13 Staff Report - Housing Trust of Santa Clara County~0`N N o
COUNCIL AGENDA REPORT
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MEETING DATE: 4/18/2005
ITEM NO. 13
DATE: April 12, 2005
TO: CHAIR AND MEMBERS OF THE REDEV LOPMENT AGENCY
FROM: DEBRA J. FIGONE, TOWN MANAGE C ERECTOR
SUBJECT: HOUSING TRUST OF SANTA CLARA COUNTY
A. Consider contribution to Phase III Housing Trust Funding and Operations
Strategy
B. Consider Extension to Existing Agreement between Housing Trust and
Town of Los Gatos
RECOMMENDATION:
1. Consider Housing Trust request for contribution of $100,000 for three years ($300,000 total
contribution) for Phase III Housing Trust Funding and Operations Strategy.
2. Direct staff to place Extension to the Existing Agreement Between the Housing Trust and Town
of Los Gatos and Phase III Housing Trust Funding and Operations Strategy Contribution
Agreement on a future Town Council agenda for consideration. .
BACKGROUND:
The Housing Trust of Santa Clara County is a public/private partnership dedicated to building and
sustaining a revolving loan fund and grant making program that will complement and leverage other
housing resources throughout Silicon Valley. Major community, business and government leaders
have joined together to address the gap between rapid new job creation and affordable, available
housing within Santa Clara County. The consortium of sponsors includes Silicon Valley Leadership
Group, Community Foundation Silicon Valley, American Electronics Association, Santa Clara
County Board of Supervisors and the Santa Clara Collaborative on Housing and Homelessness.
In 2001, the Redevelopment Agency Board authorized execution of an agreement in which the
Redevelopment Agency contributed $250,000 of affordable housing funds to the Housing Trust of
Santa Clara County's (HTSCC) Endowment Fund. The agreement between the Agency and HTSCC
required that the contribution be expended by April 2003. In 2003, the Agency Board extended the
deadline for expenditure of the funds to April 2005.
PREPARED BY: BUD N_ LORI ,
DIRECTOR OF COMMUNITY DEVELOPMENT
Reviewed by: Xb~a-Assistant Townes ager Town Attorney Clerk Administrator
-.5C. Finance r/ Community Development Revised: 4/14/05 3:02 pm
Reformatted: 5/30/02
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: HOUSING TRUST PRESENTATION
April 14, 2005
DISCUSSION:
The HTSCC has launched its Phase III funding campaign (Attachment 1). HTSCC's goal is to raise
over $9 million over the next three years to invest in the creation of affordable housing, special-
needs housing, and assistance to first-time homebuyers. The HTSCC believes this campaign will
allow them to provide assistance to more than 1,000 families per year for the next three years.
HTSCC will make a presentation to describe the Phase III campaign and will request that the Town
pledge $100,000 per year for the next three years. In addition, the Housing Trust will request the
Town agree to a second extension to the deadline for expenditure of the original $250,000
contribution (Attachment 4). Sixty thousand ($60,000) was expended for a home on Blossom Hill
Road that provides housing for five seniors and $47,500 was spent on the first-time buyer program.
There is $142,500 of unexpended funds remaining for use by the Housing Trust.
CONCLUSION:
Council should indicate its interest in participating in the Phase III campaign and in extending the
deadline for the original contribution. Staff will place these items on a future Council agenda to
allow time for staff to evaluate the issues and identify funding sources.
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
The Redevelopment Agency has an estimated fund balance of $4,200,000 in the Affordable Housing
Fund as of June 30, 2005. An annual contribution of $100,000 over the next three years ($300,000
total contribution) will not impact the Redevelopment Agency's ability to undertake other affordable
housing projects that have been discussed by the Agency Board.
