Reso 2006-039 - Laserfiche WebLink

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PART III. OTHER ACTIONS BARRIERS TO AFFORDABLE HOUSING Funding The lack of available funds for affordable housing activities continues to be a problem for the City. Along with its CDBG funds, the City will also seek to maximize leveraging of its available HOME, Redevelopment Housing Set-Aside and McKinney Act Refunding Agreement funds towards affordable housing activities in the coming fiscal year with any other'funding resources it can utilize. Land Costs New construction and acquisition/rehabilitation of housing will be impacted by the high cost of land in the Bay Area The viability and feasibility of future City-assisted affordable housing developments may depend on the reasonableness of the land acquisition costs. The City will conduct financial feasibility analyses on a project-by-project basis to ensure it is not over- subsidizing affordable housing developers for any land purchase. Also, the City will continue to work with owners of existing rental units to provide financing in exchange for affordability covenants. The high cost of buying a home in the Bay Area has made it difficult for first-time homebuyers to become homeowners. Through funding for affordable ownership housing developments, the City's First-Time Homebuyer Program (which is funded solely with Redevelopment Housing Set-Aside funds) and referrals to the variety of existing public downpayrnent or financial assistance programs, the City will seek to help low- and moderate-income new homebuyers. Construction Costs In addition to high land costs, the rising cost of construction can also negatively affect the development of affordable housing construction and rehabilitation. In addition to undertaking financial feasibility analyses on a project-by-project basis to ensure that the City is not over- subsidizing development costs for affordable housing developers, the City will continue to work with them as well through design, planning and financing review and recommendations to reduce increased construction costs. Local PolicieslRegulations The City approved an Inclusionary Zoning Ordinance in December 2004 that required developers to set aside 15% of their new ownership or rental housing units for low- and moderate-income households. Because the policy is relatively new, it is too early to assess its effectiveness. However, the City will monitor the progress of its inc1usionary zoning requirement and assess, if necessary, how it can be improved through coordination with developer input. Action Plan - FY2006-07 City of Sail Leandro Page 11