Draft Relocation Impact Statement and Last Resort Housing Plan for the Prepared for Santa Clara County Housing Authority Submitted by Associated Right of Way Services, Inc. July 2017
TABLE OF CONTENTS I. EXECUTIVE SUMMARY.... 1 Project Parcels and Project Description... 1 Project Schedule, Purpose Relocation Plan and Project Financing... 2 Project Assurances... 2 Basis of Findings... 5 Impacted Occupant Description and Relocation Needs... 5 Concurrent Displacement... 6 Relocation Cost Estimate... 7 II. RELOCATION IMPACT... 8 III. IMPACT TO RESIDENTIAL occupants... 8 Overcrowded Conditions... 9 Accessibility Needs... 9 Language... 9 Current Rent and Affordability... 9 Tenant with a Housing Choice Voucher... 10 Transportation... 11 Employment... 11 City of San Jose Tenant Protection Ordinance... 11 IV. IMPACT TO NON-RESIDENTIAL occupants... 12 V. ADDITIONAL IMPACT AND DISPLACEMENTS... 13 Investment Property Owners... 13 VI. REPLACEMENT SITE RESOURCES... 13 Residential Dwellings for Rent... 14 Residential Single Family Residences for Rent... 15 Commercial Replacement Sites for Rent... 17 VII. RELOCATION ASSISTANCE PROGRAM... 18 Important Terms... 19 Eligible Occupant... 21 Governing Regulations... 22 Summary of Relocation Benefits for Residential occupants... 22-26 Summary of Relocation Benefits for Business and Nonprofit Organizations... 26-32 Other Important Information... 32 Appeal Process... 33
TABLE OF CONTENTS APPENDIX... 36 Area Map... Appendix A Sample General Information Notices... Appendix B Absentee Landlord... B.1 Residential Tenant Occupant... B.2 Commercial/Business Tenant Occupant... B.3 Relocation Assistance Brochures... Appendix C Residential Relocation Assistance Handbook... C.1 Non-Residential Relocation Assistance Handbook... C.2 Income Limits... Appendix D Distribution Notices... Appendix E Comments Received to the Draft Relocation Plan... Appendix F
I. EXECUTIVE SUMMARY Santa Clara County Housing Authority of (SCCHA) is planning for two new affordable housing projects along a portion of Race Street and Grand Avenue in San José, California. The mission of SCCHA is to provide and inspire affordable housing solutions to enable low-income people in Santa Clara County to achieve financial stability and self-reliance. SCCHA is a Moving to Work (MTW) demonstration agency, working to meet the following three MTW statutory goals established by Congress: Decrease administrative costs and increase cost effectiveness in housing program operations, Promote participants economic self-sufficiency; and Expand participants housing choices. SCCHA believes that the s meets these goals by creating approximately 200 affordable housing units in Midtown San José for both seniors and families. Project Parcels The proposed (Project) site is currently held by two private property owners consisting of seven parcels, and approximately 2.3 acres in the City of San José s Midtown area. The properties are developed with a mix of residential and commercial uses. The residential uses include seven occupied single-family homes and one three-unit apartment building. The commercial uses include three occupied buildings: an asset management, equipment resale and recycling facility, a nonprofit educational cooperative and a barber shop. There is also a parking lot utilized by the non-profit and one vacant commercial building. Project Description The Project plan includes the construction of two affordable housing developments. One development will be for seniors, (the head of household must be 55+ years old) consisting of an above-grade, five story building, one level of garage and four residential stories above. It would include about 90 residential units comprised of a mix of studios, 1 and 2, bedroom apartment units, including one, 2 bedroom for an on-site property manager. The second Project is also above-grade, a six story building consisting of two levels of parking and four levels of residential units that would provide affordable housing for families. It would include approximately 116 units, comprised of studios, 1, 2 and 3 bedroom apartments, including one, 2 bedroom for an on-site property manager. Amenities for the two projects include a community room, landscaped courtyards, on-site property management and resident services, laundry rooms and either a play structure for children or a fitness center for seniors. Page 1
Project Schedule On May 3, 2017, SCCHA entered into an assignment to Assign and Assume Purchase Agreement ( Assignment Agreement ) giving SCCHA the right to purchase the property with a private company, Core Race Street, LLC, to facilitate the acquisition of the 2.3 acres required for the Project. Core Race Street, LLC (Core) submitted a planning application to the City of San José (City) to rezone the property to accommodate the planned development. If Core receives zoning approval in this endeavor, then SCCHA can finalize the purchase of the land and close escrow. This is anticipated to take place in early 2018. Once SCCHA has title to the property it can move forward through the required governmental permitting and public bid process for Project construction. SCCHA anticipates the need for the Project site to be vacated by all tenants by June of 2018. Purpose of Relocation Plan In accordance with the State and Federal regulations, a draft of the Final Relocation Impact Statement and Last Resort Housing Plan (Relocation Plan) is required to be made available for a 30-day public review and comment period. Therefore, this Plan will be made available to impacted parties and to the public for a 30-day period. All comments received during the review period will be incorporated into the Final Relocation Plan that will be submitted to SCCHA Board of Commissioners for consideration for adoption on August 24, 2017. The purpose of the Relocation Plan is to: (a) Describe the proposed project, its schedule, and its financing plan; (b) Identify the anticipated project impact on the occupants of properties; (c) Identify the availability of potential replacement sites for impacted occupants; and (d) Explain SCCHA s Relocation Assistance Program. Associated Right of Way Services, Inc. (AR/WS), a private company, specializing in relocation assistance consulting, has prepared this Relocation Plan in coordination with SCCHA. It is expected that AR/WS will assist with the implementation of the Plan on behalf of SCCHA if it is approved by SCCHA Board of Commissioners. In compliance with statutory requirements, this Plan has been prepared to evaluate