Measure E
Proposed Changes to Allocations
Jacky Morales-Ferrand Jim Shannon
Director Budget Director
Housing Department City Manager’s Office
February 15, 2022
Item 8.3
Rachel VanderVeen
Deputy Director
Housing Department
BUILDING GREAT PLACES INVESTING IN PEOPLE PROVIDING HOUSING FOR ALL 2 June 2020: City Council Policy 1-18 amended to include allocation of Measure E funds
September 2021: Rules Committee directed staff to
identify resources to fund construction and operations of interim housing
Today: Public hearing on the recommended changes to the allocation of funds in City Council Policy 1-18
Today’s Action
2/14/2022
BUILDING GREAT PLACES INVESTING IN PEOPLE PROVIDING HOUSING FOR ALL 3 76% rent burdened or severely rent-burdened households • 48% severely rent burdened
2014 – 2023 RHNA Goal: 20,849 affordable units
• 5,057 affordable completed – 15,792 remaining
2023 – 2031 RHNA Goal: 34,486 affordable units
6,097 homeless in San José nightly
Housing and Homeless Crisis
2/14/2022
BUILDING GREAT PLACES INVESTING IN PEOPLE PROVIDING HOUSING FOR ALL 4 • Strong NOFA response
19 new affordable
developments seeking
$240 million for 2,275 new
homes
• Depleted Measure A funds
Demand for Affordable Housing Funding
2/14/2022
Immanuel Sobrato Apartments
106 affordable homes
BUILDING GREAT PLACES INVESTING IN PEOPLE PROVIDING HOUSING FOR ALL Community Plan to End Homelessness
52/15/2022
BUILDING GREAT PLACES INVESTING IN PEOPLE PROVIDING HOUSING FOR ALL 6 Pandemic Response
2/14/2022
One Bridge Housing
Community
Five Emergency Interim
Housing Sites
Three HomeKey Hotels
5,941 permanently housed
January 2020 (4,871 in SJ)
BUILDING GREAT PLACES INVESTING IN PEOPLE PROVIDING HOUSING FOR ALL 7 Need for Homeless Sheltering Funding
2/14/2022
Estimated annual costs of $30 million to operate existing and authorized HomeKey and bridge/interim housing sites Each new interim site estimated at $8 million for City
construction costs, and nearly $4 million for
annual operating costs
13 funding sources (Federal/State) are supporting the
shelter system – only 2 are ongoing
BUILDING GREAT PLACES INVESTING IN PEOPLE PROVIDING HOUSING FOR ALL 8 Policy Change: Category Descriptions
2/14/2022
• Predevelopment, acquisition, construction,
operating costs/reserves, permanent financing
• Acquisition/rehab, preservation
• Limited commercial space (ex: childcare facilities)
Extremely Low-
Income
• Same as aboveLow-Income
• For-sale and rental housing programs
• Land trusts and shared-equity programs
Moderate-
Income
• Homeless prevention, gender-based violence programs,
legal services, rental assistance
• Outreach teams/encampment services, safe parking
• Interim housing construction and operations
Homeless
Services
BUILDING GREAT PLACES INVESTING IN PEOPLE PROVIDING HOUSING FOR ALL 9 Policy Change: Allocation Percentages
2/14/2022
Spending
Category
Current
%
Proposed
%
2021-2022
($90M)
2022-2023
($65M)
Extremely Low-
Income
Households
45% 40% $35.2M $24.7M
Low-Income
Households
35% 30% $26.4M $18.5M
Moderate-Income
Households
10% 5% $4.4M $3M
Homeless Support
Programs
10% 25% $22M $15M
BUILDING GREAT PLACES INVESTING IN PEOPLE PROVIDING HOUSING FOR ALL Next Steps
102/14/2022
Initiation of the 60-day public hearing period
First public hearing
Second public hearing
Action to make changes to City Council Policy 1-18, 2/3 vote Review of the Measure E Spending Plan by the Housing and Community Development Commission (as Measure E
Oversight Committee)
Update current year Spending Plan and budget
Proposed 2022-2023 Budget including the Measure E
Spending Plan
Feb 4, 2022
Feb 15, 2022
Apr 12, 2022
April 14, 2022
May 1, 2022
April 26, 2022
Measure E
Proposed Changes to Allocations
Jacky Morales-Ferrand Jim Shannon
Director Budget Director
Housing Department City Manager’s Office
February 15, 2022
Item 8.3
Rachel VanderVeen
Deputy Director
Housing Department