Impact of Gentrification and Neighborhood Revitalization on the Displacement of Residents.

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: Sacramento City Code makes it clear that the Sacramento Housing and Redevelopment Agency (SHRA) is responsible for implementing the SCC 18.20.

The Grand Jury found no evidence that a study of best practices from other cities has been performed or communicated. Response to Finding 2: We agree and are in the process of identifying best practices in public space management, strategies to create affordable, and market rate housing.

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: We agree and feel the renovations to The Berry and Shasta Hotels have only improved living conditions for those residents, and the conversion of the Capital Park Hotel will provide much needed permanent supportive housing for our homeless populations.

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: We agree that improved reporting and accountability practices can better track outcomes and ensure public funds are being used responsibly.

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: We look forward to the work of the SHPC and hope meaningful efforts in coordinating actions to curb homelessness and provide affordable housing and services will result.

Kaiser Permanente is funding support to help SHPC develop oversight, stronger collaboration and a coordinated plan. Response to Finding 6: We applaud Kaiser Permanente for their support of the SHPC and efforts to develop stronger collaboration and coordination between agencies and jurisdictions.

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 finding is overly broad and somewhat misleading. It is true that SHRA is responsible for implementing Sacramento City Code section 18.20, and therefore is responsible for providing relocation payments and assistance for SRO residents but it is the County of Sacramento that receives the vast amount of state and federal funding for social service provisions. To say that SHRA has a legal mandate for housing all individuals displaced by gentrification assumes that a single entity has the authority and/or responsibility for devising policies and plans to alleviate displacement. Because each individual jurisdiction has final land use authority, policies around housing, displacement, and gentrification are created by local jurisdictions.

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 Downtown Partnership looks forward to seeing positive outcomes resulting from greater collaboration between the key partners and the SHPC.

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: Please refer to our introductory comments on our response. We believe the SRO represents an outdated model that does not serve at-risk populations well.