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01/08/2008 CC Rpt A14 COUNCIL AGENDA STAFF REPORT CITY CLERK USE ONLY ; . ( . 1 4110 • Meeting Date: January 8.2008 -F37:4714 Public Hearing: 0 2,—ii -' r7 Fil ?: 4 3 ,:..,...:.,:..%- Discussion Item: Ed Consent Item: 0;Xi:;- . ‘ , . • . i.1. .`:714 IT nToliki,s. January 1, 2008 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY MANAGER SUBJECT: AFFORDABLE HOUSING AD-HOC COMMITTEE PHASE 1 (SHORT-TERM) PLAN STATUS REPORT RECOMMENDATION: 1. Continue to utilize programs offered by affordable housing advocates (i.e. County of San Bernardino Housing Authority and the County of San Bernardino Housing and Community Development Department). To enhance opportunities for City residents to participate in these programs, the City's website can be used as a public awareness tool. 41110 2. Continue to collect the Affordable Housing In-Lieu Fee and when funds are sufficient, consider options to use the funds such as establishing a nonprofit land trust. 3. Continue to seek opportunities with Habitat for Humanity for additional projects. 4. Continue to encourage developers of market rate housing to build or include affordable housing in their developments. Information on City incentives (i.e. regulatory relief) can be provided on the City's website or included in City application materials. For example, information on the Building Equity and Growth in Neighborhoods (BEGIN) Program offered by the California Department of Housing and Community Development can be made available to developers which could identify types of City regulatory relief for projects that include a minimum of four (4) affordable units in a project. This program would not require a financial commitment on the part of the City. 5. Receive and file report. BACKGROUND: dipOn March 28,2006, the City Council formed the Affordable Housing Ad Hoc Committee, which was charged with reviewing potential housing programs and recommending options for Council consideration and action. The Committee was comprised of /q /II AGENDA DATE: January 8, 2008 PAGE 2 do SUBJECT:AFFORDABLE HOUSING AD-HOC COMMITTEE PHASE 1 (SHORT-TERM) PLAN STATUS REPORT representatives from the City Council (Bill Kruger), Planning Commission (Adam Eliason), Public Works Commission (Bill McDonnell), Parks and Recreation Commission (Steve Headley, previous Commissioner and Roman Nava, new Commissioner), the Building Industry Association (BIA-Frank Williams), a non-profit builder (Mike Preston, representing the Pomona Valley Chapter of Habitat for Humanity), and City staff. The Affordable Housing Ad Hoc Committee conducted a series of meetings between May 2006 and April 2007. At their meeting of May 8, 2007, the Committee's report was presented to the City Council identifying various federal, state, and county housing programs as well as opportunities for providing affordable housing in conjunction with non-profit agencies. Specifically, the Committee determined that the City could best and most effectively serve the affordability needs of renters, able-living seniors, disabled persons and first time homebuyers. The recommendations were to: 1) Direct staff to implement the Phase 1 (short-term) plan as appropriate and report back to the City Council in approximately 6 months; and 2) At a later date, if and when deemed appropriate, direct Staff to commence the work effort associated with the Phase 2 (long-term) plan. The Phase 1 Plan consists of the following Goals: A. Continue to work with contracted federal and state affordable housing advocates regarding funding opportunities. B. Partner with governmental agencies to implement the federal Housing Choice Voucher Program (rental assistance program). C. Partner with governmental agencies and non-profit organizations to build affordable housing projects, including housing for first time homebuyers. D. Continue to encourage the market rate development community to build housing for all income spectrums, including seniors and disabled persons. This report is to advise the City Council of the progress made to date on implementing the Phase 1 Plan. ANALYSIS AND FINDINGS FOR IMPLEMENTATION OF PHASE 1 PLAN op GOAL A. CONTINUE TO WORK WITH CONTRACTED FEDERAL AND STATE AFFORDABLE HOUSING ADVOCATES REDARDING FUNDING OPPORTUNITIES. S\Community Development\City Council\CC Staff Reports\2008\1-8-O8Wffordable Housing Report FINAL12-21.07.doc . , AGENDA DATE: January 8, 2008 PAGE 3 dill SUBJECT: AFFORDABLE HOUSING AD-HOC COMMITTEE PHASE 1 (SHORT-TERM) PLAN STATUS REPORT The Ad Hoc Committee reviewed numerous program options to meet this goal. Programs were reviewed that included the following: • Rental Subsidies • Senior Housing • Site Provision and/or Acquisition • First Time Homebuyers • Owner or Renter Occupied Rehabilitation • New Construction of Affordable Units • City Assistance Provisions (regulatory relief, Affordable Housing In-Lieu Fee) • Community Development Block Grant Funds • Federal and State Tax Credits • Programs Funded by Proposition 46 and Proposition 1C Funding for affordable housing is a complex process because of the number of programs, eligibility requirements, and the interrelationship between agencies. The following section provides a description of the primary agencies at the federal, state, and local level involved with providing programs for affordable housing. 