Sacaamento Office of the City Manager Christopher Conlin CiryHall Assistant City Manager 915 ISt ree!, Fifth Floor

Clear lines of responsibility regarding relocation of Single Room Occupancy {SRO) clients have been difficult to determine. Opinions from interviewees indicate the agencies were not always working collaboratively, sharing information and consistently messaging. Response to Finding 1: The City of Sacramento agrees with the finding. The Sacramento Housing and Redevelopment Agency (SHRA) is the organization responsible for administering relocation efforts on behalf of the City of Sacramento under Chapter 18.20 of the Sacramento City Code. "The director .. . report[s] annually to the Sacramento housing and redevelopment commission and city council on the number of residential hotel units withdrawn, the number of new units expected based on approved replacement housing plans, and units constructed in anticipation of conversions or 958452 withdrawals." (Sac. City Code, § 18.20.160(F).) The City of Sacramento is in favor of greater collaboration, sharing of information, and consistent messaging with SHRA on this important issue.

The Grand Jury found no evidence that a study of best practices from other cities has been performed or communicated. Response to Finding 2: The City of Sacramento disagrees with the finding. During the Central City Specific Plan process and the study of the potential streetcar, City of Sacramento staff reviewed the potential for transit-oriented development to cause gentrification and displacement. Their findings were published in the Anti-Displacement/Gentrification Study of May 24, 2018 (https://www .cityofsacramento.org/­ /media/Corporate/Files/CD D/Pla nni ng/Long­ Range/Gentrification-Displacement­ Whitepaper_5_24_18_.pdf?la=en). They also worked in partnership with the City of West Sacramento and the Sacramento Area Council of Governments to develop the Transit-Oriented Development Toolkit, which reviewed existing and potential new programs to address potential displacement (https://www.sacog.org/sites/main/files/file­ attachments/2019-06-13_tod_toolkit_web.pdf). City of Sacramento staff are reviewing the city's current anti­ displacement actions in addition to performing a broader analysis of other policies, programs, and initiatives that could be adopted from a review of best practices from studies and other jurisdictions. This work is detailed in the attached document. The City of Sacramento is also currently updating the Housing Element for the 2021 -2029 planning period. As part of the Housing Element update, city staff and consulting firm Ascent hosted two virtual focus group sessions to gather input from various stakeholders on key housing issues. The following focus group sessions were held on Tuesday, August 4, 2020 using Zoom: • Focus Group 1: Anti-Displacement and Tenant Protections • Focus Group 2: The City's Affordable Housing Requirements Each group session began with a brief presentation, providing background on the housing-element process and information on current city programs and requirements that relate to the two group topics. The consulting team then facilitated a discussion in which participants were asked for input on each group discussion topic. Representatives from non-profit organizations, neighborhood associations, advocacy groups and public agencies provided feedback on their experiences and offered suggestions for policy improvements related to anti-displacement.

The Grand Jury found that the conversions of The Berry, The Capitol Park and the Shasta facilities appear to have been well-planned and meet the intent of the law and the needs of the community. Response to Finding 3: The City of Sacramento agrees with the finding.

Sacramento Housing and Redevelopment Agency (SHRA) did not provide the Grand Jury information on reporting or tracking individual residents of SROs who were displaced. Therefore, it could not be determined whether those occupants who may have been compensated have relocated, whether the relocation was successful or, worst case, if the resident spent the money and may now be homeless. Response to Finding 4: The City of Sacramento agrees with the finding. While the City does not have direct knowledge of what information was provided to the Grand Jury, SHRA maintains records regarding each individual displaced person. The personal information of displaced residents is confidential; nonetheless, the Grand Jury can request data from SHRA regarding how many persons have been displaced and how many persons have received benefits. SHRA has compiled and released regular reports with congregate data on the relocation and rehousing of individuals who were residents at Capitol Park Hotel.

The Grand Jury Report for 2018-2019 recommended seeking assistance to look at the actions and coordination of the stakeholders. As a result of those recommendations, The Sacramento Homeless Policy Council (SHPC) was formed which will impact future relocated tenants. Response to Finding 5: The City of Sacramento disagrees with the finding. Per its mission, SHPC is concerned with addressing homelessness. On , the Grand Jury Report itself acknowledges that SHRA provides relocation benefits with respect to the Capitol Park Hotel as also stated in SHRA's Update at a Glance: Week of April 24, 2020 (https://www.shra.org/wp-content/uploads/2020/04/Weekly­ Update-Apri1-24th-2020.pdf). Some tenants do leave of their own volition; however, the Grand Jury should not presume, without evidence, that departing tenants are or became homeless instead of finding other housing or choosing to live with friends, family, etc. Given the robust relocation efforts of SH RA in preventing tenants from exiting to homelessness, it is far from certain that SHPC will encounter or need to impact future relocated tenants.

Kaiser Permanente is funding support to help SHPC develop oversight, stronger collaboration and a coordinated plan. Response to Finding 6: The City of Sacramento agrees with the finding. Kaiser Permanente has committed to funding SHPC, though Kaiser Permanente has not yet distributed the funds.

While SHRA has the legal mandate for housing individuals displaced by gentrification, several initiatives and/or agencies including Sacramento Steps Forward (SSF), Volunteers of America, and Continuum of Care are involved in various aspects. It is not clear which entity makes the final decision, which initiates policy and which manages implementation regarding development of plans and re-housing those impacted by gentrification. Response to Finding 7: The City of Sacramento disagrees with the finding. SH RA administers relocation under Chapter 18.20 of the Sacramento City Code, but SHRA's legal mandate does not extend to "housing individuals displaced by gentrification. Furthermore, SSF, Volunteers of America and the Continuum of Care have no such legal mandate.

The Joint Powers Agency (JPA) members -Sacramento City, Sacramento County and SHRA -are making efforts to work more collaboratively along with Sacramento Steps Forward and the newly formed Sacramento Homeless Policy Council along with Community Solutions. Response to Finding 8: The City of Sacramento agrees with the finding.

Sacramento City Code mandates a minimum of 712 SRO rooms must remain available at all times. As of July 3, 2019, the City had 762 rooms including those at the new complex at 7th & H which indicates they are maintaining the mandated levels. The question remains whether that is an adequate number today. Response to Finding 9: The City of Sacramento disagrees with the finding. On July 3, 2019, the City of Sacramento had 764 rooms (2 more than found by the Grand Jury) available.