The URL can be used to link to this page

Home My WebLink About06/06/2006, BUS 6 - REQUEST BY THE SAN LUIS OBISPO COUNTY HOUSING TRUST FUND FOR $60,000 FROM THE CITY'S AFFORDABLE HOU council '"` 6-6-06 j acEnba Repot �N� [n CITY OF SAN LUIS OBISPO FROM: John Mandeville, Director of Community Developme� Prepared By: Doug Davidson,Housing Programs Manager SUBJECT: REQUEST BY THE SAN LUIS OBISPO COUNTY HOUSING TRUST FUND FOR$60,000 FROM THE CITY'S AFFORDABLE HOUSING FUND CAO RECOMMENDATION 1. Determine that the request meets the award criteria for the City Affordable Housing Fund set by previous Council action. 2. Authorize the CAO to negotiate and execute an agreement with the San Luis Obispo County Housing Trust Fund (HTF) for a.grant of$60,000 from the City's Affordable Housing Fund (AHF), with an agreement provision added that conditions subsequent City contributions on financial assistance for an affordable housing project in San Luis Obispo during the next two years. DISCUSSION Background The HTF requests $60,000 to be distributed in two annual payments of $30,000 each. This is same dollar amount and payment schedule as the HTF request and approval in January 2004. The HTF exceeded its goal of raising $450,000 in operating support during its first two years of operation by receiving funding from a variety of sources, including the following: • San Luis Obispo County and Five Other Cities Within the County • Mission Community Bank • Mid State Bank &Trust • First Bank of San Luis Obispo • Bank of America • Union Bank The HTF has also raised nearly $4 million in private lending capital to finance affordable housing, including a combination of investments and contributions from the following: • Mission Community Bank • Mid State Bank &Trust • First Bank of San Luis Obispo • Catholic Healthcare West P Housing Trust Fwd Request—Affordable Housing Fund Page 2 • California Association of Realtors • George Moylan Affordable Housing Fund The HTF is requesting funding from other local cities and the County as it looks ahead at its future operational and loan capital objectives. The funds requested from the City represent approximately 11% of the HTF's annual budget. What is the Housing Trust Fund? The San Luis Obispo Housing Trust Fund is a private non-profit corporation that was created through a cooperative effort by local social service agencies, business, and local governments to address local housing needs. Housing for All is the HTF's vision statement. The mission statement reads, "to increase the supply of affordable housing for very-low, low, and moderate income residents of San Luis Obispo County, including special needs." The HTF does not develop, own, or operate affordable housing, but partners with those who do. The main purposes of the organization are financing, technical assistance, and advocacy on behalf of affordable housing. City Affordable Housing Fund Established in 1999, the AHF implements the Inclusionary Housing Program and is funded by the payment of in-lieu affordable housing fees. The Fund has a balance of$1,864,065. Ordinance 1438 which established the fund describes it as a "fund established and administered by the City, containing in-lieu fees and other funds held and used exclusively to increase and improve the supply of affordable housing." The Ordinance also says the fund shall be administered by the Finance Director and is allocated "at the discretion of the City Council." In 2005, the City Council approved three requests for AHF funding: Housing Authority Cooperative Housing ($600,000), Tumbling Waters ($400,000) in association with a State grant (BEGIN) program, and the Housing Authority project ($109,900) on North Choffo Street in conjunction with a CDBG grant. Affordable Housing Fund Balance The current balance in the Affordable Housing Fund is $1,846,065. Revenues are shown in detail below, as of May 1, 2006: 4 In-lieu Fees 193,700 464,900 747,800 60,500 323,300 1,340,684 3,130,884 Interest 8,200 20,000 28,300 8,500 19,900 15,181 100,081 Expenditures 0 0 [215,000] [30,000] [30,000] 1,109,900 [1,384,900] TOTAL 201,900 484,900 561,100 1 39,000 313,200 245,965 $1,846,065 City of San Luis Obispo,Finance Department *2005-2006 fiscal year to date l�fc Housing Trust Fund Request—Affordable Housing Fund Page 3 Affordable Housing Fund—Policy Support and Criteria A fundamental goal of the Housing Element is to increase housing opportunities for low- and moderate income households. Several specific Housing Element programs support using the AHF to financially assist affordable housing projects: "Help coordinate public and private sector actions to encourage the development of housing that meets the City's housing needs." Program 2.3.8 "Assist with the issuance of bonds, tax credit financing, loan underwriting, or other financial tools to help develop or preserve affordable units through various programs, including, but not limited to: (1) below-market financing and (2) subsidized mortgages for very-low, low- and moderate income persons and first-time home buyers, and 93) self-help or "sweat equity" homeowner housing." Program 2.3.9 "Financially assist in the development of 90 new ownership or rental units affordable to very- low, low- and moderate income households during the planning period using State, federal, and local funding sources." Program 6.3.12 "Actively seek new revenue sources, including State, federal, and private/non-profit sources, and financing mechanisms to assist affordable housing development and first-time homebuyer assistance programs." Program 6.3.13 The following Housing Element program supports a permanent stream of revenue for the HTF as opposed to