Immediate Release

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September 9, 2002

Peggy Flynn, (408) 794-1064

San Jose Homeowners Aided by Three Initiatives from the San Jose Redevelopment Agency

Strong Neighborhood Initiative Strengthened with New Programs

San José, CA ---- The San Jose Redevelopment Agency (SJRA) Board, on August 27, approved three significant new initiatives that will greatly assist in the revitalization of neighborhoods located in the San José Strong Neighborhood Initiative Redevelopment Project Area. The programs will be administered by the City of San José Housing Department in order to provide for a coordinated, one-source approach to housing rehabilitation.

“We can now help first-time homebuyers get into new homes and help current homeowners complete essential improvements that will benefit quality of life in our neighborhoods and strengthen our community,” said San Jose Mayor Ron Gonzales.

The Exterior Grants component of the Home Improvement Program will offer up to $25,000 for exterior improvements that can include the roof, porch, stairs, fencing, gutters, and paint, as well as hardscaping and landscaping improvements.

The Hensley District Historic Rehab Program recognizes the extra cost associated with upgrading buildings to historic standards and quality. It will offer additional grants up to $25,000 for exterior work, including window repair and replacement, and will be available only in the Hensley Historic District in Downtown San José.

The Second Mortgage Assistance Program will assist first-time homebuyers to qualify for loans to buy a condominium or townhouse in any San José Redevelopment Project Area. It also will encourage developers to build ownership rather than rental housing. The program will offer second mortgages up to $40,000 with payments deferred for five years, thereby acting as part of the buyer’s down payment.

In addition to these programs, San Jose will continue its commitment to first time homeowners by transferring another $2 million, to complement the $4 million already invested over the past two years through the Neighborhood Housing Services Silicon Valley. Together, the programs represent $20 million in homeowner assistance programs for San José residents.

Several Strong Neighborhood Redevelopment Areas have identified residential rehabilitation, improvement of dilapidated properties, and/or residential landscaping as a top-ten action priority.

Although the Exterior Grants component of the Home Improvement Program will be available in all SNI areas, the City will give priority to those SNI neighborhoods that have identified rehabilitation as a priority. This program will be available to owners that have properties occupied by households that do not exceed median income for the County of Santa Clara, currently $96,000 for a family of four, which is consistent with the Housing Department’s current programs.

SJRA will transfer $4 million to the Housing Department to fund the program, with additional funding for the Exterior Grant component for future years to be proposed through the Capital Budget process.

“The Exterior Grants program will enable residents to see the benefits of SNI spread from their front door to the rest of their neighborhood,” said Leslie Corsiglia, Director of the City of San Jose Housing Department.

The Hensley District Historic Rehab Program addresses the high costs of rehabilitating homes within this important historic district, which is adjacent to the 13th Street Redevelopment Project Area. The district consists of the largest concentration of Victorian homes in the central San José area, and was listed on the National Register of Historic Places in 1983. Architecturally, the houses represent some of the best examples of the Italianate, Stick-Eastlake, and Queen Anne styles popular between the 1870s and 1890s.

Currently, many of the homes in the Hensley Historic District are in need of rehabilitation due to deferred maintenance and modifications that have impacted the historic integrity of the homes and the district. Many of the larger residences have also been divided into flats and apartments. The SJRA will provide $1.96 million to the Housing Department to fund financial and technical assistance to homeowners and aid in the preservation and revitalization of the district.

“These grants will help preserve a vital piece of San José’s history,” said Susan Shick, Executive Director of the San Jose Redevelopment Agency. “The preservation of this historic district and its buildings will be a source of pride for the surrounding neighborhoods and the entire city, and it will contribute to the revitalization of the area.”

The Second Mortgage Assistance Program will provide an interest free loan in an amount up to $40,000 to individuals or families earning 120 percent or less than the Santa Clara County median income. This $40,000 must go towards the purchase of a new housing unit in one of the 21 Redevelopment Project Areas within the City of San José. In addition, only those buyers who have not owned or sold a home within the last three years would be eligible.

The program will also encourage the development of for-sale housing in these areas by enabling developers to sell the newly constructed units more quickly, thus reducing their carrying costs. The program and the SJRA’s “Inclusionary Housing Policy” require below-market housing to be included in developments in redevelopment areas. This means a developer of for-sale residential units will be required to make available 20 percent of the units at a sale price affordable to moderate-income buyers, or to make available 9 percent of the units for moderate-income and 6 percent for very low-income buyers.

“The Second Mortgage Assistance Program is designed to work in conjunction with our recently revised Inclusionary Housing Policy,” said John Weis, Deputy Director of the San Jose Redevelopment Agency. “It ensures that lower income residents can own their own homes and that developers can also build these homes.”

The San Jose Redevelopment Agency is dedicated to improving the quality of life for all who live and work in San José. Governed by the City Council, the SJRA facilitates and oversees comprehensive programs for development to revitalize the City’s Downtown, neighborhoods, and industrial areas.