Saturday 8th of August 2020 06:51:30 PM GMT

A TIF-Based Solution To The SF-Oakland Bay Area Homeless Crisis

Homeless-Homes-From-Tuff-Sheds-In-San-Jose-CaliforniaHomeless-Homes-From-Tuff-Sheds-In-San-Jose-California
(Last Updated On: May 22, 2019)

The San Francisco Bay Area is faced with the most acute crisis in its history. A recent (April 10th 2019) report issued by the Bay Area Council Economic Institute estimated that it would cost $12.7 billion to end the crisis in the Bay Area.

And the latest news is that the San Francisco and Bay Area population has grown by “double-digits” and stands at 8,000 people. In Alameda County, the count is also 8,000 people. In the SF Bay Area, the estimate is 25,000 – although the population numbers feel larger than that just by sight, or around 100,000.

The report stated “To provide a scale of the resources necessary to end ness under current methods of building and providing services, a simplified calculation shows that $12.7 billion would be required to create a new unit of permanent housing (at $450,000 per unit) for each of the 28,200 people experiencing ness identified in PIT counts. Providing services (at $25,000 per person per year) to half of that population over 10 years would require an additional $3.5 billion. ”

The Bay Area Council Economic Institute Report also said providing services at about $25,000 per person annually to half of the region’s homeless population over 10 years would require another $3.5 billion.

The trouble is, while the report put out that total fiscal weight of the crisis in the SF-Oakland Bay Area, it failed to explain where the money would come from to lift it. This post does just that.

The idea for the way to pay for the $12.7 billion plus $3.5 billion, or $16.2 billion comes from tax increment financing. Tax increment financing, or “TIF”, is a formula designed to captures growth in property values over time and use that as the basis of a taxation formula that yields revenue which is used to pay for for bonds issued for various types of public and public / private partnership projects.

TIF is not new to California. Established in 1945, it was the main funding tool used to implement urban reformation plans allowed by “California Redevelopment Law” and formed by what were called “California Redevelopment Agencies” or “CRAs”. Since some of the CRAs actions allowed under California Redevelopment Law were controversial, lay people often confuse TIF with CRAs, even though the former was used by the later.

The advantage of TIF is that it allows the efficient and effective use of property tax dollars toward urban reformation without raising taxes. The formula is so powerful it became the main go-to approach after the passage of California Proposition 13 in 1978. That caused a dramatic reduction in available property tax revenue; cities used CRAs and TIF to capture that money, sometimes for use even in gap-financing shortfalls in municipal budgets. And that’s what makes TIF the perfect way toward full-funding of the cost to eliminate the problem in the SF / Oakland Bay Area. Let’s have a look at why.

The idea I have is that each of the nine counties that make up the San Francisco Bay Area would designate TIF zones totalling $8.3 billion in assessed value each, or $74.7 billion in total asssessed value. That would form what’s called the “base year” that’s used for our TIF calculation. Let’s take it on a per-county basis.

(As an aside, I must explain that I’ve served as a redevelopment tax increment financing forecasting consultant to the Oakland Redevelopment Agency, The Emeryville Redevelopment Agency, and the San Francisco Redevelopment Agency. I was also an intern to the Oakland Redevelopment Agency in 1987-1988.)

Assuming a 40-year-bond issue, and the allowed increase in land value of just two percent per year, and a one-percent tax rate, we would come to $1,793,631,896.08 in total revenue from TIF, per county. Now, multiplied by nine, and to represent the nine-county SF Bay Area, we get $16,142,687,064. Now, we have just identified the revenue we need to pay the “end ness” price tag that the Bay Area Council Economic Institute came up with. Now, before your response is that money takes away from substantial revenues the counties use, let’s check that idea.

The total assessed value for all nine SF Bay Area counties is $1,732,301,430,136, or $1.732 trillion. Of that, the total assessed value of the TIF zones that is $74.7 billion comes to just 4.31 percent of the total value of all nine counties in the Bay Area. So, while the TIF zones read like a giant share of the SF Bay Area, in truth, they’re not.

