, and made initial awards to five affordable housing projects in early January 2025. The advanced authorization allowed HCD to make awards to projects which in turn, were able to demonstrate matching funds for other competitive grants.
As of the writing of this report, HCD has allocated approximately $210 million of Measure U funds, including a 5% administration costs (approximately $200M net of administrative costs), to Housing Division projects and programs as follows:
• New Construction ($143M): HCD’s two most recent NOFAs have awarded $143 million to new construction affordable rents housing developments to propel new construction deals from pipeline to construction. Funds authorized in this resolution will be allocated to the projects in the 2024 New Construction NOFA pipeline most competitive for State resources and ready to start construction, while also leveraging public land and targeting units for people exiting homelessness and other special need populations. In the most recent pipeline New Construction NOFA cycle, awards totaling $80.5 million in new and recycled funding was made available to fund five developments with 583 affordable units. However, a funding gap of over $330 million remains in just the existing pipeline projects. Staff is in regular contact with developers to work together to position the pipeline projects for success in upcoming funding application cycles for tax credits and State funding. Attachment B includes the current New Construction NOFA pipeline projects.
• R2H2/Homekey ($21M): R2H2/Homekey projects have sought separate Council approvals to apply for State funding. R2H2 developments may be awarded from the existing applicant list, pending availability of capital and operating funding.
Jestin D. Johnson, City Administrator
Subject: Affordable Housing Funding – Program Income and FY2025-26 HCD Capital Funds Date: September 4, 2025 Page 5
CED Committee
September 30, 2025
• Acquisition and Conversion ($30M): The Acquisition and Conversion NOFA is anticipated to open in the first quarter of 2026, with awards made by mid-year 2026.
ACAH funds have already been approved to be disbursed through the streamlined process using the Housing Accelerator Fund, and contracting is underway to put that program improvement into effect.
• Portfolio Rehabilitation ($7M): HCD anticipated releasing a Rehabilitation and Preservation NOFA with $7 million in tranche 2 Measure U bond funds. Due to the delay in issuance of tranche 2 to Fall 2025, this NOFA has been delayed to early 2026 until after tranche 2 has been released, to ensure that funds are on hand to close loans soon after funding commitments are made.
State LHTF Contingent Funding
The purpose of the State HCD’s Local Housing Trust Fund (CA LHTF) Program is to provide one-time grant funding to regions and jurisdictions for making loans to sponsoring entities that develop, own, lend, or invest in affordable housing and create pilot programs to demonstrate innovative, cost-saving approaches to creating or preserving affordable housing. The program income requirements for a large portion of Extremely Low-Income (ELI) units, or those accessible to residents earning 0-30% AMI, align well with the goal of promoting new construction affordable units that serve those populations.
The City has received three prior LHTF awards from the 2020, 2021 and 2022 funding cycles via City Council Resolutions No. 88212 C.M.S. (approved July 14, 2020), No. 88765 C.M.S. (approved July 20, 2021) and No. 89187 C.M.S. (approved May 17, 2022), respectively, which have been programmed into existing pipeline projects.
The City also has a pending application in for the 2024 CA LHTF NOFA cycle, pursuant to City Council Resolution No. 90392 C.M.S., which was approved on July 30, 2024. Staff submitted a CA LHTF NOFA application on September 17, 2024. As of the writing of this report, the State has not made award announcements for the 2024 CA LHTF NOFA. However, if the City is awarded funding, an additional $4,750,000 would be available to fund the New Construction pipeline ($5 million award, net of 5% administrative allowance of $250,000).
Annual Reporting to Council
In September 2024, in accordance with the authorized commitment of $113M pursuant to Resolution No. 90419 C.M.S, the City Council approved annual comprehensive reporting of affordable housing funding activities covering: projects awarded, income restriction targets, populations served (e.g. homeless, transitional aged youth, family, senior), and development status by council district. The first annual affordable housing development informational report was delivered to and approved by the Community and Economic Development Committee on June 10, 2025. Future reporting will also include details on use of appropriated LMIHAF and HOME revenues during the prior fiscal year, as well as more detailed information about resident demographics. As additional funding sources begin to generate program incomes, staff will seek authority to add that income into the department’s authorized funding allocations as well.
