Showing posts with label San Jose. Show all posts
Showing posts with label San Jose. Show all posts

Wednesday, December 27, 2017

1,000s Of "Micro-Homes" Sprout Up All Over Bay Area To House The Growing Homeless Population

Roughly one year ago we shared the plans of a billionaire real estate developer in San Francisco who wanted to build communities for the homeless in Bay Area neighborhoods using stackable steel shipping containers (see: San Fran Billionaire Luanches Plan To House Homeless In Shipping Containers).  Not surprisingly, the efforts were met with some resistance from the liberal elites of Santa Clara who, despite their vocal support of any number of federal subsidy programs for low-income families, would prefer that those low-income families, and their subsidies, stay far away from their posh, suburban, "safe places."


Alas, as the San Francisco Chronicle points out today, like it or not, the boom in "micro-houses" is just getting started in the Bay Area with nearly 1,000 tiny homes, with less than 200 square feet of living space, currently being planned in San Francisco, San Jose, Richmond, Berkeley, Oakland and Santa Rosa.








Planners say that’s just the beginning. “We’re very excited about micro-homes,” said Lavonna Martin, director of Contra Costa County’s homeless programs. “They could be a big help. They have a lot of promise, and our county is happy to be on the cutting edge of this one. We’re ready.”


 


Contra Costa has a $750,000 federal homelessness grant to pay for 50 stackable micro-units of supportive housing, and Richmond Mayor Tom Butt would like to see them in his city. Developer Patrick Kennedy brought a prototype of his MicroPad unit to Richmond in November, and county and city leaders say they are leaning toward choosing it.


 


“They’re very fine, and they make a nice-looking building,” Butt said. “They’d be good for anybody looking for housing.”



MicroPad


The beauty of the tiny units is that they can be built in a fraction of the time it takes to construct typical affordable housing, and at a sliver of the cost, which means a lot of homeless folks can be housed quickly.


The homes have also caught on in San Jose where the City Council just approved $2.4 million to build a village of 40 units to help house the homeless.  Of course, just like in Santa Clara, San Jose residents are lashing out at city officials over plans that they say will only serve to increase neighborhood crime.








San Jose resident Sue Halloway told the council she was afraid putting the village near residences would increase “neighborhood crime, neighborhood blight (and) poor sanitation,” and predicted that it would be “a magnet for more homeless.”


 


City Councilman Raul Peralez said he understands such concerns, but that “there are no facts surrounding these tiny homes and whatever blight or crime they might bring, because we haven’t done them yet.”


 


“I tell people you really have two options,” said Peralez, who said he wants the village in his downtown district. “You can allow the homeless to live on the streets, or you can provide not only shelter but services in a confined area — with security. In my mind, that’s a way better option for managing this community in an organized way.”



So, what do the stackable units look like?  As seen in the video below, prototypes from one manufacturer, MicroPad, come complete with full bathrooms and kitchens and have up to 160-180 square feet of living space...








“These micro-homes may seem small at 160 to 180 square feet, but they’re actually pretty spacious when you’re in them,” she said. “And they go up very fast.”


 


Kennedy’s MicroPads have showers, beds and kitchens. Individually they resemble shipping containers, but once they’re bolted together with siding and utilities, they look like a regular building.




...which is more or less considered a mansion by struggling New York artist standards...









Saturday, December 23, 2017

Silicon Valley Obscenity - 1 In 4 People Are "Food Insecure"

In the years since the first dot-com bubble burst, Silicon Valley has become emblematic of the intensifying wealth inequality that’s making life increasingly unaffordable for millions of working- and middle-class Americans.


And while the unprecedented wealth creation in the region has helped enrich hundreds of thousands of tech workers and entrepreneurs, virtually everybody else in the region – from college students to the cafeteria workers and janitors who service the headquarters of storied tech firms like Google and Facebook – has suffered from rising rents and a cost of living that’s far outstripped wage inflation.


Now, a study has found that more than one in four Silicon Valley residents is food insecure – meaning they go without at least one meal or rely on food pantries due to lack of financial resources, according to researchers at the Second Harvest food bank.


Using hundreds of community interviews and data modeling, a new study suggests that 26.8% of the population – almost 720,000 people – meet this ignominious designation. Furthermore, nearly a quarter are families with children.



“We call it the Silicon Valley paradox,” says Steve Brennan, the food bank’s marketing director. “As the economy gets better we seem to be serving more people.” Since the recession, Second Harvest has seen demand spike by 46%.


The Guardian interviewed local residents who qualify as food insecure for a story about the worsening wealth gap in one of the wealthiest regions in the US.


