3A Public Hearing 2008 0317 - Laserfiche WebLink

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HCD programs. The Multifamily Housing Program (MHP) provides low-interest loans for affordable rental housing projects. Another 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 (Ca1HFA), and the Department of Mental Health (DMH) funded by Proposition 46 funds. The Governor's Initiative provides various types of assistance: Deferred payment permanent loans under HCD's MHP; construction, bridge and permanent loans from CaIHFA; and limited grant funds for rental assistance from DMH. Mental Health Services Act (MHSA) The Mental Health Services Act (MHSA, passed in November 2004, provides 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 (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 (CaIHFA) Ca1HFA 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 CaIHFA 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. Ca1HFA also offers a multitude of first-time homebuyer assistance programs to eligible homebuyers through participating lenders. MortgL~e 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 AML 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. Draft Action Plan - FY2008-09 City of San Leandro Page 4