Jestin D. Johnson, City Administrator
Subject: Affordable Housing Funding – Program Income and FY2025-26 HCD Capital Funds Date: September 4, 2025 Page 6
CED Committee
September 30, 2025
ANALYSIS AND POLICY ALTERNATIVES
In the post-Redevelopment paradigm, the City’s capital sources have shrunk dramatically and are more reliant on competitive grants sourced from the State of California, voter-approved bond measures, and impact fees that vary with macroeconomic market conditions.
Table 1 shows HCD’s capital budget for the routine affordable housing funding sources available for affordable housing development activities in the current funding environment, which are heavily dependent currently on voter approved Measure U bond funds. Additional sources of funding on a more sporadic basis discussed below include State grant funding and former Redevelopment bond funds.
Table 1: HCD Capital Budget Sources FY25/26-26/27 Biannual Budget
Fund Adopted Budget for
FY 2025/26
Adopted Budget for
FY 2026/27
2830 - Low and Moderate
Income Housing Asset Fund
$5,405,000 $5,460,320
1871 - Jobs Housing Impact
Fee Fund
$1,388,861 $1,680,457
1872 - Affordable Housing
Impact Fee Fund
$3,118,812 $2,094,408
2109 - HUD-Home $2,861,653 $2,866,153
5343 – Tranche 2 Measure U:
Affordable Housing (Taxable)
$100,189,061 $78,632,529
Totals $112,963,387 $90,733,867
To provide a guiding framework for affordable housing development funding program allocations, in 2023 HCD released the 2023-2027 Strategic Action Plan, which included the Equitable Capital Investment Framework. This framework guides the investment of the capital dollars that are administered by the Housing Development Division, including Measure U funds as outlined in Table 2.This also meets the City-wide priority of advancing Housing, Economic and Cultural Security.
Table 2: Strategic Action Plan Distribution of Funding Across Program and Estimated Units Funded
Program Type % of Total
Funding
% of Total Capital
Funding
Number of Units
Estimated
Permanent Homeless Units (0-30%
AMI)
39% 29% 806
Low-Income Units (30-80% AMI) 37% 43% 1,189
Preservation via
Acquisition/Conversion
14% 17% 230
Preservation of Existing City
Portfolio
7% 9% 527
Other Housing Programs 2% 2% 0
Totals 100% 100% 2,752
Jestin D. Johnson, City Administrator
Subject: Affordable Housing Funding – Program Income and FY2025-26 HCD Capital Funds Date: September 4, 2025 Page 7
CED Committee
September 30, 2025
Measure U currently makes up the most substantial amount of HCD’s capital budget and will have a multiyear positive impact on the number of affordable housing units that HCD can fund and begin construction. HCD’s capital funding programs are highly oversubscribed with project applicants and requests for funding vastly outpacing the available funds. For example, the New Construction NOFA issued in September of 2024 garnered 24 project applications for a total of nearly 2,000 affordable units with a funding ask of over $420 million; however, only $80.5 million was available. Five awards were made and 19 projects from the solicitation remain in the New Construction Pipeline awaiting future funding allocations.
HCD made advanced bond awards to affordable housing projects via the New Construction NOFA and the Homekey/R2H2 RFP in late 2024 and January 2025 pursuant to Council Resolution No.90419 C.M.S and Resolution No. 90326 C.M.S. These funding allocations were awarded with the expectation that bond funds would be available in the Spring of 2025; however, the issuance of Measure U Tranche 2 has since been delayed until late Fall 2025.