Attachments:
1. Letter from Cheryl Serna dated April 1, 2005
2. Housing Trust of Santa Clara County Progress, April 1, 2005 Edition
3. Housing Trust of Santa Clara County Investor Summary Sheet
4. Letter from Cheryl Serna dated April 11, 2005
Distribution:
Carl uG ardmo, Sillcon oaIley ea ers -p Group, 224 Airport Parkway, #620, San Jose, CA 95110
Cheryl Serna, Housing Trust of Santa Clara County, 1786 Technology Drive, San Jose, CA 95110
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April 1, 2005
Debra Figone
Town Manager
Town of Los Gatos
110 E. Main St. PO Box 949
Los Gatos, CA 95031
Dear Ms. Figone,
Enclosed please find letters to Los Gatos' Mayor and Council in preparation for the
presentation on the Housing Trust of Santa Clara County's "Phase III" campaign at your
April 18, 2005 city council meeting.
Please feel free to contact me at 4081436-3450 x l# or by email at
cheryla housin stsce.org if you have any questions or if you need any additional
materials from us.
Development Manager,
Housing Trust of Santa Clara County
1786 technology drive. san jose . ca • 95110. [ph) 408.436.3450 • [fx] 408.436.3454 Attachment 1
www.housingtrustscc.org
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April 1, 2005
The Honorable Mike Wasserman
Town of Los Gatos
110 E. Main Street
Los Gatos, CA 95030
Dear Mayor Wasserman,
APP 0 1 2005
MAYOR &TOWN COUNCY
Thank you for partnering with us to create more affordable homes for Silicon Valley families! To
continue this important work, we propose another opportunity to partner in the creation of
affordable homes in all of our communities: the Housing Trust of Santa Clara County asks you to
support our "Phase III" funding and operations strategy.
Phase III seeks to raise $5 million in voluntary contributions from employers, foundations and
individuals for each of the next three years, matched by public sector agencies (cities, towns and
the County of Santa Clara). This support would allow us to invest funds into the creation of
affordable rental homes, homeless and special-needs housing, and support for first-time
homebuyers designed to help a minimum of 1,000 families per year for the next three years. To
help us meet these worthy goals, we are respectfully requesting a pledge of $100,000 each year
for the next three years from the Town of Los Gatos at your council meeting scheduled on April
18, 2005.
We are pleased to note that several private sector employers have already stepped forward with
pledge offers, contingent on public-sector support. Adobe Systems, Agilent Technologies, Cisco
Systems and Synopsys Corp. have all pledged $150,000, and are joined by Knight-Ridder Corp.
and Solectron Corporation with pledges of $100,000, and by Citibank with a pledge of $75,000.
We are extremely proud of our record of success. With your help, in just the past three years we
have helped nearly 4,500 families secure homes in this high-cost valley. This includes 630 units
of special needs housing and housing for the homeless, 1,184 affordable multi-family rental
apartments, and 1,260 families buying their first home in Santa Clara County. With your
renewed support, we look forward to continuing and expanding this record of achievement in
2005 and beyond.
We are enclosing some information regarding your city's investments in the Housing Trust and
affordable housing in Santa Clara County. We hope you will join us in creating more affordable
housing in Santa Clara County.
Respectfully,
4A
Don Gage
Chair of the Board,
Housing Trust of Santa Clara County
Supervisor, District 1
County of Santa Clara
1 Guardino
Fundraising Committee Chair,
Housing Trust of Santa Clara Coi
President & CEO,
Silicon Valley Leadership Group
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1786 technology drive - san jose - ca - 951 10 - [ph] 408.436.3450 - [tx] 408.436.3454
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eDUHW EDITION OF APRIL 1, 2005
xT MONTHLY FACT SHEET
LOUSING TRUSTY Cow"M AUNITY
STEPPING UP E®R FAINIILIES
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Affordable housing could become a reality for more than 1,000
families each year under a new funding and operational strategy
recently announced by the Housing Trust of Santa Clara County.
HTSCC Board of Directors Chair (and Santa Clara County Supervisor)
Donald F. Gage and HTSCC Fundraising Chair (and SVLG President
and CEO) Carl Guardino have announced the proposal of"Phase III,"
a public-private compact between interested private-sector
investors (employers, foundations and individuals) and public
agencies with the goal of assisting a minimum of 1,000 families per
year for each of the next three years.