411P Agencies That Provide Affordable Housing Programs U.S. Department of Housing and Urban Development(HUD) By working closely with other federal agencies and branches, as well as with local governments, faith based and community organizations, and the private sector, HUD provides a coordinated and comprehensive response to America's housing and community development needs. The majority of HUD funds are used toward assisting individuals through public housing agencies, non-profit housing organizations, and mortgage lenders (e.g. FHA loans). California Department of Housing and Community Development (HCD) HCD is the principal state department responsible for coordinating federal-state relationships in housing and community development. HCD administers more than 20 programs that award loans and grants for the construction, acquisition, rehabilitation and preservation of affordable rental and ownership housing, homeless shelters and transitional housing. Please note that, with rare exceptions, these loans and grants are not made to individuals, but to local public agencies, nonprofit and for-profit housing developers. In many cases these agencies then provide funds to individual end users. . HCD is the primary agency overseeing programs funded by Proposition 46 and Proposition 1C. Proposition 46 was approved in November 2002, which authorized $2.1 billion in state bonds that included creating a trust fund to provide the following: clean C tDocuments and Settingsygarcia1De-sktoptAffordable Housing Report FINAL12-21-07.doc AGENDA DATE: January 8, 2008 PAGE 4 SUBJECT: AFFORDABLE HOUSING AD-HOC COMMITTEE PHASE 1 (SHORT-TERM) PLAN STATUS REPORT and safe housing for low-income senior citizens, emergency shelters for homeless families with children, housing with social services for homeless and mentally ill, repairs/accessibility improvements to apartments for families and handicapped citizens, military veteran homeownership assistance, and security improvements/repairs to existing emergency shelters. The last of the Proposition 46 funds were scheduled to be awarded by mid-2007. Proposition IC was approved in November 2006. Proposition IC authorized an additional $2.85 billion in state bonds to continue Proposition 46 funded programs and to begin new programs to improve infrastructure to support housing. California Housing Finance Agency (Cal HFA) CaIHFA supports the needs of renters and first-time homebuyers by providing financing and programs that create safe, decent and affordable housing opportunities for individuals within specified income ranges. CaIHFA is chartered as the State's affordable housing bank to make below market-rate loans through the sale of tax- exempt bonds. iip, California Tax Credit Allocation Committee (TCAC) TCAC administers two low income housing tax credit programs, a federal program and a state program. Both programs were authorized to encourage private investment in affordable rental housing for households meeting certain income requirements. Housing Authority of the County of San Bernardino (HACSB) HACSB primary focus is the acquisition of property to provide affordable, decent, safe and sanitary public housing for low and moderate income families including the elderly and handicapped persons. HACSB currently owns or manages 2,548 units. The majority of the units (1,680) were developed with HUD funding and continue to receive an operating subsidy from HUD. The balance was developed through a variety of partnerships with the State of California, cities throughout the County and other non- profit agencies. HACSB also administers the Section 8 Assisted Housing Program which is the federally funded program that provides rental assistance in the form of a Section 8 Housing Choice Voucher to very low income families, senior citizens, disabled, and other individuals for the purpose of securing decent, affordable housing. The County of San Bernardino Department of Community Development and Housing (CDH) CDH administers a wide range of programs, many of which are funded through HUD dpand Community Development Block Grant (CDBG) funds to support local government and community organizations through capital-improvement projects, public services, CADocuments and Settingsigarcia\Desktop1Affordabie Housing Report FINALI2-21-07.doc AGENDA DATE: January 8, 2008 PAGE 5 do SUBJECT: AFFORDABLE HOUSING AD-HOC COMMITTEE PHASE 1 (SHORT-TERM) PLAN STATUS REPORT and housing and economic development. The primary purpose of