County of Santa Clara
Officeoffhe /Board of Supervisors
county Government Center. Hast Wing
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San Josc. California or> i i o
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www.Jimbeali.org

James T. Beall,Jr.

Supervisor Fourth District

MEMORANDUM
DATE:
TO;

FROM;

June 6,2002

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

7.

.

/'

Supervisor, District

Pete McHugh

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 offunds collected from the City of San
Jose Redevelopment Agency. Delegated Redevelopment Settlement funds have been
previously calculated as follows:
Year

2001

2002

2003

2004

Total

Projected Delegated Funds

8.19

14.48

18.31

20.15 61.13

Proposed 30% Housing

2.46

4.35

5.49

6.06 18.36

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

Acid Ftea 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 Countv 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
comprehensively address housing issues. The proposed allocation of 30% of the
delegated Redevelopment Agency Settlement revenues will partially provide the financial
absolutely necessary to accomplish the goals identified by the Housing Task
more

resources

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.

PARTIAL LIST OF SHELTER/SERVICES PROVIDED BY THE COUNTY OF
SANTA CLARA FOR THE HOMELESS*
APRIL 12,2002
SHELTER

Cold Weather Shelter (300 beds,4 months)

$

Children’s Shelter(132 beds)
Foster Care

Emergency Shelter & Crises Services (Status Offenders)
Transitional Housing Units(50 Drug & Alcohol)

337,050
6,655,143
24,826,256
511,031
300,000

General Fund for Community Organizations
2,343,196

Providing shelter for homeless

(San Jose Organizations - $642,668)
HOUSING

75,000

Rental Assistance

Fairgrounds Revitalization Project

(Partnership with City, Housing Authority, and Private
Developer to provide 560 units, 75% affordable)
Housing Trust of Santa Clara County

(County provided $2,250,000 to date)
SERVICES

77,184

Reduced Transit Pass Project

(San Jose Clients - $56,832)
Drug and Alcohol Homeless Project

243,826

Mental Health Advocacy Project
Mental Health Street Homeless- Estimated 450 Clients

380,737

(According to the University ofPennsylvania Study “The Impact ofSupportive

on the Utilization ofthe Public
Housingfor Homeless People with Severe Mental Illness New
York Initiative”
Health Corrections and Emergency Shelter Systems: the
May 2001

street Mental Health Homeless clients use $40,449 in public services per year.)
18,202,050

ADMINISTRATIVE COSTS

93,000

Administrative costs for the Continuum of Care/SuperNOFA
YEARLY TOTAL

$54,044,473

^Source -“County of Santa Clara Final Budget, Fiscal Year 2002'
Submitted by Margaret M. Gregg
County of Santa Clara
Homeless Concerns Coordinator