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HomeMy WebLinkAboutCD Guidelines for the Affordable Housing Trust Fund PPTGUIDELINES FOR THE AFFORDABLE HOUSING TRUST FUND CITY COUNCIL MEETING –JANUARY 21, 2020 BACKGROUND September 3, 2019-Policy recommendation from informational report on Challenges and Impediments to Housing Development Currently the City does not have existing policies and procedures for awarding Housing Trust Fund monies across competing requests AFFORDABLE HOUSING IN-LIEU FUND (Fund 243) Current fund balance = $1.3 million At least $900,000 additional fees estimated in next 5 years $1.5 million in one-time payment anticipated from BioMarin Staff has received funding requests from a variety of projects ranging from new construction to the acquisition of an existing market rate property to deed restrict as affordable. LEVERAGING OTHER FUNDING OPPORTUNITIES $6 billion in State funding for housing development. Most State funding programs provide preference points for projects receiving matching local funds Low-Income Housing Tax Credits (LIHTC) State & Federal Main source of funding for affordable housing developers Requires local funds to qualify PROPOSED GUIDELINES Based off of Marin County’s policies and procedures for administering their housing trust fund. Oversight would be provided by City Council. Staff funding recommendations would require City Council approval. APPLICATION PROCESS Two proposed processes. Both require same application form. Notice of Funding Availability (NOFA) Competitive process Intended for periods when requests exceed available funds Rolling Application Intended to provide City funding for eligible projects that need a funding decision quickly or before a NOFA process can be conducted ELIGIBLE PROJECTS Rental housing that meets the affordability requirements, including Permanent Supportive Housing SRO (single-room occupancy) projects Supportive and transitional housing The residential portions of mixed-use and live/work projects that meet the affordability requirements of these guidelines Conversion of market rate housing to affordable, or of non-residential buildings to affordable housing; Single-family or multi-family homeownership projects that meet affordability guidelines Any other project that meets the goals and priorities of the Guidelines. ELIGIBLE APPLICANTS Non-profit organizations, qualified as a 501(c)(3) of the Internal Revenue Code Public agencies For -profit developers working in partnership with a 501(c)(3) nonprofit organization will be eligible to apply Any other application that helps to address program goals and priorities of increasing affordable housing as reflected by ordinances and resolutions established by the City Council. ELIGIBLE ACTIVITIES Seed/Catalyst funds for very early costs to initiate or expedite project development (such as feasibility analysis or community planning Land or property acquisition for new development Predevelopment (architecture, engineering/soils, environmental reports, financial consultants, etc.) Construction (site preparation, construction, materials) Rehabilitation activities to renovate existing rental units Conversion of market rate housing, or non-residential buildings, to deed-restricted affordable housing Any other activity that helps to address program goals and priorities of increasing affordable housing as reflected by ordinances and resolutions established by the City Council. FUNDING TERMS & AMOUNTS Loan or Grants Will vary by project to meet the needs of the project, availability of financing, financing method, development configuration and organizational capacity of the applicant Staff recommends a bias towards filling a final funding gap to create a fully funding project. EVALUATION CRITERIA Tangible and cost-effective benefit to the community Experienced and highly capable Development Team (i.e. Developer, Architect, Financing Partners, General Contractor, and Construction Management) Experienced and highly capable Management Team (i.e. Property Owner, Property Management, Financial Partners, Service Providers) Documentation showing a readiness to proceed Financing and in-kind contributions to match city investment Reasonable per unit subsidy including evaluation of the target population, project type and cost effectiveness (cost per person, externalities, reserves, leveraging). OPTIONS FOR TONIGHT & RECOMMENDED ACTION Adopt resolution as presented; Adopt the resolution with modifications; Direct staff to return with more information; or Take no action QUESTIONS