continued use of AHF funds: "Support regional efforts to establish a countywide affordable housing fund to be funded through a countywide dedicated revenue source rather than diverting existing affordable housing trust funds. The City should manage its Affordable Housing Funds generated through the Inclusionary Housing Program to assist affordable housing development in the City." Program 6.3.8 Indeed, an ongoing, dedicated source of revenue is a fundamental foundation of a housing trust fund. Property transactions, development fees, municipal taxes, and other sources are used around the country as permanent revenue. Such a permanent stream of revenue has not been established in San Luis Obispo County. The Library sales tax initiative of the 2004 election showed the difficulty of gaining a 2/3 County-wide majority to increase taxes for a specific purpose. A real estate transfer tax has a nexus with housing trust funds and has been used in other parts of the country. Proposition 62 limits the applicability of this approach, and again, the 2/3 required majority is very difficult to obtain. As highlighted in the attachments, while the HTF has been very successful in getting grants, loans, and donations, the income stream from the loan fund is not sufficient yet to cover operating costs. The AHF funds would be used for operation of the HTF as it continues to build its loan fund and financially assist affordable housing projects. Council adopted the following criteria in Resolution 9263 (2001 Series) when considering Affordable Housing Fund requests (comments on each criteria are provided in italics): r Housing Trust Fund Request—Affordable Housing Fund Page 4 1. Eligibility. Use of the Affordable Housing Fund will increase or improve affordable housing and promote General Plan policies regarding housing and related community goals. Use of the AHF will promote housing and City housing programs by helping the HTF maintain and grow its technical assistance and loan services. 2. Need. There exists a substantial and overarching need for the type of housing to be assisted. The need for more housing opportunities for the lower income groups is unquestioned. The= plays an increasingly vital role in financing affordable housing projects. 3. Suitability. The project to be assisted is appropriate for its location, both in terms of land use and design. The subject request is not for a specific project. 4. Urgency. There exists an urgent or overarching need for the type of housing to be assisted. The need is urgent for more housing opportunities affordable to low and moderate income households. HTF financing can (and has)filled the critical gap in financing to bring a project to fruition. 5. Financial Effectiveness. But for the requested assistance, the project would not be economically feasible; or AHF funding "leverages significant additional funding from other sources. AHF funding leverages significant other financing from other sources;federal, State, local, and private. According to the Center for Community Development, County housing trust funds leverage $7.50 for every $1 they invest in projects. 6. Readiness. The project has all necessary City approvals and is ready to proceed. The subject request is not for a specific project. Progress and Partnership In, 2005, the HTF provided 1$ Million in financing to two housing projects in the County: transitional housing for foster teens in Arroyo Grande (Family Care Network) and 19 senior apartments currently under construction in Atascadero (Housing Authority). Also, over the last year, the HTF has held formal discussions with the Housing Authority, Peoples' Self-Help Housing, the Bridge Street project, King Ventures, Habitat for Humanity, and others on potential projects for funding in the City of San Luis Obispo. Affordable housing projects are complex, time consuming, and necessitate numerous layers of financing. Staff is confident that the HTF will financially assist a project in San Luis Obispo in the next two years. In fact, the HTF has stated that projects in the City of San Luis Obispo and unincorporated areas of San Luis Obispo County are the next priorities since the City and County are the biggest contributors among government agencies. Staff recommends that the agreement include a provision that no future funding be awarded the HTF until they financially assist an affordable housing project in the City of San Luis Obispo. The City is a partner with the HTF. The City was a key initial supporter of the HTF, has contributed financially to operation of the organization, and the Housing Programs Manager sits as the City's representative on the Housing Trust Fund Commission. The Housing Programs Lo - `T Housing Trust Fund-Request—Affordable Housing Fund Page 5 Manager participated in the HTF Strategic Planning Retreat this year (March 15th). This strategic analysis confirmed that the biggest constraint on the HTF is the lack of a permanent stream of revenue. The priority for the HTF will continue to be the search for additional revenues to fund the operations and loan program. Summary The Housing Trust Fund has made much progress since its inception just three years ago. The HTF has raised close to $4 Million in private lending capital over the last two years. In 2005, two projects received a total of $1 Million in financing to provide 24 units of affordable housing to lower income households. Discussions and negotiations are continuing on several projects with affordable housing potential in San Luis Obispo. Support of the HTF carries out Housing Element policies and the criteria for allocating the Affordable Housing Fund. The financial and technical assistance