3A Public Hearing 2010 0315 - Laserfiche WebLink

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PART V. OTHER ACTIONS BARRIERS TO AFFORDABLE HOUSING The provision of affordable housing is impacted by the following factors. Funding The City of San Leandro will use its available CDBG funds towards eligible affordable housing and community development programs and projects over the next five {5) 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 {5) years as well. Land Costs New construction and acquisition/rehabilitation ofhousing 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. In addition, the high cost of buying a home in the .Bay Area has made it difficult for first time homebuyers, particularly lower income households, 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 down payment or financial assistance programs, the City will seek to help law- and moderate- income new homebuyers. Construction Costs In addition to high land costs, the high cost of construction can also negatively affect the development of affordable housing construction and rehabilitation. In addition to undertaking financial feasibility analyses an a project by project basis to ensure that the City is not over- subsidizing develapmentcosts for affordable housing developers, the City will continue to work with them as well through design, planning, and financing review and recommendations to reduce increased construction costs. Local PolicieslRe~ulations The Inclusionary Zoning Ordinance that the City implemented in December 2004 requires developers to set aside fifteen percent (15%) of their new ownership or rental housing units for low- and moderate-income households. This requirement has successfully produced twenty-two (22) affordable ownership housing units from numerous housing development projects. The City has also assisted in finding income-eligible homebuyers for the existing inclusionary units that were sold; thus ensuring that these housing units perpetually remained affordable. In the next five (5) years, the City is hopefully that its Inclusionary Zoning Ordinance will continue to generate new ownership or rental housing units for low- and moderate-income households. The City, moreover, will continue to assess its existing development regulations and standards to ensure that they are not barriers to housing developments. Its updated Housing Element covering the period of 2007 through 2014 identifies policies and ordinances, such as zoning regulations, parking standards, permitting procedures, development fees, and environmental constraints, as housing DRAFT Housing and Community Development Strategic Plan - FY 2010-14 City of San Leandro Page 25