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CityofSanLeandroAnnualActionPlan <br />2014 <br />22 <br />OMBControlNo:2506Ͳ0117(exp.07/31/2015) <br />APͲ75Barrierstoaffordablehousing–91.220(j) <br /> <br />Introduction <br />TheCitycontinuestofacethefollowingbarrierstoaffordablehousing:funding,landcosts,and <br />constructioncosts. <br /> <br />Actionsitplannedtoremoveoramelioratethenegativeeffectsofpublicpoliciesthatserve <br />asbarrierstoaffordablehousingsuchaslandusecontrols,taxpoliciesaffectingland,zoning <br />ordinances,buildingcodes,feesandcharges,growthlimitations,andpoliciesaffectingthe <br />returnonresidentialinvestment <br /> <br />Funding <br />ThelackofavailablefundsforaffordablehousingactivitiescontinuestobeaproblemfortheCity.The <br />problemisfurtherexacerbatedwiththeongoingreductioninfederalHOMEfundsandtheelimination <br />ofredevelopmentinCaliforniabytheState. <br /> <br />LandCosts <br />Newconstructionandacquisition/rehabilitationofhousingisseverelyimpactedbythehighcostofland <br />intheBayArea.TheviabilityandfeasibilityoffutureCityͲassistedaffordablehousingdevelopments <br />maydependonthereasonablenessofthelandacquisitioncosts.TheCitywillconductfinancial <br />feasibilityanalysesonaprojectͲbyͲprojectbasistoensureitisnotoverͲsubsidizingaffordablehousing <br />developersforanylandpurchase.Also,theCitywillcontinuetoworkwithownersofexistingrental <br />unitstoprovidefinancinginexchangeforaffordabilitycovenants.Furthermore,thehighcostofbuying <br />ahomeintheBayAreacontinuestomakeitdifficultforfirstͲtimehomebuyerstobecome <br />homeowners.WiththeeliminationoftheCity’sRedevelopmentAgency,theCityconsequentlyhas <br />eliminateditsFirstͲTimeHomebuyerProgramdownpaymentassistanceloanprogramforlowͲand <br />moderateͲincomefirstͲtimehomebuyersaswellastheloanportionofitsSingleͲFamilyHousing <br />RehabilitationProgram. <br /> <br />ConstructionCosts <br />Inadditiontohighlandcosts,thehighcostofconstructioncanalsonegativelyaffectthedevelopment <br />ofaffordablehousingconstructionandrehabilitation.Inadditiontoundertakingfinancialfeasibility <br />analysesonaprojectͲbyͲprojectbasistoensurethattheCityisnotoverͲsubsidizingdevelopmentcosts <br />foraffordablehousingdevelopers,theCitywillcontinuetoworkwiththemaswellthroughdesign, <br />planning,andfinancingreviewandrecommendationstoreduceincreasedconstructioncosts. <br /> <br />Discussion <br />TheCityapprovedanInclusionaryZoningOrdinanceinDecember2004thatrequireddeveloperstoset <br />aside15%oftheirnewownershiporrentalhousingunitsforlowͲandmoderateͲincome <br />households.TheCitywillcontinuetomonitortheprogressofitsinclusionaryzoningrequirementand <br />assess,ifnecessary,howitcanbeimprovedthroughcoordinationwithdeveloperandotherpublic <br />input.