the present circumstances and replacement housing requirements for the Project occupants. Project Financing SCCHA anticipates that the Project will be financed through a combination of Low Income Housing Tax Credits with affordability levels between 20%-60% AMI. Other sources of financing may include Affordable Housing and Sustainable Communities (also known as Cap and Trade ) funding, County Measure A funds, federal MTW program funds and other non-federal funds. Project Assurances SCCHA has prepared this Plan to identify the affected Project area and to summarize general information on the residential and commercial occupants of the properties in order to assess the impact the Project may have. This Plan will also identify how this proposed Project might affect the occupants and will discuss the Relocation Assistance Program that would be made available to the occupants if they were ultimately required to relocate as a result of the Project. If SCCHA proceeds with the Page 2
proposed Project, SCCHA s Relocation consultants would work with the affected occupants to help them to understand SCCHA s Relocation Assistance Program, to search for available replacement sites, and to file claims for monetary assistance to aid with the costs related to the relocation. SCCHA is prepared to provide Relocation Assistance in accordance with Federal law, 42 U.S.C. 4601 et seq. and MAP-21 Section 1521 and implementing regulations found in 49 CFR Part 24 (the Uniform Relocation Act), and applicable state laws and regulations found in California Government Code Section 7260 et seq., and the California Code of Regulations, Title 25, Chapter 6, Subchapter 1. This Relocation Plan in itself does not trigger relocation benefits. Occupants should not move prior to discussions with AR/WS or SCCHA. SCCHA is committed to providing relocation assistance to residential tenant-occupants who are in legal occupancy for 90 consecutive days prior to the date of execution of the Assignment Agreement, dated May 3, 2017, to acquire the Project site properties as well as commercial occupants who legally occupy a property. Displaced occupants will be provided with relocation assistance in accordance with federal and state laws and guidelines. In addition, it is the intent of SCCHA that: The Draft Plan will be provided to each property occupant and will be made available to the public for the mandatory thirty day review and comment period. Comments to the Draft Plan will be included as an addendum to this Plan prior to submission for consideration for approval before SCCHA Board of Commissioners. All occupants displaced as a result of an acquisition by SCCHA shall receive fair and equitable treatment. No occupant will suffer disproportionate damages as a result of a project proposed for the public s benefit. No eligible residential occupant will be required to move unless adequate replacement housing is available to the displaced person, regardless of race, color, religion, sex, or national origin. No eligible residential occupant will be displaced without 90 days notice and unless comparable replacement housing can be located and is available. Comparable housing includes standards such as: decent, safe, and sanitary (as defined in 49 CFR Part 24 Subpart A 24.2(6) and 24.2(8) of the federal regulations); Functionally equivalent to the displacement dwelling. The term functionally equivalent means that it performs the same function, provides the same utility, and is capable of contributing to a comparable style of living; in an area not subject to unreasonable adverse environmental conditions from either natural or manmade sources. No eligible residential tenant occupant will be required to relocate unless comparable replacement housing is available within the financial means of the displaced person (housing Page 3
costs do not exceed 30% of the household s average monthly income, if the household is lowincome based on the U.S. Department of Housing and Urban Development income limits), either by the displaced person s own means or through assistance from the SCCHA s Relocation Program. No, otherwise eligible, residential or business occupant displaced by the Project will be denied relocation assistance, including financial benefits, as a result of the status of their legal residency in the United States. SCCHA will commit non-federal funds to cover relocation assistance payments to displaced occupants that cannot certify their legal residency. SCCHA will contract with qualified Relocation Advisors for the following services: Provide current and continuing information on the availability, prices, and rentals of comparable residential and commercial properties and locations. Assist each eligible displaced person to complete applications for payments and benefits. Assist each eligible displaced person in obtaining and becoming established in a suitable replacement location. Provide any services required to ensure that the relocation process does not result in different or separate treatment on account of race, color, religion, national origin, sex, marital status, familial status, or any basis protected by state or federal antidiscrimination laws, or any other arbitrary circumstances. Supply to such eligible persons information concerning Federal and State housing programs, disaster loan and other programs administered by the Small Business Administration, and other Federal or State programs, offering assistance to displaced persons. Provide other advisory assistance to eligible persons in order to minimize their hardships. As needed, such assistance may include counseling and referrals with regard to housing, financing, employment, training, health and welfare, as well as other assistance. Inform all persons who are expected to be displaced about the eviction policies to be pursued in carrying out the project. No eligible occupant will receive a 90-Day Notice to Vacate or be required to relocate without first receiving a Notice of Eligibility for Relocation Assistance, or Conditional Entitlement letter for residential occupants, a Relocation Assistance Handbook, and referrals to available replacement sites. If residential unit(s) on the Project site are determined by the City of San José to be covered under its Rent Control and Tenant Protection Ordinances, SCCHA will comply with the City s applicable just cause eviction process. Relocation assistance payments will be made in a timely manner. Payments for residential tenants will be based on SCCHA s Housing Valuation Survey and spend to get requirements. Page 4