of the HTF has become an important part of the affordable housing picture in San Luis Obispo County. The City can help maintain and expand the HTF's services by contributing to its operational function while both parties continue to facilitate an affordable housing project in San Luis Obispo. FISCAL IMPACT None. AHF funds are the Inclusionary Housing in-lieu fees and not part of the General Fund. ALTERNATIVES 1. Fund the request at a lesser amount. The amount requested is $60,000 for both pragmatic and economic feasibility reasons. It is large enough to make a significant difference in the HTF's funding picture, while not adversely affecting the balance of the City's Affordable Housing Fund. Funding the request at a lesser amount could jeopardize the continued viability of the HTF. 2. Deny the funding request. Staff does not support this approach, since it would undermine the City's efforts to take strong, innovative steps to address affordable housing needs and to continue working closely with non- profit housing organizations, such as the Housing Trust Fund. The requested amount of assistance ($60,000) is relatively minor and will not substantially impact the AHF balance. ATTACHMENTS Attachment 1 - Request for Funding (Letter and supporting materials dated April 25, 2006) dd/1:/Hou ingTt tFund/ArFCCRptAHFReg06 S A N LU IS O B IS PO 1 ®USG �� ` , TWST FUND April 25, 2006 Ken Hampian, City Administrative Officer City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Dear Mr. Hampian, The San Luis Obispo County Housing Trust Fund requests a $60,000 grant from the City of San Luis Obispo to support our efforts to increase the supply of affordable housing within the City of San Luis Obispo over the next two years. This request will continue the support that the City provided to us in January of 2004. This request can be funded from the City's Affordable Housing Fund, as was our original request for funds. The lack of affordable housing continues to be the number one problem faced by residents, employees and employers in the City of San Luis Obispo and throughout the County. In a recent survey of likely voters, the City found that 93% of the respondents rated the lack of affordable housing as a serious or very serious problem. Thirty nine percent (39%) of those surveyed also responded that the lack of affordable housing is the most serious issue facing San Luis Obispo residents. In another recent survey, the Chamber of Commerce found that 87% of its members had difficulty recruiting or retaining employees due to the lack of affordable housing. The Housing Trust Fund offers financing and technical assistance to support the creation, preservation and improvement of housing that is affordable for very low, low and moderate income households throughout San Luis Obispo County. We also assist local government with their housing programs and policies. Thanks to support from the City of San Luis Obispo and others, the Housing Trust Fund has raised nearly$4 million in private lending capital over the past two years. Our goals are to increase our lending capital to $5 million by the end of 2006, $7 million by the end of 2007 and $9 million by the end of 2008. During 2005, we provided$1 million to finance two housing projects. These projects include 24 units that will be affordable for very low and low income households for 55 years. The first project is located in Arroyo Grande and currently provides transitional housing for young men and women who.are leaving the foster care system. Our second project has 19 senior apartments that are currently under construction in Atascadero. 4111 Broad Street, Suite A-6, San Luis Obispo, CA 93401 ♦ (805) 543-5970 1 www.slochtf.ora �� Ken Hampian April 25, 2006 Page 2 of 2 Our technical assistance enabled a nonprofit corporation to structure its financing for the purchase of a 65-space mobile home park as tax-exempt notes. This made the park purchase financially feasible without a direct subsidy by reducing interest expenses by nearly $100 per space per month. We also provided technical assistance to local jurisdictions, including the City of San Luis Obispo, that helped them to secure state grants, design and administer affordable housing programs and better understand state housing laws. Over the past two years, we have met and spoken with representatives from HASLO, Peoples' Self-Help Housing, the Bridge Street Project, King Ventures and other developers to discuss the financing for their projects and ways that we can work together to increase the supply of affordable housing in the City of San Luis Obispo. We anticipate that some of these discussions will bare fruit in the next year or two. In particular,.we expect to work closely with HASLO on the organizational structure and financing of its cooperative project. The funds that we are requesting from the City represent approximately 11.5% of our operating budget on an annual basis. We are also seeking grants and contributions from the county, other cities within the county, banks and other businesses, individuals, foundations and others to support our operations. To date, we have received operating support from more than two dozen sources. In addition, we will earn interest and fees that will cover a portion of our expenses. We look forward to continuing our work with the City in the upcoming year to help address local housing needs. Sincerely, Ger d L. Ri ux Executive Director Cc: City Council John Mandeville Doug Davidson enclosures l� � 1 1 I/ v S A N L U 1 S O B 1 S P O C O U N T Y —H®USG UJQT FUND o� April 25, 2006 Mayor Dave Romero and Members of the City Council City of San Luis Obispo 9190 Palm Street