Developer pulls out of Oakland 'Project Homekey' plan to shelter formerly incarcerated
OAKLAND, Calif. - A plan to house formerly incarcerated people in Oakland as part of the statewide Project Homekey effort has fallen through after the developer pulled out, saying in part, it would be "morally untenable" to shelter people in the building, which they determined was unsafe to live in, KTVU has learned.
In a letter obtained from the city, Elaine Brown, CEO of Oakland & The World Enterprises, and Adhi Nagraj, senior vice president of development at McCormack, told Oakland officials that when they went to inspect the Travelers Hotel at 392 11th Street, they "uncovered innumerable irresolvable issues related to the quality of the building’s construction, adequacy of health and safety systems and the occupancy of new residents with young children."
They added that "given the health and safety risks, it is morally untenable for us to go forward with the purchase of this building in which we would house the targeted at-risk, formerly incarcerated population. Moreover, this would be, in our opinion, in conflict with the goals of the Homekey program."
- Oakland awarded $20M for two housing developments under 'Project Homekey'
- California gives Oakland another $17.5M to house homeless veterans, those released from custody
The letter did not further describe what the conditions at the building are. No one from BOSS or the development company would answer any follow-up questions. The site is currently an 82-unit Single Room Occupancy hotel. The city of Oakland also did not immediately have documentation to show what the alleged health hazards are at the site.
In 2016, an article in the Business Journal described the hotel as "dilapidated."
The project was supposed to house people released from nearby jails and prisons who are most impacted by COVID-19 and are at extraordinary risk of homelessness. BOSS, or the Building Opportunities for Self-Sufficiency, was supposed to act as the service provider.
On Oct. 30, Oakland Mayor Libby Schaaf told KTVU how excited she was about this housing effort, as well as another Project Homekey project at The Inn at Temescal, which aims to house veterans, at a combined total of $17.5 million. The two projects together would have provided shelter for 100 people.
In all, Oakland has received nearly $40 million from Project Homekey. The remaining two projects are: Clifton Hall, a California College of the Arts dormitory in Rockridge that offers 63 units for seniors and families; and Project Reclamation managed by Bay Area Community Services, or BACS, to develop 100 units at 20 various sites throughout Oakland for families and individuals.
As of now, city officials said that they know of no other Project Homekey project that is in jeopardy.
But as for the plan to house those formerly in jail at the Franklin address?
Oakland spokeswoman Autumn King said in an email: "The proposed program that this sponsor applied for will not move forward."
She added that California's Homekey funding "will be applied to other applications in the state’s queue." But there was no word on who these other applicants might be, or when a new developer might emerge, especially in light of the unhealthy conditions the first developers said they uncovered.
As for what will happen to the people who were released from jail and looking for shelter? There was no immediate concrete answer.
"This is a critical and potentially vulnerable population," King said in her email. "The city looks forward to continued work with the many nonprofit partners working in this space."
EDITOR'S NOTE: The city of Oakland incorrectly identified the address of the hotel.
Lisa Fernandez is a reporter for KTVU. Email Lisa at lisa.fernandez@foxtv.com or call her at 510-874-0139. Or follow her on Twitter @ljfernandez