This isn't a totally bad idea, the concept is good. But like most concepts, it most likely wont work in reality. Even if they recruit, hire and graduate 50% or more Oakland residents they would likely move out of Oakland once they saved enough for a down payment on a house outside of the city. They tried to restrict this in the past and it would hold up with the union or the courts.
The idea that the offices sis at least grow up in Oakland and will know the city better than someone who sis not is still worth trying this program. Just don't expect them to stay Oakland residents for too long.