Why it matters: The significant cost of pre-development to build housing, such as utilities, sidewalks, bike paths, and other key infrastructure, regularly stall projects throughout the state. California is clearing the path to build more infill housing to meet our state’s goal of creating 2.5 million new homes – with 1 million of those affordable to people at lower income levels – through an investment of $239 million to help launch projects throughout the state. This funding will help underserved neighborhoods build greener, more walkable communities and allow Californians to live closer to work and other key amenities.

The state continues to make strategic investments to build more infill housing to meet our state’s goal of creating 2.5 million new homes—with 1 million of those affordable to people at lower income levels-- through a new grant award for new or improved infrastructure like wastewater, trees, sidewalks, bike lanes, streetlights, and more.

What the Governor said: “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.”

Sacramento — Today Governor Gavin Newsom announced Catalytic Infill Infrastructure Grant investments in seven communities across the state to support the near-term construction of 3,249 affordable rental homes, 2,156 market-rate rental homes, and 75 homes for ownership in addition to opening up immeasurable opportunity for new housing and neighborhood amenities in communities that have seen a historical lack of investment.

“This catalytic grant funding will speed up and reduce the cost of constructing housing by paying for water and sewer hookups, sidewalk improvements, parks, and green space, and other improvements that are the connective tissue for housing,” said Business, Consumer Services and Housing Agency Secretary Lourdes Castro Ramirez. “These investments will allow more people to live in homes that are closer to work, schools, grocery stores and other amenities in a walkable community that is also near transit.”

“These awards are just the most recent example of the state clearing the path to create more housing at all income levels,” said HCD Director Gustavo Velasquez. “We are ensuring that lack of infrastructure is not a barrier to infill housing. These awards are a reflection of cities and counties doing the right things so that, together, we continue to build more housing faster.”

Administered by the California Department of Housing and Community Development (HCD), the Infill Infrastructure Grant Catalytic (IIGC) program provides crucial funding for capital improvements. Not only do these grants support climate-smart housing and transportation, they also open up more opportunity for private developers by reducing the costs to build new housing. These investments complement the work of locals who are reducing local red tape in order meet our state’s housing needs.

Grants announced today:

City of El Cerrito, $20 million – This grant will support transit-oriented development (TOD) at the El Cerrito Plaza BART Station by funding preparation for the affordable housing structured parking, bringing in site utilities, and enhancing an existing bike and pedestrian trail. Funding will support landscaping and green space, a bike station, and bus shelters.

City of Fresno, $45 million – This award will fund sewer main replacements across multiple streets, a water project, site preparation, roadway improvements, and urban greening. Residential parking structures will support the housing developments. Bus shelters will be constructed to for eleven bus lines that serve the CQIA.

City of Oakland, $40 million – This investment will fund site preparation work including clearing, grubbing, and erosion control. Utility improvements throughout the various housing sites include a new sewer main, realignment of existing utilities and updating of existing utility lines. Roads will be enhanced with new surfacing, curbs, gutters, and sidewalks. Capital improvements include storm water management, landscaping, and environmental mitigation and remediation.

City of San Diego, $45 million – This award will fund site preparation including demolition, excavation, grading, soil stabilization, erosion control, weed control, and dewatering. The surface improvement includes concrete paving and traffic signals. New residential parking will support the planned housing developments. The transit investments will fund new pathways, bus shelters, and bike facilities.

City and County of San Francisco, $45 million – This funding will support acquisition of land for a new public park, new bike lanes, pedestrian pathways, and enhanced crosswalks. Housing site work will include soil replacement, geotechnical mitigation, grading, and upgraded utilities.

City of Santa Rosa, $9 million – This grant will provide funding to demolish an existing parking structure and surface parking lots. Utility upgrades include storm drainage, a detention basin, and joint trenching. Funding will support new roads with striping and signage, curbs, gutters, and sidewalks, parks and landscaping for irrigation, concrete work, urban greening, and development of a walking and bike path along with lighting.

Housing Authority City of Los Angeles, $35 million – This award will fund demolition of existing buildings and surface grading. Surface and streetscape improvements will provide new streets with curbs, gutters, sidewalks, streetlights, trees, and other landscaping amenities. Utility upgrades will include water, sewer, internet, and power access. Additionally, this award will support 75 homeownership units.