Karla Peralta is surrounded by food. As a line cook in Facebook’s cafeteria, she spends her days preparing free meals for the tech firm’s staff. She’s worked in kitchens for most of her 30 years in the US, building a life in Silicon Valley as a single mother raising two daughters.


 


But at home, food is a different story. The region’s soaring rents and high cost-of-living means that even with a full-time job, putting food on the table hasn’t been simple. Over the years she has struggled to afford groceries – at one point feeding her family of three with food stamps that amounted to $75 a week, about half what the government describes as a “thrifty” food budget. “I was thinking, when am I going to get through this?” she said.


 


In a region famed for its foodie culture, where the well-heeled can dine on gold-flecked steaks, $500 tasting menus and $29 loaves of bread, hunger is alarmingly widespread, according to a new study shared exclusively with the Guardian.



According to the Guardian, the food bank is literally at the center of the Silicon Valley boom – both literally and figuratively. It sits just half a mile from Cisco’s headquarters and counts Facebook’s Sheryl Sandberg among its major donors. But the need it serves is exacerbated by this industry’s wealth; as high-paying tech firms move in, the cost of living rises for everyone else.


As we’ve pointed out, faced with some of the most expensive rental housing in the nation, some Bay Area residents are feeling priced out and are seeking low-cost alternatives like living in their cars, or commuting nearly two hours to work each way.



All of this is happening as the Nasdaq – which includes many of the tech behemoths like Facebook, Google and Apple that are based in the region – reached an all-time high above 7,000 on Monday.


Food insecurity often accompanies other poverty indicators, such as homelessness. San Jose, Silicon Valley’s largest city, had a homeless population of more than 4,000 people during a recent count.


For workers like Karla Peralta – the Facebook cafeteria worker who shared the story of her daily struggles with the Guardian – there’s a stark division between well-heeled salaried tech workers at Facebook, and others like herself who work under contract.


What’s worse, many workers like Peralta are finding themselves mired in an uncomfortable gray area: they make too much to qualify for government assistance, but not enough to get by.


These days Peralta earns too much to qualify for food stamps, but not enough not to worry. She pays $2,000 a month – or three-quarters of her paycheck – to rent the small apartment she shares with her youngest daughter. “Even just the two of us, it’s still a struggle.” So once a month, she picks up supplies at the food bank to supplement what she buys at the store.


 


She isn’t one to complain, but acknowledges the vast gulf between the needs of Facebook employees and contract workers such as herself. “The first thing they do [for Facebook employees] is buy you an iPhone and an Apple computer, and all these other benefits,” she laughs. “It’s like, wow."



Second Harvest is the only food bank serving Silicon Valley. It’s also one of the largest in the country. In any given month, it provides meals for 257,000 people. It served 66 million pounds of food last year. When the Guardian visited its cavernous, 75,000 square foot main warehouse space, boxes of produce stretched to the ceiling. Strip lights illuminated crates of cucumbers and pallets of sweet potatoes with a chilly glow. Volunteers in PayPal T-shirts packed cabbages and apples that arrived in boxes as big as paddling pools, while in the walk-in freezer turkeys waited to defrost.


To Silicon Valley’s wealthy tech workers, the struggles of the hundreds of thousands of working poor in the region are often invisible.


“Often we think of somebody visibly hungry, the traditional homeless person,” Brennan said. “But this study is putting light on the non-traditional homeless: people living in their car or a garage, working people who have to choose between rent and food, people without access to a kitchen."


He added, “you’re not thinking when you pick up your shirts from dry cleaning, or getting your landscaping done, or going to a restaurant, or getting your child cared for, ‘is that person hungry?’ It’s very easy to assume they are fine."


The cost of housing is one of the biggest contributor to inequality – and the main reason many workers in the region are forced to go hungry. In Santa Clara County, the median price of a family home has reached a new high of $1.125 million, while the supply of homes continues to shrink. A family of four earning less than $85,000 is now considered low income. Meanwhile, the median income in the US is less than $60,000.


These realities mean food insecurity cuts across lines of race, age and employment status.


Minority communities in the Bay Area have been hit the hardest.


The Latino community is “passing through a hard time”, says Vicky Avila-Medrano, a food connection specialist. She runs a program that sends current and former food bank users out into the community, which has been disproportionately affected by the cost-of-living crisis.


 


“Here in Silicon Valley, we have a big problem. This is a beautiful place to live for people in the tech industry, but we are not working in that industry."



Of course, the problems posed by rising rents aren’t unique to the San Francisco Bay Area. As we noted back in October, rental costs growing faster than disposable income for 22 consecutive months. In September, rent ate up more disposable income than at any prior time in history.