Afunding goal of $1.5 million in voluntary contributions from
employers, foundations and individuals for each of the next three
years, matched by public sector agencies (cities,towns and the
County of Santa Clara), working through their budget process,
would allow the Housing Trust to invest funds into the creation of
affordable rental housing, homeless and special-needs housing,
and support for first-time homebuyers designed to help at least
1,000 families per year.
Private sector employers are already stepping forward with pledge
offers, contingent on public-sector support. As of April 1, 2005
Applied Materials has pledged $200,000; Adobe Systems, Agilent
Technologies, Applied Materials, Cisco Systems and Synopsys Corp.
have all pledged $150,000; and Knight-Ridder Corp. and Solectron
Corp.-the Housing Trust's first-ever private sector donor in 1999 -
havejoined with $100,000 pledges.
"This new effort has the potential of helping thousands more
families afford homes in Silicon Valley, and moves us closer to our
original goal of establishing a consistent, long-term source of
funding for the Trust"said HTSCC Fundraising Chair Carl Guardino,
adding: "In true Silicon Valley spirit, in its first years the Trust was
run like a start-up; it's time to move into the next phase now."
HOMELESS & SPECIAL NEEDS HOUSING
As of April 1,2005 the Housing Trust of
INVESTMENT
(in millions)
Santa Clara County has invested $3.9
million (as 14 loans to 11 developments)
•
in the creation of shelters and housing
programs for people who are homeless
LEVERAGE
and special-needs housing. These
(in millions)
developments contain 630 units of
shelter and housing, and are valued at
WYAM
more than $975 million. In addition,the
Trust has invested $276,738 in two
LOANS/ PEOPLE
emergency homeless prevention grants,
GRANTS HELPED
assisting 1,361 individuals.
mmmi
FIRST-TIME HOMEBUYER ASSISTANCE
As of April 1, 2005 the Housing Trust has
INVESTMENT
(in millions)
helped 1,260 families buytheir first
home in Santa Clara Countythrough
our closing cost loans, Homeownership
Venture Fund program, HomeStart.
LEVERAGE
program and SuperFlex loans. The
(in millions)
average income of our loan recipients is
$70,348, average household size is 2
people. The average home purchased
with a Housing Trust loan sold for
FAMILIES
$344,489,with total valuation of more
HELPED
than $404 million.
MULTIFAMILY RENTAL HOUSING
As ofAprII 1,2005 the HousingTrust has INVESTMENT
(in millions)
invested over $5.09 million 04loans) in
affordable multifamily rental developments, ' •
creating 1,184 units of new rental housing in
13 developments located throughout Santa
LEVERAGE
Clara County. The total value ofthese (in millions)
developments is more than $249 million.
14`' '11`89
TOTAL HTSCC TOTAL TOTAL HOUSING
INVESTMENT LEVERAGE OPPORTUNITIES
(in millions) (in millions) CREATED
PUBLISHED MONTHLY BY THE HOUSING TRUST OF SANTA CLARA COUNTY 1 1786 TECHNOLOGY DRIVE, SAN JOSE CA, 95110 1 408.4363450 1 WWW.HOUSINGTRUSTSCC.ORG
Attachment 2
FACT SHEET EDITION OFAPRIL 1, 2005
AFFORDABLE HOUSING DEVELOPMENT INVESTMENTS
The Housing Trust has committed almost $9 million in funding to these multifamily
affordable rental and ho
meless/special needs developments in
Santa Clara County:
■CAMPBELL
■ PALO ALTO
■SAN JOSE
2011 Pollard Road; 5 units
Opportunity Center: 89 units
1059 Roewill Drive: 6 units
LOAN AMOUNT. $50,000
LOAN AMOUNT. $650,000 (2 loans)
LOAN AMOUNT. $60,000
LEVERAGE: $734,357
LEVERAGE: $20.7 million
LEVERAGE: $650,000
Senter Road: 117 units
■CUPERTINO
■SAN JOSE
LOAN AMOUNT: $500,000
Vista Village: 24 units
San Jose Art Ark: 146 units
LEVERAGE: $37 million
LOAN AMOUNT-$341,000
LOAN AMOUNT. $500,000
Sunset Square Apts.: 96 units
LEVERAGE: $7.2 million
LEVERAGE: $6.58 million
LOAN AMOUNT: $500,000
239 Burning Tree Drive: 5 units
LEVERAGE: $15.4 million
■ GILROY
LOAN AMOUNT: $100,000
Monticelli Apartments: 52 units
LEVERAGE: $484,000
■SANTA CLARA
LOAN AMOUNT: $178,274
RiverTown Apartments: 100 units
LEVERAGE: $10.2 million
Betty Ann Gardens: 76 units
LOAN AMOUNT: $447,309
LOAN AMOUNT.- $150,000
LEVERAGE: $29.6 million
Sobrato Transitional Apartments: 60 units
LEVERAGE-$18.2 million
Sobrato Family Living Center II; .