Benefits and payments as required in accordance with Federal law 42 U.S.C. 4601 et seq. and implementing regulations found in 49 CFR Part 24 (the Uniform Relocation Act), and applicable state laws and regulations found in California Government Code Section 7260 et seq., and the California Code of Regulations, Title 25, Chapter 6, Subchapter 1, will be provided to all eligible occupants. SCCHA s appraisal, acquisition and relocation assistance programs are adequate to provide orderly and timely relocation of all persons to be displaced. If the is approved by SCCHA Board of Commissioners, SCCHA attests to its commitment to have funds available to provide relocation assistance in accordance with its Relocation Program identified herein prior to proceeding with the relocation of an occupant. All relocation benefits will be offered and administered by SCCHA. This Relocation Plan meets the requirements of the California Code of Regulations, Title 25, Chapter 6. Basis of Findings In order to determine the proposed Project impact and the feasibility of relocating occupants into the surrounding community, an attempt was made to interview each of the residential and business occupants within the Project area. There are estimated to be ten total residential households. The households occupy the seven single-family residential (SFR) units and three identified apartments units. There are also four business occupants and two absentee landlords that may need to relocate to a replacement location if the Project proceeds. Personal interviews were conducted with six of the ten residential households and three of the business occupants. SCCHA s Relocation Advisors will continue their efforts to interview the remaining occupants that may be affected by the proposed Project. The intent of the interviews is to provide general Project information, present the anticipated Relocation Assistance Program, and ascertain an approximate number of affected occupants and their potential relocation needs. The following table summarizes the residential and business occupants: Impacted Occupant Description Residential Business Owner Occupants 0 0 Tenant Occupants 10 4* Investment Property Owners 0 2 * Potential sub-tenant in the small retail/ barber shop space. SCCHA anticipates that any eligible occupants will be provided with relocation assistance so that they could relocate in 2018. The owners of investment properties also may be eligible to receive assistance. The table on the following page further describes the current occupants of the planned Project site. Page 5
Current Occupants and Relocation Needs Occupant Description Current Site Description Identified Need Residential Tenant 1 Residential Tenant 2 Tenant-Occupant of a 5 bedroom, 2.5 bath SFR Single Family Residence. Tenant-Occupant of a 2 bedroom, 1 bath SFR Single Family Residence. Household reported to have a Section 8 Housing Choice Voucher (HCV). Occupant would need to relocate to a replacement SFR*. Occupant would need to relocate to a replacement SFR. Residential Tenant 3 Residential Tenant 4 Residential Tenant 5 Residential Tenant 6 Residential Tenant 7 Residential Tenant 8 Residential Tenant 9 Residential Tenant 10 Business Tenant 1 Business Tenant 2 Tenant-Occupant of a 3 bedroom, 1 bath SFR Single Family Residence. Household reported to have a HCV. Tenant-Occupant of a 3 bedroom, 2 bath SFR Single Family Residence. Tenant-Occupant of a 3 bedroom, 1 bath SFR Single Family Residence. Tenant-Occupant of a 1 bedroom, 1 bath apartment unit. Tenant-Occupant of a 1 bedroom, 1 bath apartment unit. Tenant-Occupant of a studio apartment unit with 1 bath. Tenant-Occupant of a 3 bedroom, 1 bath SFR Single Family Residence. Tenant-Occupant of a 3 bedroom, 2 bath SFR Single Family Residence. Tenant-Occupant of a 9,000 sf, 2 story office type building with a secured lot. Tenant-Occupant of a 500 sf, single story retail space (barber shop) with a basement. Occupant would need to relocate to a replacement SFR*. Occupant would need to relocate to a replacement SFR*. Occupant would need to relocate to a replacement SFR. Occupant would need to relocate to a similar replacement dwelling. Occupant would need to relocate to a similar replacement dwelling*. Occupant would need to relocate to a larger replacement dwelling. Occupant would need to relocate to a replacement SFR*. Occupant would need to relocate to a replacement SFR. Assumed to require similar replacement site. Assumed to require similar replacement site. Business Tenant 3 Business Tenant 4 Potential independent contractor, subleasing barber station (part-time). Tenant-Occupant of a 30,250 sf parcel, including 2 story building and warehouse, light industrial use space and a secured lot. Assumed to require similar replacement site*. Assumed to require similar replacement site. *No or limited information was provided by the occupant. Identified need was assumed based on current site characteristics. Concurrent Displacement For purposes of the Plan, the concurrent displacement is only representative of the effect of projects taking place prior to and during the Project s period of displacement. Over the past several years, SCCHA has completed and/or is currently in the process of completing various projects such as the Poco Way rehabilitation project and two new construction projects, Park Avenue Senior Apartments (100 units) and Laurel Grove Family Apartments (82 units). It has been determined that the SCCHA s Page 6
current and previous projects will not have an effect on this proposed Project and the occupants should not experience a shortage of replacement sites during the displacement period. Relocation Cost Estimate The following estimates are for budgeting purposes only. These figures should not be interpreted as firm, not to exceed, or actual entitlement costs. These figures are based on the data obtained through occupant interviews, current project scope, replacement site availability, market rent research, and the judgment and experience of the writer. They do not include the cost to acquire the proposed Project area parcels nor do they include payments to consultants or to contractors. Relocation Cost Estimate Residential Most Probable Cost High Estimate $651,000 $785,000 Many of the households chose not to be interviewed. Others who were interviewed provided general information about income. Therefore, this Cost Estimate was developed without the benefit of verified occupant income and actual household unit occupancy. If actual occupant characteristics and income vary significantly from the assumptions included herein, then it is reasonable to assume that Project costs increase substantially to provide requisite assistance in compliance with applicable laws and regulations. Relocation Cost Estimate Non-Residential/Business Most Probable Cost High Estimate $140,000 $250,000 This Cost Estimate does not include any consideration for Leasehold Bonus Value, Improvements to the real property that may be owned by a commercial occupant, Furniture, Fixtures and Equipment, or any potential claim for Loss of Business Goodwill. Page 7
