Tenant Preferences to
Mitigate Displacement
for Affordable Housing
Kristen Clements
Division Manager,
Housing Department
Community and Economic Development Committee
February 26, 2024
Item d(2)
2 Background
2/22/2024
• City Council direction in 2017
• A priority in Community Strategy Report:
Ending Displacement in San José (2020)
• Prioritized by community groups and
stakeholders
• Included in the Citywide Residential AntiDisplacement Strategy (adopted 2020) • Included in the Housing Element 2023-2031
as required work item (S-20)
• Informed by other cities’ preferences and
fair housing law
3 Goals of Tenant Preferences Program
Help prevent displacement of lower-income renters
Increase likelihood that lower-income renters stay in
San José
Make best use of scarce publicly-funded affordable
housing
Increase fair housing choices for current San José
residents
4 State Senate Bill 649 (Cortese, 2021)
• City-sponsored bill recognizes population at-risk of displacement Extensive analysis to meet fair housing requirements
• Displacement tracts: Race, Disability, Family Size, Women Head of Household, Veterans, Seniors (protected classes)
• Neighborhood: 1-mile, 2-mile, Council District for all Races Technology developed to support administration
City Council approval
State approval (as a lender)
Creating Tenant Preferences that Mitigate
Displacement
2/22/2024
5 Engagement Activities
Summer 2023 - winter 2023-24: Presented draft framework to property owners and managers, stakeholders, and public • Held two public meetings in August
• Held two Developer Roundtables with SV@Home
• Met with property managers, attorneys, other stakeholders • Revised framework based on feedback
September 2023
• Housing and Community Development Commission on 9/14/2023 January 2024: Tested tenant preferences feature in Doorway 6 35% of a property’s restricted
affordable apartments available
to the general public
• No more than 15% of units for
applicants in same neighborhood
Council District
• 20% of units for applicants in
high-displacement areas
Set-aside has commensurate
mix of apartment types as
whole property
How the Proposed Program Would Work: Apartments
Set Aside for Applicants Qualifying for Preference
35%
15%
20%
7 City-funded affordable housing projects
Existing City-funded affordable properties
(implemented on deal-by-deal basis)
Properties with City-negotiated
development agreements
Applicability to Properties
Does include senior housing
Does not include restricted affordable units for special populations 8 1. Applicants Living in Displacement Tracts
Definition: Requires a portion of affordable apartments in subject properties be reserved/prioritized for applicants from definitive or probable displacement areas
Applicants: Lower-income (≤80% AMI), currently living in Census tracts categorized as having definitive or probable displacement
Target affordable properties: New and exis�ng affordable housing throughout San José
Objective: Increase housing choices in same area or new area of San José
9 Definitive and Probable Displacement Tracts
10 Applicants Have Increased Mobility, Choices
2/22/2024
11 2. Applicants Living in Same Neighborhood
Definition: Requires a portion of affordable apartments in subject properties be reserved/prioritized for applicants who already live in the same City Council District of the property Applicants: Lower-income (≤80% AMI), currently living in same City Council district as subject property
Target affordable properties: New and existing affordable housing properties
Objective: Improve housing choices to remain in same area of San José and preserve local networks
12 Applicants Improve Stability, Keep Networks
2/22/2024
13 Next Steps
March 19, 2024: City Council
Effective Date of Tenant Preferences Program: Upon
Council approval
Tenant Preferences to
Mitigate Displacement
for Affordable Housing
Kristen Clements
Division Manager,
Housing Department
Community and Economic Development Committee
February 26, 2024
Item d(2)