BlackPressUSA

State May Scale Down Its New Home Loan Program Designed to Assist First-Time Homebuyers

Published

4 years ago

April 3, 2023

BlackPressUSA Newswire

By Alejandro Lazo
CalMatters

In this economy, who has enough money for a down payment on a house?

Despite a projected $25 billion budget deficit, the state of California does. At least for now.

The California Housing Finance Agency is poised to launch a scaled-down version of its new shared equity home loan program on March 27. With the Dream for All program, the state plans to provide $300 million worth of down payments for an estimated 2,300 first-time homebuyers.

The complicated program involves the state paying some or all of the upfront costs for buying a home — the down payment, for instance — in exchange for a share in the home’s value when it is sold, refinanced or transferred.

If the home appreciates in value, those gains to the state would then be used to fund the next borrowers — a little for the seller; a little for the next aspiring buyer.

Everybody wins — as long as prices go up.

The trouble is that home prices have been declining in the state for months, even as higher mortgage interest rates have made monthly mortgage payments more expensive.

A potential economic downturn looms as well, as the Federal Reserve weighs raising borrowing costs even further as soon as today.

And California’s tech industry is taking a beating and laying off workers, contributing to a decline in personal incomes. Income taxes are the state’s biggest revenue source.

Given the uncertainty, Gov. Gavin Newsom in January proposed a significantly smaller version of the 10-year, $10 billion program originally envisioned by Senate President Pro Tem Toni Atkins, a Democrat from San Diego. In his January budget, Newsom proposed spending an initial $300 million on the program, a cut from the $500 million compromise signed last year.

Optimism and expectations

The size and scope of the Dream for All program will likely be a subject of negotiations between Newsom and the overwhelmingly Democratic Legislature this year. The governor is expected to offer a revised state spending plan and a new financial forecast in May. Lawmakers must pass a balanced budget by June 15 in order to get paid.

The proposed cut “will not impact the Administration’s commitment or timeline for implementing the program,” Newsom’s Department of Finance said in January.

In a Feb. 13 email to CalMatters, Christopher Woods, budget director for Atkins, said her office will seek more funding for the program.

“The Governor ‘proposing’ to pull back some funds has very little to do with what will actually happen,” Woods wrote to CalMatters, in response to earlier coverage of the program. “No one should expect the program to be cut, and we should all fully expect additional funds — perhaps as much as $1 billion — to be allocated in the 2023-24 Budget Act.”

“With interest rates rising, the program is needed more than ever … and there are several innovative ways to fund the program,” Woods wrote.

Woods declined to answer follow-up questions for this story.

Atkins, who championed the equity sharing program last year, has said the Dream for All program is a priority. She said in a recent statement she isn’t giving up on getting more money for it.

“Our state is about to launch a program that will help change people’s lives for the better, and make the dream of homeownership a reality,” she said. “While existing funding for the California Dream for All is a great first step, we are working to allocate additional funding in the upcoming state budget — with the ultimate goal of providing $1 billion per year — to help even more families set the foundation for building generational wealth.”

Falling equity

The uncertainty in the economy and housing market has been a subject of discussion at CalHFA for months, as officials and political appointees seek to launch a program meant to take advantage of rising home prices at the very moment home equity is falling.

State officials said buyers positioned to hold onto a property for the long-term are those best suited for the program when home prices are falling.

In a presentation to its board of directors in January, CalHFA officials also said the agency is planning for a program with a potentially “very short life cycle.”

“Having lived the dream of buying a house in Los Angeles in 1989, when the market peaked, and then selling it at a loss almost a decade later, I can appreciate that the market doesn’t always go up,” Jim Cervantes, CalHFA’s chair, said during that Jan. 19 meeting.

“Disclosures, whatever we can do to mitigate — or rather, have prospective buyers understand what they’re getting into — would be extremely valuable, because no one’s a good market timer.”

California home prices, already rising for years, saw big gains during the pandemic, as mortgage interest rates hit historic lows and families sought more space for their remote work set-ups to practice social distancing.

The median price of a previously-owned, single-family home in California, as tracked by the California Association of Realtors, increased 47% from March 2020 to May 2022, when it peaked at $900,170.

