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܆ ܆ ܆ ܆ ܆ ܆
ZĞƋƵĞƐƚĨŽƌWŽůŝĐLJŶĂůLJƐŝƐ;ŽƵŶĐŝůZĞĨĞƌƌĂůƐͿ
Finance Department, Housing Department Department Maria Oberg (Finance), Erik Solivan (Housing) Department Rep. Name/Ext.
Rules Date April 29, 2026 Item C3
Councilmember Sponsorship Mayor Mahan, Councilmembers
Policy/Ordinance Subject Alternative Financing for Affordable Housing Campos, Tordillos, Cohen, and Ortiz Staff Recommendation
GREEN Adopt based on tradeoffs YELLOW efer to ĂůĂƚĞƌĚĞƐŝŐŶĂƚĞĚ RED Recommend Council not NEEDS CLARIFICATION OR outlined on next page ĚĂƚĞŽƌƚŚĞĂŶŶƵĂůƵĚŐĞƚWƌŽĐĞƐƐ adopt nominated idea MORE TIME TO EVALUATE Staff Evaluation
Is this already underway in a department work plan? Will this require substantial resources, staffing, budget, Is this time critical or an emergency? strategic support͕ŽƌƌĞƉƌŝŽƌŝƚŝnjŝŶŐĞdžŝƐƚŝŶŐǁŽƌŬƉůĂŶ? Yes No Yes No Yes No
Criterion to Determine Scale of Project Complexity Project complexity is determined by scoring the project in each of the 3 criterions below and then summing the score. a. Low Complexity is a sum of 6 or less.b. Medium Complexity is a sum of 7 – 9. Total Score = c. High Complexity is a sum of 10 or greater.
Scoring Criterion
Low Complexity Medium Complexity High Complexity
Estimated Duration 6 – 9 months ܆ =1 9 - 18 months ܆ =2 More than 18 months ܆ =3 Organizational Complexity (Internal)
Can easily be absorbed ܆ =1 into existing work plan
Planned work (future) ܆ =2 Work not currently proposed ܆ =3 Have staff with required ܆ =1 skillset/knowledge
Have staff with required skillset/ ܆ =2 requires moderate research Do not have staff with required ܆ =3
skillset/requires significant research
Less than or equal 2 ܆ =1 staff required
3 - 4 staff required ܆ =2 More than 5 staff required ܆ =3 (External) 1 Additional department; no ܆ =1
community outreach required
2 Other departments Involved; ܆ =2 some community outreach required 3 or more departments and/or external ܆ =3 partners involved; significant community outreach required DEPT.
Required܆ Airport ܆ Auditor ܆ CMO ܆ OEDCA ܆ ESD ܆ Fire ܆ HR ܆ IT ܆ PRNS ܆ Police ܆ Retirement ܆ Attorney ܆ Clerk ܆ CMO – Budget ܆ Community Energy ܆ Finance ܆ Housing ܆ IPA ܆ Library ܆ PBCE ܆ PW ܆ DOT 8 ✔
✔ ✔ ✔
/s/ Lee Wilcox 4/28/2026 CMO Approval: Date
Analysis
Explain the rationale for staff recommendation, including any mitigating factors that need to be considered (recent legislative action, significant work plan changes, etc.). Please address the following as well. GREEN LIGHT: The Administration can implement this nominated idea under its current work plan. Item should be sent to Council to add to department work plan. (1) How will the idea be approached? (2) If adopted, what is its impact and/or tradeoff to the City Council Focus Area or to a department work plan, including strategic support? (3) What is the minimum viable scope to move the idea forward and reduce its complexity? Recommendation 1. The March 11, 2026 Information Memorandum established the framework for advancing the financing ideas it outlines. The Housing Department is already evaluating alternative financing approaches to support housing production and expand affordability. This includes exploring innovative public-private partnerships that leverage existing financing tools. As part of this work, the Department is assessing whether these strategies can support projects serving households at 50% to 30% of Area Median Income (AMI), while also examining the trade-offs between deeper affordability and overall unit production. In addition, the Department is analyzing the current pipeline of market-rate projects to determine which could be accelerated into construction using these financing tools. This analysis is already being incorporated into the FY 2026-2027 Building More Housing Focus Area work plan As directed, staff will return to Council by August 2026 with policy recommendations and again by March 2027 with recommended mixed-income projects. Recommendation 2. Lease revenue bonds, including certificates of participation, are already allowed under the City's Debt Management Policy (Council Policy 1-15). The City would normally issue lease revenue bonds, not certificates of participation, since the City has a joint powers authority, the San Jose Financing Authority. As with any type of lease revenue bonds, an issuance for affordable housing purposes would require a suitable asset as collateral.
YELLOW LIGHT: ĚŵŝŶŝƐƚƌĂƚŝŽŶƌĞĐŽŵŵĞŶĚƐŽƵŶĐŝůĚĞĨĞƌƚŚŝƐŶŽŵŝŶĂƚĞĚŝĚĞĂƚŽĂůĂƚĞƌĚĞƐŝŐŶĂƚĞĚĚĂƚĞŽƌƚŚĞĂŶŶƵĂůƵĚŐĞƚWƌŽĐĞƐƐĚƵĞƚŽ;ĚĞƐĐƌŝďĞĐŽƐƚŝŵƉůŝĐĂƚŝŽŶƐ͕ǁŽƌŬůŽĂĚŝŵƉĂĐƚƐ͕ŽƌŽƚŚĞƌĨĂĐƚŽƌƐͿRED LIGHT: The Administration recommends Council not to adopt this nominated idea due to (describe reason implementation would be difficult if not impossible – conflict with other laws, etc.).