II. RELOCATION IMPACT The proposed Project would affect seven parcels, approximately 2.3 acres, along portions of Race Street and Grand Avenue in Midtown San José, California. The Project area is composed of multiple tenant occupied commercial and residential properties; including seven single family homes, three apartment units, general office space, a barber shop and a light industrial salvage and recycling facility. Several sources of information were utilized to collect information on the proposed Project area and affected occupants. The primary resource consisted of personal and phone interviews with the affected businesses and residential occupants. Additional information was gathered through discussions with SCCHA and City of San José staff, review of lease agreements as well as internet research. Site inspections were performed on 100% of the occupied parcels. All interviews were conducted on a voluntary basis. Information related to business characteristics, household size, and rent rates, were requested and utilized in the analysis of the proposed Project impact and cost. Due to the nature of the Plan, attempts were made to verify the accuracy of the information disclosed; however, not all information disclosed was able to be verified. Such information will be verified as the proposed Project progresses. III. IMPACT TO RESIDENTIAL OCCUPANTS Ten residential dwellings may be affected by the proposed Project and all were occupied at the time the Plan was prepared. Following is a summary of the residential households within the project area: Impacted Residential Units Description of Residential Unit Type of Occupancy Number of Units in Project Area Studio apartment Tenant-Occupied 1 One-Bedroom apartment Tenant-Occupied 2 Two-Bedroom Single Family Residence Tenant-Occupied 1 Three-Bedroom Single Family Residence Tenant-Occupied 5 Five-Bedroom Single Family Residence Tenant-Occupied 1 There are an estimated 43 people living in ten separate households within the proposed Project area. At the time the Plan was prepared, 24 of the occupants were adults between 18 and 55, two occupants were seniors over 55, and the remaining 17 are minors. The interviewed households reported they would plan to relocate within the immediate San José and Santa Clara areas. Page 8
Overcrowded Conditions It appears that two of the affected households may be currently living in overcrowded conditions based upon SCCHA s housing occupancy standards for residential relocation programs. Those standards provide additional assistance to households so that no more than two people occupy one bedroom, plus one additional person at the replacement site. If the proposed Project moves forward and it is determined that there are affected households living in overcrowded conditions, the households will be provided the necessary additional assistance to secure replacement housing that better accommodates the size of the household. Accessibility Needs None of the households reported a family member with a disability that would require additional advisory or housing assistance. In general, the accessibility concerns would be mitigated with replacement dwellings situated on a single level and with easy access to public transportation. In the event that it is determined one of the households requires accessibility needs, SCCHA s Relocation Assistance Program can provide the funds needed to make the necessary accommodations. The Relocation Advisor will work closely with the household to ensure they have additional advisory assistance that is needed to identify and secure housing that accommodates the needs of the household. Language All of the interviewed occupants speak either English or Spanish as their primary language. Language assistance will be provided and SCCHA will make every reasonable attempt to communicate with those households in the household s native language, to provide all informational material in the native language, and to provide the necessary additional advisory assistance to secure replacement housing. Current Rent and Affordability In 2017, the Median Family Income1 in Santa Clara County reported to be $113,300. Federal regulations state that if a tenant-occupied household qualifies as low-income by the U.S. Department of Housing and Urban Development s Annual Survey of Income Limits for the Public Housing and Section 8 Program, then replacement housing costs should not exceed 30% of the household s monthly gross income. If it is determined that a tenant-occupant household is in fact low income pursuant to federal regulations, SCCHA may need to apply the Last Resort Housing Program so that rent for a comparable replacement site will not exceed 30% of the household s gross monthly income. The lease agreements for all of the residential units and two of the commercial occupants we reviewed as part of the preparation of the Plan, including occupancy, rent and utility obligations. This data is not included in the Plan to protect occupant s privacy. Data related to median effective and current 1 HUD sets income limits that determine eligibility for certain assisted housing programs. HUD develops income limits based on Median Family Income estimates and Fair Market Rent area definitions for each metropolitan area. Also see Appendix D. Page 9