That same month the Federal Reserve, in order to tackle inflation, began its most aggressive interest rate hikes in years driving up mortgage costs for consumers.

Since May 2022, the state’s median home price has fallen 16.5% to hit $751,330 in January.

Market change

Despite the decline in home prices, monthly mortgage costs continue to make the state’s housing market more unaffordable than at nearly any point in the last 15 years, particularly for lower- and middle-class families. Only 17% of families in California could afford a median-priced single family home at the end of last year, according to the Realtors group.

Given the rapid market changes, Tiena Johnson Hall, CalHFA’s executive director, called the governor’s reductions in Dream for All funding prudent at CalHFA’s January meeting. “There’s still a lot of room for (home) values to continue to decrease, and that is what we expect to see,” she said.

In February, the state’s nonpartisan legislative analyst projected a revised $25 billion deficit in next year’s state budget. Since then, job growth nationally and in California has remained strong, except for layoffs in the tech sector.

The full details of the Dream for All program — for instance, which lenders will offer the shared equity loans to borrowers — are not yet available from CalHFA.

And loans will not be immediately available to consumers when the program launches this month. Lenders will need a month to six weeks to roll out the loans and begin marketing them to consumers, said Ellen Martin, a CalHFA official tasked with designing the program.

“We do know that there’s a lot of excitement out there,” Martin told CalMatters in a recent interview.

How it will work

Some details have been revealed in CalHFA board meetings, public hearings and a report to the state Legislature. Here are some of the program’s key components.

The loans will not be available for all Californians. Only those who earn 150% or less of the median income of others in their county qualify. Those income limits vary by county, with $300,000 being the cut-off in pricey Santa Clara and San Francisco counties, but $159,000 for many inland counties such as Fresno and Merced.
The loans will cover as much as 20% of a home purchase. Whenever a home is sold, transferred or refinanced, a borrower will owe the state the original amount the state invested, plus a percentage of the home’s increase in value. If the original loan was 20 percent of a home’s value, the seller would owe the state the original loan plus 20 percent of its increased value, though that amount would be capped at 250% of the original loan amount.
A social equity feature of the program will be included for those who earn as much as 80% of the area median income. They will get to keep more of their equity when they sell, refinance or transfer their properties than others with higher incomes. Also about 10% of the initial state funds, or $30 million, will be reserved for those lower-income borrowers.
The loans can be used to fund down payments and closing costs, including interest rate buydowns.
Given the complexity of the program, borrowers will be required to complete a homebuyer education course.

Advocates’ concerns

The complexity of the program has some consumer advocates worried.

Lisa Sitkin, a senior staff attorney with the National Housing Law Project, said it would be wise for the agency to ensure borrowers receive periodic notices about the loan’s atypical details.

“As time goes by, people tend to forget and treat it as a normal loan, and I think it is useful for people planning to be reminded,” said Sitkin, a member of a working group advising CalHFA on the program.

A proposal to sell the loans as mortgage-backed securities also has her worried. California officials are exploring the idea of pooling the shared equity loans into securities and selling them to investors, to help provide additional money for other borrowers.

Many Wall Street financial institutions bundled often poor-quality mortgage loans into securities during real estate’s boom years and sold them to major investors. But during the years of downturn, getting help to homeowners was complicated by the difficulties identifying who exactly owned these loans.

“If they are sold into private, securitized trusts there is a lack of transparency about who owns your debt, and a lack of information about options if there are problems,” Sitkins said. “I really want to be sure that there are guardrails and protections for the borrowers.”

Consumers are cautious

As CalHFA officials were designing the program last year, they held several listening sessions online, taking comments from the public. Jake Lawrence, a 41-year-old cannabis entrepreneur in Willits who also runs a nonprofit, said he liked what he heard.

“I’m very interested. The problem we face is that there’s such a flux in what’s going on,” Lawrence said. “We’re in the middle of a housing market bust, so we’re gonna watch prices tumble for a minute.”

What’s more, one of the county’s biggest industries, the marijuana trade, has been hit hard by declines in cannabis prices. “It’s beyond suffering,” Lawrence said.

Lawrence also wondered how the state will calculate equity if he makes improvements to a home.

Despite his questions, he is considering the idea.

