County may add money for housing: Advocates push for more, annual sales tax expenditures could rise from $15M to $25M - See more at: http://www.smdailyjournal.com/articles/lnews/2017-04-12/county-may-add-money-for-housing-advocates-push-for-more-annual-sales-tax-expenditures-could-rise-from-15m-to-25m/1776425178675.html#sthash.O2ricm04.dpuf

April 12, 2017, 05:00 AM By Samantha Weigel Daily Journal Samantha Weigel/Daily Journal Advocates hold up a poster with pictures of people who support allocating sales tax proceeds toward affordable housing during Tuesday's Board of Supervisor's meeting. San Mateo County will try to tighten its belt and scrape up another $10 million a year as the Board of Supervisors strives to allocate $25 million annually toward addressing the affordable housing crisis and live up to its commitment to voters. County officials met Tuesday to give direction on a two-year spending plan for Measure K, a half-cent sales tax voters extended last November that’s expected to generate $81 million annually. Initially considering whether to allocate $15 million a year for affordable housing goals, supervisors were moved by advocates who spoke during the meeting suggesting the board allocate $30 million annually. Eventually, the board agreed to try and set aside up to $25 million, but increasing it that much will undoubtedly mean cutting expenditures elsewhere and it’s not yet clear whether it’s feasible. The board will take a final vote in the coming months after staff and supervisors suggest areas where the county might find savings that could be reallocated toward housing. “If we’re going to put our priority in housing, than maybe some other things have to be cut,” said board Vice President Dave Pine, who suggested the county look for an additional $5 million to $10 million a year. “You’ll need to bring back some proposed cuts.” A variety of possibilities will be considered but initial suggestions included cutting back on the proposed $10 million in information technology expenditures and trying to work around recent federal mandates it spend jet fuel sales tax solely on airport matters. The county may also re-evaluate a range of programs from parks to health care services that were slated to receive committed sales tax revenue totaling $42 million a year. The discussion came as more than a dozen representatives from nonprofit housing builders, faith groups and tenant rights advocates urged the county to adhere to promises made during the November 2016 election when officials suggested $20 million of the general sales tax proceeds could go toward the affordability crisis. Housing crisis and Measure K campaign MidPen Housing President Matt Franklin said they worked with the county on the Measure K campaign under the auspice it would support the affordability crisis. He noted a survey showed the number one issue on voters’ minds at that time was the housing crisis. “We ran a campaign with a message to voters that [that] was the purpose of voting yes,” Franklin said. “I urge you to spend ... $30 million a year for production of affordable housing, I can assure you the money will be well spent.” County staff offered data on the historic and proposed level of investments, as well as the effectiveness of the county’s financial contributions. Every dollar the county spends helps leverage another $9 toward developing new affordable housing, said Deputy County Manager Peggy Jensen. But preserving existing units isn’t as effective in leveraging funds and Jensen recommended the board focus its efforts elsewhere. Staff will evaluate whether there are more cost-effective methods to preserve existing affordable units, and study tenant protection measures such as relocation assistance or just cause eviction regulations, she said. While Tuesday’s focus was on supporting the creation of new units, financial and social challenges remain. Requests for county support in the next two years is expected to top $17.6 million to help construct 600 new units, and another $11.5 million in pre-development costs for 800 residences in the pipeline. Staff’s initial recommendation to allocate $30 million over the next two years included $22 million toward its affordable housing fund, $1.4 million for tenant relocation assistance programs, and $1.6 million on staffing costs. The board will also consider allocating $5 million toward the nonprofit Housing Endowment and Regional Trust’s revolving loan fund. Another $8 million of the total Measure K proceeds would be set aside as reserves, which officials remarked was important in light of national uncertainties. The county is also not budgeting the typical $4 million it receives in federal affordable housing support since President Donald Trump proposed eliminating the HOME as well as Community Development Block Grant programs. While it is an increased allocation in sales tax revenue, the county’s initial proposal would have essentially kept funding flat when considering how other contributions are drying up. Advocates noted other surrounding counties — such as Alameda and Santa Clara counties that have cumulatively dedicated billions of dollars toward the affordability crisis — might become more enticing to nonprofit developers who must go where they can build. “In this county, we have a lot of great conversations about the housing and displacement crisis, we have had a lot of dialogue. …. But now is the time to, as they say, put our money where our mouth is,” said attorney Daniel Saver with Community Legal Services of East Palo Alto. “We need to see an infusion of funding to really tackle this crisis with the urgency that it needs.” Other barriers to housing The board unanimously agreed the jobs-to-housing imbalance is having far-reaching effects. But while interested in allocating additional funds, staff and supervisors noted there are other barriers. “You frankly have to deal with the fact that there’s a lot of NIMBYism,” said board President Don Horsley, noting the need for public outreach on the value of adding new housing. “It’s getting that message out to people that it’s really important.” Supervisor Carole Groom noted the city of San Mateo, where she used to serve as a councilmember, has voter-approved height and density restrictions. She and others urged the 20 local governments making up the county to consider their role in the crisis as well. “I think it’s time for every city to do what we (the county) did, and re-evaluate zoning and ordinances,” she said. Jensen said the county is working to identify the political barriers and community concerns that develop when residents oppose new housing proposals. But acknowledging the limits to what can be built, supervisors challenged staff to look for other solutions as well — whether it’s promoting new in-law units at single-family homes, encouraging more home sharing through HIP Housing or other means. Horsley and Supervisor Warren Slocum will work with staff to evaluate potential programs or departments that could be tightened to increase Measure K expenditures on affordable housing. They are expected to return to the full board with suggestions as the county works to finalize its budget. Supervisors also thanked the litany of nonprofit developers and advocates who partner with local governments to bolster housing options. “We’re in a housing crisis and what we’ve done today or are looking to do today, is going to be transformative in people’s lives,” said Supervisor David Canepa. “When they get those keys to their new apartment … you’re changing lives and you’re giving people a ray of hope.” In other business, the county approved a plan to fund and construct nearly $444 million worth of new government buildings. It includes state-mandated improvements to an aging portion of the Health System Campus, a county office building that will accommodate employees as they’re shuffled from other facilities to downtown Redwood City and a corresponding parking garage. Other construction includes revamping its mental health institution, a new homeless shelter, a new medical facility in South San Francisco, the county radio shop and relocating a historic property from where the new office building will be located. Bonds, the county’s General Fund and remaining proceeds from the sale of its Circle Star property will fund the capital projects. Measure K funds will not be allocated toward the projects, according to a staff report. The board also opted to hold off on awarding $10 million in Measure K funds to IT projects until it further evaluates housing allocations. samantha@smdailyjournal.com (650) 344-5200 ext. 106 - See more at: http://www.smdailyjournal.com/articles/lnews/2017-04-12/county-may-add-money-for-housing-advocates-push-for-more-annual-sales-tax-expenditures-could-rise-from-15m-to-25m/1776425178675.html#sthash.O2ricm04.dpuf