San Luis Obispo, CA 93401 Dear Mayor Romero and Members of the City Council, The San Luis Obispo County Housing Trust Fund is requesting a$60,000 grant from the City of San Luis Obispo. We hope that you will support this request so that we can continue to offer financing and technical assistance to address the local housing affordability crisis. We also request an opportunity to make a presentation to the City Council on our organization and the housing crisis. The lack of affordable housing continues to be the number one problem faced by residents, employees and employers in the City of San Luis Obispo. A recent City survey found that 93% of likely voters rated the lack of affordable housing as a serious or very serious problem. In another survey, the Chamber of Commerce found that 87% of its members had difficulty recruiting or retaining employees due to the lack of affordable housing. Thanks to the support we have received from the City of San Luis Obispo and others, we have raised nearly$4 million in private lending capital to finance affordable housing. Last year-, we loaned $1 million to fill financing gaps in two projects that create 24 units for affordable rental housing in San Luis Obispo County. We also provided technical assistance to the City, the housing authority and nonprofit agencies to help address local housing needs.. We look forward to continuing our work with your City in the upcoming year and to making a presentation at one of your upcoming meetings. Sincerely, G" ald L. Rioux Executive Director Cc: Ken Hampian John Mandeville Doug Davidson enclosures 4111 Broad Street, Suite A-6, San Luis Obispo, CA 93401 0 (805) 543-5970 4 www.slochtf.orn San Luis Obispo County Housing Trust Fund The San Luis Obispo County Housing Trust Fund(the "Fund") was created to increase the supply of affordable housing in one of the nation's least affordable housing markets. Rather than build or operate housing, we provide financing and technical assistance to private developers,nonprofit corporations and local governments. Since incorporating in 2003, we have raised more than$470,000 in operating funds and nearly$4 million in private lending capital. We made our first loan in March 2005 and closed our second loan in December. Together,these loans helped to create 24 units of affordable housing for very low and low income households. Our technical assistance enabled a nonprofit corporation to purchase and preserve the long-term affordability of a 65-space mobile home park. Introduction San Luis Obispo(SLO)is located on California's central coast half way between Los Angeles and San Francisco. The City of San Luis Obispo has about 45,000 residents and the county population is just over 260,000. Our local economy is based largely on tourism and agriculture. Weare also home to a state university,prison and mental hospital. These three institutions plus the County of San Luis Obispo are the four largest employers in our region. The Fund is a nonprofit 501(c)(3) corporation. Our mission is to increase the supply of affordable hous- ing throughout this county for very low,low and moderate income households, including households with special needs. We assist private developers,nonprofit corporations and government agencies to create and preserve affordable rental and ownership housing. Forty percent of our resources are committed for housing—including transitional housing—that serves households with special needs or very low incomes. We also strive to create housing that will remain permanently affordable. The Fund evolved from years of planning and organizing by a broad-based coalition of health and human service providers,businesses and local governments. Members of the Supportive Housing Consortium. started this effort because the lack of affordable housing severely impacted the health and quality of life of their clients. As local housing costs increased, businesses joined the effort because they found it increasingly difficult to recruit and retain employees. Local governments joined the effort to create the Fund because we help them to address the local housing crisis. Problem San Luis Obispo County is one of the least affordable housing markets in California and the United States. The California Association of Realtors reported that the county's median home sales price was $605,160 in November 2005. According to the Realtors, only 7%of the county's residents could afford the area's median priced home—the lowest percent in the state. The National Low Income Housing Coalition calculated that a minimum wage earner must work 102 hours per week to afford the rent for a modest two-bedroom apartment in this county and 148 hours per week for a three-bedroom unit. The state Employment Development Department projects that most of the jobs that will be created in this county are in classifications that,on average,pay less than$10 per hour. The local housing affordability crisis impacts nearly everyone who lives or works in this county. In a 2005 survey, 93%of City residents ranked the lack of affordable housing as a serious or very serious problem and 39%ranked the lack of affordable housing as the single most important problem that the City faces. The Chamber of Commerce has ranked the lack of affordable housing as this community's top business problem each year for the last five years. Last year, 87% of the Chamber members reported that they had difficulty attracting or retaining employees due to the lack of affordable housing. The local housing crisis has many consequences for individuals, families, businesses and our community as a whole. High housing costs leave many residents with insufficient money to