3A Public Hearing 2007 0305 - Laserfiche WebLink

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FY 2002-03. Currently, most of this funding has been exhausted. However, Proposition 1 C, which passed November 2006, will help maintain and provide new funding for HCD programs. The Multifamily Housing Program (MHP) provides low-interest loans for affordable rental housing projects. A fairly new resource is the Governor's Homeless Initiative, which is an interagency effort to reduce homelessness. Funding through the Governor's Homeless Initiative assists with the development of permanent supportive housing for persons with severe mental illness who are chronically homeless. This is a joint project of HCD, the California Housing Finance Agency (CaIHFA), and the Department of Mental Health (DMH). The Governor's Initiative provides various types of assistance: Deferred payment permanent loans under HCD's MHP; construction, bridge and permanent loans from CalHF A; and limited grant funds for rental assistance from DMH. Mental Health Services Act (MHSA) The passage of Proposition 63 (now known as the Mental Health Services Act or MHSA) in November 2004 provided an opportunity for the Department of Mental Health (DMH) to increase funding, personnel and other resources to support county mental health programs and monitor progress toward statewide goals for children, transition age youth, adults, older adults and families. The Act addresses a broad continuum of prevention, early intervention and service needs. DMH contracts with county mental health departments (e.g., the Alameda County Behavioral Health Care Services Department or BHCS) to develop and manage the implementation of MHSA's provisions. BHCS began awarding contracts for implementation of services in FY 2006-07. Low-Income Housing Tax Credits (State) State low-income housing tax credits are awarded in conjunction with federal low-income housing tax credits to eligible affordable rental housing developments. State low-income housing tax credits provide less equity funding than federal tax credits but still serve as vital financing. California Housing Finance Agency (CaIHF A) CalHF A provides a variety of tax-exempt bond financing for the creation and preservation of affordable housing and first-time homebuyer programs. The HELP Program through CalHF A provides competitive low-interest loans of up to $1.5 million each for housing programs. The City could consider applying for a HELP loan to increase funding for a specific project. CalHF A also offers a multitude of first-time homebuyer assistance programs to eligible homebuyers through participating lenders. Mortgage Revenue Bonds Under the Internal Revenue Code, the City can become an issuer of mortgage revenue bonds for the purpose of funding affordable housing development. Under the regulations, at least 20% of the units must be affordable to families at or below 50% of the area median family income (AMI) or 40% of the units affordable to families at or below 60% of the AMI. However, the City can negotiate any amount allowed for rent levels that would be restricted in exchange for issuing the tax-exempt bonds. Draft Action Plan - FY2007-08 City of San Leandro Page 4