REPORT TO HOUSING AND HUMAN SERVICES COMMISSION
SUBJECT
Title
Recommendation to City Council to Award Conditional Funding (loans) for $16 Million in Housing Mitigation Funds and Below Market Rate In-Lieu Funds for the Pre-development, Development and/or Rehabilitation of Four Affordable Housing Developments.
Report
BACKGROUND
On July 18, 2022, a Notice of Funding Availability ("NOFA") was issued by the Housing Division for loans for the construction, land acquisition, or rehabilitation of affordable housing developments to be funded with the City's Housing Mitigation Funds ("HMF") and Below Market Rate In-Lieu Funds ("BMR"). A total of $16 million in HMF and BMR funds was made available through the NOFA. The previous NOFA for Housing Mitigation Funds was released in 2019 for $26 million.
Housing Mitigation Funds are the collection of Housing Impact Fees charged to mitigate the demand for affordable housing from the development of new industrial, office, retail, lodging or other commercial development. BMR Housing In-Lieu Fees are also collected as a sub-fund of the Housing Mitigation Fund from the development of residential units. Projects funded using City Housing Funds are deed restricted for a minimum of fifty-five years to ensure quality affordable housing for decades to come. All funds are used in accordance with the Mitigation Fee Act.
The NOFA announcement was distributed broadly to housing developers and non-profit agencies throughout the entire Bay Area region. Four complete applications were received by the August 15, 2022 deadline and include funding requests that
range from $500,000 to $15 million, for a total of approximately $18.5 million in funding requests.
EXISTING POLICY
General Plan, Housing Element, Goal HE-1
Assist in the provision of adequate housing to meet the diverse needs of Sunnyvale's households of all income levels.
Policy HE-1.1 Encourage diversity in the type, size, price and tenure of residential development in Sunnyvale...
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