lawsuit

City settles lawsuit with affordable home group

Money to low-income housing trust fund will be increased

By GEORGE MOORE

A lawsuit filed roughly 16 months ago challenging the validity of an ordinance adopted by the Cupertino City Council was settled out of court on Jan. 30. The result for the plaintiffs--the Cupertino Citizens for Affordable Housing, an unincorporated association--is a 5 percent increase of a tax increment deposited annually into the low-and moderate- income housing fund. The outcome for the city means the unshackling of the long-stagnant Cupertino Vallco Redevelopment Project.

"We're very happy it's resolved," City Attorney Chuck Kilian said. "It allows us to move forward. I think the settlement was probably no different than what the city would have done anyway."

Josephine Sadler, a member of the affordable housing organization, said she became involved because she is a believer in the cause.

"It's satisfactory," she said. "I had hoped for more."

The Oct. 17, 2000, lawsuit focused on three key elements after the city council adopted the project on Aug. 21, 2000. First, there was no substantial evidence proving the project area to be blighted. Second, invoking the California Redevelopment Law was necessary to revitalize the area. Third, the project was not consistent with the city's General Plan and Housing Element.

"We thought the city was stretching the word 'blight,'" said William Litt, legal representative for the organization. Litt is an attorney for Bay Area Legal Aid, a nonprofit agency that offers free legal services to those with very low incomes. "The city did not intend to provide any affordable housing--all new property tax money was to go to the redevelopment agency."

According to the settlement, the city denied the plaintiffs' allegations that the adoption of the redevelopment plan was a valid exercise of government power. It further states that nothing contained in the agreement constitutes an admission or concession by the defendants of the merits of the plaintiffs' allegations.

California state law requires that 20 percent of any redevelopment taxes must go toward affordable housing--the settlement raised the amount to 25 percent.

Gertrude Welch, founder of the organization, said she was pleased with the results.

"The 5 percent that was gained will be allocated for extremely low-income families and individuals," she said. "We were extremely pleased about that because the city doesn't typically build for them."

But Kilian said there is a trade-off to building low-income housing.

"Every low-income housing unit eliminates three to four units of the moderate range," he said. "But the city is committed to all kinds of housing. We will ensure at least five affordable housing units per 100 square feet."

Welch countered that even if only a few are built, it would provide some housing for the low-income.

"A few are better than none," she said.

Welch said once Vallco is redeveloped, more affordable housing would be built somewhere in the city. She said a new movie theater and retail stores would provide a considerable amount of redevelopment increment.

Litt said the settlement agreed to tie the number of affordable housing units to the amount of new commercial developments in the Vallco project area, but because of the slow economy, it probably would not happen for some time.

William Wickwire, the third and final member of the organization, passed away last spring. Wickwire was a pharmacist and longtime Cupertino resident who worked hard for affordable housing, Welch said.

"I think he would have been very pleased," she said. "I'm going to take a copy of the settlement to his widow."

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