City of Oakland Finalizes Hotel Acquisition to Target Unhoused Residents from Three Major Encampments

Oakland, CA - The City of Oakland is proud to announce the successful acquisition of the Extended Stay America (ESA) hotel at 3650 Mandela Parkway, marking a significant investment in the City's efforts to address homelessness and improve housing outcomes for some of its most vulnerable residents. This acquisition, completed by project sponsors Memar Properties Inc. (MPI) and the Housing Consortium of the East Bay (HCEB), will target residents of three large encampments -- Mosswood Park and the East 12th Street median encampments, both slated for closure, and the Martin Luther King Jr. Way corridor encampment, which was closed in September under urgent crime conditions -- and provide both immediate and long-term housing solutions.

With the acquisition complete, move-ins to Mandela House are already underway, prioritizing unhoused individuals from the three encampment sites. The property will first serve as interim housing for up to 150 individuals and couples in 105 units, and in the coming year, will be converted into 125 units of Permanent Supportive Housing operated by HCEB. Up to two pets are allowed.

"This important work represents a critical step in our ongoing commitment to address the urgent needs of Oakland's unhoused population. This acquisition will provide much-needed shelter and stability, offering individuals a pathway to essential services and, ultimately, permanent housing. This is one part of a multi-faceted strategy, and we will continue to pursue innovative solutions to support our most vulnerable residents," said Oakland Interim Mayor Kevin Jenkins. "I want to extend my gratitude to the State of California, City staff and all the other partners who made this project possible."

"Our efforts to secure housing for unsheltered residents at two major encampments in District 3 is finally here and I am excited that the acquisition will lead to a significant number of permanent supportive housing units in Oakland. This process initially began three years ago, but gained traction in 2024 when my work with Townsend Public Affairs was realized through securing an Encampment Resolution Fund (ERF) grant. This long-awaited achievement is a powerful marker in our mission to provide safe, supportive housing to those who need it most." said Carroll Fife, Oakland District 3 Councilmember. "Every delay reminded us why this work matters and I thank our Sacramento team, D3 neighbors, and deep appreciation to the Housing and Community Development Department for their tireless work on this project. I look forward to supporting next steps to safely and expeditiously transition unsheltered community members to this location."

"The opening of Mandela House to provide interim housing, and later permanent supportive housing, to residents of Oakland's largest encampments is an important milestone in addressing the homelessness crisis," said Alameda County Supervisor Nikki Fortunato Bas, who previously served as Oakland City Council President. "While representing Council District 2, my team and I collaborated with the broader community around the E12th St. encampment to fund and secure dignified housing and services for the unhoused residents. I'm grateful to community, city, County, and State partners for all the effort it has taken to finally move unhoused residents into this program with housing, services, and stability. I'm also proud that we are making progress in our solutions to homelessness and will create a Community Council of formerly unhoused and housed residents to work together to ensure the project's success - a model my Council Office piloted with HCEB at a tiny homes project near Lake Merritt. I look forward to strengthening our partnerships across government and with community to create more housing security in our County."

"This project reflects our commitment to creative, and results-driven approaches to ending unsheltered homelessness," said Emily Weinstein, HCD Director. "We are grateful to our partners and to the community for supporting a solution that meets both immediate and future housing needs."

"This acquisition is the latest example of how targeted and strategic investments can make a significant difference for communities," said Jonathan Russell, Director of Alameda County Health Housing and Homelessness Services. "We have made demonstrable progress over the past several years to slow the growth of Oakland's unhoused population and projects like this will allow us to continue on that positive trajectory. By engaging closely with our unhoused neighbors and offering wraparound services and pathways to housing, we can make major inroads by ending homelessness for those served in Oakland with this vital resource."

This acquisition was made possible through a combination of state and local funding sources, including a $7 million State of California Encampment Resolution Fund (ERF) grant funds received in November 2024, a $25 million Community Care Expansion (CCE) award, and a $4.6 million grant through the City's Rapid Response Homeless Housing (R2H2) program. The City of Oakland's Housing and Community Development Department (Oakland HCD) established the R2H2 program to provide capital and operating support to housing developers in order to create or preserve affordable units for individuals experiencing homelessness. The funds awarded to ESA fully cover the cost of acquisition. In addition to the funding for acquisition, the development received $8 million in funds from R2H2 for rehabilitation of the building, and additional support through a combination of local and county resources, including:

• $2,640,250 in CCE Operating Support,
• $6,035,445 from the City of Oakland's Permanent Local Housing Allocation (PLHA) for Operating Support,
• $5,239,939 from Alameda County's Local Housing Support Program (LHSP),
• $9,447,969 in Alameda County Supportive Services Funds, and
• $564,730 in Opioid Remediation Funds from the City of Oakland to carry out delivery of services and operational support. This funding will provide encampment residents with access to mental health support, wraparound services, and rental assistance, both during their interim housing stay and as they move into long-term placements.

The City's Housing and Community Development Department (HCD) worked in close coordination with MPI and HCEB to secure the financing, and with the City's Community Homelessness Services (CHS) team in the Human Services Department (HSD) and the City Administrator's Office to outreach to unhoused individuals. Collaboration with service partners Operation Dignity, HCEB, and Alameda County's homelessness departments will ensure a smooth and supportive transition for incoming residents.

Encampment closures

Outreach and engagement efforts at the East 12th, Mosswood Park, and the MLK encampments began in January 2024 and will continue up to and through the encampment closures, with supportive services in place to support the relocation process. The Mosswood Park encampment, with a core census of 41 residents, is slated for closure beginning Monday, April 21, in an operation expected to take up to two weeks. The East 12th Street encampment, with 79 core residents, is anticipated to be closed in May. The encampments on the MLK corridor were closed in fall of 2024, with five individuals in continued contact with outreach staff and prioritized for placement at Mandela House. Mobile Assistance Community Responders of Oakland (MACRO) and Alameda County Housing and Homelessness Services will participate in the encampment closure operations, lending further support to encampment residents.

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