A Civil Grand Jury says Santa Clara County’s $950 million housing bond is working as promised, giving it an “A” rating in a recent report—despite the small number of low-income homes built since its approval.
Measure A, passed
by 68% of voters in 2016, will provide funding to build 4,800 affordable homes
across the county over approximately a decade amid an exploding homelessness
crisis.
Six years into the
initiative, Santa Clara County has finished 289 affordable units—about 6% of
the ultimate goal. As of last September, 1,246 homes are in construction, with
1,302 still in the pipeline. That leaves about 41% of the county’s housing goal
to be determined.
The nearly $1
billion commitment drew the ire of residents last year when accounting firm MGO
said in an audit that Measure A “has not been effective in accomplishing its
mission,” citing the slow rate of construction and delivery of projects as
threats to providing housing for those most in need. An oversight committee
also sounded the alarm in 2020 about the slow construction rates.
Measure A progress tracker.
Slow construction
The grand jury set
out to investigate a complaint submitted last year about the small number of
homes actually completed through Measure A. Its December report, called
“Measure A earns an A,” found the county isn’t obligated to move construction
ahead, as many roadblocks—such as oppositions and delays at the city level and
difficulty securing matching state funds—are beyond the county’s authority.
The report also
found that construction costs and potential inflation have not affected Measure
A developments. The county has committed $108 million to buy 16 properties to
avoid land cost increases.
Santa Clara County
has had success in meeting its funding goal for permanent supportive housing
and units for very low to extremely low-income populations, but the report
shows it’s way behind schedule in funding rapid rehousing—a rent-subsidized
program that provides residents a temporary place to stay. The grand jury urged
the county to continue exploring the state’s Project Homekey program or
reconsider its rapid rehousing goal by June.
Measure A housing
not moving fast enough, oversight committee says
It also notes the
county and the bond oversight committee are working on new incentives to
encourage more development and streamline the planning process. For the
county’s responsibility, the housing bond is being spent appropriately and in a
timely manner, the report says.
Local housing
advocates said the county could always do more to address the housing crisis,
but they acknowledge officials have done “tremendous” work with Measure A.
“There have been
numerous articles that have talked about whether Measure A is too slow or too
fast,” Mathew Reed, director of policy of SV@Home, told San José Spotlight. “We
feel like the grand jury report did a very good job of assessing and
understanding the multiple factors (in building affordable housing).”
Affordable housing
projects in Silicon Valley take four to five years of planning and construction
before residents can move in—even before the pandemic, Reed added.
Layers of obstacles
One of the biggest
roadblocks for affordable housing developers in the area is the ability to
secure all funding sources, especially tax credits and bond allocations at the
state level, the report notes.
San Jose, also shy
of its housing goal, has made efforts to encourage more affordable housing,
including removing a decades-old policy that requires some developments to
dedicate the ground floor to commercial spaces.
Santa Clara County
Assessor Larry Stone, who also chairs the bond oversight committee, said the
slow construction rate is a serious concern.
“We talk about it
in every meeting,” Stone told San José Spotlight. “We are not getting housing
built as fast as we would like… but Measure A funds only provide a portion of
the financing for the housing units.”
The 100-unit La
Avenida housing project in Mountain View, for example, received $19 million
through Measure A. But it still needed $15 million from the city and another
$25 million from the state’s tax credit program to move forward, the grand jury
report notes. The project would have remained dormant without the combined
funding sources.
Stone said the
pandemic has also slowed down numerous developments, as many workers in city
housing and planning departments pivoted from their jobs to respond to COVID-19
needs. This has created a backlog across the county, he said.
According to
Stone, local governments also need to take drastic steps to increase density in
their cities, which would allow more housing to come in.
“You can’t build
affordable housing in market conditions,” he said. “It’s impossible.”
Office of
Supportive Housing Director Consuelo Hernandez, who oversees Measure A funding
for the county, didn’t respond to an inquiry about the report. She has
previously defended the county’s approach to the housing bond.
Since the
oversight committee raised concerns about the slow progress, the county has
used its influence to help affordable housing developers however it can.
“We’re putting as
much pressure as we can on local governments and cities to approve projects,”
Stone said.
San Jose Spotlight
by Tran Nguyen
January 4, 2022
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