Reso 2025-163 FY25 AHTF Report - Laserfiche WebLink

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CITY OF SAN LEANDRO AFFORDABLE HOUSING TRUST FUND REPORT FY 2025 Page 1 of 2 In December 2004, the City of San Leandro (“City”) amended the Zoning Code by adopting Article 30, the Inclusionary Housing Ordinance (“Ordinance”). The purpose of the Ordinance is to encourage the development and availability of housing affordable to a broad range of households with varying income levels within the city, to increase the supply of affordable ownership and rental housing in San Leandro, and to require that residential developers construct affordable housing units within their project. The City’s Ordinance requires construction of units, or in limited cases, payment of an in-lieu fee for both ownership and rental residential developments. In 2009, the California Court of Appeals decision in the case of Palmer/Sixth Street Properties LP v. City of Los Angeles, 175 Cal.App.4th 1396 (2009) prohibited cities from being able to enforce these ordinances in the case of rental housing developments. In 2017, AB 1505 restored the ability of cities to enforce inclusionary housing policies with an effective date of January 1, 2018. As described in the City’s 2023-2031 Housing Element, the City will consider amendments to the Ordinance over the eight-year cycle and plans to conduct an economic feasibility study to guide any proposed changes. San Leandro’s Ordinance allows ownership developments with two to six total units to pay an in- lieu fee to the City’s Affordable Housing Trust Fund (“AHTF”). The AHTF is an account established to collect and expend such in-lieu fees to further affordable housing as described in the Ordinance. The AHTF also includes revenue from condominium conversion fees and repayment of AHTF loans. The City uses deposited funds to increase and improve the supply of housing affordable to moderate-, low-, and very low-income households in San Leandro. Monies may also be used to cover reasonable administrative or related expenses associated with the administration of the Ordinance. The Ordinance requires the Community Development Director to provide an Annual Report to the City Council on the revenue collected and the activities undertaken with the AHTF. In Fiscal Year (FY) 2025, which covered the period from July 1, 2024 to June 30, 2025, the following revenue was collected: Revenue Accounts 167-3322 Housing In-Lieu Fees $0.00 167-3501 Interest Income – General $11,736.11 167-3510 Unrealized Gain/Loss on Investment $12,945.60 Total $24,681.71 Two market-rate projects in San Leandro’s pipeline were completed during the reporting period, creating affordable Below Market Rate (BMR) units. The multifamily Centro Callan project in downtown San Leandro sets aside ten BMR rental units. The Poppy Lane single-family housing development north of Halcyon Drive created three BMR homeownership opportunities. Exhibit A Resolution No. 2025-163 Page 1