Oakland’s housing element bumps up against deadline

Oakland city officials are working right up to the deadline to adopt the city’s housing element plan. The City Council is scheduled to vote on the adoption of the eight-year housing plan at a meeting on Jan. 31 – the deadline imposed by the state for a compliant housing element.

Consequences for non-compliance could include a loss of millions of dollars in state affordable housing funds and the possibility that developments with at least 20 percent affordable housing would move forward under a state law known as builder’s remedy with little the city can do to stop them.

“The 2023-2031 Housing Element presents goals, policies and actions to affirmatively further fair housing for all Oaklanders by addressing Oakland’s need for more affordable homes, promoting integrated and vibrant communities, expanding housing options in more affluent neighborhoods, and reinvesting in less affluent neighborhoods,” William Gilchrist, planning director, said.

The council will vote on a plan with recommendations from the California Department of Housing and Community Development regarding the city’s first draft submitted in September. In a letter sent to the city, the HCD praised Oakland’s first draft for addressing “many statutory requirements,” but said the final version of the plan should better reflect a strategy to pursue more density.

“Several (public) comments questioned the lack of units in North Oakland, specifically around the Rockridge BART station, as concerns around why several eligible parcels were excluded from the inventory,” the letter reads. “These issues must be addressed.”

The revised plan calls for rezoning affluent areas, such as Rockridge, to allow for multifamily housing. Oakland is required to build 26,251 units of housing in the current eight-year cycle. Of those, Oakland plans on building 39 percent tailored to households making less than $46,000 a year and 14 percent for households making less than $75,000.

If Oakland is not compliant after the end of the cycle, it would go contrary to its recent recognition of leading the Bay Area in housing development. Oakland is the only Bay Area city that the state has officially deemed “pro-housing.” The declaration gives cities preference in competition for state grants for issues such as housing and infrastructure. Not having a compliant housing element would strip Oakland of its pro-housing designation.

“Adding any new actions or revisions that make it harder or more expensive to build housing in Oakland would likely jeopardize the city’s ability to submit a housing element by the state deadline,” Gilchrist said.

The builder’s remedy provision in state law came into renewed focus after developers submitted plans for almost 4,000 units in Santa Monica, which failed to have its plan certified before its October deadline.

Local developers have been hesitant to explore builder’s remedy projects; however, that could change after the deadline passes.

“I have not explored using builder’s remedy in Oakland yet,” John Cappiello, co-founder of CRC Development, said.