TO: HONORABLE MAYOR FROM: Jacky Morales-Ferrand
AND CITY COUNCIL
SUBJECT: SEE BELOW DATE: February 14, 2022
Approved Date
2/14/2022
SUPPLEMENTAL
SUBJECT: PROPOSED CHANGES TO THE ALLOCATION AND CATEGORY
NAMES OF MEASURE E REAL PROPERTY TRANSFER TAXES
REASON FOR SUPPLEMENTAL
Staff is providing preliminary data regarding funding requests from the developer community for the construction of new affordable housing.
BACKGROUND
On December 20, 2021, the Housing Department released a Notice of Funding Availability (NOFA) for $150 million for the development of new affordable housing throughout the City of San José. The submission deadline was February 9, 2022 and staff has quickly compiled preliminary high-level data for review.
ANALYSIS
Staff has completed a preliminary review of developer submissions to the NOFA posted on December 20, 2021. Nineteen developments submitted by fifteen developers are requesting a total of $241 million dollars in funding. The NOFA was oversubscribed by $91 million which demonstrates a strong pipeline in San José for affordable housing development. If all developments were funded at the requested levels, 2,275 affordable apartments would become available for the community with an average subsidy per unit of $206,000. A range of populations will be served including housing for previously homeless, seniors and families. For a list of proposed developments, developer, target population, number of units, neighborhood category per the Affordable Housing Siting Policy, and the funding requests, please see Attachment A.
COUNCIL AGENDA: 02/15/22
FILE: 22-151
ITEM: 8.3
HONORABLE MAYOR AND CITY COUNCIL
February 14, 2022
Subject: Proposed Changes to the Allocation and Category Names of Measure E Real Property Transfer Taxes
The Housing Department has been working to develop an Affordable Housing Siting Policy with that will encourage additional investment in opportunity neighborhoods. The City Council directed the Housing Department to evaluate this NOFA based on the staff proposal of neighborhood definitions while adding the Mayor’s Gang Prevention Task Force Hot Spots to the Category 3. Of the nineteen developments that applied for funding, three are located in category one, twelve are in category two, and four are in category three. A map indicating where within the City of San José these proposed developments are located can be found as Attachment B.
/s/
JACKY MORALES-FERRAND
Director, Housing Department
The principal author of this memorandum is Shelsy Bass, Senior Development Officer. For questions, please contact Rachel VanderVeen, Deputy Director, at (408) 535-8231.
Attachment A: San José NOFA Round 2 Initial Submittals
Attachment B: Siting Policy Map of NOFA Applicants
Attachment A: San José NOFA Round 2 Initial Submittals
San Jose 2021 NOFA Initial Submittals
Developer Project Name Target Population Council
District
Neighborhood
Category
# of
Units
Amount of Funds
Requested
Maracor 2350 Bascom Families 9 1 123 $12,300,000
Golden West 2880 Alum Rock Families 5 2 164 $8,900,000
SAHA 501 S Almaden Seniors 3 2 86 $10,625,000
CDP 525 N Capitol PSH/Families 5 2 160 $15,000,000
Charities 551 Keyes PSH/Families 3 3 99 $9,675,885
Danco 777 W San Carlos PSH/Families 6 2 154 $19,125,000 RCD 797 Almaden PSH/Families 3 3 99 $12,250,000
Affirmed Almaden Apartments PSH/Seniors 6 2 80 $9,750,000 Charities Alum Rock Multifamily PSH/Families 5 2 60 $7,500,000 EAH Blossom Hill PSH/Families 10 2 89 $10,875,000
CRP Dry Creek Crossing Families 9 1 64 $9,450,000
FCH Dupont PSH/Families 6 2 141 $17,375,000
Affirmed Kooser PSH/Families 9 1 190 $19,251,066
Allied/County Parkmoor Hub PSH/Special Needs/Families 6 2 81 $10,175,000 CORE Tamien PSH/Families 3 3 135 $14,125,000
Sand Hill The Gardens at Cathedral
of Faith
Seniors/Families/Special
Needs 9 2 237 $29,625,000
FCH The Villages PSH/Seniors 3 3 74 $7,400,000
CRP Mitzi Families 1 2 45 $5,500,000
Pacific West Villa Del Sol Families 5 2 194 $12,000,000 Total 19 2,275 $240,901,951
PSH is Permanent Supportive Housing serving the previously homeless population
Attachment B: Siting Policy Map of NOFA Applicants