September 19, 2008

District 8 Report

San Jose not immune to the need for affordable housing

By Vice Mayor Dave Cortese
Special to the Times

As anyone who has not been living under a rock for the past few years knows, the economy and housing market has been falling, which is creating hardships for people in all walks of life. When homeowners can no longer afford their mortgages due to losing a job or taking a pay cut, they are forced to leave their homes and join the rental market; which in turn increases the cost to rent for those who are already struggling to make their rent payment. This is an issue that we all need to look at to solve.

Part of the reason that home prices are so expensive is a straightforward supply versus demand equation. Simply put, there are more people that want to live in Silicon Valley than there are houses for them to live in. While it is confirmation of why you and I want to live here, it does not make the situation any more appealing.

I have personally taken an active role on this issue as President of the Association of Bay Area Governments (ABAG). One of ABAG’s main purposes is to provide each city with a Regional Housing Needs Analysis (RHNA), which in everyday speak is the target number of residential units each city will need to absorb the projected number of people expected for that region.  We set an ambitious goal for San Jose because San Jose is committed to furthering the goal of affordable housing for everyone.

Meeting our RHNA goals is just one way that my colleagues and I at City Hall are working towards eliminating the gap in supply. We are looking to place more units in the downtown area so that our residents can live closer to their places of employment (not to mention be close to public transportation), and we are encouraging new developments to allot a portion of their units towards affordable housing. In addition to the increase in total housing units, San Jose saw an increase in affordable housing by 1179 units during the last fiscal year.

This downturn has added a whole new dimension to the fight for affordable housing. Now, in addition to helping families create permanency by purchasing their very own home, we have to help them stay in their homes and not fall victim to unscrupulous lenders. To this end, I was instrumental in the formation of “Don’t Borrow Trouble Silicon Valley”, a group of stakeholders and community partners that provide counseling and education to homeowners (current and aspiring) about predatory lending practices. I want our homeowners to be able to hold on to their homes that they have worked so hard to get and for first time homebuyers to feel secure knowing that they are getting the best value for their dollar. It is unfortunate that such a group is necessary to educate and protect our community members; however, I believe that we can overcome this obstacle and get back to helping families settle into their homes.

And now that we have them living in their homes, we want to make sure that they are able to safely live there. San Jose provides a Home Owner Grant Program that gives low-income homeowners a grant for much needed repairs so they can feel secure in the knowledge that they are raising their families in a homes that’s safe and secure.  I have also partnered each year with Rebuilding Together Silicon Valley, a non profit organization, that utilizes community volunteers and private donations to fund healthy and safety improvements to peoples’ homes.  

Combining two of my priorities, affordable housing and education, I am very proud that the City of San Jose has the Teacher’s Homebuyer Program. This wonderful program aids those who selflessly give up fame and fortune to ensure the greatness of our next generation of leaders. The benefits are countless. Our teachers are able to obtain the security of owning a home that is in the community wherein they serve, which relieves the stress that renting can bring and shortens the commute that they might otherwise have had. And this benefits our children by allowing the school districts to retain the best faculty who are able to focus on the educational needs of the children.

We cannot have a great city without successful businesses, and we cannot have successful businesses without happy employees, and we cannot have happy employees without places for them to live. I strongly believe that affordable housing is part of the foundation to create a strong economy and a great city. So to that end, I will continue to pursue ways to provide safe and secure communities where our residents can purchase their own homes without the fear of not having enough money to pay for other necessities.

As always, please contact me with any questions or comments you may have.  I look forward to hearing from you by phone 408-535-4908 or email dave.cortese@sanjoseca.gov.