3A Public Hearing 2010 0920 - Laserfiche WebLink

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Housing For Low and Moderate Income Residents I. INTRODUCTION Although redevelopment activities and investments contribute significantly to a local and the State economy, unstable economic times and shrinking revenue sources have made the production of new housing construction and rehabilitation projects very challenging in recent years, and this trend will continue into the foreseeable future. According to the National Association of Home Builders, multi - family construction continued its slowdown in April 2010, with a 1.9% decline from March and a 57.4% drop from a year earlier. To address this problem and to assure that there is sufficient affordable housing for San Leandro residents, the City's 2010 Housing Element Update strategies strive to conserve the City's existing housing stock while providing opportunities for new housing for a variety of income groups. The Redevelopment Agency (Agency) plays an integral part through its Low- and Moderate - Income Housing Fund (detailed below). Housing San Leandro's low- and moderate - income residents is one of the Agency's top priorities. A primary Agency goal is to: Use no less than 20% of all its tax increment revenue for increasing, improving, and preserving the community's supply of housing available and affordable to households with very low, low, or moderate incomes. II. HOUSING REQUIREMENTS AND REDEVELOPMENT OBLIGATIONS A. California Redevelopment Law Requirements Community Redevelopment Law, Health and Safety Code Section 33490(a)(2)(A) requires that a portion of an Implementation Plan shall address the Redevelopment Agency's housing responsibilities and shall contain a section addressing the Low and Moderate Income Housing Fund (LMHF). If replacement housing applies, a section addressing agency- developed and project area housing shall be included. The section addressing the Low and Moderate Income Housing Fund shall contain: (i) The amount available in the LMHF and the estimated amounts which will be deposited in the LMHF during each of the next five years. (ii) A housing program with estimates of the number of new, rehabilitated, or price restricted units to be assisted during each of the five years and estimates of the expenditures of monies from the LMHF during each of the five years. (iii) A description of how the housing program will implement the requirement for expenditures of moneys in the LMHF over a 10 -year period for various groups. III. FISCAL ANALYSIS A. Housing Set Aside Projected Revenues The Agency is required by California law to "set aside" 20% of all tax increment collected in the redevelopment project areas to be used for the purpose of increasing, improving and preserving