A visit by key Silicon Valley business and community leaders to another of North America’s great cities, this annual program helps regional leaders to learn to best practices and bring back ideas to make our home an even better place to live and work. In 2017, the Study Mission got a new look and feel as - Destination: Silicon Valley, on Nov. 1-3 in Monterey, Calif. The delegates had the opportunity to hear presentations from speakers/panelists on seven key regional topics: Housing Transportation Downtown San Jose International Competitiveness Emerging Technologies Advanced Manufacturing Regional Branding

2. SVO Board Retreat -
Affordable Housing Overview
and 2018 lookahead
Housing Trust Silicon Valley
Nov 1, 2017

3. Questions to start off with
• What are the different “sides” in the housing/affordable housing
crisis?

5. “The largest amount of subsidized housing in the US is
affordable rental housing, public housing, and
homeless housing.”
Fact or Alternative Fact?

7. Why?
- 1/3 of homeowners don’t
have mortgages
- Some owners don’t owe
federal tax, although pay state
and local taxes
- Many claim standard
deduction and do not itemize
taxes
- Homeowners with higher
incomes tend to have more
expensive homes and thus
more MI to deduct
- The deduction’s value depends
on a household’s marginal tax
rate, so households in higher
tax brackets benefit more.

8. “Affordable housing costs more to build than market
rate housing”
Alternative Fact

10. “San Jose has built the most affordable rental housing
in the county in the last 7 years.”
Fact

12. Silicon Valley’s Affordable Housing Deficit

13. Housing Trust Silicon Valley
We are leading the effort to create a strong affordable
housing market in the Greater Bay Area
We help everyone from the homeless to renters to first-
time homebuyers
We make more loans than any other nonprofit housing
lender in the region and address the housing crisis
from every angle

14. Housing Trust Silicon Valley
Founded in 2000
$145 million invested
$2.6 billion leveraged
15,490 affordable housing
opportunities created
27,640 people served
S&P Rated “AA-”
Home Ownership
2,497 homes
$49.5M
Multifamily
Rental Lending
6,028 homes
$77.2M
Reducing
Homelessness
6,303 homes
$4.3M

15. Sunflower Hill
MidPen Housing & Dahlin
BAREC
The Core Companies
Villas on the Park
PATH San Jose and PATH Ventures
Embark Apartments
RCD Housing

16. Down Payment Assistance
Over 6,000 people now have stable, equity-building homes
thanks to HTSV’s First Time Homebuyer loans
Helped nearly 2,500 households purchase homes by making
down payment loans totaling over $49 million
We provide pre- and post-purchase education opportunities
to help our clients maintain sustainable homeownership
Housing Trust Silicon Valley

17. Homelessness Prevention
Assisted nearly 6000 people since 2000.
Finally Home program - 1,647 security deposit grants
to households experiencing or at risk of homelessness.
45% of people assisted are children under 18.
93% of Finally Home clients remained housed after one year
Housing Trust Silicon Valley

19. 10,000
affordable homes
Over the course of
10 years
$50M initial lending capital
Series A
5 year note at 1.5% interest
Series B
10-year note at 2% interest
AA- S&P Rating

20. Sources: HTSV projections; Enterprise Health in Housing Report and Impact of Affordable Housing on Families and Communities Report; LIIF Social Impact calculator, Affordable Housing and Sustainable Community program
calculations; Transform and California Housing Partnership Corporation Study, The Impacts of Affordable Housing on Health, Center for Housing Policy; Should I Stay or Should I go?, Center for Housing Policy
Projected Impacts
10,000 homes created
$216M amount low
income renters save per year
121 metric tons
annual GHG reduction,
equivalent to 290k miles
driven by an average
passenger vehicle
56M per year fewer
Vehicle Miles Traveled
$607M increased
spending on food over 30
years
200% increased
household spending on
health care and insurance
Stable housing has a
positive impact
on educational
outcomesfor children
Affordable housing can
reduce stress and
related adverse health
outcomes

21. East Palo Alto/Facebook Catalyst Fund:
$18.5M leveraging to $75M

22. Other future HTSV programs
• HAF - $5,000 grants to new homeowners via Calif Association of
Realtors
• Below Market Price Home in Santa Clara – Info Session Oct 2nd –
630pm
• HELP Downpayment Assistance – shared appreciation loans – up
to 10% of the purchase price for moderate income buyers (up to
$140k income)
• Accessory Dwelling Unit (“Granny Units”/ “In law units”) –
developing financing product and education program to allow
people to build naturally affordable tiny homes for rent in their
backyards

23. Federal Housing Outlook 2018

24. Tax Policy IS housing policy
• Affordable Housing
– Low Income Housing Tax Credit
• 325,000 Californians live in affordable housing today financed by LIHTC
• More than 7 million over next 50 years will benefit in CA
• 9% LIHTC looks optimistically OK in tax cut plan by Congress
• Non-competitive 4% LIHTC and tax exempt private activity bonds less sure
– Impt for California: last year we financed 20,000 homes in CA with 4%/bonds – double
what we did with 9%
• Homeownership
- Mortgage Interest Deduction
• Doubling of Standard Deduction could narrow MID to only top earners
• Conversion to Tax Credit vs Deduction could help millions more

25. HUD Budget under attack
• $7B Cuts nationally
• $89 Million in cuts to Santa Clara County
– $14M to CDBG
– $70M for Housing Choice Vouchers (Section 8) – funding for 3700
families (approx. 17,000 families total receive Section 8 in SCC)
– All Section 8 holders will pay more – approx 20% increase to
tenant portion of rent with new changes

26. CA “Housing Package”
• SB2 - $250-300M annually for affordable housing programs
through new $75 document recording fee
• SB3 - $4B Affordable Housing Bond to voters in 2018 ballot
for existing affordable housing programs
• SB35 – streamlining bill to approve developments faster for
those cities not meeting their housing goals
• AB1505 – Allow cities to once again have “inclusionary”
zoning in new rental apartment developments

27. California in 2018
• Additional legislation?
– ?
– Governors race – make housing a top priority
• Lt Gov Newsom housing plan to build 3.5M homes by 2025 to meet gap
• Treasurer John Chiang supported $6-9B affordable housing bond for ballot
• Others?

28. Santa Clara County
$950M for Affordable Housing Programs
$700M for permeant supportive homes and extremely
low income homes
$100M for very low income homes
$150M for moderate income, including downpayment
assistance
County released NOFA for first round of PSH/ELI
funding
County released RFP for administrator of SCC
Acquisition Fund
County released RFQ for administrator of
Downpayment Assistance

29. Cities
• Inclusionary and Housing Impact Fees
• Commercial Impact Fees
• Renter rights – just cause, rent control
• ADU/In-law units
• Mobile Home parks

30. We need more Housing for All
• Mayor Sam Liccardo 15-
point Housing Plan
• 25,000 new homes in 5
years
• 10,000 affordable