pay for other necessities and limits opportunities for improving their lives. Employers face high tum over rates and staffing short- ages. A number of local businesses have already been forced to leave the community or expand their operations in other areas of the state or nation. Organizational Overview Page 1 of 2 (rev 4-20-06)Q LP r 1 San Luis Obispo County Housing Trust Fund Goals & Objectives The Fund's mission is to increase the supply of affordable housing in San Luis Obispo County. We have operational goals of raising$5 million in lending capital by the end of 2006 and$9 million by the end of 2008. We also plan to increase our financial self-sufficiency each year. In addition, we have an objective to create and/or preserve 100 homes through our lending and technical assistance each year. Strategy The causes of San Luis Obispo's affordable housing crisis are many and varied. Chief among them are state and national economic trends, which have increased housing costs throughout California. They also include local planning and slow growth policies that restrict development within this region. Additional factors include a local building industry, nonprofit agencies and public sector that are less familiar than those in urban centers with new approaches to planning,designing and financing affordable housing. We provide short-term financing for affordable housing projects and technical assistance to the owners and sponsors of these projects. Our loans help affordable housing projects move forward and improve their financial viability. Our technical assistance helps private developers, nonprofit corporations and local governments identify new ways to create,preserve and finance affordable housing. It also influ- ences local policies and brings financial resources into the community to support affordable housing. Funding and Financial Sustainability The County of San Luis Obispo provided roughly half of the monies to implement the Fund and finance our first two years of operation. Cities,banks and real estate lenders, community organizations and individuals contributed the balance. During 2005, our interest and loan fee income covered nearly 10%of our operating costs. Our 2006 operating budget is summarized below. We continue to seek grants and contributions from local government,businesses, individuals and others to cover most of our operating costs. Our goal is to reduce our dependence on grants and contributions every year by increasing our lending activities and earned income. The sources and amounts of our lending capital are also listed below. Seven of these are lending funds to or investing in the HTF. First Bank has committed to lend directly to our clients. The California Association of Realtors provided a$100,000 grant. The George Moylan Affordable Housing Fund receives contributions for our loan fund from individuals, firms and organizations in memory of one of our founding directors. 2006 Operating Bud et Sources of Lending Capital Amount Expense Categories Amounts Mission Community Bank $1,000,000 , Employee Salaries&Benefits $125,942 Mid-State Bank&Trust $1,000,000 Legal,Acct&Prof Services $52,000 First Bank of San Luis Obispo $1,000,000 Non-Personnel Costs $24,285 Catholic Healthcare West $500,000 Operating Reserves $13,190 1 Erich&Hannah Sachs Foundation $200,000 Interest&Loan Fund Expenses 1 $44,583 Three Religious Communities $135;000 Total Operating Budget $260,000 California Association of Realtors* $100,000 George Moylan Affordable Housing Fund* $23,000 Total Lending Capital $3,958,000 •Grants and contributions For Additional Information Contact: Gerald L. "Jerry"Rioux, Executive Director San Luis Obispo County Housing Trust Fund 4111 Broad Street, Suite A-6, San Luis Obispo, CA 93401 phone: (805) 543-5970; e-mail: jerrv(c)slochtforg; website: www.sloclitf.org Organizational Overview Page 2 of 2 ire„4-20-061 Mon, Feb. 27, 2006 AMCHMENT The Tribune—First Page Designed for Affordability SLO County planners are looking to Atascadero's four-year-old law as a model as they craft regulations they say would put better housing in more residents' reach By Stephen Curran,scurran@thetribunenews.com To most casual passers-by,the 19-unit apartment complex – being built on Atascadero's busiest thoroughfare looks ' like the scores of other small projects cropping up in the growing city. .•� Y To planners and affordable housing advocates,though, the Atascadero Senior Apartments are a tangible result of . ;A4 a city law that provides a model for attacking San Luis _ Obispo County's housing affordability issue. The project at 9705 El Camino Real will serve seniors of 't:•.,, >r�,. ; limited means. Its one of several projects at least partially geared to low-to moderate-income renters and buyers in /y Atascadero. / And it's prompted by a 4-year-old law requiring all Jerry Rioux,executive director with the San Luis developments of more than 11 units to set some aside for Obispo County Housing Trust at the Atascadero Senior low-and moderate-income residents—people who Apartments on El Camino Real.His agency financed otherwise might be unable to afford to live there. the Atascadero project. Some nonprofit leaders and county planners are following the lead of Atascadero's law as they seek ways to create cheaper housing in the county,where recent figures show that only 7 percent of residents can afford to buy a home. Some developers, though,say the law unfairly passes along costs to people who can afford a home in the county at normal market values.And they say the approach may steer development to other communities that don't have such laws. "It's transferring wealth through government,"said Dick