Enterprise and The Unity Council Announce $12 million investment to Preserve 55 Affordable Apartments in Oakland’s Fruitvale Neighborhood
City of Oakland, Bay Area Preservation Pilot and Housing for Health Fund unite to maintain long-term affordability
OAKLAND, Calif. (Oct. 21, 2020) – Enterprise Community Partners (Enterprise) and The Unity Council (TUC) today announced that they are preserving 55 units of affordable housing through the purchase of a multifamily property at 2000 36th Avenue in Oakland’s Fruitvale neighborhood.
They achieved this through a $12 million deal comprising a $7 million investment from Enterprise Community Loan Fund and Enterprise Community Investment, Inc., both subsidiaries of Enterprise, through the Bay Area Preservation Pilot and the Housing for Health Fund, in addition to a $5 million loan from the City of Oakland. The Housing for Health Fund is an $85 million collaboration among Enterprise, Kaiser Permanente and JPMorgan Chase.
This investment will ensure that the building remains affordable to families earning up to 80 percent of the area’s median income for at least 55 years.
“As market pressures threaten to turn long-term affordable housing into market-rate apartments, securing and preserving unsubsidized housing that is affordable for our neighbors is critical to meeting demand in the Bay Area,” said Heather Hood, vice president and Northern California market leader, Enterprise. “Through the financial commitments by the City of Oakland, the Bay Area Preservation Pilot and the Housing for Health Fund, these homes will remain affordable, healthy and accessible for residents for years to come.”
Based in Oakland, TUC has provided high-quality services and housing in the Fruitvale district for more than 50 years. It will make improvements to the building and provide wrap-around services including workforce development, employment training and post-secondary education and after school programs.
“Our community was in a crisis before COVID-19. East Oakland residents, particularly those at the lowest income levels, are facing a displacement crisis as the gap between rich and poor in the Bay Area widens,” said Chris Iglesias, TUC chief executive officer. “Now, the COVID-19 pandemic has added another immense burden as hundreds of residents have lost jobs, wages, businesses, and threats of eviction increase. All of these circumstances have underscored the vital importance of having access to an affordable, stable place to call home. We are proud to work with partners like Enterprise, Kaiser Permanente and JPMorgan Chase to address these urgent issues, one building at a time.”
2000 36th Avenue will incorporate Enterprise’s Health Action Plan, which integrates the health needs of residents into plans to rehabilitate and preserve the property.
The Housing for Health Fund focuses its investments in a dozen Bay Area and Northern California counties, with half of its capital designated to promote health and the preservation of affordable homes in the City of Oakland.
“We are a nonprofit health system that’s making significant investments in preserving affordable housing in our communities because safe, stable housing is essential to a person’s health,” said Yvette Radford, vice president, Kaiser Permanente Northern California External and Community Affairs. “We know that keeping rents affordable helps prevent homelessness and it assists low-income individuals and families to afford other necessities like healthy food, medicine, and utilities.”
The Bay Area Preservation Pilot, which is capitalized with $10 million from the Metropolitan Transportation Commission, provides financing for affordable homes in communities served by public transit that are affected by significant gentrification pressures. Families residing at 2000 36th Avenue have easy access to a nearby BART station and bus stops.
“MTC has long supported affordable housing in neighborhoods well served by public transit,” noted Commission Chair and Alameda County Supervisor Scott Haggerty. “This new commitment to the Fruitvale neighborhood by Enterprise and The Unity Council also reflects MTC’s approach to tackling the Bay Area’s housing affordability problems not just by producing more units but also by preserving existing affordable housing and protecting current residents from displacement.”
Since it launched in 2019, the Housing for Health Fund has cumulatively invested $26 million to support the preservation of 637 homes in the region.
“This investment is critical to helping preserve the affordability of these homes in Oakland for years to come,” said Amy Wallace, global philanthropy vice president, JPMorgan Chase. “It’s so important to ensure we’re investing in our local communities’ future growth, and supporting projects like 2000 36th Ave. through the Housing for Health Fund is helping to create sustainable and vibrant neighborhoods.”
The City of Oakland’s support drew from Bond Measure KK Acquisition and Conversion to Affordable Housing Program, approved by voters in 2016.
“Every unit preserved for affordable housing provides a home for an Oakland family," said Shola Olatoye, director of the city's Housing & Community Development Department. "Thanks to the funds made available by voter-supported Measure KK, 55 more units of housing will remain affordable, securing housing for some of our neighbors who need it most."