Awardees are required to begin project construction according to strict timelines from State allocating agencies once competitive funding is awarded. If this program income authorization is granted, HCD will have the ability to reallocate program income to backfill the existing Measure U Tranche 2 funded projects to bridge the gap in funding before the Measure U Tranche 2 funds are available. The Measure U Tranche 2 funds will then be available for allocation to pipeline projects and programs. This type of funding swapping between NOFA awarded projects is typical within HCD as it allows funding source allocations to change to allow staff to maximize leveraging of City resources, accomplish cash management, and the ability to move ready developments into construction.
HCD’s investment approach has propelled numerous developments forward, providing flexibility to adapt to State funding priorities, project readiness and leverage City funds. Below in Table 3 is a list of Measure U funded projects and their status, including Council District, Affordable Units and Permanent Supportive Housing (PSH).
Jestin D. Johnson, City Administrator
Subject: Affordable Housing Funding – Program Income and FY2025-26 HCD Capital Funds Date: September 4, 2025 Page 8
CED Committee
September 30, 2025
Table 3: Status of Recent Developments Funded With Bond Funds Status Project / Program Council
District
Affordable
Units
PSH /
Homeless/
Special Needs
Completed Ms. Margaret Gordon’s
Westport (aka West Grand
& Brush)
3 58 30
In construction Friendship Senior Housing 3 49 10
In construction Phoenix Apartments 3 100 49
In construction 3050 International 5 75 31
In construction East 12th Street – Phase 1* 2 90 23
In construction Longfellow Corner 1 76 20
In construction Chinatown BART TOD
Senior Housing
2 97 44
Construction
Start Late 2025
The Eliza 3 96 20
Construction
Start Late 2025
34th and San Pablo 3 59 30
Construction
Start Early 2026
2700 International 5 75 22
Homekey/R2H2
Construction
Start Early 2026
Mark Twain 4 107 107
Construction
Start Early 2026
The Maya Hotel 1 22
22 Construction
Start Early 2026
Mandela House 3 125 125
Construction
Completion Fall
2025
The Friendly Manor 3 26 units/52
beds
26 units/52 beds
Total Units 1055 559
ACAH/HAF
Partnership
Loan Agreements
Executed. Awaiting sale of
tranche 2
TBD TBD
Rehab NOFA NOFA to be issued in
Spring 2026. Awaiting sale
of tranche 2.
TBD TBD
Based on funding available in this resolution, staff estimates allocating approximately $65-67 million to projects in the New Construction NOFA pipeline. Additional funds authorized in this Resolution as well as previously authorized funds for affordable housing capital investments will be invested to Homekey/ R2H2, ACAH and Preservation programs in accordance with HCD’s Strategic Action Plan.
Jestin D. Johnson, City Administrator
Subject: Affordable Housing Funding – Program Income and FY2025-26 HCD Capital Funds Date: September 4, 2025 Page 9
CED Committee
September 30, 2025
FISCAL IMPACT
Program Income
Funding will come from both the carryforward process and program income through the FY2025-26 budget process, as well as future revenue received through FY29-30, with funding commitments made contingent upon funding availability. By focusing on capturing and deploying accumulated and future program income, particularly for the LMIHAF, staff will ensure repaid loan funds are quickly redeployed for affordable housing uses.
Revenue collections and program income for LMIHAF and HOME funds are noted in Table 4.
Table 4. Program Income (PI): LMIHAF and HOME
Fund
Name
FY21 PI FY22 PI FY23 PI FY24 PI FY25 PI Total*
LMIHAF $5,634,227 $5,820,444 $2,132,775 $2,309,139 $1,818,460 $17,715,045 HOME $1,005,010 $681,807 $319,344 $289,153 $369,824 $2,665,139 * On the revenue collected in Low and Moderate Income Funds, $7,028,000 has been authorized for prior capital investments and site maintenance needs via Resolutions No. 89646 and 90419, leaving $10,137,892 to be allocated with this report. In recent years, HOME program income has been routinely reallocated through the City’s Budget process.
