REPORT TO HOUSING AND HUMAN SERVICES COMMISSION
SUBJECT
Title
Consider Conditional Funding Awards for $26 Million in Housing Mitigation Funds, Below Market Rate In-Lieu Funds, and Low Mod Income Housing Asset Funds for Development and/or Rehabilitation of Three Affordable Housing Developments.
Report
BACKGROUND
On November 15, 2019, a Notice of Funding Availability ("NOFA") was issued for the construction or rehabilitation of affordable housing developments to be funded with the City's Housing Mitigation Funds ("HMF"), Below Market Rate In-Lieu Funds ("BMR"), and Low Mod Income Housing Asset Funds ("LMI"). A total of $21 million in HMF, BMR, and LMI funds was made available through the NOFA. The previous NOFA for Housing Mitigation Funds was released in 2015.
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 into the Housing Mitigation Fund from the development of residential units. Low Mod Income Housing Asset Funds are payments to the Housing Successor Agency, a result of the dissolution of the former Redevelopment Agency; the City Council serves as the Housing Successor Agency. These funds are collected through annual payments into the Redevelopment Housing Fund. Projects funded using City Housing Funds are deed restricted for fifty-five years to ensure quality affordable housing for decades to come.
The NOFA announcement was distributed broadly to housing developers and non-profit agencies throughout the entire Bay Area region. Three complete applications were received by the January 3, 2020 deadline and include funding requests that
range from $14 million to $18 million, for a total of approximately $48 million in funding requests.
EXISTING POLICY
General Plan, Housing Element, Goal HE-1
Assist in the provision of adequate housing to meet t...
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