City Council allocates $2M for affordable housing projects in Walnut Creek

In a significant move to bolster affordable housing in Walnut Creek, the City Council has approved the allocation of $2 million in grant funds to two developers. This decision, made during the council meeting on May 20, 2025, marks a pivotal shift in the city’s approach to funding affordable housing projects.

The council awarded $1 million to Habitat for Humanity for the Esperanza Place Phase 2 project, which aims to create 19 low and moderate-income homes. Additionally, a conditional $1 million grant was given to Resources for Community Development for the Civic Crossing project, which will provide 93 affordable rental units. This funding comes as part of a newly established annual Request for Proposals (RFP) process, replacing the previous rolling application system that often favored early applicants.

Jennifer Amas, a housing analyst in the community development department, explained that this new process is designed to ensure equitable access to funding. The city has historically relied on fees collected from developers—specifically the affordable housing in lieu fee and the commercial linkage fee—to support these initiatives. Over the years, Walnut Creek has awarded approximately $30 million in total for affordable housing projects.

However, the council also discussed potential challenges ahead. Recent cuts to state funding for affordable housing could impact future projects, although RCD has secured necessary state funding for Civic Crossing. Habitat for Humanity is actively seeking to restore funding through state channels.

As the city navigates these financial hurdles, the council remains committed to enhancing affordable housing options, with the recent grants seen as a crucial step forward in addressing the community's housing needs. The remaining balance in the affordable housing fund after these awards will be approximately $2 million, indicating ongoing opportunities for future projects.