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<h1><span style=3D'font-size:12.0pt;font-family:Verdana;color:black'>San Jo=
se Councilman
Calls for a Moratorium on Affordable-Housing Projects<o:p></o:p></span></h1>

<p class=3DMsoNormal><span style=3D'font-size:7.5pt;font-family:Verdana;col=
or:black'>By
Joshua Molina, Mercury News - </span><span style=3D'font-size:7.5pt;font-fa=
mily:
Verdana;color:#000088'>Posted:&nbsp;09/23/2008 <o:p></o:p></span></p>

<p class=3Dbodytext><span style=3D'font-size:7.5pt;font-family:Verdana;colo=
r:black'>In
a move that has sparked concern among housing activists, San Jose City
Councilman Pierluigi Oliverio wants to stop the construction of new afforda=
ble
homes unless the developers begin to pay thousands of dollars per unit in p=
ark
fees.<o:p></o:p></span></p>

<p><span style=3D'font-size:7.5pt;font-family:Verdana;color:black'>Oliverio=
 is
bringing his controversial proposal to the city's Rules and Open Government
Committee today along with a separate idea for the city to ease travel
expenditures in favor of Web-based meetings.<o:p></o:p></span></p>

<p><span style=3D'font-size:7.5pt;font-family:Verdana;color:black'>The parks
proposal, he said, is long overdue and comes as a response to a slew of
affordable-housing units built without a neighborhood park.<o:p></o:p></spa=
n></p>

<p><span style=3D'font-size:7.5pt;font-family:Verdana;color:black'>The city
currently requires developers of market-rate units to pay park impact fees =
for
new home construction that range from $14,000 to more than $38,000 a unit.<=
o:p></o:p></span></p>

<p><span style=3D'font-size:7.5pt;font-family:Verdana;color:black'>But unde=
r a
program introduced in 1989 to encourage construction of below-market rate
units, developers of affordable housing don't have to pay park impact fees.
Requiring the fees might further discourage developers from building afford=
able
housing, advocates say.<o:p></o:p></span></p>

<p><span style=3D'font-size:7.5pt;font-family:Verdana;color:black'>&quot;Th=
ere is
a sense of urgency,&quot; said Oliverio, who also wants to include projects=
 in
the pipeline. &quot;We continue to approve more complexes and units that do=
n't
have open space. Why continue to make the same mistakes?&quot;<o:p></o:p></=
span></p>

<p><span style=3D'font-size:7.5pt;font-family:Verdana;color:black'>The firs=
t-term
councilman said he spoke with housing, redevelopment and parks officials, b=
ut
they were resistant to the proposal. He decided to bring the idea forward
anyway.<o:p></o:p></span></p>

<p class=3DMsoNormal><span style=3D'font-size:7.5pt;font-family:Verdana;col=
or:black'>&quot;It
is a long time coming,&quot; he said. &quot;We should have done it
sooner.&quot; <o:p></o:p></span></p>

<p><span style=3D'font-size:7.5pt;font-family:Verdana;color:black'>City hou=
sing
director Leslye Krutko said she has no problem talking about updating the c=
ity
policy, but the councilman is going about the idea in the wrong way.<o:p></=
o:p></span></p>

<p><span style=3D'font-size:7.5pt;font-family:Verdana;color:black'>&quot;Wi=
th the
need we have for affordable housing, I think it is a mistake,&quot; Krutko
said.<o:p></o:p></span></p>

<p><span style=3D'font-size:7.5pt;font-family:Verdana;color:black'>In these
difficult economic times, Krutko said a moratorium could hurt a project's
viability and stall construction jobs.<o:p></o:p></span></p>

<p><span style=3D'font-size:7.5pt;font-family:Verdana;color:black'>&quot;It
deserves more time so the council could be educated on the impacts,&quot; K=
rutko
said.<o:p></o:p></span></p>

<p><span style=3D'font-size:7.5pt;font-family:Verdana;color:black'>A
representative for the Home Builders Association of Northern California, a
non-profit group that represents developers, declined to comment on the
proposal.<o:p></o:p></span></p>

<p><span style=3D'font-size:7.5pt;font-family:Verdana;color:black'>At least=
 one
council member is expressing opposition publicly.<o:p></o:p></span></p>

<p><span style=3D'font-size:7.5pt;font-family:Verdana;color:black'>&quot;The
concern I have, and it is a huge concern, is putting a moratorium on any fu=
ture
projects in the pipeline,&quot; Councilwoman Nora Campos said, explaining t=
hat
projects in her district would be hurt. <o:p></o:p></span></p>

<p><st1:City w:st=3D"on"><st1:place w:st=3D"on"><span style=3D'font-size:7.=
5pt;
  font-family:Verdana;color:black'>Campos</span></st1:place></st1:City><span
style=3D'font-size:7.5pt;font-family:Verdana;color:black'> said the proposal
needs to be vetted through a thorough analysis, not just tossed onto a coun=
cil
agenda.<o:p></o:p></span></p>

<p><span style=3D'font-size:7.5pt;font-family:Verdana;color:black'>&quot;In=
 order
to address this issue we need to look at the big picture.&quot;<o:p></o:p><=
/span></p>

<p class=3DMsoNormal><o:p>&nbsp;</o:p></p>

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