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Community and Developers Ask: Why Is There so Little Money in the City’s Affordable Housing Fund?

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Where have the city’s funds for affordable housing gone?

That’s a question City Council President Rebecca Kaplan and council members want to answer as they look at why there is so little money in the city’s affordable housing trust fund at a time when booming high end construction in Oakland should be generating many millions of dollars in “impact fees” that housing developers are required to pay to avoid building a certain percentage of affordable units on a project.

Since 2016 when impact fees went into effect, the fund has only collected $8.8 million, according to a city report. Of this money, the city has committed $4.9 million to three affordable housing developments, totaling 162 units that not yet completed.

However, the city since 2016 has issued about 10,000 building permits that are moving ahead and are expected to build more than 17,000 new units by 2024, which means that  city officials could have collected an estimated $25 million in impact fees in the past four years and, as much as $50 million as the projects move toward completion.

Impact fees can cost developers between $5,000 to $24,000 for each market rate unit they build, depending on the location of the project and when the permits were issued.

In response to questions raised by Council members Kaplan, Nikki Fortunato-Bas and others, the city administration has hired an independent analyst to audit the fund and improve procedures for collecting the money.

“These are steps in the right direction, but if we are to truly meet our goal of 4,760 affordable homes by 2024 (we are at 751), we must most aggressively enact policies and procedures that accelerate affordable housing creation and funding,” said Kaplan in a letter to the council and the public.

Speaking at Wednesday evenings council meeting, Assistant City Administrator Marasheshia Smith said the full report on impact fees would be available in the spring.

“We don’t think there are missing funds,” she said, pointing out that her department is short staffed and that most of current staff members, including herself, are new. “We are trying to understand what processes were put in place to account for the funds…We would like an audit because we’d like to see some process improvement.”

Jeffrey Levin of East Bay Housing Organizations (EBHO), speaking at last week’s Community and Economic Development (CED) Committee meeting, said impact fees were supposed to be a way for the city to get private developers to help pay for affordable housing.

“It is shameful that the city cannot explain how it is in an unprecedented building boom (that) we have so little money to show for it,” Levin said. “Something is just not adding up, We don’t know what’s wrong, but nobody can explain it either, and we wait and we wait, and that waiting is not without consequence.”

“We raised this issue in January, we raised it again in May, (and) we were assured that in a couple of months an accounting would be done … Now we’re being told it will be March, April or April or May (2020) before we can see the numbers. That is just not good enough…There is no accountability and no transparency,” said Levin.

Representing developers, Greg McConnell of the Oakland Jobs and Housing Coalition said that affordable housing advocates are not the only ones who want to know what has happened to the funds.

“Developers are pretty interested in this too,” he said.

McConnell added that developers served on the Mayor’s Housing Cabinet, served on commissions and boards and helped develop the impact fee ordinance. “Little did we know it would be years down the road trying to figure where the money went. It’s a cause of great concern,” he said. “(Developers) who helped put all these cranes up that you see they have put money into the city, and the money hasn’t been spent, and the housing crisis goes unabated.”

Stevi Dawson of EBHO thanked Council President Kaplan for pushing the city to produce a report on the fees. “If she hadn’t intervened, we’d still be asking for this staff report. We need more transparency. We do not need to spend a year and a half asking for something that should be published (every year). There should be a yearly accounting.”

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Oakland Post: Week of December 25 – 31, 2024

The printed Weekly Edition of the Oakland Post: Week of December 25 – 31, 2024

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To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.

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Activism

Living His Legacy: The Late Oscar Wright’s “Village” Vows to Inherit Activist’s Commitment to Education

Kingmakers of Oakland (KOO), a nonprofit organization that works to improve educational and life outcomes for Black boys and men, stated that “Oscar Wright is one of the most prolific, consistent, and committed advocates of equity for Black students and Black Families here in Oakland for the past six decades.” 

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Oscar Carl Wright, 101, who passed away on Nov. 18, was still involved in Oakland’s educational affairs until his death.
Oscar Carl Wright, 101, who passed away on Nov. 18, was still involved in Oakland’s educational affairs until his death.

By Antonio‌ ‌Ray‌ ‌Harvey‌, California‌ ‌Black‌ ‌Media‌

Activists mourning Oscar Carl Wright’s death, have pledged to continue his lifelong mission of advocating for Black students and families in Northern California.

Wright, 101, who passed away on Nov. 18, was involved in Oakland’s educational affairs until his death.

Now, friends and admirers acknowledge that carrying on his legacy means doubling down on the unfinished work that Wright dedicated his life, time, and resources to, according to Y’Anad Burrell, a family friend and founder of San Francisco-based Glass House Communications (GHC).

