April 7, 2006

Coyote Valley Task Force reviews affordable housing strategy

Community sees opportunity for positive solution to growing dilemma

By Candy Richter
Editor

Affordable housing was the rallying point at the March 13 Coyote Valley Task Force meeting. The issue, with its socio-economic impact and county shortages, brought forth a wave of public commentary representing both secular and faith-based organizations.

As the Task Force reviewed the proposed recommendations for the Coyote Valley Specific Plan, the speakers urged the group to take aggressive steps in securing an affordable housing strategy that would provide an even greater percentage of units to low income (LI) and extremely low income (ELI) households.

The review draft of recommendations outlined several important issues based on input from focus groups and other stakeholders dating back to August 2005. Although the text discussed included alternative funding methods for developers and the increase in provisions for ELI units, many felt that it did not answer the area’s growing needs.

One of the challenges of affordable housing is finding funding subsidies that will not impact the city’s resources. Beverly Bryant, of the Home Builders Association of Northern California, cautioned against the Task Force making any decisions that evening based on the city’s collective inexperience in securing non-profit funding.

“We believe that tonight it is impossible for this group to really make some decisions,” said Bryant. “The staff has been very informative, has participated in focus groups and has done a great job, but we are not really professionals in securing money and in finding money and figuring out government grants.”

Bryant recommended reviewing the document “On Common Ground” a collaborative effort between open-market and non-profit affordable housing developers on inclusionary housing.

In 2003, the city council approved a requirement that 20 percent of all housing units developed in Coyote Valley must be deemed affordable housing. Within the 20 percent, some of the for-sale developments would have units affordable to moderate income households, while the rental developments would make 12 percent of their units affordable to low income households and eight percent of the units affordable to very low income households.

However, based on data reference by several of the March 13 speakers, those percentages would do little to alleviate the needs of San Jose’s low income population.

“We have the recommendation that 30 percent of that 20 percent be extremely low income housing, said Jona Denz-Hamilton of PACT. “This figure that PACT has – the 30 percent of the 20 percent - is based on the current shortage of 25,000 extremely low income units here in San Jose. So the need is there…My fear is that if we don’t establish a way to build these units now, they likely never will be built in this area, not just Coyote Valley, but anywhere in the valley.”

According to the city’s data, the low income threshold for head of household wage earners in a San Jose family of five is $91,650. Totals for very low income and extremely low income are $57,300 and $34,380 respectively.

By comparison, the median home price in Santa Clara County hovers well above the $600,000 mark.

“I want Coyote Valley to be a place where I don’t have to teach people what it means to be a working-class person, working two and three jobs, to just make it,” said the Interfaith Council’s Rev. Carol Been. “We have the possibility to not replicate that in Coyote Valley. You have that charge.”

The Task Force discussed several implementation options as possible subsidies for the affordable housing goal. These included a strict inclusionary plan, in-lieu fees and land dedication.

Having compiled both Task Force and public comment input, the next step in this process is a return to the focus group and the city’s Housing Advisory Committee for in-depth discussion. Their findings are scheduled for presentation at the group’s May meeting.

CVTF co-chair Forrest Williams of Council District 2 concluded the meeting with a cautionary note that “The [Coyote Valley Specific Plan] vision statement says that this project must support itself.”

He went on to explain that while this “doesn’t mean we can’t evaluate it or look at it” it does speak to the need for all projects associated with the plan – including affordable housing - to have an independent infrastructure and not impact other city funds.