CDH is to expand the supply of decent, safe, sanitary, and affordable housing. Progress in Meeting Goal A of the Phase 1 Program Staff has reviewed and analyzed the numerous programs available from the U.S. Department of Housing and Urban Development (HUD), California Department of Housing and Community Development (HCD) California Housing Finance Agency (Cal HFA), California Tax Credit Allocation Committee (TCAC), the Housing Authority of the County of San Bernardino (HACSB), and the County of San Bernardino Department of Community Development and Housing (CDH). REMAINDER OF PAGE LEFT INTENTIONALLY BLANK 4110 • CADocuments and Setbngs4garcni\Desktop‘Affordable Housing Report FINAL12-21-07.doc AGENDA DATE: January 8, 2008 PAGE 6 el SUBJECT:AFFORDABLE HOUSING AD-HOC COMMITTEE PHASE 1 (SHORT-TERM) PLAN STATUS REPORT Table 1 describes programs researched by Staff that are currently available directly to City residents. Table 1. Affordable Housing Programs Available Directly to City Residents , „ , ,„ Program, , ,I ,., : Description U.S: Department of Housing and Urban Development(HUD) FHA Loans Provides mortgage insurance on loans made by FHA approved lenders. FHA insures mortgages on single family, multifamily, and manufactured homes. 7 ''S s ';, '.,':,'''s,sfs7,,'t•I',::'1::::`,''!'' .'', r': '' j';';':" :if, California ,*thong,Finance HFA)- 4fiiricimar :;?i,:,;,, ,,,',., ,,;,, ',„,.,,s,,,,:,-. , :k•,'' ,',;\ r,;,1,,•.,5 ,,,;,.;,,'f. '';,4-: -',,,-- 41".°-:,:-::•:trl /!,.. '-,,-::,,,,,,: . ,,, ,,,, -., i''', s.! '1,1'',^ Y‘'• '''Y,f!, .''.:'''e,'.!.'''':,..,''l''l'r.' '1Z.) ' ,:.',1''''L ri ':'V ''(7';:', 'f,!, ;'> California Homebuyer's Designed to provide a deferred payment, simple interest rate Downpayment Assistance may be used for down payment or closing costs. Program CaIHFA Housing Assistance Designed to provide up to 3% of the down payment assistance Program needs of eligible homebuyers purchasing a home. HomeChoice Program Joint Fannie Mae/California HomeChoice Coalition/CaIHFA program designed to meet the homeownership needs of low and moderate income first-time homebuyers who have disabilities or have family members with disabilities living with 4111. them. County of San Bernardino Departmentof Community Development and Housing (CDH) The Single Family Home Serves homeowners earning 80 percent or less than the area Improvement Loan Program median income level established by HUD who have occupied their home for a minimum of 1 year. The program provides home rehabilitation loans at or below market rates(3%at this time)for a variety of home repairs. The Homeownership Serves households earning 35-80 percent of the area median Assistance Program income level established by HUD. This program provides single-family home ownership opportunities through funding closing costs, down payments and gap financing (the difference between the market value of the property and the sales price that is affordable to the purchaser). Assistance is provided under a deferred loan (Silent Second), secured by a Deed of Trust. The American Dream Provides financial assitance to eligible households for the Downpayment Initiative purchase of a home. Assistance is in the form of Program downpayment and closing costs. , . . Housing Authority of the County of San'Bernardino(HACSB) ' „ ' _ Section 8 Assisted Housing This federally funded program provides rental assistance in the form of a Section 8 Housing Choice Voucher to very low income families, senior citizens, disabled, handicapped, and other individuals. le Home Ownership Provides a voucher subsidy to meet monthly home ownership Preparation and Education expenses and educational programs to improve the Program opportunity for homeownership. SACommunity Development\City Council1CC Staff Reports\20081-8-08\Affordable Housing Report FINAL12-21-07.doc AGENDA DATE: January 8, 2008 PAGE 7 do SUBJECT: AFFORDABLE HOUSING AD-HOC COMMITTEE PHASE 1 (SHORT-TERM) PLAN STATUS REPORT Table 2 describes which programs were researched by Staff that are currently available to Agencies and Non-Profit Organizations. Table 2. Housing Programs Available to Agencies and Non-Profit Organizations. , - - Program ., I ' ' ' ' Description U.S. Department of Housing and Urban Development(HUD) HOME Provides grants to localities that are used in partnership with nonprofit groups-to fund a wide range of activities that build, buy, and/or rehabilitate affordable housing for rent or homeownership or provide direct rental assistance to low-income people. HUD 202 Program Provides federal capital advances and project rental assistance to private nonprofit corporations in order to develop new housing or substantially rehabilitate housing to serve low-income elderly people. Community Development The CDBG entitlement program allocates annual grants to Block Grant Program (CDGB) develop viable communities by providing decent housing, a suitable living environment, and