All of this underscores the hypocrisy of the ultra-liberal Bay Area. While well-heeled tech workers spurn anybody who disagrees with their narrow-minded worldview in the name of progress, many of these same workers drift through their daily routines largely ignorant of the dire circumstances of the people who handle their dry cleaning and prepare their food.


Google famously fired former engineer James Damore for publishing an open letter pointing out flaws in the company’s diversity hiring program.


Meanwhile, the more than 10,000 employees who work at the Googleplex in Mountain View, Calif. are some of the biggest contributors to wealth inequality in the region.


While we"re sure the Bay Area"s insistence on social equality in the workplace is well intentioned, progress won"t feed the working poor.









Wednesday, July 5, 2017

Silicon Valley Begins To Crack Visibly

Authored by Wolf Richter via WolfStreet.com,


Chilling photos of for-lease signs lining the Great America Parkway 


There are parts of Silicon Valley where commercial real estate is still hanging on, and there are parts where it has let go.


In Santa Clara, it has let go. Overall availability of office space in Santa Clara was nearly 19% in the first quarter, according to Savills Studley, up from 14% a year ago. Only two other areas in Silicon Valley – Milpitas and North San Jose – show greater availability at respectively 23% and a harrowing 30%.


The availability problem becomes very real along the Great America Parkway, between Highway 237 and Highway 101. It’s near Levi’s Stadium. Nearby, Yahoo owned 49 acres of land that it acquired in 2006 and on which it had planned to build its new headquarters. It tore down the buildings on it and got the project approved for 3 million square feet of office space. It scuttled these plans in 2014 and turned the land into a parking lot for Levi’s Stadium. In April 2016, Yahoo sold the property for $250 million to LeEco, a Chinese company that had surged out of nowhere.


LeEco was going to get into nearly everything, including electric cars in the US. It was going to build its global headquarters on it and hire 12,000 people. Then came reality. Earlier this year, LeEco in turn scuttled those plans and pulled back from the US, claiming that it had run into a cash crunch. It has since been trying to sell the property. There will be a buyer eventually, as always, but maybe not at $250 million.


Turns out, that corridor along the Great America Parkway is drowning in office space that is for lease.





“A growing Commercial Real Estate disaster” – that’s what Michael, who has been to this area on a regular basis since 2010, calls it.



“This should be a thriving area given it is directly in the path to Levi stadium,” he said.



“I have been seeing an incredible amount of construction here and everywhere over the last few years. However in the past year, I am seeing a considerable amount of for-lease signs with new construction projects unabated.”



Here is the stretch of the Great America Parkway between Highway 237 and Highway 101:



And here are the for-lease signs Michael photographed in front of office buildings along the Parkway.




The building below used to sport a Dell logo. The logo disappeared, and now the whole building appears to be under renovation.



The building across the street now has the Dell logo:



And more space for lease.



“Santa Clara and Sunnyvale had some of the most pleasant industrial commercial buildings that blended well with curved roads and lots of trees,” Michael says.




“Now most of these are being leveled for these glass multi story monsters.”





“There are at least a million square feet of unoccupied commercial real estate on a single street.”



“Irrational construction?”



But it’s not just Santa Clara. According to Savills Studley’s report on the Silicon Valley office sector in Q1, overall availability in Silicon Valley rose to 16% and availability of Class A office buildings jumped nearly four points year-over-year to 20% in Q1.


In some areas, availability is low. But in others, such as in Santa Clara and San Jose, the opposite is the case. These two cities account for nearly two-thirds of the available space for lease in Silicon Valley. And there is a lot of construction, but only about half of it has been pre-leased.


Availability in some key places:


  • Palo Alto:  6%

  • Menlo Park:  12%

  • Mountain View/Los Altos:  12%

  • Downtown San Jose:  17%

  • Santa Clara:  19%

  • Milpitas:  23%

  • North San Jose:  30%

Yet, overall asking rents rose 6% year-over-year. Class B and C asking rents were about flat, but class A asking rents spiked nearly 15%. Even in Santa Clara – despite the vacant offices cluttering up the landscape – overall asking rents rose 5% year-over-year.


But these are asking rents, not actual deals, where tenants negotiated big concessions and lower rents. And these deals have slowed to a crawl…


Leasing activity peaked in mid-2015 at 12 million square feet on a trailing four-quarters basis. Leasing activity has since plunged 50% to just 5.8 msf for the trailing four-quarters, even as new supply keeps piling on the market.





