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City of San Leandro 2023-2031 Housing Element Update 3-4 increase and leverage finance resources for affordable housing development, as described in Program 10 of Chapter 6, Housing Plan. Financial Resources There are a variety of funding sources for affordable housing, preservation, and rehabilitation from federal, State, and local sources. The California Department of Housing and Community Development (HCD) and the U.S. Department of Housing and Urban Development (HUD) administers grants which can assist developers, local governments, and non-profits in constructing housing units. The most significant barrier for the City of San Leandro in recent years is the dissolution of the Redevelopment Agency and its related loss of affordable housing financing support. From 2006 to 2011 the City, on average, had just under $3 million annually for its affordable housing program that included first time homebuyer loans and new affordable housing production. However, there are significant efforts both regionally and at the State level to address decreased funding for affordable housing development. Permanent Local Housing Allocation (State) The 2017-18 Regular Session of the California State Legislature passed one bill (of many other housing-related legislation) sought to generate, and distribute directly to cities, funds for new affordable housing production. The Building Homes and Jobs Act (SB 2, Atkins 2017) established a permanent source of funding for affordable housing through a $75 fee on real estate document filings. In fiscal year 2020-2021, the City received its first entitlement from the resulting program “Permanent Local Housing Allocation” in the amount of just under $350,000 from filing fees during calendar year 2019. Affordable Housing and Sustainable Communities Program (State) The statewide Greenhouse Gas Reduction Fund’s Affordable Housing and Sustainable Communities program is a competitive funding program that encourages collaboration between affordable housing developers, jurisdictions, and transit agencies to fund affordable housing development and transportation infrastructure and amenities. City staff will continue work with their colleagues in various departments to best position affordable housing and sustainable infrastructure planning to align with this program. Additionally, staff will continue seeking partnerships with area technical assistance programs, affordable housing developers, and area transit agencies to collaborate in an application for funding when a viable and competitive housing and transportation development is ready to move forward. State Low Income Housing Tax Credits (State) The federal government through the Internal Revenue Service enacted the Low Income Housing Tax Credit Program in 1986. This program has been the largest producer of affordable multifamily rental housing since its inception. Each state has a financing agency that administers the LIHTC Program, and in California that is the Tax Credit Allocation Committee (TCAC). Institutional investors or syndicates are incentivized to invest in long term affordable rental housing projects to receive tax credits. Nonprofit and private developers are eligible to apply for State LIHTC for acquisition, new construction and/or rehabilitation of affordable rental housing.