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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Agenda
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9/19/2022
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Reso 2022-165 FY21-22 HUD CAPER
(Amended)
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CAPER 11 <br />OMB Control No: 2506-0117 (exp. 09/30/2021) <br />There are multiple reasons why the City does not use CDBG funds for increasing the supply of affordable <br />housing and addressing the homeless crisis. First, there are significant costs associated with constructing <br />affordable housing for the general population and supportive housing for the formerly homeless <br />population. The funding available in the City’s annual CDBG allocation are not enough to meaningfully <br />commit to an affordable housing development. In addition, the statutorial hurdles and documentation <br />requirements of CDBG funding is too steep for the amount of funding that can be provided. Second, <br />there is significant staffing infrastructure needed to provide the programtic review and project <br />management of these types of financing products by Cities. Staffing attrition and City priorities to <br />reduce costs of operation mean that staffing is not sufficient to meaningfully carryout many of these <br />identified goals. <br />Discuss how these outcomes will impact future annual action plans. <br />The City continues to prepare its annual action plans based on projected decreases in funding levels. <br />There are significant efforts both regionally and at the State level to address decreased funding for <br />affordable housing development. The 2017-18 Regular Session of the California State Legislature passed <br />one bill (of many other housing-related legislation) sought to generate--and distribute directly to cities-- <br />funds for new affordable housing production. The Building Homes and Jobs Act (SB 2, Atkins 2017) <br />established a permanent source of funding for affordable housing through a $75 fee on real estate <br />document filings. In FY 21-22 the City received its first entitlement from the resulting program <br />“Permanent Local Housing Allocation” in the amount of just under $350,000 from filing fees during <br />calendar year 2019. <br />The statewide Greenhouse Gas Reduction Fund’s Affordable Housing and Sustainable Communities <br />program is a competitive funding program that encourages collaboration between affordable housing <br />developers, jurisdictions and transit agencies to fund affordable housing development and <br />transportation infrastructure and amenities. City staff will continue encouraging affordable housing <br />developers and area transit agencies to collaborate in an application to AHSC for funding when a viable <br />and competitive housing and transportation development is ready to move forward. <br />Alameda County Measure A-1 was a voter-approved initiative authorizing a $580 million general <br />obligation bond to invest in regional efforts to address the lack of affordable housing. The City of San <br />Leandro had a base allocation of these funds in the amount of over $10 million. A-1 funds are specifically <br />designated for affordable rental housing development with the goal of creating and preserving <br />affordable housing. City staff committed $4 million of these funds to Parrott Street Apartments, a 62 <br />unit affordable rental apartments on San Leandro Boulevard across the street from the San Leandro <br />BART stations. Additionally, Parrot Street Apartments secured funding through the county-wide <br />competitive pool for affordable housing development allowing it to proceed in applying for LIHTC <br />funding. The remaining City A-1 funding allocation were combined with the City’s Low/Mod Housing <br />Asset fund and the City released a Request for Proposals in February 2021. The non-profit affordable <br />housing developer, Abode Commuities of Los Angeles (not to be confused with Abode Services of
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