The Housing Authority of the City of Alameda (AHA) has recently received $13.4 million in funding from the California Department of Housing and Community Development (HCD). The funding comes from a new HCD category that targets developments that can move forward quickly, without having to apply for additional layers of financing.

“As we demand more housing to be built at the local level, it is incumbent upon the state to reimagine and modernize our own approval process,” said Governor Newsom in a press release. “State applications that were once redundant, and overly bureaucratic are now streamlined to ensure projects are not stalled in an endless bureaucracy that favored process over production.”

This funding will provide AHA the financial capital to adapt the existing Hawthorn Suites Hotel, located at 1628 Webster St., into affordable housing in October 2023. The plan calls for the structure to hold 50 affordable studio apartments (“https://alamedasun.com/news/housing-authority-turn-hotel-affordable-hous...,” July 16, 2022). When AHA announced the potential property acquisition, they said it was still subject to receiving state funding for the structure adaptation. With the announcement of the HCD funding, the project will now move forward.

The current property owner, Sandip Jariwala of the Alameda Hospitality group, (a long time Alamedan and business owner) sees the need for more affordable housing in the area.

“Although this hotel has been successful, other local hotels can absorb the guests who want to stay in Alameda,” said Jariwala. “More affordable homes in Alameda will help the business community by allowing employees to live near their work.”

The 50 studios will be high-quality units, with private baths and kitchenettes, designed to maximize every inch of square footage, while also serving a great housing need for many individuals and small families. The affordable studio apartments will be positioned in the Webster business district providing easy access to public transportation, shopping, schools, and employment. AHA is a key member of the Webster Street neighborhood as the owner of more than 300 existing affordable homes in the adjacent community, including Rosefield Village on Buena Vista Avenue, which opened summer of 2022.

AHA believes acquiring an existing structure instead of building a new structure is advantageous to the organization, the city and residents because it allows the Housing Authority to house low-income residents faster and more cost efficiently.

“Getting small households out of housing instability, and into housing stability faster, positively impacts the small household and the community and makes this project a great addition to AHA’s affordable housing portfolio,” said AHA Vice Board Chair Kenji Tamaoki.

Island City Development (ICD), an affiliate of AHA, will be the developer of this project and will be tasked with adapting the existing hotel units into studios. AHA will own the land and provide long-term financial support. The development will serve households at 60 percent of the area median income, or no more than approximately $60,000 for one person (rents subject to government regulations).

Thirteen units will be set aside for supportive housing, with services provided by LifeSTEPS, a nonprofit provider of social services for resident services of affordable and supportive housing in California.

Once the property opens in early 2024, all leasing and property management services will be provided by FPI Management. Pre-lease up activities (including interest lists) will begin in mid-2023. Interested parties can sign-up to receive “Webster Street Hotel Conversion” updates, via email notification, by completing the form at www.ahagroup.live.