Kaiser Permanente is looking to improve the health of Oakland, Calif., residents not with medical treatment but by creating affordable housing for the area’s most needy.

The health-care giant announced three major moves this week all aimed at delivering stable housing in a region struggling with high housing costs and homelessness.

"As an organization, we have been working on total health. We better understand the direct relationship of the social determinants of that and what in fact is a healthy environment that helps an individual, a family, a community to thrive," says Bernard J. Tyson, chairman and CEO of Kaiser Permanente. "One of those fundamental necessities is a home."
"As an organization, we have been working on total health. We better understand the direct relationship of the social determinants of that and what in fact is a healthy environment that helps an individual, a family, a community to thrive," says Bernard J. Tyson, chairman and CEO of Kaiser Permanente. "One of those fundamental necessities is a home."

Kaiser Permanente’s deep dive emphasizes the growing understanding of the direct relationship between health and housing.

First, the company announced that it has provided $5.2 million to help finance the acquisition of a 41-unit housing complex in East Oakland, near the company’s national headquarters. It’s the first local impact investment from its $200 million Thriving Communities Fund.

The funding will help nonprofit East Bay Asian Local Development Corp. (EBALDC) ensure the property is upgraded and preserved as affordable housing. The investment is being made through a new joint equity fund with Enterprise Community Partners.

“Our purchase of the Kensington Gardens apartments with the Housing for Health Fund is an innovative approach addressing high housing costs, disruptions, displacement, and prevention of homelessness,” said Joshua Simon, EBALDC executive director. “These problems are really too complex for any one organization to address. It takes collaboration. It takes many partners working together to build healthy neighborhoods.”

The idea of converting market-rate housing into protected affordable housing in a gentrifying neighborhoods is not the normal way of doing business, said Oakland mayor Libby Schaaf at a press conference with Kaiser Permanente leaders.

“As the mayor, I am very clear that no one deserves to spend a single night on the street. No one should spend sleepless nights fearing that their family may be displaced on their housing,” says Libby Schaaf, mayor of Oakland, Calif.
“As the mayor, I am very clear that no one deserves to spend a single night on the street. No one should spend sleepless nights fearing that their family may be displaced on their housing,” says Libby Schaaf, mayor of Oakland, Calif.

“We from the beginning of wrapping our arms around the housing crisis in Oakland have recognized that we don’t have the time or the money to just build our way out of the problem,” she said. “Producing new housing is critical, but traditionally affordable housing developers have looked to build new. This strategy is unique. This is a call to action to other affordable housing developers to join this strategy.”

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

The investment in the EBALDC project is just a first step for Kaiser Permanente.

The company and Enterprise also announced a $100 million loan initiative to create and preserve multifamily rental homes for low-income residents throughout the health system’s service areas. Enterprise matched Kaiser Permanente’s $50 million commitment to provide a total $100 million available for investment.

Finally, Kaiser Permanente is working to end homelessness for more than 500 people in Oakland, who are older than 50 and have at least one chronic condition. The company took part in a recent 12-week project to identify the vulnerable residents and is collaborating with Oakland and Alameda County officials to secure housing and services for those on the list.

“At Kaiser Permanente we believe that in the 21st century there’s certain things that we should resolve and certain principles we should stand for,” said Bernard J. Tyson, chairman and CEO of the company. “To that end, we believe the notion or the idea that someone would have to go to bed on the streets of America as their home is unacceptable in the wealthiest country that we all live in.”
Rather than sitting on the sidelines, Tyson said he believes in “getting in traffic” and doing something about the problem.

“We know that differences in health outcomes are directly related. Well, they’re striking in communities that have difficult housing situations and unstable and unsafe environments,” added Dr. Richard Isaacs, CEO and executive director of The Permanente Medical Group. “Without a safe, stable place to live, it’s very difficult to maintain the health outcomes that we achieve in the medical sector.”

He said the housing initiatives are the biggest steps taken by Kaiser in his 23 years with the organization.

“There’s no question this will have an impact on the health of the community, and we will also become a model for other cities to follow,” Isaacs said.

Laurel Blatchford, president of Enterprise, said uniting the health-care and housing sectors will foster healthy homes and communities. She said she’s confident about the upcoming efforts “because they reflect approaches that we know work.”