“It doesn’t hurt my feelings to share equity with someone who invests in me,” he said of the state. “And anybody that understands any kind of financial literacy should understand an investor should be able to have their expected ROI (return on investment). For me, I have zero issue with the idea.”

Copyright © 2023 Bay City News, Inc. All rights reserved. Republication, rebroadcast or redistribution without the express written consent of Bay City News, Inc. is prohibited. Bay City News is a 24/7 news service covering the greater Bay Area.

The post State May Scale Down Its New Home Loan Program Designed to Assist First-Time Homebuyers first appeared on Post News Group. This article originally appeared in Post News Group.

Up Next

Man, Woman Arrested in Connection With Fatal Shooting

Don't Miss

Report Pamela Price’s Achievements in First 75 Days as Alameda County DA

BlackPressUSA Newswire

Comments

BlackPressUSA

Mathew Knowles Shares Breast Cancer Survival Story at Houston’s Inaugural Pearl’s Pink Promise Gala

Breast cancer survivor Dr. Mathew Knowles shared his journey of early detection and self-advocacy at Houston’s inaugural Pearl’s Pink Promise Gala, hosted by Dr. Ashley LaRue to honor her grandmother and raise awareness about breast cancer.

Published

2 days ago

October 19, 2026

Totally Randie

Dr. LaRue, founder of Pearl's Pink Promise, and Mathew Knowles

On Friday, October 16, Houston-based therapist and television personality Dr. Ashley LaRue hosted the inaugural Pearl’s Pink Promise Gala at the Omni Hotel—turning personal grief into an urgent public health movement.

The gala honored the memory of LaRue’s grandmother, Pearline, who passed away from breast cancer in 2025. What began as a granddaughter’s tribute became an all-pink, curated experience with a pink-carpet arrival, a cocktail reception, and a room packed with advocates, survivors, and civic leaders.

Dr. LaRue, founder of Pearl’s Pink Promise Photo: TotallyRandie

Pink Promise Event. Photo: TotallyRandie

Throughout the evening, 15 distinguished honorees were recognized for their resilience and service. But the night’s emotional centerpiece was the guest of honor: global music executive, author, and breast cancer survivor Dr. Mathew Knowles.

In 2019, Dr. Knowles publicly revealed his diagnosis, shattering cultural taboos around male breast cancer. During an intimate 30-minute fireside chat moderated by Dr. LaRue, Knowles delivered a candid, masterclass-level lesson on self-advocacy. He recounted the exact moment he knew something was wrong after noticing blood on his shirt—a warning sign that prompted him to immediately request comprehensive testing.

Knowles reflected on the difficult conversations that followed with his daughters and family, emphasizing that early detection and understanding personal genetic risk saved his life. The conversation quickly shifted into an open exchange with the room, leaving several attendees moved to tears as audience members shared their own experiences with diagnosis and caregiving.

“This experience has made me so proud, and my heart is filled with joy,” Dr. LaRue shared.
For LaRue, Pearl’s Pink Promise isn’t a one-and-done October event. Moving forward, she plans to expand the initiative to include year-round safe spaces, community resources, and educational programs tailored to both men and women navigating complex medical diagnoses.

To learn more about Pearls Pink Promise, visit: https://www.pearlspinkpromise.com

MathewKnowles,HoustonEvents,Houston,BreastCancerAwarenessMonth,BreastCancer,AshleyLaRue,PearlsPinkPromise,Cancer,Houston,Texas,BreastHealth,Healthcare

Black Press

Mayor Barbara Lee Holds Special State of the City Address in Deep East Oakland

Published

2 days ago

October 19, 2026

BlackPressUSA Newswire

Oakland Mayor Barbara Lee, left. moderated a community chat with (l.to r.) Selena Wilson, CEO of the East Oakland Youth Development Center; Carolyn “CJ” Johnson, CEO of the Black Cultural Zone; Dr. Noha Aboelata, CEO of Roots Health Center and Greg Hodge, CEO of the Brotherhood of Elders.

By Special to The Post

In partnership with Rise East and the 40×40 Council, Oakland Mayor Barbara Lee held a special 2026 State of the City East Oakland community conversation on Oct. 14.

