4A Public Hearing 2014 1006 - Laserfiche WebLink

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WORKING DRAFT FOR HCD REVIEW EVALUATION OF 2010 ELEMENT 2-13 SAN LEANDRO HOUSING ELEMENT Action Summary Progress 53.03-B Continue to provide support and information to non-profit and for-profit developers seeking to create affordable housing in San Leandro, including assistance in applications for Low Income Housing Tax Credits, Mortgage Revenue Bonds, Affordable Housing Program funds, and other funding sources. ADVANCE. This is a regular function of the Housing Division and continues to be relevant. The City works with developers to leverage funds on a project by project basis and most recently worked with BRIDGE Housing on the Cornerstone project. 53.03-C Maintain a local affordable housing trust fund that is capitalized with in-lieu fees from the inclusionary zoning program and condo conversion fees. ADVANCE. The City continues to maintain an Affordable Housing Fund using these two sources. 53.03-D Support affordable housing bond measures at the State and County level. Lobby for and participate in discussions of such bonds if and when they are being developed or proposed. ADVANCE. The City has provided development loans to BRIDGE for the Cornerstone project and supported the efforts of Standard Lakeside Properties to obtain bond and tax credit financing for the Lakeside Village acquisition and conversion to affordable housing. 53.04-A Require developers of residential projects within San Leandro’s redevelopment areas to set aside at least 15 percent of all new units as affordable housing. Pursuant to State law, at least 40 percent of these affordable units should be set aside for very low income households. DELETE. This program refers to the Redevelopment Project Area set aside. With the termination of the Redevelopment Agency, it is no longer applicable. 53.04-B Revise the Inclusionary Zoning Ordinance to increase the production of affordable units while still achieving geographic dispersal of affordable housing. Changes should consider these suggestions:  make it easier to contribute to the Affordable Housing Trust Fund rather than incorporating units on site.  allow acquisition of foreclosed properties and resale as inclusionary units (in lieu of developing new units).  modify the way inclusionary requirements are calculated for fractional assignments over 0.5 and capture “partial” units (0.1 through 0.4) in projects with 7+ units through in-lieu fees  eliminate in-lieu fee exemptions for two- and three-unit rental projects.  adjust the percentages of owner-occupied units targeted to low- versus moderate- income households ADVANCE/REVISE. The City did not have the resources to revise the Inclusionary Ordinance during 2010-2014. Moreover, the urgency of revisions was reduced by the real estate depression and absence of development proposals during this period. As noted above, the Palmer decision invalidated the provisions of the ordinance for rental units. For ownership units, inclusionary (moderate income) units were comparably priced to market-rate units but came with resale restrictions which made them difficult to sell. The Ordinance should be revised during the 2015-2023 planning period. The bulleted list to the left continues to be a reasonable list of topic areas to consider when making revisions. The City should also consider ways to address the loss of inclusionary requirements for rental housing. One possibility would be to do a nexus study (either alone, or collaboratively with other cities) to explore the viability of an affordable housing impact fee that could provide funds for affordable units. The City should also monitor pending court cases regarding the future of inclusionary housing rules.