3D Public Hearing 2012 0416 - Laserfiche WebLink

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PART III. OTHER ACTIONS BARRIERS TO AFFORDABLE HOUSING Funding The lack of available funds for affordable housing activities continues to be a problem for the City. The problem is further exacerbated with the drastic, significant reduction in federal HOME funds and the elimination of redevelopment in California by the State. Land Costs New construction and acquisition/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. Furthermore, with the elimination of the City's Redevelopment Agency, the City consequently is expecting to eliminate its First -Time Homebuyer Program down payment assistance loan program for low- and moderate - income first -time 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 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 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. The City will continue to monitor the progress of its inclusionary zoning requirement and assess, if necessary, how it can be improved through coordination with developer and other public input. LEAD -BASED PAINT HAZARD REDUCTION The new Environmental Protection Agency (EPA) rule effective April 22, 2010 requires that contractors be EPA -lead certified prior to beginning work on structures built before 1978. The City, specifically its Building & Safety Services Division, requires contractors, who are working on homes built prior to 1978, to demonstrate that they have satisfied the EPA law prior to providing them the City building permits needed. Should the City use federal funds, such as HOME funds, for acquisition and /or rehabilitation of apartments for preservation or maintenance as affordable housing, it will inform tenants of lead- Final Action Plan — FY 2012 -2013 City ofSan Leandro Page 15