The purpose of bringing a State of the City address directly to the community was to celebrate East Oakland, highlight the work underway, and look ahead to what neighbors, local businesses, youth, funders, community organizations, and partners can accomplish together.

Held at the Roots Community Health/Parker Elementary School Campus at 7929 Ney Ave., the event was emceed by special guest Mark Curry, Oakland native, comedian, and actor.

Lee shared how Rise East and the 40×40 Council have brought together the knowledge, relationships, and resources of people and organizations committed to East Oakland.

Residents bring lived experience, community organizations bring trusted relationships and philanthropy, and businesses bring resources and opportunity, she said, then turned to the government’s role: public investment, services and policy.

But, Lee intoned, City Hall has a responsibility to help connect those efforts.

“I am committed to listening to residents, working across departments and sectors, and helping open doors to opportunity. We must connect neighborhood priorities to the decisions we make about housing, economic development, safety, health and our young people.

City Hall “must be accountable for the results,” Lee said. “The measure of success is what families experience: greater stability, more opportunity and a stronger sense that they belong and have a future here.

“Tonight is an opportunity to listen to the leaders doing this work, learn what is making a difference and identify where we can do more together,” the mayor said.

Lee went on to moderate a ‘fireside chat’ on the theme: Building Oakland’s Future Together — From Neighborhood Investment to Community Empowerment with:

Selena Wilson, CEO, East Oakland Youth Development Center
Greg Hodge, CEO, Brotherhood of Elders
Carolyn “CJ” Johnson, CEO, Black Cultural Zone
Dr. Noha Aboelata, CEO, Roots Health Center

Mayor Barbara Lee’s media relations department provided this report.

Black History

Practitioners of African Traditional Spirituality Offer Ancestral Reverence Ritual Oct. 31

The Council for Global Ancestral Reverence will host “Ancestral Souls Rising” from Oct. 31 to Nov. 2, featuring a three-day gathering of prayer and discussion. Led by elders and priests across the African diaspora, the seventh annual ritual honors those lost without traditional rites while addressing current social challenges. This year’s event connects ancestral wisdom with contemporary issues, including a two-day conversation inspired by Afro-Beat music focused on Black community solidarity and the sacred importance of voting. Read more for details on the ritual schedule and participants.

Published

2 days ago

October 19, 2026

BlackPressUSA Newswire

Oakland native Nedra Williams writes sacred symbols on the ground in San Leandro. Courtesy photo.

By Special to The Post

The Council for Global Ancestral Reverence (C4GAR), a group of elders who practice African traditional spirituality, will lead a three-day gathering of prayer and discussion from Oct. 31-Nov. 2.

Called ‘Ancestral Souls Rising,’ the council members and 21 priests will lead the prayers from many parts of the African diaspora: Africa, Portugal, and across the U.S. from Maryland to the Bay Area.

Now in its seventh year, the annual ritual began during the 2020 pandemic when hundreds of thousands of people died alone and were buried in mass graves without rites and rituals according to loved ones’ traditions.

This prayer event was and is intended to give peace to the departed and comfort for the living who still mourn. Each year, we gather names of new ancestors from living elders to elevate them into the “Great Hall of the Titans.”

In ensuing years, C4GAR added themes to the prayer gathering that referenced current events. In 2024, before the consequential presidential election, C4GAR called on people to vote, invoking the memory of Civil Rights Movement heroes and heroines like John Lewis, who urged “Good Trouble,” and Fannie Lou Hamer, who famously declared that she was “sick and tired of being sick and tired.”

The day of global Prayer on Oct. 31 will be followed by a two-day conversation inspired by “The Blueprint,” an Afro-Beat song by UyiosaEl, to write our new blueprint that supports solidarity and action in the Black community.

“Our elders have, for many generations, known the power of prayer, ritual and breath,” the council said in a statement.

It was and is their intention, then, to use the cultural wisdom, the gift of prayer “and the most sacred thing we have, our breath, to send energy into the world that invokes and honors our ancestors,” the council statement continued.

“Doing this creates a vibration that protects us and employs their ancient wisdom for the well-being of our communities,” the elders said.

The councilmembers, all over the age of 60, recognize that what is now history for so many was once their lived experience. And that history, those joys and sorrows, are now in their bodies.

To them, the uttered prayer and the sacred breath are oaths to an unfolding future that people can still shape.

