Reso 2005-046 - Laserfiche WebLink

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PART V. OTHER ACTIONS BARRIERS TO AFFORDABLE HOUSING Funding HUD's proposed budget for FY 2006-07 shows a transfer of the CDBG Program to the Department of Commerce and a significant funding reduction for the program. Presently, there appears to be considerable uncertainty about the future viability and existence of the CDBG Program. However, the City of San Leandro will make every effort to apply any available CDBG towards affordable housing and community development programs and projects over the next five year period. Furthermore, the City will also seek to maximize use of its available HOME and Redevelopment Housing Set-Aside funds towards affordable housing activities over the next five years as well. Land Costs New construction and acquisitioi~/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 Frogram and referrals to the variety of existing public downpaytnent 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. lil addition to undertaking financial feasibility analyses on a proj ect by proj ect basis to ensure that the City is not over-subsidizing development costs for affordable housing developer, the City will continue to work with them as well through design, planning and financing review and recommendations to reduce increased construction costs. Local Policies/Re~ulations 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 still new, it is too early to assess its effectiveness. However, the City will monitor the progress of its inclusionary zoning requirement and assess, if necessary, over the next five years how it can be improved through coordination with developer input. The City will also continue to assess its existing development regulations and standards to ensure they are not barriers to housing development. LEAD-BASED PAINT HAZARD REDUCTION The City's Single Family Rehabilitation Program, which includes low interest loans and minor home repair grants, for eligible low income homeowners, is now funded solely with Redevelopment Housing Housing and Conununity Development Strategic Plan - FY 2005-09 City of San Leandro Page 26