“Mr. Wright did a lot of work around equity, specifically, for Black students based on their needs — whether it was tutoring, passing classes, or graduating,” Burrell said.

Wright became a champion for his children’s education, recognizing the disparities between their school experiences and his own upbringing in the Mississippi Delta.

Burrell told California Black Media (CBM) that the crisis of unequal access to resources and a quality education continues to affect the Oakland Unified School District (OUSD).

According to Oakland Reach, in the city of Oakland, only 3 in 10 Black and Brown students are reading at or above grade level. In addition, only 1 in 10 are doing math at or above grade level.

Oakland REACH is a parent-run, parent-led organization. It aims to empowers families from the most underserved communities to demand high-quality schools for their children.

Wright’s work as an activist had impact across the state but he was primarily known in the Bay Area. Alongside the Black United Front for Educational Reform (BUFER), he filed a complaint against OUSD for violating the Civil Rights Act of 1964.

In 2000, the OUSD school board proposed an action plan to address educational inequity, but it was never implemented.

Wright later founded the African American Honor Roll Celebration at Acts Full Gospel Church, an award that recognizes Black students with a grade point average of 3.0 or better.  Each year, more than 1,000 students are honored at this ceremony.

Kingmakers of Oakland (KOO), a nonprofit organization that works to improve educational and life outcomes for Black boys and men, stated that “Oscar Wright is one of the most prolific, consistent, and committed advocates of equity for Black students and Black Families here in Oakland for the past six decades.”

Burrell said that one of the main reasons Wright’s work was so essential for families and children in Oakland that is the direct relationship between acquiring a quality education and affording quality housing, maintaining food security, achieving mental wellness, and securing stable employment.

Wright was the child of sharecroppers from Coahoma County, Mississippi. He attended Alcorn State University, a Historically Black College and University (HBCU).

In the late 1950s, Wright and his family relocated to the Bay Area where he worked as a contractor and civil engineer. He later became an active member of the National Association for the Advancement of Colored People (NAACP).

Burrell said the people who will carry on Wright’s work are part of a “village” that includes KOO’s CEO Chris Chatmon.  Wright was a mentor to Chatmon.

“It will not be one entity, one person, or one organization that picks up the baton because it was a village effort that worked alongside Mr. Wright for all these years,” Burrell said.

Burell says that legacy will live on.

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Activism

Protesters Gather in Oakland, Other City Halls, to Halt Encampment Sweeps

The coordinated protests on Tuesday in San Francisco, Oakland, Vallejo, Fresno, Los Angeles and Seattle, were hosted by Poor Magazine and Wood Street Commons, calling on cities to halt the sweeps and focus instead on building more housing.

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The California Poor People’s Campaign’s Victoria King erected encampments for unhoused Oaklanders. Victoria King and her committee erected these emergency tents to symbolize the needs of unhoused Oaklanders. Photos by Post Staff.
The California Poor People’s Campaign’s Victoria King erected encampments for unhoused Oaklanders. Victoria King and her committee erected these emergency tents to symbolize the needs of unhoused Oaklanders. Photos by Post Staff.

By Post Staff

Houseless rights advocates gathered in Oakland, San Francisco, Los Angeles, and other city halls across California and Washington state this week protesting increased sweeps that followed a U.S. Supreme Court decision over the summer.

The coordinated protests on Tuesday in San Francisco, Oakland, Vallejo, Fresno, Los Angeles and Seattle, were hosted by Poor Magazine and Wood Street Commons, calling on cities to halt the sweeps and focus instead on building more housing.

“What we’re dealing with right now is a way to criminalize people who are dealing with poverty, who are not able to afford rent,” said rights advocate Junebug Kealoh, outside San Francisco City Hall.

“When someone is constantly swept, they are just shuffled and things get taken — it’s hard to stay on top of anything,” said Kealoh.

Local houseless advocates include Victoria King, who is a member of the coordinating committee of the California Poor People’s Campaign. She and Dr. Monica Cross co-chair the Laney Poor People’s Campaign.

The demonstrations came after a June Supreme Court ruling expanded local governments’ authority to fine and jail people for sleeping outside, even if no shelter is available. Gov. Gavin Newsom in California followed up with an order directing state agencies to crack down on encampments and urging local governments to do the same.

FresnoBerkeley and a host of other cities implemented new rules, making it easier for local governments to clear sidewalk camps. In other cities, such as San Francisco, officials more aggressively enforced anti-camping laws already on the books.

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