Oakland Launches Rental Subsidy Pilot To Stop Displacement, Prevent Homelessness

Press release from the City of Oakland:

November 16, 2021

Link to Nov. 16 Press Conference: https://www.youtube.com/watch?v=qi7H0qKl3rM

Link to brief explainer video: https://youtu.be/SNN6HaSVX8I

Oakland, California — Oakland Mayor Libby Schaaf and community partners announced a new pilot program today that provides 200 households a portion of their monthly rent to stop their displacement from Oakland and prevent them from experiencing homelessness.

The innovative “shallow subsidy” program focuses on families who live in Oakland’s most vulnerable communities and are at the highest risk for being displaced or becoming homeless. A report published earlier this year by Alameda County’s EveryOne Home, “Centering Racial Equity in Homeless System Design”, identified 920 Oakland households who could most benefit from an ongoing rental subsidy.

A “shallow subsidy” is a smaller portion of a household’s rent, compared to a larger subsidy -- such as the federal “Section 8” Housing Choice Vouchers, which often covers the majority or all of a household’s monthly housing payment, or Permanent Supportive Housing for people with mental or physical disabilities that includes important but expensive support services.

Many residents do not need a full rental subsidy or support services, but rather a smaller, more targeted amount. The 200 households participating in Oakland’s pilot will receive an average of $726 per month for 18 months -- enough to safely cover their monthly obligation and prevent them falling behind on other bills.

“A shallow subsidy is not only something that is missing from our current response to homelessness, but it’s one of the interventions that is most likely to close the racial disparity,” said Oakland Mayor Libby Schaaf. “I’m grateful our community partners have come together to address the housing crisis and provide support to our most vulnerable families.”

Residents began receiving the “shallow subsidy” disbursements in July, after the Oakland Fund for Public Innovation raised $3.4 million from local and regional philanthropic partners.

"The Oakland Fund for Public Innovation is extremely proud to be a key partner in launching the Oakland shallow subsidy pilot,” said Juma Crawford, Executive Director of the Oakland Fund for Public Innovation. “We hope that by centering equity at the core of this work and by proving real impact, this cost-effective pilot becomes a sustainable policy solution to curbing homelessness for some of our most vulnerable residents and families here in Oakland."

The Oakland pilot is being evaluated by researchers at the UCSF Benioff Homelessness and Housing Initiative (BHHI). The 200 households are eligible to receive their “shallow subsidies” for up to 18 months, and some may not need the subsidy each month, depending on financial health. For the 920 families in Oakland who were identified in the County’s report as the most vulnerable households, it’s estimated that it would cost $10 million a year to prevent them from becoming homeless.

“What we hope to learn from this novel program is whether providing a shallow rent subsidy is enough to prevent homelessness and help low-income families thrive,” said Dr. Margot Kushel, Director of the UCSF Benioff Homelessness and Housing Initiative.

Ultimately, the goal is for the Oakland pilot to lead to larger policy changes at the regional, state and federal levels. Developing a body of evidence on initiatives that work will lead to systemic changes required to ultimately end the housing and homelessness crisis.

"Oakland is diverse and powerful, and leadership on this housing challenge will help us keep it that way,” said Jaime Almanza, CEO of BACS, who is facilitating the program. “Our community needs us to do whatever it takes to respond to the growing housing crisis. These shallow subsidies will help Oakland neighbors stabilize. This pilot is born from and rooted in equity, focusing on neighborhoods where rents have increased as much as 90% since 2012, pushing many local families of color out of their homes. By reducing the rent burden for these families, we can stop homelessness and displacement before they start.”

“Shallow subsidies may prove to be a very valuable part of our range of strategies to reduce homelessness," said Kerry Abbott, Alameda County's Director of Homeless Care and Coordination. "Along with other housing solutions, deploying these supports helps individuals and families in need of housing stability, and promotes equity in our community.”

FROM FUNDERS and PARTNERS

“Kaiser Permanente recognizes that having safe, stable, and affordable housing is key to keeping people healthy and to improving the health of our communities,” said Yvette Radford, vice president, Kaiser Permanente Northern California External and Community Affairs. “As an organization committed to prevention, we are proud to support this common-sense approach to keep Oakland’s families and individuals healthy and secure in their homes.”

“Philanthropic dollars alone won't end poverty, but philanthropy can play a unique role by investing and testing new ideas to our most pressing problems, which government can then scale," said Sam Cobbs, CEO of Tipping Point Community, an early investor in the pilot. “The Shallow Subsidy pilot is a prime example of this, bringing together philanthropy, incredible nonprofit providers and government to help prevent homelessness for our neighbors and create a Bay Area where everyone has an opportunity to prosper.”

PARTNER BIOS

• Build a more trustworthy and responsive government
• Allow Oaklanders to stay rooted and thrive in our city
• Create a more vibrant and connected Oakland for all who live, work and play here.

This press release was produced by the City of Oakland. The views expressed here are the author’s own.