Loving? See How A Billionaire Planned To Cater For The Homeless


Tiny houses have emerged in the past decade as a promising way to house more homeless people for less money. Now the idea has gained a powerful proponent in the billionaire California real estate developer John Sobrato, who unveiled a proposal this month to build 200 micro-apartments for homeless and low-income renters in Santa Clara.

Sobrato, who has spent much of his career building office space for many of Silicon Valley’s technology giants, asked the Santa Clara City Council for exclusive negotiating rights to lease a 2.5-acre plot of city-owned land, three miles south of the San Francisco 49ers football stadium and currently leased to a Hyundai dealership. His plan for the lot calls for a mix of 160- and 240-square-foot units, large enough for a kitchenette and bathroom with shower, which he said could be fashioned out of repurposed shipping containers. “I think it’s time to turn my attention to creating a very cost-effective solution to housing the homeless and very low-income people,” Sobrato said at a Dec. 6 meeting of the Council, video of which is posted online. “Instead of sleeping in a pup tent or under an overpass, Santa Clara homeless folks will have a clean, dignified, safe place to call home.” The history of the project dates back to 2005, when the city acquired the empty lot with an eye to building affordable housing. Funding for that project fell through, and the property sat vacant. In October, Sobrato wrote a letter to Santa Clara Mayor Lisa Gillmor laying out the novel proposal.

Under the plan, the developer asked for a 57-year lease at the cost of $1 a year. In return, the Sobrato Organization, based in Cupertino, would build and own the apartments, then lease them back to Santa Clara County, which would hire property management and homeless service providers. The project, called Innovation Place, could open as soon as 2018, with half the units rented to homeless and half offered to renters earning between 50 and 80 percent of the area's median income.

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