NEWARK, CALIFORNIA - JANUARY 12: A view of the TownePlace Suites hotel is seen in Newark, Calif., on Wednesday, Jan. 12, 2022. The city is applying for $39 million through California's Project Homekey to purchase the hotel and convert it into permanent housing for people who are currently homeless or at risk of becoming homeless. (Jane Tyska/Bay Area News Group)
Bay City News Foundation
NEWARK — Newark has been awarded more than $38 million dollars in funding from the state’s Project Homekey program to support the conversion of an existing extended-stay hotel into 124 affordable apartments.
To be known as Cedar Community Apartments, the extended-stay hotel on Cedar Boulevard already contains studios, one-bedroom and two-bedroom units — all with kitchens — which means converting these units to affordable homes would result in minimal changes to the interior and exterior of the building.
“New affordable housing built from the ground up can take years to plan entitle, and construct,” said Steven Turner, the city’s community development director. “The Homekey grant accelerates the process, resulting in affordable units that would be available in months, not years.”
The grant application was a collaborative effort led by Newark and Allied Housing, a local housing developer that specializes in affordable housing developments for people experiencing homelessness.
Abode Services, the Bay Area’s largest provider of housing and social services for homeless people and an affiliate of Allied Housing, will provide on-site social services to residents at Cedar Community Apartments to support them in their life goals while maintaining stability in their homes. Housing for Independent People, an affiliate of Allied Housing and Abode Services, will be the on-site property manager.
Residents of Cedar Community Apartments will come from referrals through Alameda County’s Coordinated Entry System or through the Veteran’s Administration, including referrals through a system that would be set up by Newark. Household income eligibility would not exceed 30 percent of the area median income, with all residents required to sign a lease, be subject to apartment community rules and to pay rent.
“Everyone deserves a home, and this is an efficient and creative way to add affordable housing in an area that certainly needs more of it,” said Louis Chicoine, Abode Services chief executive officer. “Cedar Community Apartments will make the Newark community stronger while providing much-needed homes to vulnerable households in the city.”
In addition to the Homekey grant, the Cedar Community Apartment project was also conditionally awarded $4 million in Alameda County HOME Consortium American Rescue Plan Act funds and 60 Project Based Vouchers from the Alameda County housing authority, a portion of which would be designated for veterans who are experiencing or are at-risk of homelessness.
Newark has also assigned $6 million in affordable housing development impact fee funds and allocated American Rescue Plan Act funds to the project.
“The incredible financial investments by the city of Newark and our state and regional partners demonstrates the need for creative and speedy affordable housing solutions that respond to the challenges within our community, said Newark Mayor Alan Nagy. “I am grateful for these partnerships and the opportunity to welcome the residents of Cedar Community Apartments to the Newark community.”
City staff members will begin preparing various affordable housing funding agreements that will need to be signed with project partners. City staff expects the City Council to review and consider approving the agreements at a public meeting in September.
Originally published at Bay City News