Kaiser Takes Wellness to Another Level

OAKLAND, CA—Kaiser Permanente is taking its role as a healthcare provider a step further to include a new housing plan. Kaiser recently unveiled several major initiatives that will improve health outcomes by creating stable housing for vulnerable populations.

The initiatives, including seeding a real estate investment in Oakland, anchoring a $100 million national loan fund for affordable housing and kicking off a plan to end homelessness for more than 500 Oakland-area residents, are part of a comprehensive strategy to advance the economic, social and environmental conditions for health in the communities that Kaiser Permanente serves.

“We know that differences in health are striking in communities with poor social determinants of health such as unstable housing, low income and unsafe neighborhoods.” said Richard Isaacs, MD, CEO and executive director of the Permanente Medical Group. “These innovative strategies are critically important steps toward the maintenance of health improvement, consistent health outcomes and California health equity.”

At a press conference with Oakland mayor Libby Schaaf and several partners, Kaiser Permanente chairman and CEO Bernard J. Tyson announced the first local impact investment from Kaiser Permanente’s $200 million Thriving Communities Fund.

“Housing security is a crucial health issue for vulnerable populations,” said Tyson. “Access to affordable housing is a key component to Kaiser Permanente’s mission to improve the health of our members and the communities we serve.”

Through the Housing for Health Fund, a new joint-equity fund between Enterprise Community Partners and Kaiser Permanente, an approximate $5.2 million has been committed to acquire a 41-unit housing complex in East Oakland near Kaiser Permanente’s national headquarters. As part of this real estate investment, Kaiser Permanente is partnering with Enterprise and the East Bay Asian Local Development Corporation to ensure the property, located in the San Antonio district of Oakland, gets needed upgrades and is preserved as affordable housing. East Bay Asian Local Development Corporation will also provide residents with the opportunity to get supportive social services, applying the organization’s Healthy Neighborhoods approach to community development.

“Through this partnership, we can maximize positive health outcomes in Oakland by supporting residents’ ability to remain in their homes,” says Joshua Simon, executive director of East Bay Asian Local Development Corporation. “This couldn’t come at a more critical time for San Antonio, a district on the brink of gentrification. To adequately address the urgent housing crisis we are facing in the Bay Area, we must think creatively and collaboratively. Housing is more than a roof over our heads; it is central to our health and well-being. We hope this fruitful partnership can serve as a powerful model for Oakland, California and the nation.”

East Bay Asian Local Development Corporation has deep roots in this neighborhood through building ownership and community partnership. It identified Kensington Gardens as a primary acquisition target in late 2017 and successfully took ownership for $8.7 million last year. It is the acquisition fund’s fifth property.

Kensington Gardens is a 41-unit apartment building located in the San Antonio neighborhood of East Oakland. There is a mix of studio and one-bedroom units, providing housing for approximately 50 residents.

East Bay Asian Local Development Corporation will keep rents at Kensington Gardens below market and prevent the potential displacement of existing tenants. In addition to acquiring the building and stabilizing the rents for low- and moderate-income tenants, the corporation will perform much-needed repairs, including roofing replacement, structural upgrades, new paint and window repairs, GlobeSt.com learns. The development corporation will also refresh interior lighting, plumbing, finishes and flooring where possible.

“We will also create an onsite management office,” Simon tells GlobeSt.com. “After 10 years, it will be possible to recapitalize the project to make way for major repairs, and to transition the building into permanently affordable housing under the low income housing tax credit resyndication program.”

The San Antonio neighborhood is one of the most racially diverse neighborhoods in the country. In recent census data, 67% of the population is non-white and 43% of residents are foreign-born. In one neighborhood school, at least 12 languages are spoken among its 910 students. The neighborhood offers access to public transit, shopping along International Boulevard, daycare centers and schools, national and local retail services, community services, faith-based institutions, parks and recreation centers. With a renter population of approximately 70%, and 27.5% of residents living below the poverty line, the San Antonio neighborhood is ripe for gentrification and displacement.

As part of the East Bay Asian Local Development Corporation portfolio, Kensington Gardens’ residents will also receive free access to the social services provided to all residents, including assistance with income tax preparation, classes in financial management, and referrals for public and private assistance for which they may qualify. Access to these social services has proven to ease financial stress and to help tenants stay in their homes and their communities for longer periods of time, thus improving residents’ health, and the stability and community ties within the neighborhood.

In addition, Kaiser’s Tyson joined Enterprise Community Partners president Laurel Blatchford to announce a second fund that will finance the development and preservation of affordable housing. In addition to the Housing for Health Fund, Kaiser Permanente and Enterprise will launch a $100 million loan fund to create and preserve multifamily rental homes for low-income residents throughout Kaiser Permanente’s service areas. Enterprise matched Kaiser Permanente’s $50 million commitment for the total $100 million available for investment.

“Enterprise is excited to be a leader in this innovative effort, and we have seen that uniting the housing and healthcare sectors, and making creative use of investment capital will foster healthy homes and communities,” said Laurel Blatchford, president of Enterprise. “Collaborating with partners such as Kaiser Permanente and East Bay Asian Local Development Corporation, which also understands that home is at the foundation of health and well-being, and will improve thousands of lives across the country.”

Oakland has been hit particularly hard by the housing crisis. Between 2015 and 2017, homelessness in the city has increased 25%.

“Improving access to affordable housing is one of the most impactful community interventions we can make to eliminate homelessness,” said Janet Liang, regional president for Kaiser Permanente of Northern California. “This new investment complements several strategies we have sponsored over the past year to help all Oakland residents thrive.”

Kaiser Permanente announced a significant effort to end homelessness for individuals in Oakland who are older than 50 and have at least one chronic condition. Kaiser Permanente, working with a community partner, identified 500 particularly vulnerable individuals and are now working with the city, Alameda County and other community partners to secure housing and other vital services for the individuals on this list.

“The health and wellness of Oakland is tied to housing in Oakland,” said Schaaf. “I’m grateful for partners like Kaiser Permanente, East Bay Asian Local Development Corporation and Enterprise who are taking a new approach to improving the health outcomes of all our residents by improving housing security for our most vulnerable residents. This is a bold investment to improve our city’s health, and we will continue to innovate and create new pathways until all Oakland residents, in all neighborhoods, feel secure in their housing.”