City Government, Community

State Route 238 lands on pace to set new mark for affordable housing creation

February 9, 2021

A 14-mile stretch of property once intended for construction of a State Route 238 bypass freeway is now on course to potentially yield more than 1400 new homes—with more than 400 to be rented or sold at below market rates affordable to low- and middle-income households. 

Though longer-term impacts of the coronavirus pandemic and future market conditions will affect the final outcome, the share of total housing development on the former SR 238 lands to be designated affordable and restricted to income-qualifying households could exceed 30 percent, based on current development activity and planning scenarios. 

The City of Hayward acquired 10 parcel groups of SR 238 lands from the California Department of Transportation (Caltrans) in 2016. Under the terms of the purchase and a subsequent amendment to the deal, Hayward has until 2027 to reach development agreements for each of the parcels or ownership of the remaining properties reverts to the State agency. 

Thus far, the new SoHay community of 472 homes on Parcel Groups 1 & 10 on Mission Boulevard near the South Hayward BART station is under construction and nearing completion, while the other eight parcels are in various stages of community-based planning, marketing and negotiation with potential developers. 

For more information and to follow the progress on each of the parcels, go online to the State Route 238 lands project page on the City of Hayward website.