The council members are Dr. Iyabeji Cathy Royal, Iyalocha Jennifer Dillard, Manbo Charlene Desir (Florida), Nana Sula Spirit (Louisiana), Baba Obafemi Feyemi, Ohen Nedra T. Williams, and Iyalocha Wanda Ravernell-Stewart Emeritus (Oakland).

This year, they also encourage everyone within their reach to VOTE because it is not only a secular and political act, but a sacred one. Remember, the ancestors were denied that right and died for it.

For tickets, go to:

https://www.eventbrite.com/e/council-for-global-ancestral-reverence-presents-ancestral-souls-rising-26-tickets-2003127345814?aff=oddtdtcreator

Black Press

It’s Time to Lose Weight Before the Holidays

Licensed internist Dr. H. Geoffrey Watson has joined gastroenterologist Dr. Ralph Peterson at Oakland’s MacArthur GI to address the rising obesity epidemic. With U.S. obesity rates reaching 42.4%, the clinic offers supervised weight-loss programs and screenings for fatty liver disease. Treatments include dietary counseling and various medications, such as GLP-1 receptor agonists, which regulate digestion and appetite. As certain populations continue to be disproportionately affected by chronic health conditions, medical experts are highlighting new tools available to help patients reach their goals before the holiday season. Read more.

Published

2 days ago

October 19, 2026

BlackPressUSA Newswire

Dr. H. Geoffrey Watson. File photo.

By Special to The Post

Dr. H. Geoffrey Watson, a licensed internist, has joined renowned gastroenterologist Dr. Ralph Peterson at MacArthur GI in Oakland to address obesity, provide supervised weight-loss programs including GLP-1 therapy, and screen for and treat fatty liver disease.

The Obesity Epidemic

Obesity is associated with numerous chronic health problems, including hypertension, diabetes, heart disease, sleep apnea, asthma, depression, joint disorders, fatty liver disease, and high cholesterol. Its causes include genetics, environment, stress, medication side effects, hormonal imbalances, and other factors.

Since 1999, the prevalence of obesity in the United States has risen from 30.5% to 42.4%. Childhood obesity rates are also climbing, with approximately 19.3% of children and adolescents now affected.

Measuring Obesity: Body Mass Index

Obesity is measured using a formula called the Body Mass Index (BMI). You can calculate your own BMI on most smartphones by searching “BMI calculator” and entering your height and weight. A BMI of 25 to 29.9 is classified as overweight, and a BMI of 30 or greater is classified as obese.

Populations Disproportionately Affected

Obesity affects certain populations at higher rates. Among U.S. adults, obesity prevalence is 49.9% in Black adults, 45.6% in Hispanic adults, 41.4% in White adults, and 16.1% in Asian adults.

Treatment Options

A variety of treatments are available for obesity, including dietary counseling, exercise programs, bariatric surgery, and anti-obesity medications.

Common oral medications include:

• Adipex (phentermine): A stimulant that works by suppressing appetite.

• Contrave (bupropion/naltrexone): A combination of an antidepressant and an anti-addiction medication that helps control appetite and cravings.

• Qsymia (phentermine/topiramate): A combination of a stimulant and an anti-seizure medication that reduces appetite and cravings.

GLP-1 Receptor Agonist Therapy

Glucagon-like peptide-1 (GLP-1) receptor agonists were originally approved to treat type 2 diabetes. GLP-1 is a hormone produced naturally by the body that regulates digestion, blood sugar, and appetite by communicating with GLP-1 receptor cells throughout the digestive tract. These medications reduce cravings, appetite, and food intake by influencing the hunger hormones ghrelin, which stimulates hunger, and leptin, which signals fullness.

What We Offer

Drs. Peterson and Watson provide FDA-approved tirzepatide injections, a GLP-1 receptor agonist medication indicated for weight management. Each patient receives a comprehensive history and physical examination to ensure the safety and appropriateness of the medication as part of an overall weight-loss protocol. Dr. Peterson also offers ultrasound screening for fatty liver disease.

We look forward to helping you reach your weight-loss goals and feel your best this holiday season.

H. Geoffrey Watson, M.D., runs the MacArthur GI Clinic at 10520 MacArthur Blvd., Oakland, CA. He can be reached at (510) 562-7467.