opportunities to expand economic opportunities, principally for low and moderate income persons. California Department of'Housingrand Community Development(HCD) Multifamily Housing Program For new construction, rehabilitation, or acquisition and di° preservation of permanent or transitional rental housing. Assistance is through deferred payment loans. This program is available for-profit and nonprofit corporations, limited equity housing cooperatives, individuals, and limited partnerships. Home Investment Partnerships For rehabilitation, new construction, and acquisition and Program rehabilitation of multi-family housing projects that benefit lower- income renters. This program is funded through HUD. To be eligible, the applicant shall be a city, county, or nonprofit corporation that has been certified as a Community Housing Development Corporation. Predevelopment Loan Program Provides short-term predevelopment loans (1-2 years)for required expenses during the process of securing long-term financing for affordable housing projects. This program is available to nonprofit corporations, cooperative housing corporations, and limited partnerships or limited liability companies where all the general partners are nonprofit mutual or public benefit corporations. Building Equity and Growth in Promotes partnerships between localities and housing Neighborhoods developers to reduce the cost, and increase the supply, of new homeownership opportunities for low and moderate income households. The City's role is to offer specific forms of regulatory relief and development which reduce the per unit cost of the housing. The developer's role is to commit to make units affordable for low and moderate income households. This program may be used for either multifamily or single family projects. • S\Community Development\City Council\CC Staff Reportsk2008\1-8-08\Affordable Housing Report MALI 2-21-07 doc Program ' , Description ' ", Ff- ':(1 ' .'; • ' • Cal Home Program Provides grants to local public agencies and nonprofit developers to assist individual households with deferred- payment loans and direct forgivable loans to assist development projects involving multiple ownership units, including single- family subdivisions. 'California Housing Finance Atency(Cal HFA) Self-Help Builder Assistance Provides a source of financing to nonprofit 501(c)(3) Program corporations for site acquisition, site development, and/or home construction. Permanent Financing Program Provides permanent loans for new multifamily construction, acquisition, and rehabilitation of existing multifamily housing projects. Tax-Exempt Bridge Financing Offers tax-exempt bridge loans for projects receiving 4%tax Program credits at an amount necessary to ensure the award of tax credits. Predevelopment Finance Provides low-cost funding to cover the predevelopment costs Program associated with affordable rental projects that will have permanent CaIHFA financing. Residual Gap Loan Program provides low-cost funds to cover the financing gap associated with the high cost of constructing affordable rental projects. CailifornialTai Credit AlloCation;Coniniittee,(TCAC) Rental 4%and 9%Tax Credits Tax-exempt housing revenue bonds assist developers of 4111111 multifamily rental housing units to acquire land and construct new units or purchase and rehabilitate existing units. The tax- exempt bonds lower the interest rate paid by the developers. The developers in turn produce market rate and affordable rental housing for low and very low income households by reducing rental rates to these individuals and families. County of San Bernardino Department of Community Development and Housine 1(CDH) Multifamily Residential Rental Program assists developers of multifamily rental units in Housing Revenue Bond increasing the supply of affordable rental units available to Program qualified households. This Program can be used for new construction, acquisition, and/or rehabilitation of multifamily housing developments. Multifamily Residential Rental This Program can be used for new construction, acquisition, Housing Revenue Bond and/or rehabilitation of multifamily housing developments.A Program specified number of units are required to remain affordable to eligible, low income households for a specified number of years after the initial financing is provided. Affordable Housing Programs Directly Available to City Residents: Principal Findings • Programs for the purchase and rehabilitation of homes are available to City residents through various programs (as described in Table 1 above) which do not 411110 require direct City participation. AGENDA DATE: January 8, 2008 PAGE 9 do SUBJECT: AFFORDABLE HOUSING AD-HOC COMMITTEE PHASE 1 (SHORT-TERM) PLAN STATUS REPORT Affordable Housing Programs Available to Agencies and Non-Profit Organizations: Principal Findings • The City received $444,215 in CBDG funds in FY 2006-07. These funds