FY2025-26 Budget Revenue Allocation and Authorization
Table 5. FY2025-26 New Revenue Available – Capital Sources Fund Prior Year
Carryforward
(unallocated)
Capital Funding Available
FY2025-26
2830 - Low and Moderate
Income Housing Asset Fund
$10,137,892 $5,405,000
1870 - Affordable Housing Trust
Fund – boomerang
Not Available
1871 - Jobs Housing Impact Fee
Fund
$1,388,861
1872 or 2424 - Affordable
Housing Impact Fee Fund
$3,118,812
1885 - 2011A-T Subordinated
Housing
Not Available
2109 - HUD-Home $617,000 Already authorized via
Consolidated Plan
5343 – Tranche 2 Measure U:
Affordable Housing(Taxable)-
$35,520,3920
2144 - State Local Housing Trust
Funds (if awarded 2024 NOFA)
$4,750,000
5610/5613/5614/5643 – Central
District and Central City East –
excess bond proceeds
$4,328,096
Not Available
Total Unallocated HCD' Capital
Sources
$15,082,988 $50,183,065 (assumes 2024
LHTF Award)
Jestin D. Johnson, City Administrator
Subject: Affordable Housing Funding – Program Income and FY2025-26 HCD Capital Funds Date: September 4, 2025 Page 10
CED Committee
September 30, 2025
Funding for the projects and programs will come from the sources listed in Table 5 above, either through Finance’s carryforward process or programmed through FY2025-26 budget process and contingent upon availability.
PUBLIC OUTREACH / INTEREST
Oakland HCD staff conducts extensive and on-going outreach to interested parties from a mailing list that includes developers, affordable housing advocates, architects, and contractors whenever NOFAs/RFPs are released, as well as periodic outreach to discuss program parameters, development thresholds and scoring. Staff confers regularly with organizations such as the East Bay Housing Organizations, Oakland Property Acquisition Collaborative, and Alameda County and the Oakland Housing Authority regarding coordination on affordable housing priorities and PSH funding.
In addition, staff has conducted extensive public outreach to community organizations and town halls with residents in conjunction with the department’s Strategic Plan and future funding planning processes. These public meetings focused on a review of housing affordability needs in Oakland versus the resources available to priorities for capital resources, which focus on reducing homelessness to the extent on operating are available, on serving low and extremely low-income tenants, and preventing displacement.
COORDINATION
This report and legislation have been reviewed by the Office of the City Attorney and the Budget Bureau.
SUSTAINABLE OPPORTUNITIES
Economic: These projects will generate construction, professional services, and ongoing property management jobs in Oakland. Providing families with affordable housing helps provide financial stability for low and very low-income households which could free some household income to be spent on other goods and services in Oakland. Providing units with supportive services for unhoused Oaklanders helps residents experiencing homelessness stabilize their health and housing. Also, providing and preserving viable housing creates activity on underutilized parcels which could stimulate demand for goods and services in Oakland.
Environmental: By constructing more infill units, pipeline projects will reduce the pressure to build on suburban or rural land far. The developers encourage contractors to use sustainable building techniques, including energy-efficient design, use of recycled building materials, and water-conserving fixtures and landscaping. Proposed projects are near public transit which enables residents to reduce dependency on automobiles and further reduce any adverse environmental impacts of development. Funding awards are made partially based on sustainability criteria.
Jestin D. Johnson, City Administrator
Subject: Affordable Housing Funding – Program Income and FY2025-26 HCD Capital Funds Date: September 4, 2025 Page 11
CED Committee
September 30, 2025
Race & Equity: The recommendations in this report are directly informed by Oakland HCD’s 2023 -2027 Strategic Action Plan, which was created using the City’s Racial Equity Impact Analysis (REIA) process. Per the Strategic Action Plan, Oakland HCD currently prioritizes the development of PSH to the maximum extent possible in order to increase the number of homeless exits available. As overrepresented in its unhoused demographic (roughly 59% of the total), providing deeply affordable housing especially PSH as quickly and efficiently as possible is critical in efforts to reduce racial disparities in homelessness. Staff completed a racial equity impact analysis for the new construction NOFA and will conduct similar processes for the other programs. The requests outlined in this report are also in alignment with the larger Alameda County’s Home Together 2026 Plan for ending homelessness, which forecasts that Oakland will need to provide 7,097 units of PSH between 2023 and 2027.
