County of Santa Clara
Office of the Board of Supervisors
County Government Center, East Wing

70 West Hedding Street, i Oth Floor
San Jose. California 951 10

(408) 299-5040
Fax:(408)299-2038

TDD 993-8272

www.jimbeall.org

James T. Beall, Jr.
Supervisor Fourth District

MEMORANDUM
DATE:

TO:

FROM:

June 6, 2002

Board of Supervisors
County Executive
James T. Beall, Jr.

Supervisor, District ^r

Pete McHugh

/

3

Supervisor, District three

RE:

FY 2002-03 Budget Augmentation of Redevelopment Settlement
Agreement Funds for Housing

Recommended Action

Approve on-going funding of 30% of Redevelopment Settlement Agreement delegated
revenues for housing purposes.

Direct staff to prepare recommendations on possible allocation formulas that ensure
equitable, legal distribution of funds for potential housing projects in each Supervisor’s
district.

Fiscal Implications

There should be no general fund costs as a result of this Board action. The on-going
allocation will vary depending upon the amount of funds collected from the City of San
Jose Redevelopment Agency. Delegated Redevelopment Settlement funds have been
previously calculated as follows:
Year

2001

2002

2003

2004

Projected Delegated Funds

8.19
2.46

14.48

18.31

20.15 61.13

4.35

5.49

Proposed 30% Housing

6.06

Total
18.36

After 2004 the delegated revenue will come from future San Jose Redevelopment bond
sales that are unpredictable and therefore, not illustrated.

Ackj Free Paper

Background and Reasons for Recommendation

On April 9**' 2002, the Board of Supervisors requested that during the June Budget
hearings consideration be given to allocating up to 30% of the delegated Redevelopment
Agency funds for affordable housing purposes. This decision followed recommendations
from the Housing Task Force, a diverse community group that engaged in an intensive
year long planning process. The Housing Task Force presented its recommendations to
the Board of Supervisors in the County of Santa Clara Housing Task Force Report.
Given the continuing high demand for housing in Santa Clara County, even during the
economic downturn, we believe that it is imperative for the County to take a leadership
role by applying resources to address the critical shortage of affordable housing. The
Board action in April provided the County the organizational infrastructure to more
comprehensively address housing issues. The proposed allocation of 30% of the
delegated Redevelopment Agency Settlement revenues will partially provide the financial
resources absolutely necessary to accomplish the goals identified by the Housing Task
Force.

Although the critical shortage of housing affects all residents of Santa Clara County, the
most severe burden of high housing costs are borne by low income residents. Both public
and private sector low wage employees experience the dire economic and familial
consequences associated with the lack of affordable housing. A truly comprehensive
local solution is needed to address the crisis. Although the allocation of additional
funding derived from the delegated Redevelopment Settlement Funds will not resolve
this crisis, it is a step in the right direction and it acknowledges both the impact of high
housing costs on low-income residents and the resulting retention/recruitment costs borne
by all employers, including the County.

In addition to struggling to retain and recruit employees, the County spends significant
resources on securing housing for those who depend upon our services. The County
spends an estimated $ 54 million annually only addressing the housing needs of the
homeless in Santa Clara County. The adverse dual impact of high housing costs, on both
County employees and those who rely upon our services, is compelling enough reason for
the County to commit to addressing the crisis of affordability.

We believe that it is possible to legally use the Redevelopment Settlement Revenues for
capital projects that will free up funds in order to enable residents in all Supervisorial
districts to benefit. Assuming the Board approves this policy decision allocating 30% of
the delegated RDA funds for housing, we then recommend the Board to direct
Administration to develop options for using resources to expand housing opportunities
equitably Countywide. We request that the Administration bring options to both the
HLUET and the FGOC within 3 months following this action.