Black Press

Trader Vic’s Returns to Its Oakland Roots

Trader Vic’s, the internationally recognized brand and birthplace of the original Mai Tai, has officially returned to its roots in Oakland. Originally founded in 1934 on San Pablo Avenue before moving to Emeryville, the hospitality giant has launched Trader Vic’s Outpost at Oakland International Airport’s Terminal 2. The new full-service location offers travelers breakfast, lunch, dinner, and cocktails in a 108-seat space designed to celebrate the city’s status as a top national food destination. Visit the website to read more.

Published

2 days ago

October 19, 2026

BlackPressUSA Newswire

Oakland Mayor Barbara Lee cuts the ribbon at the official opening of Trader Vic’s Outpost and Plum Market at Oakland International Airport. She is assisted by U.S. Rep. Lateefah Simon as Port of Oakland Board President Stephanie Dominguez Walton, left, and representatives from Trader Vic's, Plum Market, look on. Photo courtesy of the mayor’s office.

By Special to The Post

Oakland has always been a city of innovators, entrepreneurs, visionaries, and world-class hospitality. Trader Vic’s—the birthplace of the original Mai Tai – first opened in Oakland back in 1934 on San Pablo Avenue, long before becoming an internationally recognized global brand.

More than 50 years after it moved to Emeryville, Trader Vic’s is returning to its roots. Oakland Mayor Barbara Lee touts the return as another victory for Oakland.

“My administration is deeply committed to backing businesses like Trader Vic’s and Plum Market—partners who invest in our city, uplift our local workforce, and support thousands of local jobs,” Lee said.

The latest Trader Vic’s – called Trader Vic’s Outpost – is located at the Oakland International Airport in Terminal 2 near Gate 25 and had a soft opening in August.

With 108 dining seats, 28 bar seats and a counter for standing-room customers, travelers from around the world can have a full-service restaurant and bar experience or take-out for those with planes to catch.

Open from 6 a.m. to 10 p.m., breakfast, lunch, dinner, cocktails will be served.

Trader Vic’s returning to its roots confirms Condé Nast’s decision to name Oakland the #1 Food City in America two years in a row, and just earlier this month, ranked Oakland #6 on their list of Best Cities in the U.S.!

“The opening at OAK is incredibly meaningful for us,” said Rhett Rosen, CEO of Trader Vic’s Hospitality Group, according to the company website. “Trader Vic’s was born in the Bay Area, and this new location gives us the chance to welcome travelers with a taste of that original spirit before they take off. It brings together everything people love about Trader Vic’s — great cocktails, flavorful food, warm hospitality and a little sense of escape — in a place that connects Oakland to the world.”

Trader Vic’s is an Oakland institution and one of the region’s most recognizable hospitality brands, said Port of Oakland Director of Aviation Craig Simon on the web site.

“Travelers are increasingly seeking dining options that are memorable, locally rooted, and uniquely representative of the communities they are visiting. Trader Vic’s delivers all of that while providing a high-quality food and beverage experience for our guests. We are proud to welcome this hometown favorite to Terminal 2,”

The original Trader Vic’s in Oakland:

In 1934, with an investment of $500, Bergeron opened his initially small restaurant at 65th Avenue and San Pablo, serving comfort foods for lunch and dinner and beers and whiskeys. As his clientele grew, so did his restaurant, expanding space and menu options. After visiting this establishment, famed San Francisco Chronicle columnist Herb Caen proclaimed that the “best restaurant in San Francisco is in Oakland.”

There were as many as 25 franchises worldwide, including the U.S. Trader Vic’s is now headquartered in Martinez.

Black Press

Oakland Coal Terminal Backed by Trump Would Be Bigger, Dirtier Than Promised, Says Report

Published

2 days ago

October 19, 2026

BlackPressUSA Newswire

East Bay residents have been fighting alongside No Coal in Oakland for more than a decade. Photo courtesy of No Coal in Oakland.

By Post Staff

A recent feasibility study commissioned by potential investors says an Oakland coal terminal backed by President Donald Trump could export 13 million tons a year — three times the amount estimated in an earlier environmental review.

