Getting Inclusionary Housing Right

JOIN US VIRTUALLY ON FRIDAY, OCTOBER 24TH 12PM

Cities across Santa Clara County are considering this powerful tool to build more new affordable homes without subsidy.

But done wrong it can fall short, or even stop the development of new homes in its tracks. Learn how it works, and how to get it right!

Many of our local cities are joining forces right now in a shared nexus study, the wonky and in-depth analysis that assesses the feasibility of local residential development and the potential for developers of market-rate housing to add a share of affordable homes to their buildings.

If cities require too few affordable homes or affordability that’s too shallow, they leave public benefits on the table. Too much, and developers can’t build any housing at all.

Come hear about local cities that are getting it right: successfully using inclusionary housing policies to achieve mixed-income communities, generate funding to subsidize deeper levels of affordability, and gain valuable land for affordable homes!

RSVP
February 29, 2024

San Jose City Council approves a new emergency interim shelter site at VTA’s Cerone property and adds two additional sites to the city budget

Share:

Photo courtesy of Jana Kadah, San Jose Spotlight

On April 6th, the San Jose City Council approved the finalization of a ground lease and development of a new emergency interim shelter site on VTA land in northeast San Jose (D4).  The Cerone site is planned for 200 new units with construction costs partially offset by earlier commitments from Governor Newsom.  With the addition of just under 250 additional shelter units at Cherry Avenue (D9) and Via Del Oro (D10), the city now has over 1,741 units of interim shelter, hotel/motel conversions, and safe parking.

Construction costs for the Cerone site, including a five-year land lease, are just under $200 thousand per unit.  The biggest challenge facing the city, however, is the ongoing operating and service costs.  As the first 759 new interim units have come online over the last four years, the city has dedicated increasing percentages of funds, previously reserved for affordable housing production, and has still been required to commit $38 million out of the general fund for operations.  As the additional shelter units move from approval to construction and then to occupancy, the general fund obligation is expected to increase to $70 million per year.  

Interim housing is a critical part of the continuum of response outlined in the Community Plan to End Homelessness supported by the city.  Establishing a sustainable balance of emergency prevention, interim shelter, and permanent affordable housing continues to be a challenge.  The budget season in San Jose will kick off with an initial outline of the Mayor’s priorities next month and run through adoption in June.  Last year, the City Council directed staff to maintain the commitment to both emergency shelter investments and actual housing production by developing strategies to address the massive unfunded operating costs from other sources.  

Over the coming months, SV@Home will be calling on the housing community to support our shared commitment to balancing our response. We need permanent homes to transition people out of the interim sites, and we have tens of thousands of households throughout the city in dire need of housing they can afford.  Increasing housing stability is the most effective way to stem the tide of people becoming unhoused. We are going to need to come together to continue to make this case, even as we continue to support efforts to bring people off the street.