Willhoit,president of Paso Robles-based Estrella Associates. "It's saying, `Those of you who can afford to pay more will pay for those who can't.' " 216 homes so far The$4.7 million Atascadero Senior Apartments are being built by the San Luis Obispo Non-Profit Housing Corp. Once complete,the complex will offer one-bedroom units to seniors for between$578 and$694 a month The nonprofit has built 15 subsidized rental projects, including the Atascadero Senior Apartments and is developing three more. Both the nonprofit developments and the city mandate represent good first steps in treating what's become a chronic housing shortage on the Central Coast,said Jerry Rioux, executive director of the San Luis Obispo Housing Trust Fund,which lent money for the Atascadero Senior Apartments. "There's a tremendous shortage of housing immediately around San Luis Obispo for people who work normal, everyday jobs,"he said. Income levels Warren Frace,Atascadero's community services director,said the city's ordinance blends successful elements of policies from around the county. Developers seeking a zone change to build a project of 11 units or more are required by the law to set aside 20 percent of their housing stock for low-to moderate-income buyers. Those incomes are defined by the state Housing and Community Development Department as, for example, a family of four earning between$30,850 and$74,050 a year. Those developers who don't want to set aside cheaper homes must pay what's called an"in-lieu fee" equal to 5 percent of construction value of the unit, to be deposited in a city account planners say may eventually subsidize other moderately priced properties. Since July 2002,when the General Plan that ultimately set the stage for the policy was approved,216 of the 1,644 total residential units approved were set aside for below-market-price housing. And more than$258,000 has been deposited into an account designated for the fees. , I r RM OR KTJ I MINWM Atascadero leaders are reviewing the program and are expected in the next year to further plan for below-market- price housing and what to do with in-lieu fees,which so far have accumulated unused. Being considered,Frace said,are plans for low-interest loans or future partnerships between the city and private developers. "When you're talking about affordable housing, it's never simple,"Frace said. "The project itself is only one part." The guidelines illustrate a shift of subsidized housing programs,once geared only toward the very poor,toward the 93 percent of residents a recent report found were priced out of the county market. " "(Affordable housing)has always been stigmatized as government barracks,"Frace said. "When we're talking about affordable housing,we're talking about housing for that 93 percent." The Atascadero City Council on Feb. 14 approved Paso Robles-based developer JRW Group Inc.'s zone change application and master plan for the El Camino Court project at 4705 El Camino Real. Once built,planners said,the project is expected to include 40 residential units ranging from one to three bedrooms and 8,000 square feet of commercial space that could eventually house up to five yet-unnamed tenants. Construction on the project could wrap up late next year. Providing a model Proponents say Atascadero's approach is setting an example for similarly innovative policies throughout the region. San Luis Obispo County officials are looking to Atascadero's law,and some in Santa Barbara County, as they craft uniform regulations they say would put better housing in more residents'reach,according to county Supervising Planner Dana Lilley. Lilley said planners are looking to take a strategy to the Board of Supervisors as soon as this fall that moves the county in step with state law that already creates affordable housing areas along the coastal zone. Like Atascadero,the county's plan would require builders to set aside an additional 20 percent of new development as "affordable"based on the county's median income. Of that 20 percent,Lilley said,builders would have to set aside 5 percent each for very low-, low-and moderate- income buyers.New to the mix is a category of"workforce"housing,designated for those earning between 120 percent and 160 percent of the median income but who fall short of affording an average home. ' Also unique to the county's plan would be a set of"housing linkage"guidelines that would require developers of commercial and other nonresidential properties to pay an in-lieu fee similar to that in Atascadero. "Atascadero is pretty aggressive,"Lilley said. "But our proposal is even more dramatic than the inclusionary policies that our cities have." These policies,now in the environmental review stage,could appear before county supervisors as soon as this fall. Shifting the burden Solving the county's housing crunch,say some developers and lobbying groups,may not be as simple as shifting the burden onto private companies. Jerry Bunin,governmental affairs director for the Home Builders Association of the Central Coast,said requiring builders to artificially reduce the price of some units will only make the remaining homes more expensive and do little to answer the big-picture question. "The subsidy is so huge that we simply cannot do it financially,"Bunin said. "It becomes a loss on every home we build." Instead,Bunin said,the answer lies in cities proactively zoning more land for residential use and increasing density incentives for developers. But changing the zoning to hike residential units from the 12,000 or so acres already zoned for homes in Atascadero could prove tricky,Frace said,as much of the land is already spoken for. Right now,he said,the