Measure E yes vote will help San Jose solve housing crisis

The bottom line on Measure E for San Jose voters is this: The city must step up and do its part if San Jose has any hope of solving its housing crisis. Measure E would provide a crucial, steady stream of funding — estimated at $22 million-$73 million a year, depending on the state of the economy — for creating more affordable housing in San Jose. The money would come from a permanent new property transfer tax on commercial, industrial and residential properties worth at least $2 million — the same properties that have benefited most from the Valley’s ongoing, unparalleled economic boom. San Jose remains one of the least affordable metropolitan areas in the nation. Workers routinely spend more than half their income on mortgage or rent. It’s unacceptable in a prosperous city like San Jose. Voters should approve Measure E and slow the steady stream of workers leaving the city or falling into homelessness. The tech explosion isn’t solely to blame for the San Jose’s housing crunch. In 2011, Gov. Jerry Brown shuttered the state’s 400 redevelopment agencies. As a result, San Jose lost $40 million a year that had enabled the city to build, on average, about 1,000 new, affordable housing units a year. Passing Measure E, which requires a simple majority vote, would fill that void. The tax would be added to the city’s current property transfer tax, which is 0.33% of the property’s value, or $330 per $100,000 of the sale price. The additional tax for high-end properties would be 0.75% of the total value for homes sold for between $2 million and $5 million; 1% for homes above $5 million up to $10 million; and 1.5% for properties sold for more than $10 million. So, for example, the new tax on the sale of a $10 million building would be $150,000. The tax would apply to only about 2 percent of San Jose residences. The City Council proposes spending 90 percent of the funds for permanent and affordable rental housing for extremely low-income and low-income families. The remaining 10 percent would be designated for homeless prevention. The plan isn’t perfect. Critics are right when they say that the funds raised from the new transfer tax would flow into the city’s general fund, meaning the City Council could divert the money for any purpose of its choosing. That’s because a measure restricted to one purpose requires two-thirds approval rather than the simple majority for Measure E. The City Council went that route in 2018 with Measure V, but it lost by 2 percentage points. But it’s hard to imagine the City Council diverting the money for other uses — now or in the foreseeable future. The need is too great, and the housing community has growing political clout in San Jose and isn’t shy about pushing the cause. As it should. The strategies to prevent homelessness that are being employed in the Bay Area work. This we know. For example, when the homeless are provided with a home, more than 90 percent stay housed. The issue remains that programs are underfunded. What’s needed is more money for affordable housing in San Jose for its most vulnerable residents. Yes, the federal and state government need to step up and do more to address the housing crisis. But San Jose must also do its part. Voters should support Measure E.