State Award Boosts Affordable Housing Community in Newark

The City of Newark has been awarded $38.2 million Project Homekey program, a state program aiming to expand housing for persons experiencing homelessness or at risk of becoming homeless. The award will help convert an existing Newark hotel into 124 affordable housing units to be known as Cedar Community Apartments.

The hotel already contains studios, as well as one-bedroom and two-bedroom units. Each unit has a kitchen, which means converting these units to affordable homes will require minimal changes to the building.

“New affordable housing built from the ground up can take years to plan, entitle, and construct,” Newark Community Development Director Steven Turner said. “The Homekey grant accelerates the process, resulting in affordable units that would be available in months, not years.”

The grant application was a collaborative effort led by the City of Newark and Abode Housing Development (formerly known as Allied Housing). Abode, the Bay Area’s largest provider of housing and social services to people experiencing homelessness, will provide on-site services to residents.

“Everyone deserves a home, and this is an efficient and creative way to add affordable housing in an area that certainly needs more of it,” said Abode Services CEO Louis Chicoine. “Cedar Community Apartments will make the Newark community stronger while providing much needed homes to vulnerable households in the city.”

Abode Property Management (formerly known as Housing for Independent People) will serve as the site's property manager.

“The incredible financial investments by the City of Newark and our state and regional partners demonstrates the need for creative and speedy affordable housing solutions that respond to the challenges within our community, said Mayor Alan Nagy. “I am grateful for these partnerships and the opportunity to welcome the residents of Cedar Community Apartments to the Newark community.”

The grant application was a collaborative effort led by the City of Newark and Abode Housing Development, which specializes in affordable housing developments for people experiencing homelessness.  Abode, the Bay Area’s largest provider of housing and social services to people experiencing homelessness, would be providing on-site social services to residents at Cedar Community Apartments to support them in their life goals while maintaining stability in their homes. Abode Property Management would be the on-site property manager.

Residents of Cedar Community Apartments will come from referrals through Alameda County’s Coordinated Entry System or through the Veteran’s Administration, including referrals through a system that would be set up by the City of Newark.  Household income eligibility would not exceed 30 percent of the Area Median Income with all residents required to sign a lease, be subject to apartment community rules, and required to pay rent.

“Everyone deserves a home, and this is an efficient and creative way to add affordable housing in an area that certainly needs more of it,” said Abode CEO Louis Chicoine.  “Cedar Community Apartments will make the Newark community stronger while providing much needed homes to vulnerable households in the city.”

In addition to the Homekey grant, the Cedar Community Apartment project was also conditionally awarded $4 million in Alameda County HOME Consortium American Rescue Plan Act (ARPA) funds and 60 Project Based Vouchers from the housing Authority of the County of Alameda, a portion of which would be designated for veterans who are experiencing or are at-risk of homelessness.  The City of Newark has also assigned $6 million in affordable housing development impact fee funds and allocated ARPA funds to the project.

City staff members will begin preparing various affordable housing funding agreements that will need to be signed with project partners.