Here’s the per-county break down of total assessed value:

Sf Bay Area Total Assessed Value 2018

Sf Bay Area Total Assessed Value 2018

The TIF Zones Should Not Be One-Per SF Bay Area County

In this idea, the $8.3 billion TIF zones don’t have to be one giant area. Remember, we’re forming and considering an idea that becomes state legislation. From that perspective, the best way to design the law is to allow counties to form commissions that then work with local elected officials to form “Sub-TIF Zones” that equal $8.3 billion in total value.

Since the proposed law would create revenue that would, in part, help the county and the cities deliver needed services, no pass-through legislation to those “taxing agencies” is needed. Now, that leads us to the new organizations who would be responsible for administering the law.

The law should call for a new, regional agency, a kind of “joint powers authority” (formed using California Government Code section 6500 called the Joint Exercise of Powers Act) to distribute and monitor the use of the generated funds. The way the system would work is such that each county would have its office representing the regional agency, and the one headquarters office would be located in Oakland.

The county decisions on TIF Zones and funding expenditure plans would be given to the new regional “joint powers authority” commission for final approval. Then, the new regional “joint powers authority” commission would float bonds to pay for the implementation of, let’s call it “The SF Bay Area Plan To End ness.”

As to what the plan would consist of in this conception of the idea, are specific monies green-lit to approve housing projects and services and programs, all with the objective of ending ness in the Bay Area. The regional commission’s function is not only to monitor the activity, but also to divert funds that may be needed more in another part of the SF Bay Area.

Housing Not Meant To Be Only In TIF Zones

It must be added that the idea of this proposed legislation is not to suggest that we segregate extremely-low-income housing to certain areas via the TIF Zones, but that the TIF Zones serve as funding generators for the regional program. Thus, in this concept, TIF revenue can be used outside the TIF Zones in the county, and in accordance with the regional plan.

That written, there are specialists and affordable housing advocates and developers all over the SF Bay Area, and who have a better handle on that than this one vlogger does.

Also, the idea can be used in other regions in California. The documentary Sheltered Mercy, which focuses on the homeless problem in Sacramento, points the way toward a similar effort for that area.

Input is more than welcome.

Stay tuned.

OaklandNewsNow.com, Oakland News Now, Oakland-News-Now.com @OaklandNewsNow oaklandnewsblog.com is by Zennie62Media, Inc. with CEO Zenophon Abraham AKA Zennie62 YouTube Oakland News Now Commentary Vlog YouTube Partner, Oakland California blogger / vlogger @ZennieAbraham . Hire @Zennie62Media, Inc to tell your story.

Zennie62Media uses smartphones enabling our 98-blog network, specially-made blogs, website, social media platforms covering politics, news, sports, and tech, @Oaklandcitynews, Oakland City Council, North Oakland, East Oakland, Montclair, Adams Point, Uptown Oakland food culture, Oakland City, Oakland Cemetery, Oakland crime, Oakland directions, Oakland airport, Oakland, California ghetto, Oakland, California Map, Oakland Raiders, Oakland City Hall Plaza, East Oakland, Jack London Square, London Square, Golden State Warriors, Chase Center, Bob Myers, Joe Lacob, Peter Guber, NBC Bay Area, Council-Member, Councilmember, Council President, Mayor of Oakland, Public-Safety, Affordable Housing, BBQ Becky Dr. Jennifer Schulte , Jogger Joe Henry Sintay, Oakland crime news, Chauncey Bailey, Bank of America loans, COVID-19 updates, news, SF Bay Area news, Oakland artists, @breakingnewsbayarea, Emeryville, Atlanta news, Chevron Ecuador, Steven Donziger, Fayetteville GA news, @FayettevilleGA Fayette County Georgia, San Francisco news, San Jose news. Also, David Rubin Academy Awards, The Oscars ceremony ,Tom Hanks, Skyline High School, Oakland Sports, Oakland Panthers, Oakland Coliseum, Honda of Oakland, Oakland Arena, Oakland Raiders, Las Vegas Raiders, Las Vegas Stadium Construction, Allegiant Stadium, Las Vegas Stadium Authority, NBA, NFL, NFL Draft, NFL Combine, CES Las Vegas tech, San Diego Comic Con sci-fi. @GrandLakeTheater @LasVegasHotels, Penny Dreadful City of Angels, Academy of Motion Picture Arts and Sciences, AMPAS

