SACRAMENTO — Gov. Gavin Newsom on Monday announced progress on more than 380 affordable housing units under development across the Bay Area and Coachella Valley, highlighting the projects as part of California’s broader push to expand affordable housing while advancing climate and transit goals.
According to the governor’s office, the projects in Union City, Redwood City, Oakland and Coachella are being developed near public transportation, schools and community resources, with funding support from California Climate Investments and the state’s Affordable Housing and Sustainable Communities (AHSC) Program.
“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,” Newsom said. “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.”
The state said California Climate Investments, funded through the Cap-and-Invest program, helped finance the projects while also supporting pedestrian, bike and rail infrastructure, as well as park expansion and other community improvements.
Tomiquia Moss, secretary of the California Business, Consumer Services and Housing Agency, said the projects reflect the state’s emphasis on climate-conscious development and local partnerships.
“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,” Moss said. “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.”
Samuel Assefa, director of the Governor’s Office of Land Use and Climate Innovation and chair of the California Strategic Growth Council, said the projects are intended to align housing production with climate policy.
“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,” Assefa said.
Among the developments highlighted by the governor’s office was Lazuli Landing in Union City, which recently held a wall-raising ceremony as construction advanced. The project, funded in part by $21.1 million from the AHSC Program, will include 81 affordable units reserved for households earning between 20% and 80% of area median income. The development will also include commercial space for the city’s Youth & Family Services program.
In Redwood City, the Middlefield Junction development celebrated the opening of 179 affordable apartment homes in the North Fair Oaks neighborhood. According to the state, the mixed-use development received $25.5 million in AHSC funding, with all units reserved for households earning between 15% and 80% of area median income. Forty-four units are designated for programs managed by Healthy Housing California and the San Mateo County Project-Based Voucher program.
In Oakland, the Longfellow Corner project is nearing completion following a recent hardhat tour. The development, located near the MacArthur BART station, received $18.4 million in AHSC funding and will include 77 affordable homes, including 34 permanent supportive housing units. The project will also include accessible units for residents with auditory and visual impairments and approximately 2,500 square feet of community-serving commercial space.
The state said investments tied to the projects 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, transit passes and career training programs.
“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 Gustavo Velasquez, director of the California Department of Housing and Community Development. “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.”
The announcement also highlighted the groundbreaking of Casa Sienna, a 53-unit affordable senior housing development in Coachella that state officials described as the city’s first affordable senior housing complex. The project received $7.7 million from the state’s Transformative Climate Communities Program and is being developed by Chelsea Investment Corporation. The project includes one- and two-bedroom units serving households earning between 30% and 60% of area median income.
Erin Curtis, executive director of the California Strategic Growth Council, said the project demonstrates how climate-focused investment programs can address housing and community needs simultaneously.
“Affordable senior housing connected to services and amenities not only benefits seniors but also strengthens the broader community they call home,” Curtis said. “Today’s groundbreaking is the result of partnerships at all levels and community-led and -centered efforts to build thriving, resilient neighborhoods.”
Jennifer Lucchesi, director of the California Department of Conservation, also praised the project and the collaboration behind it.
“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,” Lucchesi said. “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.”
According to the governor’s office, Casa Sienna is intended to help prevent displacement among fixed-income seniors and is located near transit, medical facilities, parks, retail services and community resources.
The state said the development is one of nine projects funded through a $22.1 million grant under the Coachella Prospera initiative, which was designed to address severe housing affordability challenges in the region. Officials noted that many Coachella Valley households spend more than 30% of their income on rent, while some spend more than half their income on housing costs.
The governor’s office framed the projects as part of California’s broader housing and homelessness strategy, pointing to recent investments in supportive housing, behavioral health infrastructure and housing streamlining reforms.
The administration also highlighted voter approval of Proposition 1 in 2024, which state officials estimate will create 6,800 residential treatment beds and 26,700 outpatient behavioral health treatment slots statewide.
The announcement further cited recent efforts to streamline housing development, including reforms to the California Environmental Quality Act, alongside state initiatives targeting encampments and homelessness response.
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