There is a high concentration of wealth in Silicon Valley, but with rising rents the number of homeless is growing. If the problem is not addressed, it could cost tax payers more money, a Santa Clara County supervisor recently told Silicon Valley Realtors.
A former Los Gatos Town Council member and mayor, Mike Wasserman now serves on the Santa Clara County Board of Supervisors. From representing Los Gatos, a town with 30,000 people, 150 town employees and a $35 million budget, Wasserman now represents the county's two million residents with 20,000 county employees and a budget of about $6.5 billion.
As vice chair of the board's Housing, Land Use, Environment and Transportation Committee, Wasserman is a big proponent of housing. Housing, he told members of the Silicon Valley Association of Realtors, is the county's biggest challenge. He said high tech companies are expanding, but there is no housing for employees; worse yet, more and more individuals and families are being displaced due to skyrocketing rents.
Wasserman explained that redevelopment agencies served as an important component of the affordable housing development in the state. With these agencies gone, the task has fallen on counties and cities. The problem is there is no incentive for housing. While retail and hotels bring in sales and transient occupancy taxes to cities, housing brings in very little by way of taxes. In fact, housing is a "net negative," said Wasserman, because the county's share of property taxes is just 14 cents on the dollar, the city's share is 12 cents, and the state's share is 65 cents.
A longtime advocate for the homeless, Wasserman believes the county should provide permanent housing and services for homeless residents. "A, because it's the right thing to do; and b, because it will save tax dollars," said Wasserman.
The county supervisor said the average homeless person costs the county about $68,000 per year. A study showed if housing and services were provided to a homeless person, the county would only spend $34,000 per homeless person per year. He proudly noted a program to house 700 homeless veterans that was started 18 months ago in collaboration with the county and the city of San Jose has to-date been able to house 560 veterans.
Wasserman listed many benefits of living in Santa Clara County, among which includes the Valley Medical Center, a top level trauma center. It is also the only hospital with a burn trauma center in the state.
Wasserman urged Realtors to promote the Santa Clara County Wine Trail to their clients, noting Santa Clara Valley is the oldest wine region in the state. The wine trail is a cooperative effort of the county, the cities of Gilroy and Morgan Hill, the Association of Wineries of the Santa Clara Valley, and the local business community. There are about 30 Santa Clara Valley wineries along the 28-mile route.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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