Zennie62Media has content development and online reputation management clients like Insight Terminal Solutions @InsightTerminalSolutions and The Oakland Bulk and Oversized Terminal, with California Capital Investment Group Managing Partner Phillip Phil Tagami @PhilTagami co-developer, @JohnSiegel John Siegel as ITS CEO exposing coal and Oakland fake news. Zennie62 has helped Maria Ayerdi Kaplan @MariaAyerdiKaplan, developer of Salesforce Transit Center in San Francisco, Kofi Bonner Five Points, San Francisco Shipyard, and Flowsent capture the Oakland Cannabis Delivery Dispensary @OaklandCannabis market with fitness model female bodybuilder Laura Ehlen and weedmaps help. We’ve partnered with CoLoursTV, CNN, YouTube, Google, NBC, Vice, Oakland Post / Post News Group, Landis PR, and other media organizations. Competition: The SF Chronicle, San Francisco Chronicle, Streetsblog San Francisco, SFStreetsBlog.org, San Francisco Business Times, Bizjournals.com, NY Times, Salt Lake Tribune, LA Times, Daily Californian, KQED, KALX, KPIX, KRON, Las Vegas Review Journal, East Bay Express, Oakland Tribune, Oakland Voices, The Mercury News, AJC, Atlanta Journal Constitution, Hoodline

WebiMax, Gadook, VJG Interactive, LocalEdge, Digital Firefly Marketing, GreyBox Creative, Igniyte, Reputation Rhino, Netmark, Outspoken Media, SEOValley, WebpageFX, NetReputati, san francisco reputation management, atlanta reputation management, los angeles reputation management, Indeed, airbnb, pinterest, credit karma, southwest airlines, mcdonalds, united airlines, Peel-A-Pound Soup, drudge report, astros, 49ers, frontier airlines, tractor supply, warriors, alaska airlines, buffalo wild wings, horoscope, shein, raiders, uhaul, ted bundy, nba finals, michaels coupon, Tua Tagovailoa, cheesecake factory, golden state warriors, kevin durant, realtor com, stephen curry, walgreens photo, drudge, facebook sign in, funny memes, hbo go, hbo now, oakland raiders, oakland national night out, vistaprint, braves, san francisco 49ers, monday night football, newegg, travis scott, zion williamson, kohls coupons, lands end, nancy pelosi, kohls coupon, hotwire, kamala harris, Patrick Mahomes, harry potter, giants, craigslist sf, craig newmark, vic beasley, california earthquake, boston weather, las vegas weather, Eric Metz, sf giants, san francisco weather, san francisco, los angeles weather, lord and taylor, star wars, star wars episode, star trek, star trek discovery, william shatner, zinni.com, zenni.com, leonard nimoy, j.j.abrams, jimmy garoppolo, hawaiian airlines, detective pikachu, clint eastwood, bed bath and beyond coupon, abercrombie, pewdiepie, sfgate, sc lottery, san diego weather, san antonio weather, southwest flights, pikachu, golden state, myatt, just mercy, french open, colourpop, cam newton, anna kendrick, actor, sexual harrassment, klay thompson, harbor freight coupon, robin williams, protest in Oakland, portland protest, Berkeley protest, Chicago protest, LA protest, Howard Terminal Ballpark, Seattle protest, portland weather, phoenix weather, north carolina, macbook, how, bath and body works coupon, The Pandemic, sports events,googleflights, daytona 500, daily horoscope, ashton kutcher, mask, Economic Stimulus, andrew luck, alamo drafthouse, 49ers schedule, trump tweets, thanksgiving,How to, What is, How do I, What do I, Who is? , Electronic Frontier Foundation, Howard Terminal Ballpark, Natalie Silver, Pass It On, Barbara Leslie, Yui Hay Lee, Andreas Cluver, White Journalists, Blacks In Media, David Rubin, Frances Dinkelspiel, Alana Nguyen SFGate, Cat Brooks, Anti Police-Terror Project, Mountain Mike’s Pizza, Glenview, Restorative Justice, School Crossing Guards