were used to assist 6 households under the Home Improvement Program, 211 persons with landlord/tenant disputes; 25 persons with fair housing complaints; and finally, to construct storm drains, street improvements, and street lights in the Los Serranos neighborhood. • Typically, funds are available through a competitive application process which considers several factors, such as; experience in developing affordable housing projects; readiness of the project to proceed (site control, entitlements in place, plans approved etc.); and staff in place to administer a program. • In order for the City to be eligible to apply for funding for many of the programs the following would be required: 1) the City must have a Housing Department in place that has been designated substantially all of the City's housing functions (e.g. engaging in or assisting in the development or operation of housing for persons of • low or moderate income); 2) the City must have staff employed with demonstrated experience in regards to affordable housing projects;(i.e. ability to provide loan servicing etc). • At the present time, the City is not set up to receive funds or administer the various programs. The primary reasons for this are that the City does not have a Housing Department and the City does not have a Redevelopment Project Area in which a Redevelopment Agency can use tax increment funds to contribute towards affordable housing. • It is not necessary for the City to have an established Housing Department or Redevelopment Project Area in order for developers or non-profit corporations to construct affordable housing in the City. Many programs are available through the various agencies listed in Table 2 above for projects in the City and do not require direct City involvement. GOAL B. PARTNER WITH GOVERNMENTAL AGENCIES TO IMPLEMENT THE FEDERAL HOUSING CHOICE VOUCHER PROGRAM (RENTAL ASSISTANCE PROGRAM) Progress in Meeting Goal B of the Phase 1 Program dpUnder the Housing Choice Voucher Program (Section 8), administered by the Housing Authority of San Bernardino County, subsidy payments are made by the Housing Authority to property owners on behalf of the family. Assistance is provided to very low- SACommunity Development\Crty CounciRCC Staff Reports12008\141-08‘Aftordable Housing Report FINAL12-21-07 doc AGENDA DATE: January 8, 2008 PAGE 10 0110 SUBJECT:AFFORDABLE HOUSING AD-HOC COMMITTEE PHASE 1 (SHORT-TERM) PLAN STATUS REPORT income families including senior citizens, disabled, and other individuals. The program uses a Payment Standard to determine the maximum amount of assistance that will be paid on behalf of the family. The family's portion will be a minimum of 30% of their adjusted gross monthly income up to a maximum of 40% if they choose. Table 3. FY 2007 Housing Choice Voucher Income Limits FainilliiSta '„:, ' -;,,q,::'/,'„'<;,,,,-,;:.: .!;,;!,y', , ;:ii:,:' ',-, income Limits ;;:,0 1 Person $33,150 2 Persons $37,900 3 Persons $42,600 4 Persons $47,350 5 Persons $51,150 6 Persons $54,950 7 Persons $58,700 8 Persons $62,500 Principal Findings • The program requires voluntary participation by owners of rental housing units. Currently there are no rental units in the City that are included in the Section 8 11,1 program. In discussing this with the County Housing Authority staff, the primary reason is that the market rental rates in the City are not affordable for persons who are eligible for the program, even with the subsidy provided by the Housing Authority. GOAL C: PARTNER WITH GOVERNMENTAL AGENCIES AND NON-PROFIT ORGANIZATIONS TO BUILD AFFORDABLE HOUSING PROJECTS, INCLUDING HOUSING FOR FIRST TIME HOMEBUYERS. Progress in Meeting Goal C of the Phase 1 Program Habitat for Humanity Through volunteer labor and donations of money and materials, Habitat for Humanity builds and rehabilitates simple, decent houses with the help of the homeowner (partner) families. Habitat houses are sold to partner families at no profit and financed with affordable loans. The homeowners' monthly mortgage payments are used to build still more Habitat houses. City staff is in discussions with Pomona Valley Habitat for Humanity to construct a home on a City owned property located at 4646 Fairway Blvd. The agreement is on the itCity Council agenda as an action item. The primary deal points of the agreement (in order to convey title to the property to Habitat for Humanity) are: 1) the home must be restricted for sale at an affordable housing cost whose income does not exceed 80% of the San Bernardino County area median income, adjusted for family size for a period of &Community DevelopmentlCity CouncilCC Staff Reports12008\1-0-08\Affordable Housing Report FINAL12-21-07 doc AGENDA DATE: January 8, 2008 PAGE 11 op SUBJECT: AFFORDABLE HOUSING AD-HOC COMMITTEE PHASE 1 (SHORT-TERM) PLAN STATUS REPORT not less than 45 years; 2) although ownership of the home is open to all qualified applicants, Habitat for