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Loss Of Redevelopment Agencies A Blow To Affordable Housing In San Jose

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(CBS)

(CBS)

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SAN JOSE (KCBS)— With the state’s elimination of redevelopment agencies, cities are having to come up with new strategies to build affordable housing. San Jose City Council held a special study session Tuesday to look at new funding options.

San Jose was able to build 21,000 units of affordable housing thanks to their redevelopment agency, but City Councilman Sam Liccardo said the loss of these agencies continues to be a real blow on a local level.

For Santa Clara County, doing away with redevelopment agencies meant the permanent loss of $65 million for affordable housing, according to Matt Franklin with the Mid-Peninsula Housing Trust.

“On average, about 80 percent of that local money was coming from redevelopment – So this loss of money really could be a quantum blow to the industry. I mean, I really believe that affordable housing targeted at this working poor could grind to a halt if we don’t do something,” Franklin said.

KCBS’ Mike Colgan Reports:

Kevin Zwick, the Executive Director of the Housing Trust of Santa Clara County, said despite housing prices having fallen to where they were maybe eight years ago, the market isn’t providing enough home-ownership opportunities for moderate and middle income families.

“For people who are working in these driving industries, it’s still not rosy for you if you’re still trying to buy a home. Half the homes being sold today are being sold to all-cash investors and the inventory of available homes is down to one-third of what it was two years ago. It’s some of the lowest levels in decades,” Zwick said.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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