Governor Newsom celebrates more than 380 new affordable homes coming to the Bay Area and Coachella Valley

What you need to know: The Golden State continues its historic investment into building more affordable homes across California . Governor Newsom today announced a major accomplishment on the development of over 380 affordable homes across the Bay Area and Coachella.

SACRAMENTO - Today Governor Gavin Newsom announced progress in the development of over 380 affordable homes across the Bay Area and in Coachella. Building on California's commitment to expand access to affordable housing, Union City, Redwood City, Oakland and Coachella housing projects are being created near public transportation, local schools and other key resources.

California Climate Investments, a Cap-and-Invest program that focuses on communities most impacted by pollution, supported the development of these new affordable housing projects. Investments into communities also support pedestrian, bike and rail infrastructure and expansion of parks.

These new housing developments will create more opportunities for Californians to live near family, work, and the places that shape their lives - bringing greater stability and strengthening communities for years to come. As we continue tackling the housing crisis, California is proving that bold investments and strong local partnerships can help build a future where more people have a fair shot not just to get by, not to thrive.

Governor Gavin Newsom

"California is moving with urgency to build more climate-smart affordable homes, and these developments show what's possible when state and local partners stay focused on the people who need them most," said Tomiquia Moss, Secretary of the California Business, Consumer Services and Housing Agency. "These projects strengthen our communities, expand access to opportunity, and reflect the kind of practical, community-driven solutions we're advancing across the Bay Area and the state."

"California is prioritizing the development of much-needed housing while keeping our climate goals front and center," said Samuel Assefa, Director of the California Governor's Office of Land Use and Climate Innovation and Chair of the California Strategic Growth Council (SGC), which provided part of the funding through two of its programs: Affordable Housing and Sustainable Communities (AHSC) and Transformative Climate Communities (TCC). "By investing in affordable, sustainable communities near transit and other key amenities, we're supporting health, thriving neighborhoods - and there are many more AHSC-funded projects in the works statewide."

New affordable homes for families in the Bay Area

• Union City: With the first story of the Lazuli Landing affordable housing development now becoming visible, partners held a wall raising ceremony on May 8. Lazuli Landing, funded in part by $21.1 million from the state's AHSC Program, will include 81 units restricted to households earning a range between 20%-80% Area Median Income (AMI). The development will also feature a ground-floor commercial space leased to the City of Union City's Youth & Family Services (YFS), providing additional community-serving resources.
• Redwood City: The Middlefield Junction development celebrated a dedication ceremony, marking the grand opening of 179 apartment homes. The development was funded in part by $25.5 million from the AHSC Program. The mixed-use community provides affordable housing for families in Redwood City's North Fair Oaks neighborhood, with all 179 apartments reserved for households earning between 15% and 80% of the area's median income. Within the complex, 44 units are set aside for specific programs managed by Healthy Housing California and the San Mateo County Project-Based Voucher program.
• Oakland: Longfellow Corner marked a milestone with a hardhat tour. The project, funded in part by $18.4 million from AHSC, is in its final phase of construction. The development, only a few blocks from the MacArthur BART station, will include 77 affordable homes, and 34 apartments will be dedicated to permanent supportive housing. The property also includes 14 units that are accessible and/or have features for those with auditory and visual impairments. There will also be 2,500 square feet of community-serving commercial space on the ground floor.

State investments will also support BART rail cars; upgraded lighting; bikeways; pedestrian improvements; curb ramps; accessible parking; sidewalk extensions; signal heads; high visibility crosswalks; tree planting; bicycle education workshops. Some projects will also give residents free or lower-cost transit passes and career training.

"It is exciting to see so many Bay Area affordable housing projects opening their doors or moving toward completion thanks to our partnership with the Strategic Growth Council to create energy-efficient communities near transit and opportunity," said HCD Director Gustavo Velasquez. "In addition to our shared work on the AHSC, HCD's No Place Like Home, Multifamily Finance Super NOFA, and Accelerator programs have all played a critical role in bringing these much-needed developments to life."

Senior homes coming to the Coachella Valley

The Golden State also celebrates the groundbreaking of a 53-unit development of 100% affordable housing for low-income seniors in Coachella - the first affordable housing senior complex in the City of Coachella. The Casa Sienna project, funded in part by $7.7 million from the state's TCC Program and led by Chelsea Investment Corporation, includes 46 one-bedroom and six two-bedroom units serving households with incomes ranging from 30%-60% of the Area Median Income (AMI).