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Approve A Resolution:
1) Authorizing The Appropriation Of Accumulated Net Revenue Of Affordable Housing Program Funding Revenue From The Low and Moderate Income Housing Asset Fund And The HUD-Home Investment Partnership Fund To Fund The New Construction Of Multifamily Rental Affordable Housing Program, Rapid Response Homeless Housing, Acquisition And/Or Conversion to Affordable Housing And Rehabilitation Of Existing Affordable Housing (Collectively, Affordable Housing Programs);
2) Authorizing The Annual Appropriation Of Net Revenue Of Affordable Housing Program Funding Revenue From The Low and Moderate Income Housing Asset Fund And The HUD- Home Investment Partnership Fund For Affordable Housing Programs For A Period Of Five Years,
3) Allocating Funds From Measure U Housing Bond And Other Non-bond Funds In a Total Amount Not To Exceed $66 Million for Affordable Housing Programs, 4) Reallocating Impact Fees And Other Affordable Housing Capital Sources Funds Approved Through the FY2025-26 Revenue to Affordable Housing Programs, And 5) Authorizing The City Administrator To Make Development Loans And Grants Under The Affordable Housing Programs, Contingent On Funding Availability
Jestin D. Johnson, City Administrator
Subject: Affordable Housing Funding – Program Income and FY2025-26 HCD Capital Funds Date: September 4, 2025 Page 12
CED Committee
September 30, 2025
For questions regarding this report, please contact Christia Katz Mulvey, Housing Development Services Manager, at (510) 238-3623.
Respectfully submitted,
EMILY WEINSTEIN
Director, Housing & Community Development
Department
Prepared by:
Christia Katz Mulvey, Housing Development
Services Manager
Housing Development Services
Kohki Shiga
Budget and Grants Administrator
Housing Development Division
Attachments (2):
Attachment A: Eligible uses and income levels for City affordable housing funding sources Attachment B: 2024-2026 New Construction Pipeline New Construction List
Emily Weinstein (Sep 25, 2025 14:37:17 PDT)
Oakland Affordable-Housing Funding Sources
Eligible Uses and Income Levels
Attachment A
OAKLAND AFFORDABLE HOUSING FUNDING SOURCES
ELIGIBLE USES AND INCOME LEVELS
Fund Eligible uses Income levels
Low and Moderate Income
Housing Asset Fund
• New construction
• Acquisition & rehab
• Substantial rehab
• Affordability covenants
• Preservation1
• Homeless prevention/rapid rehousing
• Admin & monitoring
• Up to 80% AMI
• 30% min up to 30% AMI
• 20% max at 60-80% AMI
Affordable Housing Trust
Fund – redevelopment
dissolution (“boomerang”)
funds
• New construction
• Acquisition & rehab
• Substantial rehab
• Preservation
• Predevelopment
• Mortgage assistance for first-time buyers
• Reasonable admin
• Preventing displacement of low income renters or
disabled/senior homeowners
• Rehousing homeless
• Protecting low income renters from poor housing
conditions
• Rental
o Up to LI
o Priority for Very Low Income
• Ownership or mortgage assistance
o Up to 120% AMI
Affordable Housing Trust
Fund – Affordable Housing
Impact Fees
• New construction
• Acquisition & rehab
• Substantial rehab
• Preservation
• Predevelopment
• Reasonable admin
• 85% min up to Low Income
• Priority for Very Low Income
• 15% max up to Mod, unless waived
by Council
