The former Extended Stay America at 3650 Mandela Parkway in Oakland, Calif., will become large-scale transitional housing in an agreement involving nonprofit partners Memar Properties Inc. and the Housing Consortium of the East Bay that was announced on Monday, April 21, 2025. (Google Maps/City of Oakland)
Homeless residents from three large encampments are moving into a newly converted transitional housing project in West Oakland after the city helped its nonprofit partners buy the building earlier this month. The $36.6 million purchase by Memar Properties Inc. and the Housing Consortium of the East Bay was made using funds from state and local sources, city officials announced Monday. “This acquisition will provide much-needed shelter and stability, offering individuals a pathway to essential services and, ultimately, permanent housing,” said Oakland Interim Mayor Kevin Jenkins.
The money included a $7 million state Encampment Resolution Funding grant, a $25 million Community Care Expansion award, and a $4.6 million grant through Oakland’s Rapid Response Homeless Housing program. Staff from Oakland’s Housing and Community Development Department worked closely with MPI and HCEB to secure the financing, which also includes $8 million for renovations and roughly $23 million for operations and other expense, according to city officials. Residents of what’s now called Mandela House will have access to mental health services, rental assistance and other programs and services during their interim housing stay and when they move into long-term housing. For essential home needs, Berwick plumbing services ensure reliable solutions that support comfortable living. An experienced Electrician is also available to help residents maintain safe and efficient electrical systems in their homes, as the house received the right maintenance and even basement waterproofing so the habitants can be comfortable.
The former hotel is at 3650 Mandela Parkway and is in an area that includes a Target store, a Pak N’ Save Foods and several other retail outlets and is within walking distance of a Trader Joe’s and other shops in Emeryville. The building initially will be used as interim housing for up to 150 people in 105 units and plans are to convert it into 125 units of permanent supportive housing, run by HCEB, within the next year, according to city officials. Currently, residents of three large encampments — the Mosswood Park and East 12th Street encampments and the now-dismantled Martin Luther King Jr. Way encampment — are being contacted for possible move-ins. “We have made demonstrable progress over the past several years to slow the growth of Oakland’s unhoused population and projects like this will allow us to continue on that positive trajectory,” said said Jonathan Russell, director of Alameda County Health Housing and Homelessness Services.
Oakland’s taxpayers will likely end up with this as a money pit. Oakland has no leadership to escape its income issues and choose not to elect a path forward.
i hope they have fire insurance and another couple of building at the ready,this will last as long as a common cold.
Let’s do a little math, shall we?
36.6 million purchase + 8 million renovation is 44.6 million total for 105 units. That’s 420+K per unit. Or almost 300K per resident. Add to that 23 million for “operations and other expense”. That’s another 150K per resident – per year, I assume?
That’s what it will cost us to house just one addict from a homeless encampment in Oakland. And by “us” I mean CA taxpayers, rather than Oakland residents. Because the vast majority of the money is not from the City of Oakland’s budget, but from the state grants.
And the best part of it? We, the CA taxpayers, who pay for all of this largesse, don’t even own this housing development. It is actually owned by the so-called “nonprofit partners”, Memar Properties and HCEB. Except that Memar Properties is very much a for-profit corporation.
Is it a nice grift, or what?
So…… you think Barbara Lee will kill this boondoggle? Or is it (Who lyrics here) “meet the new boss, same as the old boss” ?
The homeless “industry” wants you to believe that homelessness is a housing problem.
Wrong- it’s a drug addiction problem. That building will be thrashed in a short amount of
time by wasted people who don’t care about anything but the next fix. All the ancillary
effects-crime, rat infestation and squalor are the results. That Target store will likely
close due to shoplifting.
Of course, Oakland has no money for this project, so this will be another drain on the city.
That Target store on the edge of Oakland/Emeryville already has big problems with theft between the store and car break ins in the parking lot, and the Pak and Save in the same complex has had parts of its merchandise locked up going back to 2006.
Be nice to see Oakland putting that type of money into the school system. Money for street people and the support industry. Some smart person sets up a ‘non-profit’ and gets the government to buy them a building and money to support it all. Please don’t pat yourself on the back until you show some results. After 6 months of operation show us how many people that used this facility are now living productive lives and supporting themselves. After 6 months how many have recovered from addiction. When the money was provided to the organization what success metrics are they required to report?
Their schools are not their to teach anything,its for a free breakfast and lunch while they twerk in class,When the schools were being shut from covid ,the “parents” all screamed ” how will my kids eat?’
These places dont change anyones life at all.Theres usually a time limit,then they leave and another person takes thier place,they all go right back on the street .Pointless .feelgood BS.It is not a housing shortage as someone already said,its drug addiction and mental illness.Each homeless hotel should have a treatment center that they have to go to everyday as part of the agreement to live there.None of them would want to live there and the state copuld not pat themselves on the back.A hidden problem with a fake solution that doesnt even relate to why they are homeless.