Bill Belichick ,New England Patriots, Sean Payton, New Orleans Saints, Andy Reid, Kansas City Chiefs , John Harbaugh, Baltimore Ravens, Sean McVay, Los Angeles Rams, Mike Tomlin, Pittsburgh Steelers, Kyle Shanahan, San Francisco 49ers, Pete Carroll, Seattle Seahawks, Bruce Arians, Tampa Bay Buccaneers, Frank Reich, Indianapolis Colts , Mike Zimmer , Minnesota Vikings , Doug Pederson, Philadelphia Eagles , Mike Vrabel, Tennessee Titans , Sean McDermott, Buffalo Bills , Matt Nagy, Chicago Bears , Kliff Kingsbury, Arizona Cardinals , Zac Taylor, Cincinnati Bengals, Bill O’Brien, Houston Texans, Kevin Stefanski, Cleveland Browns, Ron Rivera, Washington Redskins , Brian Flores, Miami Dolphins , Joe Judge, New York Giants, Mike McCarthy, Dallas Cowboys, Matt Rhule, Carolina Panthers, Jon Gruden, Las Vegas Raiders, Matt LaFleur, Green Bay Packers, Anthony Lynn, Los Angeles Chargers, Vic Fangio, Denver Broncos, Dan Quinn, Atlanta Falcons, Matt Patricia, Detroit Lions, Doug Marrone, Jacksonville Jaguars, Adam Gase, New York Jets

Also Elon Musk, YouTuber , Nura Gabbara, Pat Abraham Yerger, Patricia Yerger, Oakland Mayor Libby Schaaf @LibbySchaaf, Councilmember Nikki Fortunato Bas, Dan Kalb of District 1, Loren Taylor, Lynette Gibson McElhaney, Sheng Thao, Noel Gallo, Robert Bobb, Rebecca Kaplan, Larry Reid, Tech Entrepreneur Sarah Lacy, Personal Trainer Megan Avalon Buffed Barbie, Social Media Pioneer Marc Canter, Beth Schnitzer, Spritz Marketing, Eleanor Wikstrom, SF Mayor London Breed, Scott McKibben, CA Assemblymember Buffy Wicks, Schools Superintendent Tony Thurmond, Berkeley Councilmember Ben Bartlett @BenBartlett, Raiders Charles Woodson, 49ers Jerry Rice, Grand Lake Theater Oakland Owner Allan Michaan, Gary Meyer Telluride, Eat Drink Films, C.J. Hirschfeld, Issac Kos-Reed, Salsa-By-The-Lake, AMC Cinemark TinselTown, Children’s Fairyland, Irvine City Manager John Russo, Guy Fieri, Oakland CAO Edward Reiskin, Raiders Coach Jon Gruden Running Back Josh Jacobs, Stanford HC David Shaw, Tri Ngo, Atlanta Falcons Coach Dan Quinn, Michael Mina, NFL Draft Mr. Irrelevant Head Melanie Fitch, Paul Satala. Eva Crawford, Lauren Weisheit, Subscribe to ’s @Zennie62 YouTube Channel, today!

About the Author

Zennie Abraham
Zennie Abraham is the CEO of Zennie62Media
;

Ben Bartlett Berkeley Councilmember Introduces “Safety For All: George Floyd Community Safety Act

Councilmember Ben Bartlett, Coalition App For City Of Berkeley Virtual Town Hall April 22nd, 2020

Oakland News Now Recent Blog Posts