Affordable Housing Trust
Fund – Jobs/Housing
Impact Fees
• Acquisition
• New construction
• Substantial rehab
• Preservation
• Predevelopment
• Reasonable admin
• Up to Low Income
• Priority for Very Low Income
Affordable Housing Trust
Fund – fines & penalties
• Foreclosure prevention
• Homebuyer/tenant assistance
• Counseling, education, outreach
• Admin
• Other eligible AHTF uses, with findings
• Up to Low Income
• Priority for Very Low Income
Measure KK Bond Fund • Acquisition & holding costs
• New construction
• Preservation
• Rental rehab
• Homeowner rehab
• Predevelopment
• Admin (5% max)
• 85% min up to Low Income
• 20% min up to Extremely Low
Income
• 15% max up to Moderate Income
Measure U Bond Fund • Acquisition
• New construction
• Rehab
• Preservation
• Certain staff costs
Not defined
Homekey • Acquisition
• New construction
• Rehab
• Master leasing
• Conversion of nonresidential to residential
• Homeless or at risk
• Up to Extremely Low Income
Oakland Affordable-Housing Funding Sources
Eligible Uses and Income Levels
Fund Eligible uses Income levels
• Affordability covenants
• Relocation costs
• Capitalized operating subsidies
• Admin
Local Housing Trust Fund
(LHTF) Matching Grant
• Predevelopment
• Acquisition
• Rehab
• New construction
• Admin (5% max)
• Up to Low Income
• 30% min up to Extremely Low
Income
• 20% max up to Moderate Income
Permanent Local Housing
Allocation (PLHA)
• Predevelopment
• Development
• Acquisition
• Rehab
• Preservation
• Operating subsidies
• Capitalized reserves for supportive housing services
• Rapid rehousing
• Rental assistance
• Accessibility modifications for low-income owners
• Down payment assistance
• Admin (5% max)
• Up to 120% AMI (150% AMI in
“high-cost areas”)
• Priority for 60% AMI
Affordable Housing &
Sustainable Communities
(AHSC)
• New construction
• Acquisition
• Substantial rehab
• Preservation of at-risk housing
• Conversion of nonresidential to residential
• Housing-related infrastructure
• Average at 50% AMI (rental)
HOME Fund • Acquisition
• New construction
• Rehab & conversion
• Home purchase
• Conversion
• Demolition
• Rental assistance
• Relocation
• Planning & admin (10% max)
• CHDO operating assistance
• Up to Low Income
o 90% min up to 60% AMI
(rental projects & rental
assistance)
• 20% min up to 50% AMI of (rental
projects 5+ units)
2024 - 2025 New Construction NOFA Awards (and Pipeline) as of January 14, 2025 Oakland Housing Authority Set-Aside Pool ($15 million) $15,000,000 OHA-1 123 Mandela Station Affordable LP Mandela Station Affordable 1451 7th Street 3 238 60 $18,000,000 $15,000,000 $15,000,000 $.00 Yes OHA-2 115.25 East Bay Asian Local Development Corporation 285 12th St 285 12th St 2 64 13 $15,000,000 Move to General Pool OHA-3 80 Eden Housing, Inc. 77th and Bancroft 2500 76th Avenue 6 89 0 $15,000,000 Move to General Pool City New Construction General Funding Pool $65,579,608