Humanity will notify residents in the Los Serranos area of the opportunity to apply for ownership of the home; and 3) time periods are incorporated into the agreement to ensure timely processing towards execution of required documents, transfer of ownership, construction of the home, and continued affordability. Principal Findings The target date for construction is late 2008 as this project would be part of the Habitat for Humanity Awareness Program that takes place at the L.A. County Fair in Pomona, where construction of the home starts and then is moved to its permanent location. Non-Profit Housing Developers As shown in Table 2 above, many of the financial assistance programs require the City to partner with an affordable housing developer and make application for funds. City staff researched several non-profit housing corporations to explore requirements for a multifamily project for either seniors or non-age restricted persons. dpRegardless of the specific nonprofit corporation, the process is the same and involves: 1) identification of a potential site that meets the criteria of the various programs (typically the site is to be located in close proximity to transit, public facilities, schools, parks, commercial areas etc.): 2) site control): and 3) a demonstration of the economic feasibility of developing the site including land costs, development costs, available funding etc. Because site control by the City or the nonprofit corporation is a prerequisite for funding, Staff conducted an analysis of potential sites in the City that may meet the location criteria of the various programs. The analysis determined the following: the City does not own any vacant sites that are designated by the General Plan for multifamily development; several sites that are under private ownership could meet the location requirements of various funding programs, but they are also not designated for multifamily development by the General Plan and a General Plan Amendment and Zone Change would be required. Measure U, passed by the residents of Chino Hills on November 2, 1999, would not preclude a General Plan Amendment for an affordable housing project that was 100% affordable. Principal Findings • • The City in conjunction with a nonprofit agency would have to consider acquiring a site(s) for an affordable housing project to be eligible for applying for funds. 4IP SACommunity DevelopmenMity Council\CC Staff Reports12008\1-8-08Affontable Housing Report FINAL12-21-07,doc AGENDA DATE: January 8, 2008 PAGE 12 SUBJECT:AFFORDABLE HOUSING AD-HOC COMMITTEE PHASE 1 (SHORT-TERM) PLAN STATUS REPORT Use of Affordable Housing In-Lieu Fee The Affordable Housing In-Lieu Fee was established in March 2006 as a means to collect funds from new housing construction to contribute towards providing affordable housing in the City. Developers of new housing pay a fee of$1.00 per square foot not to exceed $3,500 per unit for a single-family unit and $1,000 per unit for a multiple family unit. The in-lieu fee is projected to generate approximately $8 million between 2008 and 2014. However, the amount of funds collected is subject to new housing construction activity, which has slowed because of the overall downturn in the housing market. To date, there is a total of$67,567.00 in the account. Principal Findings • The $67,567.00 in the Affordable Housing In-Lieu Fee is not substantial enough at the present time to effectively contribute to initiating a project. For example, the County of San Bernardino Housing Authority is establishing a nonprofit land trust to sell homes below market value for eligible buyers earning no more than 80% of the median household income. The land trust will use $2 million to begin IP buying homes and reducing the land cost to make homes affordable. The City's Affordable Housing In-Lieu Fee could be used for such an endeavor in the future once funds are adequate. GOAL D. CONTINUE TO ENCOURAGE THE MARKET RATE DEVELOPMENT COMMUNITY TO BUILD HOUSING FOR ALL INCOME SPECTRUMS, INCLUDING SENIORS AND DISABLED PERSONS. As new applications for development are submitted, Staff continues to inform developers of the desire to provide affordable housing within their project. Information is provided about the various incentives offered pursuant to the General Plan Housing Element, such as density bonuses, regulatory relief, removal of governmental constraints etc. Principal Findings • The inclusion of affordable units in a project is voluntary on the part of developers of market rate housing. Given the fact that the City is considered a higher end market for housing, developers are able to obtain rents and/or sales prices commensurate with the City's market characteristics. Therefore, developers have not opted to provide affordable units in their market rate 411Pprojects. Developers continue to pay the City's Affordable Housing In-Lieu fee. S\Community Development\City Council\CC Staff Reports12008\1-8-06\Affordable Housing Report FINAL12-21-07.doc AGENDA DATE: January 8, 2008 PAGE 13 400 SUBJECT: AFFORDABLE HOUSING AD-HOC COMMITTEE PHASE 1 (SHORT-TERM) PLAN STATUS REPORT SUMMARY AND CONCLUSIONS OF THE PHASE 1 PROGRAM The following table summarizes the status of meeting the goals of the Phase 1 program: Table 4. Summary of Phase 1 Program ,:,'''', , :.;,,‘,'.: ::,‘;;•1 ,' • Goal,,, ,J,,, -` ,,,''.;`Al•l,''''' ' ::',•,)',:;r:„''', ',: , '.".,'- I. ,',:,',",`:- Statui::;;'::, .'