San Jose lawmakers on Tuesday approved a spending plan for a
multi-million dollar home tax that will be on voters’ March 2020 ballot.
In the spending plan announced Tuesday, San Jose Mayor Sam Liccardo
said the city will see up to $70 million per year in cash for affordable
housing if voters approve the upcoming ballot measure.
The real property transfer tax will tax the transfer of
properties valued over $2 million if it passes.
The plan allocates about 45 percent of the possible tax
revenue for permanent and affordable rental housing for residents making less
than 30 percent of the area median income. About 35 percent will go toward
earners making 30 to 80 percent of AMI, and 10 percent for homelessness
prevention and rental help for homeless students, victims of domestic violence,
seniors and families.
About 10 percent would be available for people looking to
buy below-market rate housing or those looking for moderate-income rental
housing who make up to 120 percent of AMI.
Part of the same 10 percent may be used for forgivable loans
for rent-restricted accessory dwelling units, down payment assistance and to
help first-time homebuyers who earn up to 120 percent of AMI.
The spending plan passed the council by a majority vote,
with just councilmembers Sergio Jimenez and Johnny Khamis dissenting.
Jimenez said Tuesday he would not be supporting the spending
proposal because it doesn’t include significant language specific to spending on
interim housing solutions like tiny homes for transitional housing or a navigation
center with additional shelter beds for unhoused people.
Source: NBC Bay Area