Trust Promotes Affordable Living

Nonprofit invests nearly $1.5 million in Sobrato Transitional
Apartments for homeless
By Tony Burchyns Staff Writer

Morgan Hill – Santa Clara County’s 15 towns and cities have distinct personalities, but share one monstrous similarity – a lingering housing crunch. 

According to the Association of Bay Area Governments, six new jobs were created for every new unit of housing built between 1995 and 2000. 

Land prices soared, causing CEOs, civic leaders and housing advocates to form a task force to ponder what could be done. 

“It was incredibly important” for public and private sectors to cooperate, said Shiloh Ballard, director of Housing and Development for the Silicon Valley Leadership Group (SVLG). “From the beginning, we’ve heard from CEOs that housing is the biggest impediment for doing business in Silicon Valley.”

In 1999, a task force of community leaders created the Housing Trust of Santa Clara County, which last week announced investments topping $22 million in affordable housing opportunities since it started distributing funds to nonprofit developers and first-time home buyers in 2001.

In Gilroy, the Housing Trust has invested nearly $1.5 million in special needs funding for the homeless. The group’s most recent project is the Sobrato Transitional Apartments, a 60-unit housing development for the homeless that opened June 30 at 9345 Monterey Road.

According to the 2004 Santa Clara County Homeless Census and Survey, there were 420 homeless people living in Gilroy, the second largest population outside of San Jose.

The Sobrato project is run by EHC Lifebuilders, a nonprofit homeless advocacy group based in San Jose. According to EHC spokeswoman Hilary Barroga, the Housing Trust often serves to grease the wheels when it comes to raising more private sector funds for housing projects.

“It makes the jobs of the nonprofit developers that much easier,” Barroga said, adding that affordable housing is just as expensive to build as market rate housing. “To know there is a steady source of revenue that can be tapped is really important.”

First Community Housing Executive Director Dennis Lalor agreed, saying the Housing Trust gives nonprofits like his important leverage with initial investments.

“They come in early, typically, so we can show that support to other local investors,” Lalor said.

While the primary goal remains to put roofs over people’s heads, South County Housing spokesman Maury Kendall said the nonprofit wants its projects to be aesthetically pleasing and environmentally friendly.

“There was once a stigma around affordable housing,” he said. “It doesn’t have to be ‘the projects’ anymore.”

In Morgan Hill, thanks in part to $400,000 in support from city government, the Trust has invested $956,500 and helped more than 156 families during the last five years. More than 56 first-time buyers in Morgan Hill have received interest-free loans from the non-profit organization, helping them to buy homes valued at more than $17 million. 

In addition, the Housing Trust reports having invested $592,000 in Murphy Ranch, a 100-unit affordable housing community on East Dunne Avenue.

Morgan Hill Mayor Dennis Kennedy said the city’s growth ordinance necessitates affordable housing programs.

“It’s protected quality of life in Morgan Hill, but it also raises the cost of housing,” Kennedy said, adding that Morgan Hill – with every other city in the county – invested in the Housing Trust to leverage their affordable housing dollars. 

“It’s critical we provide affordable housing for our teachers, our public service employees, nurses, police and firefighters who otherwise would not be able to live in our community,” he said. “And for our children – it’s very importance for young people with college degree and good skills to (find a place to live).”

Kendall said it was a “no brainer” to jump into Morgan Hill’s affordable housing marketplace.

“There’s a lot of new jobs being created in Morgan Hill,” he said. “You’d rather not have people driving to those – you’d rather have them living in the community.”

Tony Burchyns covers Santa Clara County for the Dispatch. Reach him at (408) 779-4106 ext. 201 or tb*******@mo*************.com.