"The Casa Sienna development is a prime example of how our Transformative Climate Communities Program empowers our most pollution-burdened communities to transform their neighborhoods," said Erin Curtis, Executive Director of the California Strategic Growth Council (SGC), which administers the TCC Program in partnership with the California Department of Conservation. "Affordable senior housing connected to services and amenities not only benefits seniors but also strengthens the broader community they call home. Today's groundbreaking is the result of partnerships at all levels and community-led and -centered efforts to build thriving, resilient neighborhoods."

"This milestone speaks volumes on the great work of the Transformative Climate Communities (TCC) program, which fosters affordable and sustainable housing, energy efficiency, health and economic benefits and mobility options to the people that need it most, " said Jennifer Lucchesi, Director of the Department of Conservation. "No one can do this work alone and I'm proud to say that our partnership with the California Strategic Growth Council and many others brought the Casa Sienna development to life. It is a big win-win for the community and the TCC program."

The development serves as a vital safeguard against displacement for fixed-income seniors. Many key resources are nearby, including a public transit hub, social services, medical facilities, public parks, a community center, library, retail, financial institutions, and a post office.

The development is one of nine community-led projects and plans funded by a $22.1 million grant from the TCC Program, all of which fall under the Coachella Prospera initiative. Coachella Valley has a well-documented housing crisis with an extreme rent burden: households spend more than 30% of their income on rent, with some spending more than 50%. Coachella Prospera has used community feedback to shape its TCC application, which aligns with the TCC displacement-avoidance strategy and continues the regional commitment to creating more than 10,000 affordable homes to combat the housing crisis.

Using climate investments to pay for sustainable growth

The California Climate Investments funding is part of the state's Cap-and-Invest program, which requires major polluters to buy allowances for the greenhouse gases they emit. The funding puts billions of dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment - especially in disadvantaged communities. The funding directly supports the Governor's work to build a California for All, meeting the housing needs throughout the state while building climate resilience.

By investing in the communities hit hardest by climate impacts - from wildfire recovery in Southern California to agricultural preservation in the Central Valley - California is using California Climate Investment funds to help communities thrive and increase opportunity across the state.

A Housing Approach That Works

From the very first moments of the Newsom administration, California has approached the decades-in-the-making housing and homelessness crisis with focus and urgency. No other state has devoted as much time and attention to these twin problems - and California is a leader in producing positive results. Governor Newsom, in partnership with the Legislature, has continued to make progress in reversing decades of inaction that has led to a 9.5% reduction in unsheltered homelessness, a first in more than 15 years:

✅ Expanding shelter and support - Providing funding and programs for local governments, coupled with strong accountability measures to ensure that each local government is doing its share to build housing, and create shelter and support, so that people living in encampments have a safe place to go. In January, through a $77 million investment from California's Cap-and-Invest program, Los Angeles announced the expansion and redevelopment of the largest public housing project in the region, the Jordan Downs Project.

✅ Addressing mental health and its impact on homelessness - Ending a long-standing 7,000 bed shortfall in California's behavioral health system by rapidly expanding community treatment centers and permanent supportive housing units. In 2024, voters approved Governor Newsom's Proposition 1, which is transforming California's behavioral health systems. It is estimated that funding from Proposition 1 will create 6,800 residential treatment beds and 26,700 outpatient treatment slots for behavioral health care.

✅ Creating new pathways for those who need the most help - Updating conservatorship laws for the first time in 50 years to include people who are unable to provide for their personal safety or necessary medical care, in addition to food, clothing, or shelter, due to either severe substance use disorder or serious mental health illness. Creating a new CARE court system that creates court-administered plans for up to 24 months to help people struggling with schizophrenia and other psychotic disorders, often with substance use challenges, get the treatment and housing they need to recover and thrive.

✅ Streamlining and prioritizing building of new housing - Governor Newsom made creating more housing a state priority for the first time in history. He has signed into law groundbreaking reforms to break down systemic barriers that have stood in the way of building the housing Californians need, including broad CEQA reforms.

✅ Removing dangerous encampments - Governor Newsom has set a strong expectation for all local governments to address encampments in their communities and help connect people with support. In 2024, Governor Newsom filed an amicus brief with the Supreme Court supporting communities' authority to clear encampments. After the Supreme Court affirmed local authority, Governor Newsom issued an executive order directing state entities and urging local governments to clear encampments and connect people with support, using a state-tested model that helps ensure encampments are addressed humanely and people are given adequate notice and support.