city is focused on bringing in the roughly 1,650 homes slated for coming years. "That's 200 more teachers,police officers and other people with moderate incomes,"who would likely live in the affordable units,Frace said. Willhoit said he has already curtailed residential projects based on the policies and is unsure if he would ever build a project in Atascadero or anywhere similar guidelines are in place. So far,Willhoit said, it's kept him from having to choose between taking a financial loss or buying his way out of a program he doesn't believe in. "If I were in a position where I had to choose one or the other,believing neither is successful, I would choose the in- lieu fees,"he said. .....But I'm old enough to learn I would never say never." Reprinted by permission of The Tribune Lo I 1 I - , S A N • L U I S • O B I S P O C O U N T Y HOU e� 1 , srFUND NO US!NO FOR A L LO '- Sources of Operating Funds The San Luis Obispo County Housing Trust Fund raised funds from a number of different sources to support our operations. The following table lists the grants, donations and contribu- tions plus earned income that the Fund has received since incorporating in February 2003.1 Grants,Donations And Contributions Received Amount County of San Luis Obispo $225,200 City of San Luis Obispo $60,200 Economic Opportunity Commission $50,000 Housing Authority of the City of San Luis Obispo $20,000 Mid-State Bank & Trust Foundation $10;150 Bank of America $10,000 Union Bank of California $10,000 City of Arroyo Grande $10,000 City of Pismo Beach $10,000 City of Atascadero $10,000 City of Grover Beach $10,000 San Luis Obispo County Community Foundation $8;200 United Way of San Luis Obispo County $7,515 Resident Owned Parks, Inc. $2;500 Los Padres Bank $2,150 First Bank of San Luis Obispo $2,000 Mission Community Bank $1,150 Anne and Fred Quinn $1,000 The Mortgage House, Inc. $1,000 City of Morro Bay $1,000 Santa Lucia Bank $1,000 Heritage Oaks Bank $1,000 San Luis Obispo Supportive Housing Consortium3 $730 CalPoly Foundation $500 Others (various) $1,736 Total Grants,Donations And Contributions $4575031 Earned Income $31,969 Combined Funds Raised $4899000 As of 3-31-06 2 Approximately$123,000 in contributions to our revolving loan fund are not included in this list. 3 Funded through a grant from the California Department of Community Services and Development. 3 Monies received while the Womens Shelter Project acted as fiscal agent for the Fund. 4111 Broad Street, Suite A-6, San Luis Obispo, CA 93401 —(805)543-5970;fax (805)543-5972 S A N • L I S O B 1 S P O C O U N T Y 0SU�G RJND JI "H O U S I N G FOR ALL' Sources of Lending Capital The San Luis Obispo County Housing Trust Fund has raised nearly$4 million in private capital to finance affordable housing projects.' These funds are primarily loans from local banks, a local hospital system, a family foundation and religious communities. We also received a $100,000 grant from the California Association of Realtors thanks to support from local Realtors. In addition,more than 60 individuals, firms and organizations have contributed to our George Moylan Affordable Housing Fund. Source of Loan Funds Type of Funds Amount Mission Community Bank Revolving line.of credit $1,000,000 Mid-State Bank &Trust Revolving line of credit $1,000,000 First Bank of San Luis Obispo Guidance line of credit $1,000,000 Catholic Healthcare West Balloon Payment Loan $500,000 Erik &Hannah Sachs Foundation Balloon Payment Loan $200,000 California Association of Realtors Grant $100,000 Seton Enablement Fund of Amortizing Loan $50,000 the Sisters of Charity of Cincinnati Sisters of St. Francis of Philadelphia Balloon Payment Loan $50,000 Adrian Dominican Sisters Balloon Payment Loan $35,000 George Moylan Affordable Housing Fund Contributions $23,000 Total Lending Capital $399589000 As of 3-31-06 This figure includes funds that have both been committed to the Housing Trust Fund and received. Funds will only be drawn on the Mission Community Bank and Mid-State Bank&Trust lines of credit and First Bank's guidance line of credit as they are used to fund loans. Z The George Moylan Affordable Housing Fund was established in October 2005 to honor and continue the work of a founding director of the Housing Trust Fund. Since then,more than 60 individuals, firms and organizations have contributed to the Moylan Fund. I ,, 4111 Broad Street, Suite A-6, San Luis Obispo, CA 93401 (805)543-5970;fax (805) 543-5972 �(' 1 H � mc �3co3c3c°D odX�� 71w; rom c ° % 33SP0pp= °� sp � d ,� ILS�pEr)Q,mvv'° (��pppc =�° al � 0m/� C7EN D' 2Z •"p�jAmQp CCa.(p HGd sp, = d7N w = My D3 fl (D " 3 =< ? e � �lD Ol Q v y d 3 �� m dZ � a v 1'C N O O'S 0� O = (gyp � f1 = � 0 .� oy 343m= c0=1eAcm3S t°* caQm'Cc ' cm f0ms'cppU, O , 3y � c £o �'� m3 ��m••;�� 1'oi m ,y3= maG (n 1 p C _Q> > 3�p _ aSPm= �v eG)IV oc v� CL c o�� Er at1° 06 01 zr OWi �3mtC = RIG IDS y7 � = Ni �Din �� y� rt� SO r 3 x � '� �' �� `�° � a 1° � � m9� °ur :L �v' o04 -1C 7 O A o � ' � � c3 Q -ay ' w�3po�p Oi �o G m a n _ = mincfs 01010 A l0 3to 0 ° D ` '� m c. 3 v o °,_ 3v' I CL rt a 0 S N rt d d c +(D q m m 0 a y 0 o '-° ?n �* ((A = m ° y � a a X002 (Ao2 a o. y AO „ � a ° 3 � o d fD 7 a ca 3 o. ?Id �D Uf DDS .A G17C(n'-� P70 Qf f11�xa -I(n Zy mgg N O u 1ocrZ = r a01mo�'i� niQ3c = cm1y O 0' 00 n' ° m , 4p ° c %oma = -3Zom20t7> > rt Dp }(AIV -< .%D .3inA= n � �o .%D . 3 fAAP2 tACL m. °� �35mc3 ° d < rnc1 3G)°' mcdgTglonNoo Da' 00' oa 3o? �m3 ° N �'� �' �m�vppa� yx03 o�� 3Z � � 3 Mf+ = c "'m m N s?o d . tnm y ° c m�° Ovq ZN =' (= n C l�D y A° m m m o�.'0 9, x G o o Z o o� � O � 0IDX X. 0 °D70 w 3c � On_ Z �2�c � y 'an 1 � � rn 33M :L 0 c 2L o � D'.