Oakland incentivizing ADU rental to provide affordable housing
The City of Oakland is relaunching its affordable housing program and is looking for 200 more landlords to encourage an even larger network. Oakland received 515 new housing vouchers available to low income residents in addition to the 13,107 vouchers already allocated. The additional allocation came in May of 2021 with the first units rented in August. There are still several hundred voucher holders looking for rentals which the city attributes to an affordable housing supply shortage.
The program is aimed at homeowners who are considering making a housing unit available to Section 8 voucher holders. Homeowners who lease a new unit (including ADUs) to a voucher card holder will get an $1100 payment and could also receive a $2,200 no interest loan to fix and repair the unit if the repairs are necessary for move-in, as well as up to 2 months of rent when the unit is vacant, so long as it continues to be rented to voucher holders.
Rents in the program are tiered, HUD requirements from the housing authority look at rent reasonableness for a one mile radius and will provide a fair market rent to the landlord. Oakland has 35% fixed income or senior residents and this is the single largest demographic of voucher holders. This relaunch also includes landlords already in the program and offers those interested in joining a pre-rental inspection to ensure the home meets the standards of the program.
The city offers fast service, expedient payments, case management to help with tenants, and will pay half the rent early, even when the tenant is late on their payment. The goal of the new program is to welcome more landlords, educate the community, and house people. They are specifically looking for landlords of one and two bedroom units because families are getting smaller.
Read more about building or converting an existing structure to an ADU in Oakland here.