Council allocates next three years of Project Connect anti-displacement funds

The city continued allocation of Project Connect’s $300 million anti-displacement budget last week.

At its regular meeting on April 13, City Council voted to approve a resolution allocating the funds for the next three fiscal years. The first round of funding included $23 million for land acquisition in Fiscal Year 2021-22. Last year, the city allocated another $41 million – this time to put toward existing housing development assistance programs and community-led anti-displacement initiatives.

“These recommendations build on the success of the previously expended Project Connect anti-displacement funds, while creating opportunities for strategically expanding existing programs and exploring additional strategies,” the resolution, sponsored by Council Member Vanessa Fuentes, states.

The resolution directs the city manager to allocate $75 million over the next three fiscal years in the following areas: land acquisition, preservation and rehabilitation; affordable housing development; programs and other strategies addressing immediate needs; and staffing, community engagement and marketing.

The resolution notes that the city’s Project Connect Community Advisory Committee, which is tasked with advising Council regarding the available funds, held community engagement sessions in September and October 2022. The priorities outlined in the resolution are guided by feedback from those sessions, which focused on the priorities of communities most impacted by potential displacement pressures.

The $35 million set aside for FY 2023-24 will include $23 million for land acquisition; $10 million for affordable housing development; $1 million for programs to address immediate needs; and $1 million for staffing, community engagement and marketing.

The “programs and other strategies addressing immediate needs” category will be used to create a grant program focused on creating community-based and place-based organizations to provide services and programs. The funds will also go toward advancing solicitations for programs like rental assistance, legal assistance, tenant organizing, home repair and more.

In FY 2024, $11 million will go to land acquisition, preservation and rehabilitation. Two million dollars will go toward affordable housing development, and another $7 million will go to immediate needs and community engagement.

Finally, in FY 2025, the city has $20 million in funding available. The resolution calls for $9 million for land acquisition, preservation and rehabilitation; $2 million for affordable housing development; $7.5 million for immediate needs; and $1.5 million for staffing and community engagement.

The resolution directs the city manager to prioritize spending the funds on areas adjacent to or within short walking distance of transit-oriented development planning. The resolution also gives staff the flexibility to “move surplus funds” between the land acquisition and affordable housing development categories in consultation with the Project Connect Community Advisory Committee.

Awais Azhar, chair of the committee, spoke in favor of the resolution at the meeting.

“The idea really is, how do we have complete services for our communities to really stem any potential displacement impacts of Project Connect and also make sure that those folks who are most likely to use transit continue to live in those neighborhoods where we will have transit infrastructure,” Azhar said.

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