Committee Agenda Date iSeptember 2, 2004

County of Santa Clara
Office of the County Executive
Administration

FGOC CEOl 090204
DATE:

September 2, 2004

TO:

Supervisor Pete McHugh, Chairperson
Supervisor James T. Beall, Jr., Vice-Chairperson
Finance & Government Operations Committee

FROM:

Ll ILl
Peter Kutras Jr.

County Executive
SUBJECT:

Approval of a Board Policy Regarding the Sale of Surplus Property

RECOMMENDED ACTION

It is recommended that the Finance and Government Operations Committee:

1. Approve the following amendment to the Board's Policy manual allocating 30% of the
proceeds from the sale of surplus property owned by the general fund to support the
Office of Affordable Housing and affordable housing projects. This recommendation
does not alter our existing practice to utilize the remaining proceeds to support
one-time or ongoing needs depending on the revenue stream as well as the asset
development unit. This policy statement miiTors previous Board direction that allocates
30% of any delegated funds received from the City of San Jose Redevelopment

Board of Supervisors; Donald F. Gage, Blanca Alvarado, Pete McHugh,Jim Beaii, Liz Kniss
County Executive; Peter Kutras Jr.
1

Committee Agenda Date :September 2, 2004

Agreement to affordable housing projects.

2. Direct County Counsel to prepare a resolution, for consideration by the full Board of
Supervisors, to ammend the Board's current Policy Manual to include the proposed
policy statement.
FTSCAT. TMPTJCATTONS

This action will allocate 30% of any and all proceeds from surplus land owned by the county's

general fund to support the Office of Affordable Housing and affordable housing projects.
These funds would otherwise be deposited into the general fund and support discretionary
one-time needs.

REASONS FOR RECOMMENDATION

During the development of the FY 2005 Recommended Budget, the Administration identified
a strategy to support asset development and affordable housing efforts within the county. This
strategy recommends that resources generated by the asset development team be reinvested to
support the administration of both asset development and affordable housing programs. At
this time, the Administration is recommending that the proceeds generated by the sale of
surplus property owned by the general fund be included in this strategy to support the
administration of our affordable housing program and to fund affordable housing projects.
BACKGROUND

The issue of increasing the affordable housing stock in Santa Clara County has been a high
priority for the Board of Supervisors. After the agreement with the City of San Jose
Redevelopment agency was finalized, the Board directed that 30% of the delegated funds
provided by the agreement be allocated to affordable housing projects. At the same time the
county established the Office of Affordable Housing to develop and administer these projects.
During the intervening timeframe, the Admininstration has pursued additional sources of
funding for these projects and presented the strategy outlined above to support both asset
development and affordable housing. The allocation of a portion of the proceeds from the sale
of surplus property will provide additional resources to support the administration of this
program and provide a supplementary revenue stream for affordable housing projects.

Board of Supetvisors: Donald F. Gage, Blanca Alvarado, Pete McHugh,Jim Beall, Liz Kniss
Count/ Executive: Peter Kutras Jr.
2