..-',: A. Continue to work with contracted • Programs continue to be available for City residents federal and state affordable housing through federal, state, and local affordable housing advocates regarding funding advocates, opportunities. • Funding is available to private developers of affordable housing from governmental agencies. B. Partner with governmental agencies The program is voluntary on the part of landlords to to implement the federal Housing make units available for the program. Rental units in the Choice Voucher Program (rental City are available if a landlord chooses to participate in assistance program). this program administered by the Housing Authority of the County of San Bernardino. Currently, the market rates that landlords can rent apartment units for are in excess of the rental cost limits established by the program. dp C. Partner with governmental agencies • The City has prepared an agreement with Habitat for and non-profit organizations to build Humanity for City Council review and consideration to affordable housing projects, including build a home at 4646 Fairway Blvd. in which the City will housing for first time homebuyers. donate land for the home. • Staff researched nonprofit housing corporations to explore the possibility of developing a multifamily project for seniors or non-age restricted persons. In order to pursue such a project, a site(s) must be acquired; a General Plan Land Use Amendment must be approved; and an application submitted for federal or state funding assistance. • Because there are limited funds in the Affordable Housing In-Lieu Fee account, the City is not in a position to augment federal or state funds or contribute financially to an affordable housing project at the present time. D. Continue to encourage the market The City continues to express its desire that developers of rate development community to build market rate housing include affordable units in their projects. housing for all income spectrums, To date, private developers have opted to develop market including seniors and disabled rate projects without affordable units. persons. 411P S\Community DevelopmenttCity CouncillCC Staff Reports1200811-8-08\Affordable Housing Report FINAL12-21-07.doc AGENDA DATE: January 8,2008 PAGE 14 opSUBJECT: AFFORDABLE HOUSING AD-HOC COMMITTEE PHASE 1 (SHORT-TERM) PLAN STATUS REPORT Principal Findings and Conclusions As this report indicates, the provision of affordable housing involves agencies from the federal, state and local level. There are a myriad of programs that involve a competitive process and adherence to stringent program eligibility requirements. Following is a summary of the major findings of this report in regard to the Goals of the Phase 1 Program: • Programs to assist renters, able-living seniors, disabled persons and first time homebuyers are available to City residents through various agencies, such as CaIFHA, Housing Authority of San Bernardino County, and the County of San Bernardino Community Development and Housing Department. • Although rental units can be made available for inclusion in the Section 8 Program, landlords in the City have not opted to participate in the program because the market rate rents they receive are in excess of the rent limits established by the Section 8 Program. • Building affordable housing in partnership with governmental agencies and non- * profit organizations is feasible and is being done for individual single-family home(s) through Habitat for Humanity. • Building affordable housing projects in partnership with governmental agencies and non-profit organizations for multiple-family projects is limited at the present time because; there is no Redevelopment Project Area or tax increment funds available; there are no sites currently designated for multi-family development which are under the control of the City, governmental agency or non-profit organization; there are not substantial funds in the Affordable Housing In-Lieu Fee account to make a project feasible (e.g. site acquisition, land write downs). REVIEW BY OTHERS: The City Attorney, Community Services Director, and Finance Director have reviewed this report. :especffully Submitted, Recommended by: imea . De gl- . N. La Belle Christine Kelly 40 City ' i - ager Community Development Director DLB:EP:CK SACommunity DevelopmenhCity Council=Staff Repottst200811-8-081Affordable Housing Report FINAL12-21-07.doc