Laserfiche WebLink
AP -75 Barriers to affordable housing[- 91.220(j) <br />Introduction <br />The City continues to face the following barriers to affordable housing: funding, land costs, and <br />construction costs. <br />Actions it planned to remove or ameliorate the negative effects of public policies that serve <br />as barriers to affordable housing such as land use controls, tax policies affecting land, zoning <br />ordinances, building codes, fees and charges, growth limitations, and policies affecting the <br />return on residential investment <br />Funding <br />The lack of available funds for affordable housing activities continues to be a problem for the <br />City. The problem is further exacerbated with the ongoing reduction in federal HOME funds <br />and the elimination of redevelopment in California by the State. <br />Land Costs <br />New construction and acquisition/rehabilitation of housing is severely impacted by the high <br />cost of land in the Bay Area. The viability and feasibility of future City -assisted affordable <br />housing developments may depend on the reasonableness of the land acquisition costs. The <br />City will conduct financial feasibility analyses on a project -by -project basis to ensure it is not <br />over -subsidizing affordable housing developers for any land purchase. Also, the City will <br />continue to work with owners of existing rental units to provide financing in exchange for <br />affordability covenants. Furthermore, the high cost of buying a home in the Bay Area continues <br />to make it difficult for first-time homebuyers to become homeowners. With the elimination of <br />the City's Redevelopment Agency, the City consequently has eliminated its First -Time <br />Homebuyer Program down payment assistance loan program for low- and moderate -income <br />first-time homebuyers as well as the loan portion of its Single -Family Housing Rehabilitation <br />Program. <br />Construction Costs <br />In addition to high land costs, the high cost of construction can also negatively affect the <br />development of affordable housing construction and rehabilitation. In addition to undertaking <br />financial feasibility analyses on a project -by -project basis to ensure that the City is not over - <br />subsidizing development costs for affordable housing developers, the City will continue to work <br />with them as well through design, planning, and financing review and recommendations to <br />reduce increased construction costs. <br />Discussion <br />The City approved an Inclusionary Zoning Ordinance in December 2004 that required <br />developers to set aside 15% of their new ownership or rental housing units for low- and <br />moderate -income households. The City will continue to monitor the progress of its inclusionary <br />zoning requirement and assess, if necessary, how it can be improved through coordination with <br />developer and other public input. <br />DRAFT City of San Leandro Annual Action Plan 22 <br />2014 <br />OMB Control No: 2506-0117 (exp. 07/31/2015)P, <br />