City Initiatives Roadmap – Housing Stabilization:
BUILDING GREAT PLACES INVESTING IN PEOPLE PROVIDING HOUSING FOR ALL Community and Economic
Development Committee
March 27, 2023
Item d(3)
Rachel VanderVeen
Assistant Director, Housing Dept.
Kristen Clements
Acting Deputy Director, Housing Dept.
Josh Ishimatsu
Acting Division Manager, Housing Dept.
Community Opportunity
to Purchase
Program Status Report
Prevent displacement of lower-income renters
Grow the amount of permanently affordable housing
Empower tenants with knowledge to better plan for their futures, participate in acquisition process
Provide tools to support community ownership
opportunities
Why COPA?
Goals:
COPA Public Engagement by the Numbers
1,200
Approximate combined
total attendance
16 Advisory
Committee
meetings
12 General
public
meetings
37 1-on-1
stakeholder
meetings
480+
different people
participated in any
COPA meeting
50 Organizations
that participated
in meetings
San José has a mismatch between rents and household
incomes for many categories of jobs
Local study found 25% of displaced lower-income renters became homeless
Nonprofit housing providers
• Match renters’ incomes to housing costs
• Mission aligned with City’s
Preventing Displacement and Homelessness
To prevent further displacement and homelessness,
San José needs more nonprofit housing providers
Removing Barriers through COPA
Barriers COPA Solution
Market timelines
are too fast
Allow nonprofits to assess their ability to
assemble affordable housing funding and
make competitive offers
Key properties may
be unknown to
nonprofit buyers
Require all properties in program to
notify QNPs of sale
Owner would notify Qualified Nonprofits (QNPs) when
property is coming up for sale
• QNP could make the first offer to buy properties covered by the program before open listing
If owner rejects an initial QNP offer, and then gets offer from third-party buyer, QNP could make their final offer before owner sells to third party
COPA would not require owners to accept any offer
COPA would not require owners to sell to any one buyer
COPA Process – First Offer and Final Offer
COPA Process Timeline
Timeline Days Applicable to Owners
Letter of
Intent Period 15 Of 2+-unit properties (unless property were exempt) Offer period 25 Who receive an offer from a
Qualified Nonprofit (QNP)
Closing
period 120 Who choose to accept an
offer from a QNP
Counter-offer
period 7 Who receive an offer from a QNP and a third-party Total
waiting
period
for most
property
owners
Max.
required
waiting
period
before
listing
All properties with
2+ units built at
least 15 years ago
Applicability and Exemptions
Ordinance
includes exemptions
for specific properties
Qualified Nonprofit (QNP) Criteria
Nonprofit 501(c)(3) housing organizations
Successful track record in acquiring,
rehabilitating, and managing at least one
similar affordable housing property
Housing Department staff would recertify QNPs
on a regular basis
Tenants must be notified
of owner's intent to sell at
the same time as QNPs
QNPs must reach out
to tenants
Tenant Engagement
This Photo by Unknown author is licensed under CC BY-NC-ND.
Later of 12 months, or when these tasks are completed:
1. Program regulations drafted, outreach conducted,
regs approved by CMO
2. At least two Qualified Nonprofits approved
3. Technology tool operational
4. Financing identified
City to issue notice 60 days in advance of when COPA will go into full effect
Effective Date of Proposed Program
Enforcement and Incentives
Educational
approach
Extensive
outreach
Administrative
enforcement
• Gradual process,
from letter to fines
• Fines connected to
other City fee
schedules
Cooperation on
tax-advantaged
(1031)
property sale
timelines
Staff exploring
possible
financial
incentives on
City fees, taxes
QNPs could operate properties acquired through COPA as
rentals or could convert to ownership model
If QNP owner eventually decides to resell, they would have to offer tenants a first opportunity to purchase
City support for ownership conversions
• Guided by consultant feedback and broader City strategy on homeownership
• Further defined in future City NOFAs
Community Land Trusts with track record could purchase for community ownership
Homeownership options under COPA
City Initiatives Roadmap – Housing Stabilization:
BUILDING GREAT PLACES INVESTING IN PEOPLE PROVIDING HOUSING FOR ALL Community and Economic
Development Committee
March 27, 2023
Item d(3)
Rachel VanderVeen
Assistant Director, Housing Dept.
Kristen Clements
Acting Deputy Director, Housing Dept.
Josh Ishimatsu
Acting Division Manager, Housing Dept.
Community Opportunity
to Purchase
Program Status Report