LOAN AMOUNT: $745,000 (2loans)
LEVERAGE: $15.2 million
Curtner Gardens: 180 units
18 units
LOAN AMOUNT: $450,000
Sobrato Family Transitional Center: 140 beds
LOAN AMOUNT $1 million (2 loans)
LEVERAGE: $4.5 million
LOAN AMOUNT: $500,000 (2 loans)
LEVERAGE: $11.1 million
LEVERAGE: $4.9 million
■SUNNYVALE
Eden Palms: 75 units
Moulton Plaza: 66 units
■ LOS GATOS
LOAN AMOUNT:$105,000
-
LOAN AMOUNT: $500,000
LEVERAGE: $4.4 million
LEVERAGE: $16 million
Los Gatos Senior Group Residence: 5 units
LOAN AMOUNT: $60,000
Evans Lane Family Apts.: 240 units
Plaza de las Flores: 101 units
LEVERAGE: $727,200
LOAN AMOUNT: $100,000
LOAN AMOUNT: $500,000
LEVERAGE: $56.8 million
LEVERAGE: $16.7 million
RMORGAN HILL
Murphy Ranch: 62 units
LOAN AMOUNT: $500,000
LEVERAGE: $18.3 million
Murphy Ranch 11:38 units
LOAN AMOUNT: $92,500
LEVERAGE: $11.7 million
RMOUNTAIN VIEW
San Antonio Place: 120 units
LOAN AMOUNT. $625,000 (2 loans)
LEVERAGE: $19.1 million
The Housing Trust provides
development financing for
affordable housing throughout
Santa Clara County through our
first-time homebuyer program
and through loans to
developers of affordable
housing. '
. Cities and towns with HTSCCfirst-time
RPALO ALTO homeowner fund Investments
Oak Court Apartments: 53 units
LOAN AMOUNT. $400,000 Cities and towns with HTSCCmulti-family
special needs and/orhameless a ssis tan ce fun d in vestm e7nts
LEVERAGE:$20.1 million
1he.HotisipTrust of Santa Clara County s Founder Com"munrties
Count}.,of Santa Cara Crty o Gilr ~f.'Monte Seren City of San Jose City of 5unnyvale
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City~of Campbell Cltyiof Los Altos f . it of Mprgan Hill City of Santa Clara, Town of.Los Altos Hills
Gtyof:Cupertmo - ~.,GitvtoftMilplt s of Mountain ~i€ City of Saratoga 'Town of Los Gatos
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housing
tru st OF SANTA CLARA
COUNTY
Investor Summary Sheet
Town of Los Gatos, CA
DONATION SUMMARY
Donation Amount: $250,000 Phase 1.
Date of Pledge: April -24, 2001
Geographical requirement: Use in Los Gatos area.
AMI requirement: Moderate, low, or very low..income
INVESTMENT SUMMARY
by Housing Trust program area
First-time Homebuyer Loans
Loan totals: 7 loans
Loaned amount: $47,500
Homeless and Special-Needs Housing
Los Gatos Senior Group 'esidence:5 units
Loan amount: $60,000
TOTAL INVESTED IN LOS` GATOS:$1'07,500
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Attachment 3