Reso 2005-046 - Laserfiche WebLink

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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 and referrals to the variety of existing public downpayment 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 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/Regulations 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, how it can be improved through coordination with developer input. 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 Set-Aside funds. Despite no longer using federal CDBG dollars, the Residential Rehabilitation Program includes lead-based paint awareness and information literature in each application packet. Testing is always performed on homes when there are children ages seven years old and under living in them. The City utilizes lead abatement contractors in addition to general contractors when appropriate to perform the necessary repairs. If the City uses its HOME funds for acquisition and rehabilitation of apartments for preservation or maintenance of affordable housing, it will inform tenants of lead based paint hazards and comply with the applicable HUD lead based paint hazard reduction and abatement guidelines and Action Plan - FY~005-06 City of Sail Leandro Pale 10