Disposition and Sale of Vermont House Located at 1072 and 1082 Vermont Street. Adopt a resolution: (a) Declaring the City-owned property located at 1072 and 1082 Vermont Street, San José, consisting of two parcels of land totaling approximately 0.33 acre, with two multi- family residences for a combined total building area of 5,217 square feet, further identified as Assessor’s Parcel Numbers 230-42-077 and 230-42-078, as “exempt surplus land” pursuant to California Government Code §54221(f)(1)(D) and in accordance with San José Municipal Code §4.20.080(B)(2) as a transfer of surplus property to another local, state, or federal agency for that agency’s use; and (b) Authorizing the City Manager, or her designee, to negotiate and execute: (1) A purchase and sale agreement with the County of Santa Clara for the sale of the properties located at 1072 and 1082 Vermont Street, San José, 95126, further identified as Assessor’s Parcel Numbers 230-42-077 and 230-42-078, for a total sale price of $310,000; and (2) All other necessary documents to complete the property transfer to the County of Santa Clara. CEQA: Not a Project, File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment. Council District 6. (Housing)
The residents of College Park were promised by City OƯicials that this property would be used as a residence for homeless veterans. We were promised that it would be closely supervised and would not be disruptive to the residents of the College Park neighborhood.
Disposing of this property for use by the County as a jail is a betrayal of the College Park residents. This neighborhood has become the dumping ground for the homeless, abandoned by law enforcement when residents are threatened or endangered and now we will live with a jail. THIS IS JUST PLAIN WRONG.
PUBLIC OUTREACH The County conducted public outreach and hosted two community meetings regarding the subject of this memorandum in August and September 2024.
County and City staƯ attended both meetings, including staƯ from the Housing Department and County and City elected oƯicials. The following is a summary of community feedback from these public outreach eƯorts. • The community expressed concerns regarding the shift in program participants from serving veterans to serving unsheltered homeless individuals with nonviolent criminal justice involvement. o County staƯ responded to the concern by sharing that the proposed program will provide a continuing priority placement for veterans that otherwise qualify for the program. • The community expressed concerns regarding the safety of neighbors due to the shift of serving unhoused individuals at the Vermont House property. o County staƯ responded to the concern by providing details on the program mechanics, including pre-screening program participants to serve unsheltered homeless individuals with non-violent criminal justice involvement, providing 24-hour intensive case management services, including two live-in aides, and statistical success of the program.
The statement above describing the Public Outreach is untrue. The College Park residents were threatened by Dev Davies. She stated that we had better take this deal because the alternative could be worse. The County OƯicial disclosed that the City was already making improvements that were necessary to meet the deadline that the County has for its funding. It was clear that the Public Outreach was being done to justify the decision that had already been made.
BACKGROUND In 2009, the City acquired the Vermont House from a foreclosure sale for $310,000. The asset has two addresses: 1072 Vermont Street and 1082 Vermont Street. In 2015, the City invested $3,017,000 in improvements to the asset and converted it to veterans housing operated by Abode Services and supported by the Santa Clara County Housing Authority’s Housing Choice Veteran AƯairs Supportive Housing Voucher Program.
In 2023, the Housing Department informed Abode Services of the pending sale and Abode Services began to depopulate the asset. During the period of depopulation, and due to a series of deferred maintenance issues, the asset experienced a debilitating flood that expedited the vacating of the asset. Given the need for significant capital improvements to stabilize the site, estimated at up to $1,000,000, and the projected cost of operations, which would be added to the current operating deficits of the City’s interim housing portfolio, the cost for continued control and operations of the asset as interim housing far exceeded the market value of the assets.
The cost summary above illustrates the gross mismanagement by City OƯicials. If I managed my rental property in this way, I would be homeless! THESE ARE 2 SMALL BUILDINGS. YOU COULD PURCHASE ANOTHER APARTMENT BUILDING FOR WHAT WAS WASTED IN REPAIRS.
COST SUMMARY/IMPLICATIONS As described above, the sale of the Vermont House property will generate total proceeds of $434,000 and eliminate fiscal liabilities for capital repairs and future operating costs in excess of $1,000,000. The 2024-2025 Adopted Operating Budget anticipated $8,000,000 in new external funding for aƯordable housing, sourced from the sale of two properties: Vermont House and the Monterey/Bernal Emergency Interim Housing site. These funds were intended to be deposited into the Low and Moderate-Income Housing Asset Fund and allocated for aƯordable housing. However, with the sale proceeding for only the Vermont House property, the projected sales proceeds have been revised. The current estimate is $310,000 based on the market value of the property, along with $124,000 for recouping a City-funded replacement reserve, for a total of $434,000. As a result, staƯ will submit a budget adjustment in the upcoming Mid- Year Budget Review Report correcting and recognizing the sale of the Vermont House property, including the recouping of the reserve balance totaling $434,000. This future adjustment will reduce the Housing Project Reserve in the Low and Moderate Income Housing Asset Fund and HONORABLE MAYOR AND CITY COUNCIL November 12, 2024 Subject: Disposition and Sale of Vermont House Located at 1072 and 1082 Vermont Street
Housing Project Reserve of $21,331,550 for use on future aƯordable housing projects.
WHY CAN’T THE RESIDENTS OF COLLEGE PARK PURCHASE THE PROPERTY FOR $310,000??
John P . Traub
College Park and Rose Garden Owner/Resident