1 127.00 Eden Housing, Inc. Liberation Park Residences 7101 Foothill Boulevard 6 118 30 $29,390,000 $28,000,000 $37,579,608 Yes 2 126.25 34SP Development LP 34th & San Pablo (34SP) 3419 - 3431 San Pablo Avenue 3 59 30 $9,000,000 $7,000,000 $30,579,608 No 3 123.70 Mercy Housing California 2125 Telegraph Avenue - The Eliza 2125 Telegraph Avenue 3 96 20 $1,000,000 $20,179,632 $20,000,000 $10,579,608 No 4 119.75 Satellite Affordable Housing Associates 3135 San Pablo 3135 San Pablo Avenue/967 32nd Street 3 72 36 $16,000,000 $10,500,000 $79,608 No 5 117.90 Agnes Memorial Housing Partners, LP Agnes Memorial Senior Apartments 2372 International Blvd 2 59 12 $14,815,719 No 6 115.25 East Bay Asian Local Development Corporation 285 12th St 285 12th St 2 64 13 $15,000,000 No 7 110.75 Satellite Affordable Housing Associates 125 E12th Street 125 E12th Street 2 94 19 $20,400,000 No 8 106.55 Affirmed Housing Group Brush Street Senior Apartments 2116 Brush Street 3 61 17 $11,250,000 No 9 103.75 Community Housing Development Corporation Kingdom Builders Senior Housing 7954 MacArthur Blvd 6 39 10 $13,100,000 No 10 100.50 Spanish Speaking Unity Council 2700 International 2700-2720 International Blvd, 1409 Mitchell St,1415 Mitchell St5 74 22 $16,300,000 $9,907,000 No 11 99.75 EAH Inc. 500 Lake Park Apartments 500 Lake Park Avenue 2 52 20 $10,061,000 $18,710,000 No 12 97.30 2301 Telegraph LP (McCormack Baron Salazar) 2301 Telegraph Avenue 2301 Telegraph Avenue 3 58 29 $10,000,000 Yes 13 97.25 JKL Building C Housing Partners, L.P. (EBALDC) 430 Broadway Building C 430 Broadway 2 70 14 $18,500,000 No 14 96.05 Strive Real Estate LLC Brooklyn Arms Apartments 1433 12th Ave 2 42 10 $10,391,000 Yes 15 90.25 3751 International Limited Partnership Villa Fruitvale 3751 International Blvd 5 80 41 $15,000,000 No 16 89.50 Spanish Speaking Unity Council 2610 International 2610 International Boulevard 5 104 21 $35,692,000 No 17 90.50 Spanish Speaking Unity Council East 12th Senior Housing 1221-1223 33rd Ave, E 12th St, 3251 International BLVD5 67 14 $18,709,000 No 18 85.75 Community Housing Development Corporation Joshua Senior Housing 793 West Grand Ave 3 70 18 $15,002,000 No 19 80.00 Eden Housing, Inc. 77th and Bancroft 2500 76th Avenue 6 89 0 $15,000,000 Yes 20 78.50 Spanish Speaking Unity Council 3073 International Boulevard 3073 International 5 57 12 $22,799,500 No 21 67.50 The Unity Council 111 Fairmount 111 Fairmount Avenue 3 91 19 $38,543,126 No 22 56.25 The Related Companies of California, LLC 430 Broadway Building A 430 Broadway 2 64 13 $15,000,000 No 23 55.25 The Related Companies of California, LLC 430 Broadway Building B 430 Broadway 2 56 11 $17,000,000 No 1874 491 $45,361,000 $424,388,977 $80,500,000
583 176
1291 315
* The Homeless/Special Needs Units count includes Permanent Supportive Housing (PSH) and non-PSH units. *** Funding for the New Construction NOFA includes $55,279,608 authorized by City Council on September 17, 2024, $15,8000,000 in funding from expired/rescinded New Construction NOFA commitments, and $9,500,000 in additional Measure U funding allocated in December 2024.
SUBTOTAL APPLICATIONS
TOTAL AWARDED THIS NOFA
UNFUNDED PIPELINE
** Per the NC NOFA issued September 23, 2024. Additional funding awards may be made through this pipeline as funds become available at City staff discretion. Additional funding awards will be made based on funding available versus requested, project readiness to proceed, and scoring.
Remaining
Funds***
Includes
Emerging
DeveloperRank
Current NOFA
Requested Score
Previous City HCD
Funding Awarded
Current NOFA
Awarded**Applicant Project Name Project Address
Council
District
Affordable
Units
*Homeless/
Special Needs
Units
Attachment B