market rents for similar type residential units in Santa Clara County was reviewed and considered in the analysis of the potential impact of displacement by the planned Project. At the time of preparation of the Plan, the reported current monthly rent for all ten residential units is well below current market rents. Household income data has not been provided by the occupants at this time, but it is prudent in the planning process for this Project to assume most households will be determined to be low income standard and SCCHA will need to implement a Last Resort Housing Program. Tenants with a Housing Choice Voucher (Section 8) Two of the ten households have been identified as having a Housing Choice Voucher (HCV, also known as, Section 8 ) administered by SCCHA. These affected households would receive additional advisory services by SCCHA s Relocation Advisors to assist them in securing replacement housing that would allow them to continue to utilize their HCV. One household occupies a two-bedroom SFR and the other household is in a three-bedroom SFR. At the time of the preparation if the Plan, these two households were not identified as being overcrowded based on SCCHA s housing occupancy standards for Residential Relocation Programs. The median rents for units in San José are within SCCHA s payment standard. The payment standard is the maximum subsidy, through the HCV program, that SCCHA can provide toward the contract rent. These amounts are based on fair market rent data provided by the Department of Housing and Urban Development. SCCHA payment standards for two-and three-bedroom units effective January 1, 2017: $2,442 for a two-bedroom $3,385 for a three-bedroom Relocation Advisors would work with each household and their Housing Specialist at SCCHA to help them locate, complete their Request for Tenancy Approval (RFTA) packet and transfer their HCV to secure a suitable replacement unit. If the households elect to leave Santa Clara County, Relocation Advisors will assist them in the process to transfer their HCV to another county, the Portability Process or Portability Move Out (Port Out). Portability is the process that allows an eligible HCV participants to move anywhere in the United States where there is a housing agency operating the federal HCV program. In the event that a replacement site cannot be secured with a landlord that will accept their HCV, SCCHA will commit to providing assistance, under a Last Resort Housing Program, that will bring comparable replacement housing that meets certain decent, safe and sanitary standards in to the household s financial means for up to 42 months. That determination will be made by the SCCHA on an individual basis and the occupants will be advised in writing of this determination, if applicable. Page 10
Transportation None of the households reported that they rely on public transit to access places of employment, shopping areas, or medical services. In the event that an affected household has limited mobility, a Relocation Advisor will work closely with the household to identify replacement housing with similar access to public transportation. Employment None of the occupants reported having a home-based business; however, one household lives and works as a barber on-site in a separate retail space, adjacent to their home. SCCHA will provide assistance to identify and secure a comparable replacement dwelling for the household and provide the business with relocation assistance. SCCHA is not required to provide a comparable replacement dwelling with a similar attached retail space. City of San José s Tenant Protection Ordinance The City of San José has an Apartment Rent Ordinance (ARO) and its companion regulations with an objective to promoted affordability and stability for tenant households in the community, including the regulation of rent increases on apartments covered by the ARO. It applies to for-rent multi-family residential properties (apartments) in San José built and occupied prior to September 7, 1979 and with four or more units. More information on this ordinance can be found in the City s Municipal Code Chapter 17.23. Recently, in May of 2017, the City enacted a new Tenant Protection Ordinance (TPO), which applies to the properties identified as covered by the existing ARO, and extending its applicability to for-rent multi-family structures with three or more units. The TPO includes an outline of landlord responsibilities and tenant rights regarding notices to terminate tenancy. Under the TPO, landlords (of covered units) are only authorized to terminate tenancy under twelve (12) listed reasons to evict for a Just Cause. The proposed Project site includes the displacement of various residential occupants, as previously described herein. It is important to note that single-family homes, condos, townhomes, granny units, duplexes are not covered under the City s ordinances. It is believed that three potentially impacted households may be occupying a single family home that has been converted to a three unit multi-family structure. In preparing the Draft Plan, it is noted that the units are not identified as rent-controlled in the City s public database. According to an Initial Study (PDC 11-005) for the Project, issued on October 24, 2012, the structure appears on the site as of 1945 and therefore may be subject to the City s TPO. After consultation with the City, it has been determined that, potentially, only one of the three units may be covered by the TPO. SCCHA staff and its relocation consultants will ensure that appropriate procedures, including wording in any notice to vacate issued to the household, notice requirements to the City about a just cause eviction, length of time provided to the household to vacate and payment of eligible relocation assistance benefits meet or exceed the requirements under the City s TPO for a Page 11
household in a covered unit. Furthermore, SCCHA staff and Relocation Advisors continue to monitor this topic as the Project proceeds. IV. IMPACT TO NON-RESIDENTIAL OCCUPANTS There are potentially four non-residential occupants within the Project site. A representative from three of the occupants was personally interviewed for purposes of the Plan, the one reported subtenant in the barber shop was not interviewed. Information on this subtenant was provided by the business owner. Following is a summary of the businesses within the Project area. Altogether, one light industrial tenant, one non-profit organization and two barber shop businesses occupy space within the Project Area, three under a written agreement with the current property owners. In general, these nonresidential occupants are referred to as businesses in this Plan. Specific information about each business is being treated confidentially at this time in order to avoid unnecessary impact to their organizations during the planning phase of this Project. However, general information is shared herein in order to allow the community and the impacted occupants to assess the impact to these businesses and the available replacement sites in the area. Impacted Business Business Tenant 1 Business Tenant 