“It is open to debate, though, whether the region is gearing up for more growth or if the rally is winding down,” the report mused.



And nationally, the Commercial Real Estate boom-and-bust cycle has turned. Read…  Next Asset Bubble Cracks: It’s so Big even the Fed is Fretting

Friday, February 24, 2017

Dramatic Drone Footage Shows Extent Of San Jose Flooding

While the series of major storms hitting California have begun to subside, residents of San Jose are being warned to keep away from affected homes until water levels decrease to a safe level. Flash floods along the west coast of the US have seen thousands of people forced to leave their homes and a state of emergency declared by California governor Jerry Brown. The majority of mandatory evacuation orders have now been downgraded for areas including Sutter County around the Oroville Dam Spillway, which sparked panic one week ago when it threatened to collapse during the floods.


However, San Jose, the 10th largest city in the US, remains one of the most substantial urban regions affected, with 14,000 resident evacuated and more than 36,000 homes estimated to be hit by floodwater, reports the San Francisco Gate.


To get a sense of the water damage, the following drone footage shows the extent of the flooding in San Jose.



City Mayor Sam Liccardo has admitted failures in the official response to the storm crisis. “If the first time that a resident is aware that they need to get out of a home is when they see a firefighter in a boat, then clearly something went wrong,” Mayor Sam Liccardo said, report KQED News. “We are assessing what it is that led to that failure.”


The reason for the city"s dire predicament is that over the last two weeks, heavy rains pushed water levels at Santa Clara County’s largest reservoir into the danger zone. That happened over the weekend, sending massive amounts of water into the Coyote Creek, which runs through the heart of San Jose. By Tuesday, the creek was overflowing at numerous locations, inundating neighborhoods, flooding hundreds of homes and forcing the frantic evacuations of more than 14,000 residents, who remained out of their homes Wednesday, the LA Times reported.


The worst flooding to hit Silicon Valley in a century left San Jose reeling and residents angry about why they were not given more warning that a disaster was imminent. Even city officials on Wednesday conceded they were caught off guard by the severity of the flooding and vowed a full investigation into what went wrong.



Floodwater surrounds homes in San Jose on Wednesday


Late Wednesday, Assistant City Manager Dave Sykes said officials had learned that the information they had on the capacity of Coyote Creek channel was not accurate. He also said the city was working with the Santa Clara Valley Water District to determine whether debris caused blockages that contributed to flooding.



Neighbors talk in front of their homes, which were inundated after Coyote Creek overflowed


“The creek spilled over the banks faster and higher than anybody expected,” said city spokesman David Vossbrink.



Ricardo Juarez, who has lived in this house for six years, works to free his van Wednesday


Officials said that on Thursday they would focus on assessing the damage and getting residents back home.



Homes and cars are swamped on Wednesday in San Jose


The approximately 14,000 people under mandatory evacuations hailed mostly from central San Jose. Evacuation advisories were also issued to 36,000 residents in a zone that covered a business and industrial area along a roughly seven-mile stretch of Coyote Creek.



Floodwaters surround a play structure in San Jose


By Wednesday evening, city officials had lifted some mandatory evacuations for homes north of Interstate 280. They also revised the number of residents impacted by evacuation advisories down to 22,000.



Cars are covered by floodwater on Wednesday. The Coyote Creek crested to 13.6 feet at a river gauge point on Tuesday


“We haven’t really had anything quite like this before,” Vossbrink said.



Rescuers in chest-deep water steer boats carrying dozens of people, some with babies and pets


Meanwhile, the local government of San Jose has issued an emergency alert declaring that while flood water is creeping back, residents should not return to their homes until authorities deem it safe to do so. The notice informs people to be wary of live electrical units in flooded buildings and structurally unsound walls.



Rescuers travel by boat through a flooded neighborhood looking for stranded residents in San Jose.


The good news, according to a San Jose emergency alert, is that the “water is beginning to subside, however, levels are still high. Many areas are still unsafe to access. The City continues to send in teams to assess damage and determine when it is safe for residents to return to their homes.”



Cars are submerged in a flooded neighborhood in San Jose.


“Flood water and homes, cars, and belongings that have been flooded should be treated as contaminated.” Evacuation notices are still in place in the Oakland and Rock Springs Area of San Jose. A map of the areas still out of bounds for people has been listed on the San Jose government website.  Meanwhile, homes to the south of the city near Lexington Reservoir and Anderson Lake remain in flood danger zones.


For the next few days, California will be dry. But according to weather reports by the United States Geological Survey the rain respite will last until Sunday, when another “storm system is predicted to bring 1-3 inches of rain to the regions on Sunday.”