On August 26, 2023, California Governor Gavin Newsom announced a substantial investment of $114 million in state infrastructure funding to support four cities in the San Francisco Bay Area. According to SFGate, the funds will be allocated towards the acquisition of land for new parks, bike lanes, pedestrian pathways, enhanced crosswalks, utility improvements, site preparation for housing sites, road enhancements, capital improvements, and more.
The investment is part of a larger $239 million program called Catalytic Infill Infrastructure Grant investments, aimed at seven communities across the state. The program's goal is to support new housing and neighborhood amenities, particularly those which are climate- and eco-friendly. As reported in a press release from California's Department of Housing and Community Development, this initiative is in line with the state's objective of creating 2.5 million new homes, including one million affordable homes targeted at lower-income Californians.
The Bay Area cities and their respective allocations of the $114 million fund are as follows: San Francisco - $45 million, Oakland - $40 million, El Cerrito - $20 million, and Santa Rosa - $9 million. The investments are focused on fulfilling specific infrastructural needs, such as utility improvements for housing sites, road enhancements, and capital improvements like storm water management, as stated by SFGate.
In a statement, Governor Newsom emphasized the role of the Catalytic Infill Infrastructure Grant investment, saying, "With nearly a quarter of a billion-dollar investment, California is jump-starting the construction of new housing throughout the state. In a post-pandemic world and as we strive to build more housing, California is using this opportunity to re-imagine the future of our cities – creating communities where people drive less and live closer to their jobs and kids' schools."
Pre-development costs, such as utilities, sidewalks, bike paths, and other infrastructure, regularly stall projects throughout the state. The investment aims to clear the path for more infill housing and support underserved neighborhoods in building greener, more walkable communities. By doing so, Californians will be able to live closer to their workplaces and important amenities, improving the overall quality of life.
According to the same press release, the awarded grants are expected to jump-start the construction of 3,249 affordable rental homes, 2,156 market-rate rental homes, and 75 homes for ownership across the seven communities, providing a considerable boost in available housing for residents. Moreover, the implementation of infrastructure enhancements will offer more opportunity for private developers, allowing them to reduce the costs of building new housing and promoting overall development across the communities.