2 Business Tenant 3 Business Tenant 4 Type of Occupancy Tenant-Occupant of a 9,000 sf, 2 story office type building with a secured lot. Reported to be a nonprofit education cooperative, with a lease through June 2018. A copy of the lease renewal was provided. Tenant-Occupant of a 500 sf, single story retail space (barber shop). It is attached to the SFR the operator occupies. Month-to-month lease agreement. Copy of lease was provided. Potential subtenant, possible independent contractor, renting a barber station on Saturdays only. No written sublease agreement provided. Tenant-Occupant of a 30,250 sf parcel, including 2 story building and warehouse, light industrial use space and a secured lot. Reported to be an asset management company that also recycles, resells and otherwise disposes of electronic data and equipment for customers. Reported to have a lease agreement in place through 2020 that includes landlord s ability to terminate with 6 months notice to business. Indicated Replacement Site Requirements Similar type and size building with secured lot. Zoned for a school use, with classroom and office space with parking for 20 vehicles located in or around San José or Santa Clara. Vacant land for the installation of portable buildings would also be considered. Open to lease or purchase. Similar small retail space for lease, with suitable zoning for a barber shop and associated plumbing improvements. Unknown at this time if this occupant would be eligible for Business Relocation Assistance, occupant was not interviewed and the replacement site requirements are unknown. Similar type light industrial space, including secured yard space, warehouse, office, loading dock and 3 phase power required. Business would consider replacement sites outside of San José; including Morgan Hill and Gilroy. Open to lease or purchase. Page 12
If the proposed Project moves forward and it is determined that businesses are eligible to receive Business Relocation Assistance, a Relocation Advisor will work with each owner to provide advisory services and help them to obtain the benefits available to them under SCCHA s Non-Residential Relocation Assistance Program. V. ADDITIONAL IMPACT INVESTMENT PROPERTY OWNERS There are two investment property owners that do not occupy the impacted parcels, also referred to as absentee landlords. Two absentee landlords did not respond to the interview request and were not interviewed as part of the preparation of the Plan. The absentee landlords may be eligible to receive assistance. VI. REPLACEMENT SITE RESOURCES It is anticipated the Project schedule would require that affected residential and business occupants relocate to replacement sites in 2018. Appendix B contains examples of general information notices sent to the affected property owners and tenants. SCCHA plans to assist each eligible occupant to successfully relocate in the community. Much effort has been made to identify sites that would accommodate the displaced occupants. A preliminary housing resource survey was conducted to identify available, comparable studio and one-bedroom apartment units, two-, three-, four- and five- bedroom SFR in San José. Critical points assessed in the evaluations were proximity to the Project location, owner willingness to accept HCV tenancies, and variety of housing types. None of the occupants who agreed to be interviewed indicated a need for disabled or senior housing. Two of the household s interviewed may require a larger replacement sites, if the Project proceeds, in order to alleviate overcrowding. The current number of occupants that would be displaced from these two identified units would exceed SCCHA s housing occupancy standards for residential relocation programs and may require larger comparable replacement dwellings to be offered in order to meet the DS&S standard. The following survey of available residential and commercial locations was conducted over a threeweek period in May and June 2017 in San José and the surrounding area. The survey utilized the internet sources, commercial brokers, the local Multiple Listing Service, and driving surveys. It should be understood that not all available sites were included in this analysis. Page 13
To date, no determination has been made as to the direct comparability of the residential properties listed below to the residential dwellings that may be affected by the proposed Project. The information provided in the tables on the following pages are representations of the many properties that might be available at the time that the affected residential households are searching for comparable replacement housing. It is anticipated that several more similar properties in each category will be available for lease during the course of the Project and that all the residential households, if displaced, will have the opportunity to consider available sites over a six to eight-month period. Residential Studio and One-Bedroom Dwellings for Rent Multiple studio and one-bedroom residential apartment dwellings were identified as available for lease in San José. Studio Rentals in San José, California Address Rent SF Bed/Bath Distance from Subject Description Subject San José N/A UNK Studio* N/A Apartment Unit- *Potentially over occupied 1 1455 Park Ave. $1,575 UNK Studio 0.6 miles Studio unit, street parking, additional $75 per month utility fee. 2 405 Richmond Ave. $1,495 600 Studio 1 mile Studio unit, 1 parking space in private driveway, tenant pays PG&E and water. 3 700 Race Street $1,695 550 Studio 0.8 miles Studio unit, parking space in carport. 4 S 14th Street $1,800 545 Studio 3.3 miles Studio unit, on-street parking. 5 69 N 12th Street $1,400 UNK Studio 2.6 miles Studio unit, on-street parking, newly renovated. One-Bedroom Rentals in San José, California Address Rent SF Bed/Bath Distance from Subject Description Subject 1 San José N/A UNK 1/1 N/A Apartment Unit Subject 2 San José N/A UNK 1/1 N/A Apartment Unit 1 1364 Fremont Street 2 Coe Ave. at Bird Ave. $1,700 600 1/1 0.8 miles Tenant pays utilities, street parking, and cottage style unit. $2,400 720 1/1 1.5 miles Tenant pays utilities, cottage style, washer/dryer in unit, street parking. 3 2070 Radio Ave. $1,795 675 1/1 2.8 miles Utilities included in rent, covered on-site parking, on-site laundry. 4 935 Willowleaf Dr. $2,361 860 1/1 2 miles Larger unit, on-street parking. 5 737 Pershing Ave. $1,295 UNK 1/1.5 1.5 miles Cottage style unit, street parking. Page 14
