Earlier this month, San Mateo County unveiled plans in its 2024-2025 budget to create a new real estate development team, allocating $940,332 to fund five staff positions. The County’s investments reflect HLC requests for more planning capacity to ensure the County can fully implement its housing element objectives and manage its affordable housing portfolio.
From page 359 of the County budget, a summary of the County’s hiring plans for the Department of Housing.
Like most jurisdictions in the Bay Area, San Mateo County projects structural deficits over the next several years. A number of factors put pressure on the County budget: lower-than-expected property tax receipts, potential state claw back of various funds, cuts to statewide Human Health & Services programs, and unpredictable inflation all factor.
As a result, the $4.2 billion budget is approximately $600 million smaller than last year’s budget. Most of the deduction occurred because of the completion of major capital projects, but the County’s financial situation could change drastically depending on the choices of the governor and state legislature.
However, investing money in staff capacity now will save the County money down the road. Due to delays in its housing element update, the County has already lost access to state grant funding in 2024–funding that ordinarily would have supported implementation of housing element goals, such as rezoning.
By investing adequately in housing staffers, the County will ensure it can achieve and maintain housing element compliance, creating new opportunities to secure funding for housing initiatives.
Furthermore, the County’s growing portfolio of land presents opportunities to raise revenue. A few weeks ago, the County purchased a 132,000 square foot Office Park in San Mateo; earlier in the year, they bought the 50-acre Bay City Flowers Property in Half Moon Bay.
Both properties present large redevelopment opportunities that could deliver thousands of new homes. By strategically rezoning the sites, the County could potentially generate millions of dollars. By investing in its housing department and real estate development capacity, San Mateo County is investing in its future.