SACRAMENTO — Gov. Gavin Newsom announced the opening of more than 180 affordable homes in the Los Angeles area and a milestone for additional units in San Francisco, highlighting the state’s continued investment in expanding access to housing while advancing climate goals.
Funded in part through California Climate Investments under the Cap-and-Invest program, the projects are designed to reduce emissions, improve public health, and expand access to housing in communities disproportionately impacted by pollution and limited resources.
“California is continuing to show how smart housing and land use practices can advance our state’s climate goals,” Newsom said. “By investing in affordable housing and connected communities, we’re reducing pollution, expanding opportunity, and helping more Californians have a place to call home.”
The developments are located near public transit and within walking distance of businesses and services, with additional transportation improvements aimed at encouraging residents to use transit, bike, or walk. The approach is intended to reduce reliance on vehicles while improving access to jobs and essential services.
In Southern California, the Santa Monica and Vermont Apartments in East Hollywood are opening 187 affordable units for low-income families, with half reserved for formerly unhoused individuals. The development, built in part with more than $50 million in state funding, includes on-site wraparound services and transportation upgrades such as new and improved bus stops and route connections.
“It is exciting to see so many affordable homes opening their doors through Cap-and-Invest programs administered in partnership with the Strategic Growth Council,” said California Department of Housing and Community Development Director Gustavo Velasquez. “Together, we are delivering housing opportunities and services combined with sustainable transportation improvements that move us closer to addressing our housing crisis and achieving critical climate goals.”
In San Francisco, officials and community members marked the securing of final financing for 85 new affordable units expected to be completed in 2027 as part of the 160 Freelon Apartments in the SoMa District. A quarter of those units will be designated for formerly unhoused residents. The all-electric development is supported in part by more than $41 million from the state’s Affordable Housing and Sustainable Communities program and includes transit-related infrastructure improvements.
“We are thrilled to see 160 Freelon come to life as a much-needed central community hub in the SoMa District,” said Sam Assefa, director of the Governor’s Office of Land Use and Climate Innovation and chair of the California Strategic Growth Council. “From affordable, green housing to nearby transit to robust on-site amenities and programming, this development embodies the projects SGC and our partners support to uplift thriving communities across California.”
The Cap-and-Invest program requires major polluters to purchase allowances for greenhouse gas emissions, generating funding that is reinvested into projects aimed at reducing emissions and strengthening local economies. The initiative prioritizes investments in disadvantaged communities while supporting broader efforts to build climate resilience and expand housing access statewide.
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So why is there no mention of the rental prices for these supposedly affordable units that are partially being funded by the Cap-and-Tax scheme?