Residential Two-Bedroom and Three-Bedroom Single-Family Residences for Rent Multiple two- and three-bedroom single family residential dwellings were identified as available for lease in San José. Two-Bedroom Rentals in San José, California Address Rent SF Bed/Bath Distance from Subject Description Subject San José N/A 700 2/1 N/A SFR 1 1983 Park Avenue $2,295 700 2/1 1.4 miles SFR, on-site parking, washer/dryer in unit. 2 90 N Willard Avenue $2,395 890 2/1 0.4 miles SFR, carport parking, washer/dryer in unit. 3 1515 W. Hedding St. $2,800 809 2/1 1.4 miles SFR, 1-car garage, washer/dryer in unit. 4 916 Fruitdale Pl. $3,500 1,303 2/1.5 1.2 miles Townhouse unit, 2-car garage, washer/dryer in unit. 5 721 Delmas Avenue $2,350 UNK 2/1.5 1.5 miles SFR, street parking, washer/dryer in unit. Three-Bedroom Rentals in San José, California Address Rent SF Bed/Bath Distance from Subject Description Subject 1 Subject 2 Subject 3 Subject 4 Subject 5 San José N/A 1,150 3/1 N/A SFR San José N/A 1,080 3/2 N/A SFR San José N/A 932 3/1 N/A SFR San José N/A 1,080 3/1 N/A SFR San José N/A UNK 3/1* N/A SFR *Potentially over occupied 1 495 Dorothy Ave. $2,950 1,289 3/1 2.4 miles SFR, washer/dryer hook-up, 2 car garage. 2 529 Clifton Ave. $2,995 1,101 3/1 1.4 miles SFR, washer/dryer in unit, carport. 3 518 N Clover Ave. $3,500 1,134 3/1 2.2 miles SFR, washer included, 2 car garage. 4 Flora Ave., 95117 $2,895 1,100 3/1 5 miles Duplex unit, 1-car garage. 5 1070 Prouty Way $3,100 1,000 3/1 7 miles SFR, laundry on-site, driveway parking. 6 S. 9th Street $2,495 1,300 3/1 2.9 miles SFR, washer/dryer in unit, street parking. Page 15
7 2328 Boxwood Drive $3,600 1,315 3/2 2.3 miles SFR, washer/dryer in unit, 2-car garage. 8 80 S Morrison Ave. $3,795 1,063 3/2 0.6 miles SFR, washer/dryer in unit, 2-car garage. 9 1207 Woodlawn Avenue $3,500 1,372 3/2 4 miles SFR, 2-car garage. Residential Four-Bedroom Single-Family Residences for Rent Multiple four-bedroom single family residential dwellings were identified as available for lease in San José. Four-Bedroom Rentals in San José, California Address Rent SF Bed/Bath Distance from Description Subject 1 520 Irving Ave. $3,400 1,600 4/2 1.4 miles SFR, washer/dryer in unit. 2 3194 Percivale Dr. $3,500 1,242 4/2.5 7.8 miles SFR, washer/dryer in unit, attached garage. 3 4082 Casa Grande Way $3,375 1,750 4/2 5.2 miles SFR, washer/dryer hook-ups, attached 2-car garage. 4 1518 Lexington Dr. $3,595 1,600 4/2.5 4.5 miles 5 416 W.San Fernando St. $4,400 1,564 4/2 1.1 miles SFR, washer/dryer in unit, detached garage, and owner pays garbage & sewer. Residential Five-Bedroom Single-Family Residences for Rent Multiple five-bedroom residential dwellings were identified as available for lease in San José and the surrounding area. Five-Bedroom Rentals in San José, California Address Rent SF Bed/Bath Distance from Description Subject Subject San José N/A UNK 5/2.5 N/A SFR 1 1552 Bird Ave. $4,395 2,524 5/3 2.5 miles SFR, garage, washer/dryer in unit. 2 1189 Peach Ct. $4,300 2,500 5/3 4 miles SFR, carport parking, office/den space, washer/dryer in unit. 3 2109 Coyne Ct. $3,495 1,138 5/4 6 miles SFR, driveway parking. 4 5671 Herma St. $3,400 1,940 5/2 9 miles SFR, garage, washer/dryer in unit. 5 5472 Clovercrest Dr. $5,750 2,700 5/3 6.8 miles SFR, carport parking, washer/dryer in unit. Page 16
Commercial Replacement Sites Various types of commercial properties were identified as available for lease for the potentially displaced businesses. The information provided in the following tables is a representation of the properties that might be available at the time the businesses will be seeking replacement sites. It is anticipated that additional properties will become available for lease during the course of the Project and that the business will have the opportunity to consider those additional available sites over a six to eight month period. The available replacement site listings below are provided for informational purposes as part of the planning process, there is no guarantee that the specific business use would be allowed at the site by the applicable city or county. Relocation Advisors will provide advisory services to displaced businesses to contact the corresponding jurisdictional Planning Departments to understand and confirm their specific use and applicable zoning requirements. Address Square Feet Type Rent per sq. ft./mo Subject Business Tenant 1 50 E Saint John St., San José 1269 Forgewood Ave., San José 218 Kirk Ave., San José 2931 El Camino Real, Santa Clara 630 First Street, San José 9,000 Office w/ secured yard 11,725 Free-standing office building 10,348 Free-standing office building Description/Comments N/A Similar type with parking for 20 vehicles. Located in or around San José or Santa Clara. Open to lease or purchase. $2.95 15 parking spaces included, NNN. $1.75 Larger lot 25,700 SF, NNN, has kitchen, open space, storage and offices. 12,000 Current church $1.00-$2.50 Includes various size classrooms, sanctuary, kitchen and ample parking. 12,000 Free-standing office building 7,625 Free-standing office building $2.75 NNN $2.00 Large parking area adjacent to building, NNN. Address Subject Business Tenant 2 & 3 352 E Taylor St., San José 201 Willow St., San José 6938 Almaden Exp., San José Square Feet Type Rent per sq. ft./mo. 500 Small retail N/A 345 Street retail $2.50 NNN lease. Description/Comments Similar small retail space for lease. Assumed Business Tenant 3 will sublease. 480 Strip center $2.08 Full Service lease. 547 Neighborhood center Negotiable Page 17
Address Square Feet Type Rent per sq. ft./mo. Description/Comments 510 Lawrence Exp., Sunnyvale 543 Neighborhood center $2.50 Smaller 230 SF space also available at $2.75. Address Subject Business Tenant 4 529-691 Race St., San José 1841 S. 7th St., San José 3590 Snell Ave., San José 928 N 9th St., San José 1651 Pomona Ave., San José 680 Brennan St., San José Square Feet 30,250 Type Rent per sq. ft. Description/Comments Light Industrial/ Warehouse 35,476 Distribution warehouse 15,695-22,099 (buildings) Heavy industrial 76,648 Industrial/ manufacturing 14,620 Industrial/ distribution warehouse 41,200 Industrial/ warehouse N/A Similar type light industrial space. $0.78 NNN lease, portion of larger building, some office, 3 phase power. $0.62 - $1.13 Portion of overall property available for lease, warehouse, covered area and yard space. $0.85 Includes office and warehouse space, newly renovated. $1.00 IG lease, building and yard space available. $1.15 Building on 2.13 acre lot, MG lease (sublease though 2023). 