3A Public Hearing 2007 0416 - Laserfiche WebLink

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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. Mortgage Credit Certificates Alameda County serves as the lead agency for allocation of Mortgage Credit Certificates (MCC), which provide a tax credit to subsidize the mortgage interest rate for qualified first-time homebuyers. The County receives MCC funding through State bonds. LOCAL Redevelopment Housing Set-Aside Funds State Redevelopment law requires redevelopment agencies to set aside 20% of their tax increment revenue to provide affordable housing for low- to moderate-income households. The City will use the Redevelopment Housing Set-Aside funds from its three Redevelopment Project Areas to finance several affordable housing activities in line with the City's Housing Element and Housing Strategy: single family rehabilitation, multifamily rehabilitation, first-time homebuyer loans, and new affordable housing construction. The City will also utilize Redevelopment Housing Set-Aside funds to meet the match required when using HOME funds for an affordable housing project. Matching requirements of the HOME Program must be satisfied with non-federal dollars. City General Funds The City anticipates funding social service providers for San Leandro residents through a combination of General Funds and CDBG funds. The City also plans to use a small amount of General Funds to fund the Rent Review Program, which was created through a City ordinance to assist landlords and tenants in mediating rent increases. City Affordable Housing Trust Fund The City Affordable Housing Trust Fund includes in-lieu fees from the City's Inclusionary Zoning Ordinance from for~sale projects consisting of two to six total units. As of March 2007, the City had $218,424 in the Trust Fund, all from in-lieu fees. PRIVATE Inclusionarv Zoning Ordinance The City adopted a Citywide Inclusionary Zoning (IZ) Ordinance in December 2004 that requires developers of new rental or ownership housing to set aside at least 15 % oftheir project units for low- to moderate-income households. Because of the City's limited affordable housing funding resources, the IZ Ordinance enables the City to have private developers help it meet its affordable housing needs. Draft Action Plan - FY2007-08 City of San Leandro Page 5