State Funding Cleans Up Contaminated Land, Enables Over 2,100 New Affordable Homes in Bay Area

New affordable housing units are opening up for low-income and unhoused residents across Richmond, Oakland, and Emeryville.

Mar. 29, 2026 at 6:29am

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More than 2,100 new affordable homes for low-income and unhoused Bay Area residents will be available thanks to state-funded cleanup of contamination on otherwise unusable land across the region. The Department of Toxic Substance Control (DTSC) provided funding and oversight to remove contamination at sites in Emeryville, Oakland, and Richmond, transforming former gas stations, auto repair shops, and dry cleaners into new affordable housing developments.

Why it matters

Thousands of properties across California sit vacant because of pollution left behind by past industrial and commercial uses. By cleaning up these contaminated 'brownfield' sites, DTSC is enabling the development of much-needed affordable housing in communities that have historically faced environmental and economic barriers.

The details

The new affordable housing includes 90 units at the Nellie Hannon Gateway in Emeryville, with 39 reserved for individuals exiting homelessness, as well as 76 units at the newly constructed Native American Health Center in Oakland and 43 units at Legacy Court in Richmond. DTSC's Equitable Communities Revitalization Grant program provided funding and oversight to make these developments possible by removing contaminants from the former dry cleaner, auto repair shop, and gas station/junkyard sites.

  • The opening of 90 new homes at the Nellie Hannon Gateway in Emeryville was celebrated in March 2026.
  • Seventy-six additional affordable homes will open later this spring at the newly constructed Native American Health Center in Oakland.
  • Forty-three homes opened in early March 2026 at Legacy Court in Richmond.

The players

Department of Toxic Substance Control (DTSC)

The state agency that oversees the investigation and cleanup of contaminated properties in California, providing funding and oversight to transform former industrial and commercial sites into new affordable housing developments.

Nellie Hannon Gateway

An affordable housing development in Emeryville that includes 90 new homes, with 39 units reserved for individuals exiting homelessness.

Native American Health Center

A newly constructed affordable housing development in Oakland that will include 76 units.

Legacy Court

A 43-unit affordable housing development in Richmond that opened in early March 2026.

Governor Gavin Newsom

The Governor of California who has made addressing the state's affordable housing and homelessness crises a top priority, including through initiatives to clean up contaminated properties for new development.

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What they’re saying

“Cleaning up contamination is an essential but often invisible part of solving California's housing crisis. We are transforming places once dominated by pollution into places of endless possibilities. This complex will be more than a place to live. It will be home for dozens of new residents.”

— Katherine Butler, DTSC Director

What’s next

DTSC plans to continue investing more than $130 million to clean up and reuse over 150 contaminated sites across 49 cities in California, preparing them for new affordable housing and other community developments.

The takeaway

By cleaning up former industrial and commercial sites contaminated with pollutants, DTSC is enabling the creation of over 2,100 new affordable homes for low-income and unhoused residents in the Bay Area, demonstrating how addressing environmental barriers can unlock opportunities for much-needed housing.