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Home My WebLink AboutCED Affordable Housing Funding Recommendation and Upcoming Notice of Funding Availability PPTAffordable Housing Funding Recommendation and Upcoming Notice of Funding Availability San Rafael City Council December 2, 2024 City of San Rafael Affordable Housing Trust Fund Fund revenues •Affordable housing in-lieu fees from market-rate residential projects •Commercial linkage fees from commercial projects Unencumbered fund balance: $955,104 San Rafael City Council December 2, 2024 Affordable Housing Trust Fund Funds are used to increase the supply of housing affordable to very low-, low- and moderate-income households. Two processes to apply for funding: •Periodic Notices of Funding Availability •Rolling Application Process for Acquisitions (new in 2024) San Rafael City Council December 2, 2024 Award Criteria •Community Benefit •Development Team’s Capacity •Management Team’s Capacity •Readiness to Proceed •Leverage and Collaboration •Reasonable Per Unit Subsidy San Rafael City Council December 2, 2024 Alignment with Housing Element Goals •End and prevent homelessness in San Rafael. •Combat housing discrimination, eliminate racial bias, and undo historic patterns of segregation. •Ensure housing habitability and maintenance. •Meet housing needs through various housing choices and affordability levels throughout the City. San Rafael City Council December 2, 2024 Affordable Housing Funding Request Acquisition of rental housing at 1400 Lincoln Avenue San Rafael City Council December 2, 2024 Acquisition of 1400 Lincoln Avenue Sponsor: Canal Alliance •1960s low-rise multifamily apartment building •Naturally Occurring Affordable Housing •9 units / 17 bedrooms •Low-income tenants San Rafael City Council December 2, 2024 Paloma Arms Apartments at 1400 Lincoln Avenue Summary of Request San Rafael City Council December 2, 2024 Gap funding for acquisition of a 9-unit apartment building Acquisition Cost City Funding Request Total $3,120,000 $250,000 Per Unit $346,667 $27,778 Rents and tenant household incomes to be restricted at 60% of Area Median Income Acquisition Funding Sources San Rafael City Council December 2, 2024 Staff Evaluation and Recommendation •Preserves at-risk affordable housing •Contributes to a range of housing choices for low-income families •Prevents displacement of low-income tenants •Applicant has experience managing affordable rental housing in San Rafael •Leverages other funding sources •Reasonable per-unit City subsidy San Rafael City Council December 2, 2024 Recommended Funding: $250,000 grant San Rafael City Council December 2, 2024 Recommendation 1.Adopt a resolution to authorize the appropriation of $250,000, plus administrative costs estimated at $2,000 or less, from the Affordable Housing Trust Fund for the acquisition and preservation of 1400 Lincoln Avenue as a 100 percent affordable housing project, and to authorize the City Manager to execute all documents, including a funding agreement, required to disburse the funds. 2.Accept the 2025 Notice of Funding Availability report. 11 Upcoming Notice of Funding Availability For the Acquisition/Rehabilitation or New Development of Affordable Housing San Rafael City Council December 2, 2024 2025 Notice of Funding Availability San Rafael City Council December 2, 2024 Tentative Schedule Funding application opens and applicant workshops January Funding application closes February Application review period Late February through mid-April Award recommendations are presented to the San Rafael City Council for consideration April City Funds Available: $500,000 Considerations for Funding •Meets requirements provided in the Guidelines •Demonstrates site control or ability to achieve site control •Provides greatest return on City’s investment by maximizing number of affordable units created •Includes reasonable per unit City subsidy coupled with other funding sources •Project readiness in the form of approved entitlements and building permits, as well as state and federal funding •Located within a quarter mile of transit, provides units for larger families, serves very -low- and/or extremely-low- income households, or includes 20 percent or more permanent supportive housing •Contributes to meeting City’s goals for housing development and Regional Housing Needs Allocation San Rafael City Council December 2, 2024 City Council Options 1.Adopt the resolution and accept the report. 2.Adopt a modified resolution. 3.Adjust the NOFA funding amount and allocate additional funds to the rolling application process. 4.Direct staff to provide additional information or otherwise adjust the NOFA. 5.Take no action. San Rafael City Council December 2, 2024 San Rafael City Council December 2, 2024 Recommendation 1.Adopt a resolution to authorize the appropriation of $250,000, plus administrative costs estimated at $2,000 or less, from the Affordable Housing Trust Fund for the acquisition and preservation of 1400 Lincoln Avenue as a 100 percent affordable housing project, and to authorize the City Manager to execute all documents, including a funding agreement, required to disburse the funds. 2.Accept the 2025 Notice of Funding Availability report. 16 Affordable Housing Funding Recommendation and Upcoming Notice of Funding Availability San Rafael City Council December 2, 2024