South County Housing is asking the city for a helping hand to
keep its downtown housing project afloat, and moving ahead be it
ever so slowly.
1. The long-term relationship with SCH should not be ignored
South County Housing is asking the city for a helping hand to keep its downtown housing project afloat, and moving ahead be it ever so slowly.
It’s a request that the City Council should give considerable thought to and weigh carefully. It’s an important project to downtown revitalization and South County Housing has been a valuable partner with the city in producing housing for residents who otherwise might not be able to afford the American dream.
Certainly the economic climate makes it far more difficult to make such a decision. The first reaction – completely understandable – is like Councilman Dion Bracco’s – “Would I make this investment if it were my money?”
It is more complex than that, however. The city has been in second position on many home mortgages in South County Housing projects and, in fact, that’s where a good portion of the $4 million in the housing trust fund came from – payments on those loans.
2. There is no question that the project is key to downtown revival
Given that, the $35 million already invested in the 210-unit project and the obvious importance of the project to downtown revitalization, the Council should ask a few interested parties – mainly developers – to convene, take a look at the proposal and see if a creative solution makes sense. It might be better for the city to buy a half interest in six of the units instead of four.
It should also take a close look at what’s behind the line items in the housing trust fund. Could some of the expenses be curtailed or halted in order to give SCH and the downtown area this assistance. For example, there’s $146,000 in the fund scheduled for administration and $92,000 budgeted for contractual services. Every line item should be scrutinized.
3. In this case, erring on the side of lending a hand makes good sense
The money in the fund is to help residents purchase their first home. That is a fundamental goal for SCH which they have delivered on time and time again.
The Cannery project is too important to Gilroy to let it go without fully and carefully studying the impact. And for the record, there is nothing of consequence related to the Council’s decision to assist, then ultimately buy Bonfante/Gilroy Gardens. That is indeed apples and oranges.
Helping South County Housing’s Cannery Project weather the storm makes sense. The Council should ask for some quick help and recommendations, take a serious look at the request, and err on the side of lending a hand.
