California Marks Infrastructure Week, Celebrates Major Milestones in Construction of 197 New Affordable Homes

Sacramento, CA

Two cities in two regions of the state marked major milestones today with developments that are bringing a total of 197 affordable homes to communities.

In the Bay Area, East Palo Alto celebrated the grand opening of Colibri Commons, which includes 136 affordable homes, while further north, the city of Red Bluff broke ground on Palm Villas, a 61-unit affordable development.

State programs contributed a total of nearly $45.5 million to the projects.

With the high cost of living in the Bay Area and a great need for affordable workforce housing in rural areas, these new affordable homes are critical for local communities and the economy.

"California is supporting healthy, thriving neighborhoods throughout the state - from the Bay to the northern Sacramento Valley and beyond - by investing in much-needed affordable housing and sustainable community infrastructure," 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 funding through the Affordable Housing and Sustainable Communities (AHSC) Program. "These projects reduce pollution, expand opportunities, and give more Californians what everyone should have: a place to call home."

"California's momentum is real and these projects demonstrate what we can achieve when state investment aligns with strong local partnerships," said Secretary Tomiquia Moss of the Business, Consumer Services and Housing Agency, who is a member of the SGC. "From East Palo Alto to Red Bluff, communities are working alongside us to deliver affordable, climate-forward homes. Together, we're accelerating progress and expanding opportunity for Californians across the state."

Colibri Commons

Funded in part by $19.8 million from the AHSC Program, Colibri Commons in East Palo Alto is co-developed by MidPen Housing and East Palo Alto Community Alliance and Neighborhood Development Organization (EPACANDO).

Eight of the 136 units are set aside for households experiencing homelessness in San Mateo County.

Residents have the options of studio, one-, two-, three- and four-bedroom units, and all apartments include a full kitchen with refrigerator, oven/range, microwave and dishwasher, private patio or deck, and storage space.

Beyond homes, Colibri Commons also offers a community room with a kitchen; outdoor play areas and an after-school learning center for resident children; laundry facilities; bike storage; and assigned parking spaces.

The complex is built on a city-owned and donated formerly vacant lot located near public transit, shopping, retail, restaurants, schools, a public library, parks, and a Boys & Girls Club. Residents also have easy access to the Rail Spur walking path, and nearby Faber-Laumeister Trail and SF Bay Area Trail.

AHSC funding enabled new transportation benefits including the purchase of a CalTrain Electric Multiple Unit train and three electric buses to expand the SamTrans bus service.

"It brings us so much joy to invest in the development of affordable housing and sustainable, convenient transportation in neighborhoods across California - from cities to rural areas," said Erin Curtis, Executive Director of SGC, noting that the AHSC Program has funded nearly 25,000 affordable homes since its inception. "Congratulations to the new residents of Colibri Commons and a big thank you to our partners who are leading the efforts to strengthen resilience in your region."

Palm Villas

Funded in part by $20.1 million from the AHSC Program and developed by Palm Communities, Palm Villas at Red Bluff will bring 61 affordable houses to the rural area. The project received an additional $5.5 million through the California Department of Housing and Community Development's (HCD) No Place Like Home and Infill Infrastructure Grant programs.

The complex is designed for families earning between 30% and 60% of the Area Median Income (AMI) and will include 10 units for people experiencing homelessness who need on-site services through the No Place Like Home Program.

A separate community center, playground and a barbecue area are planned for families to enjoy.

There are also state-funded transportation upgrades including bus route enhancements and zero-emission vehicle purchases; renovations to the regional transit center including new passenger amenities and solar panels for sustainability; two new lane miles of bikeway; and over 2,000 linear feet of upgraded sidewalk.

Project partners include the Job Training Center, which is a partner of the NORTEC Workforce Development Board, and Poor and the Homeless Tehama County Coalition (PATH) for anti-eviction and rental assistance programs.

"The Affordable Housing and Sustainable Communities program continues to infuse transit-rich neighborhoods with much-needed affordable housing," said HCD Director Gustavo Velasquez. "This critical investment helps reduce vehicle miles traveled and harmful emissions, while connecting low-income households to key amenities and educational and employment opportunities."

California Climate Investments

The AHSC Program is funded through California Climate Investments, a statewide program that uses billions of Cap-and-Invest dollars to fund projects that reduce harmful emissions, protect public health, strengthen local economies, and support natural environments. With a strong focus on communities most impacted by pollution and limited access to resources, California Climate Investments helps build a more equitable and sustainable future.

California Climate Investments includes 117 programs administered by 27 state agencies, with funding directly supporting the Governor's work to build a California for All, meeting the housing needs throughout the state while also protecting California's climate.

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:

✅ Creating 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.

✅ 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 defending 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.