38,401 Warehouse $0.85 Includes office and warehouse space, corner location, 3 phase power. VII. RELOCATION ASSISTANCE PROGRAM This portion of the Plan summarizes SCCHA s Relocation Assistance Program as it pertains to the occupants of the proposed Project. This summary has been provided for general information purposes only and should not be interpreted as law. Should this summary contain any information inconsistent with the laws governing relocation assistance, the laws will take precedence. SCCHA s Relocation Assistance Program will be in compliance with Federal law 42 U.S.C. 4601 et seq. and implementing regulations found in 49 CFR Part 24 (the Uniform Relocation Act), and applicable state laws and regulations found in California Government Code Section 7260 et seq. and the California Code of Regulations, Title 25, Chapter 6, Subchapter 1. SCCHA s Relocation Program establishes a uniform policy for the fair and equitable treatment of persons displaced as a direct result of programs and projects undertaken with Federal financial assistance. The primary purpose of the Relocation Assistance Program is to ensure that persons shall Page 18
not suffer disproportionate injuries as a result of programs and projects designed for the benefit of the public as a whole and to minimize the hardship of displacement. SCCHA s Business Relocation Assistance and Residential Tenant-Occupant Relocation Assistance brochures are contained in Appendixes C.1 and C.2. Important Terms Alien Not Lawfully Present. Under federal law, an alien not lawfully present in the United States is not eligible for relocation assistance. As defined by federal law, an alien not lawfully present in the United States includes (1) an alien present in the United States who has not been admitted or paroled in the United States pursuant to the Immigration and Nationality Act and whose stay in the United States has not been authorized by the U.S. Attorney General; or (2) an alien who is present in the United States after the expiration of the period of stay authorized by the U.S. Attorney General and who otherwise violates the terms and conditions of admission, parole or authorization to stay in the United States. (8 CFR Section 103.12). SCCHA has determined that it will provide Relocation Assistance in accordance with California State Law and Regulations to those persons who cannot demonstrate lawful residency. Relocation Assistance for those households be made with non-federal funds. Business. Any lawful activity, with the exception of a farm operation, conducted primarily for the purchase, sale, lease, and rental of personal or real property; or for the manufacture, processing, or marketing of products, commodities, or any other personal property; or for the sale of services to the public; or an outdoor advertising display or displays, when the display or displays must be moved as a result of acquisition of property for the project. Comparable Replacement Dwelling. A dwelling that is of similar size and type to the acquired dwelling. A replacement dwelling must be: Decent, safe, and sanitary as described below. Functionally equivalent to the displacement dwelling. The term functionally equivalent means that it performs the same function, provides the same utility, and is capable of contributing to a comparable style of living. In an area not subject to unreasonable adverse environmental conditions from either natural or manmade sources. Available to all persons regardless of race, color, religion, sex, marital status, or national origin. Within the financial means of the displaced person (housing costs do not exceed 30% of the household s average monthly income, if the household is low-income based on the U.S. Department of Housing and Urban Development income limits), either by the displaced person s own means or through assistance from the Relocation Program. Page 19
Conditional Entitlement Letter. A written notice provided by SCCHA to eligible residential tenantoccupant, stating their entitlement to receive a Replacement Housing Payment upon completion of a Housing Valuation Study. Decent, Safe, & Sanitary. In order to meet decent, safe, and sanitary requirements, a replacement site must meet the following criteria: Be structurally sound, clean, weather tight, in good repair, and adequately maintained. Contain a safe electrical wiring system adequate for lighting and other devices. Contain a safe heating system capable of sustaining a healthful temperature. Be adequate in size with respect to the number of rooms and area of living space to accommodate the displaced persons. Have a separate, well-lighted and ventilated bathroom that provides privacy to the user and contains a sink, bathtub or shower stall, and a toilet, all in good working order and properly connected to appropriate sources of water and to a sewage drainage system. Contain unobstructed egress to safe, open space at ground level. If the dwelling unit is on the second story or above, with access directly from or through a common corridor, the common corridor must have at least two means of egress. Be free of any barriers, which prevent reasonable ingress, egress, or use of the dwelling by such displaced person. Displaced Person. Any lawful person (individual, family, partnership, association or corporation) who moves from real property, or moves personal property from real property, as a direct result of SCCHA s written notice of displacement for the project. Housing Valuation Study. A study prepared by AR/WS that describes the maximum replacement housing payment available to eligible Residential Tenant-Occupants based on comparable replacement dwellings. Nonprofit Organization. A public or private entity that has established its nonprofit status under applicable federal or state law. Notice of Eligibility. A written notice provided by SCCHA to occupants which describes the types of assistance available to the occupants. Notice to Vacate. A statutorily required written notice provided by the existing Owner to occupants of real property that SCCHA plans to acquire or has acquired, informing the occupants that they must move from the property within 90 days. Personal Property. Property that can be moved from real property without damaging the real property or the property moved, including furniture, fixtures and equipment and other movable objects. Relocation Advisor. A Relocation Advisor is a person who is experienced in providing assistance to occupants in accordance with the Uniform Relocation Act. Relocation Advisors will be available Page 20