Surprisingly, the report also contradicts developers’ and project advocates’ repeated pledges that the coal would be stored in a covered terminal. Instead, the millions of tons of coal shipped annually from inland states to the West Gateway terminal in Oakland would be stored in “two open-air bunkers,” with about 150,000 tons of coal per stockpile, before being sent overseas, according to the recent report cited by the L.A. Times. (https://ruic.utah.gov/wp-content/uploads/2026/09/Port-Study-RUIC-Bulk-Commodity-Ocean-Terminals-Study.pdf)

Residents and clean air advocates have long expressed concerns that coal dust would worsen pollution in West Oakland and throughout the East Bay.

The proposed site of the Oakland Bulk and Oversized Terminal (OBOT) is located at the former Army base near the Port of Oakland, which developer Phil Tagami has been trying for years to turn into a shipping terminal despite determined community opposition.

Trump announced a $75-million investment in the project in June, about a third of its estimated cost. The new terminal would be the largest coal export site on the West Coast, transporting coal to Japan, South Korea, Taiwan, Vietnam and Malaysia, according to the Trump administration.

Opponents say a new terminal would undermine years of progress cleaning up the air in West Oakland, which has a history of disproportionate pollution and high asthma rates due to its proximity to the port and other industry.

According to No Coal in Oakland organizer Ted Franklin, who has been active for 11 years in the fight to stop the coal terminal, the report indicates that investors may be looking for a cheaper way to build the terminal.

“We were shocked but not surprised” by the report, Franklin said. “Basically, it seems that the plan now is to store open piles of coal, which is a less expensive project than creating a completely enclosed facility.”

The threats that the project poses are real, but it faces a lot of economic and legal hurdles, he said.

Coal production is in permanent decline worldwide, he said, wondering who was going to “invest money in an industry that has no future.”

Further, the project has not yet attracted big investors. “There’s no bank, no financing, no financial institution backing this,” he continued.

A major legal hurdle facing the project is the passage of Assemblymember Mia Bonta’s bill, AB 40, the Community-First Coal Review Act, signed into law by Gov. Gavin Newsom on Sept. 30.

The law requires developers of large-volume bulk coal facilities to complete a full Environmental Impact Report (EIR) under the California Environmental Quality Act (CEQA) before they can operate.

The law was specifically designed to block or delay the coal terminal project.

The report to potential developers was produced by consulting groups Norda Stelo and Wood Mackenzie in July and released this month. It was commissioned by the Rural Utah Infrastructure Coalition, made up of eight Utah counties that are considering investing about $43 million into the terminal to receive Utah coal.

The consultants produced their findings after visiting Oakland, examining engineering documents and holding discussions with Savage Cos., a Utah-based transport and logistics company selected to operate the facility

Research has shown that coal terminal operations can be dangerous to public health. The ports of Los Angeles and Long Beach moved away from open-air coal and petroleum coke storage three decades ago.

The report says that the site could process 12 million metric tons, or 13.2 million tons, of coal each year, three times more than the terminal’s approved environmental impact report from 2002 and its 2012 addendum. Neither document mentions coal specifically, but rather bulk commodities.

The coal arriving in Oakland could also be dirtier then had been previously stated, according to the report. Project officials previously said the terminal would handle only high-grade western bituminous coal from Utah, but the recent report says it will also handle Powder River Basin coal from Wyoming and Montana, known to be much dustier.

Nor does the report mention plans to cover the rail cars to prevent pollution, though project officials previously promised they would only utilize coal transported in covered rail cars.

“It appears the developers want to build something much bigger and more polluting than anything they previously revealed, either in court or to the West Oakland community,” said Colin O’Brien, deputy managing attorney at the nonprofit Earthjustice, speaking to the L.A. Times.

The report indicates that the project may be much more expensive and take longer to complete than anticipated. The Energy Department estimates the terminal will cost about $231 million, but the report places the price at between $430 million and $625 million.

The terminal will take 53 months to complete according to the report, significantly longer than Trump’s promise of exports beginning in 2028.

Ted Franklin’s column, “Utah Study Blesses Investment in Oakland Coal Terminal but Leaves Key Questions Unanswered” is available at https://nocoalinoakland.info/utah-study-blesses-investment-in-oakland/