� � m 0 aQ C n� O 41 ° o = A F a 0 a ° 3 m g y r oA f v7 v A ? m A C 7 0 O � S �O w d ID e to p j (DD :L 3 0l0 3 rt Q ;• :c: 03 m g L all c N CN O w n c O w t0 In M O' . o fD 3 � y M 5D INm (D _ 1 `. ^ �J � . S ANO LUIS • OB I S P O • COUNTY HOUR t EURFUM 'HOUSING FOR ALL' 2006 Adopted Budget The Board of Directors for the San Luis Obispo County Housing Trust Fund adopted the following operating budget for Calendar Year 2006 at its January 20, 2006 meeting. Budgeted Percent Expense Category Amounts of Total Personnel Expenses Salaries and Wages $97,520 37.5% Payroll Taxes &Employee Benefits $28,423 10.9% Professional Services $36,700 14.1% Legal and Accounting Services $15,300 5.9% Non-Personnel Expenses Rent &Utilities $8,250 3.2% Communications (Phone/Intemet) $1,540 0.6% Furnishings & Equipment $0 0.0% Maintenance &Repairs $600 0.2% Insurance $37350 1.3% License & Regulatory Fees $335 0.1% Postage &Printing $2,000 0.8% Supplies $1,200 . 0.5% Memberships,Dues & Subscriptions $1,010 0.4% Travel Expenses $3,400 1.3% Education&Training $1,400 0.5% Other Expenses $1,200 0.5% Operating Reserves $13,190 5.1% Loan Fund Expenses Interest Expenses $41,000 15.8% Loan Origination Costs $1,000 0.4% Loan Collection Costs Total Expenses $2,583 1.0% Total Operating Budget $2605000 100.0% Adopted 1-20-06 4111 Broad Street, Suite A-6, San Luis Obispo, CA 93401 —(805) 543-5970;fax (805)543-5972 �_I Ca S_A N • LUIS • OB ISPO • COUNTY U04G FMD IN s a� FOR ALL' — Board of Directors The Board of Directors for the San Luis Obispo County Housing Trust Fund has six members. The names, offices and affiliations of the current Board members are: Board Member Office Affiliation Anita Robinson Chair President and CEO,Mission Community Bank Rachel Richardson Vice- Chair; San Luis Obispo Supportive Housing Consortium; Chair Housing Coordinator, AIDS Support Network Dr. Allen Haile Secretary Community& Government Relations Director, Cal-Poly, Member, SLO County Economic Advisory Committee. Janna Nichols Treasurer Tri-Counties Blood Bank R. Thomas "Tom"Jones Member Dean, Cal Poly College of Architecture and Environmental Design Joseph M. "Chip"Visci Member President and Publisher, The (San Luis Obispo) Tribune Affiliations are provided for information only. Rev 9-16-05 4111 Broad Street, Suite A-6, San Luis Obispo, CA 93401 —(805) 543-5970; fax (805)543-5972 "� ENT S A N • L U I S • O B I S P O • C O U N T Y wHOUG `HOUSING FOR ALL' -- Mousing Trust Fund Commission The Commission serves as the loan committee for the San Luis Obispo County Housing Trust Fund. A majority of the Commissioners are appointed by local governments that provide financial support for the Fund. The current Commissioners and their appointing authorities are: a Commissioner Appointing Authority Chuck Ashton City of Grover Beach Doug Davidson City of San Luis Obispo Kelly Heffernon City of Arroyo Grande Dana Lilley County of San Luis Obispo John Stocksdale City of Pismo Beach Dave Rounds SLOCHTF Board of Directors Kerry Margason City of Atascadero Ann Travers SLO Supportive Housing Consortium Betty Winholtz City of Morro Bay 4111 Broad Street, Suite A-6, San Luis Obispo, CA 93401 —(805) 543-5970; fax (805)543-5972 - I" "FUT 9ft"3T SAN • LUIS • O B I S P O * COUNTY HOUM 4G o� 1TwSTFM HOUSING FOR ALL" -- Gerald L. Rioux Executive Director Gerald L. ("Jerry")Rioux, the San Luis Obispo County Housing Trust Fund's executive director, has more than 30 years of professional experience in the housing and community development field. This experience includes developing, implementing and managing affordable housing programs for state and local governments,local and regional nonprofit corporations and as a private consultant and real estate broker. Mr. Rioux earned a Master of Planning (MPI) degree from the University of Southern California. Position Employer Executive Director San Luis Obispo County Housing Trust Fund Project Manager City of Watsonville, Redevelopment and Housing Department Housing Program Manager County of Santa Cruz, Planning Department Principal & Broker Housing and Community Development Services (Affordable housing consulting and real estate brokerage) Division Director Rural Community Assistance Corporation Program Manager State of California, Department of Housing and Community Development Housing Rehabilitation City of Cudahy Coordinator Resume available upon request. 4111 Broad Street, Suite A-6, San Luis Obispo, CA 93401 —(805) 543-5970;fax(805) 543-5972 'r; J= � • 1 • • • I.I.lil IIIIII 1111111 1.1.1.1 • • • •_ I I .'3 Ti4 YY.� _ M^JHMrW. • r.r.r..r.r. r.rM.r.,r.,rY.r. 1, AWA��itii�:.r.,tiTi r,�:r✓J ;T7Y."�N:�r;'NNr.N_NS.N r.Nr. JY.r.,�r.Nr.,.r.rJ.r J�rrJ.✓ti✓..tit: • :T:tirT:I'..T.ryr.r..".:..:tom;:C•�t 1 •'t'v \ I I I If llltll'1 I I I I 1 '9I 11111111111P - • ('� 1111111111111111/\1'. lii�llll = 11111/11111S1I111t1111t.� I Illtlltllltl l' 'I q' - Illtl/ltllltl th. Illll ll 111 till lllltll1I11111111\I' _-. - IIIIIII� - Illlllllllllll llll111lllltll lllllllllllll•1'. IIT - Illllllltlllltllllllllll. • - 11111111111111111111111!X11111111111111111111111\1. �r 4�lr� lililililililil ili 111�1'•'li lilililililililililililil�l�rl. '1 11111111111111111111..'1:t11111111111111111111111111111111j 1111111111111111111._.. 1�11111111111111111111111111111111111 - 11111111111111111111:,111.1111111111111111111111111111111�' 1111111111111111111 .11.1'i1i1i1i1i1i1i1i1i1i1ili1i1i1i11 11111111111111111111 Ilil:lililililililililililililil�' 1lilili111111111111�111111111111111111111111111111111 lililililililililil 1:r�1 lilililili lilili lililil�' _ 11 t1t11111111111111111'111111111111111111111' 1111111 still, 1i1i lit h1 ili\i 11.1 _ 1111111111111111111111111.. -_ 111111111111111111,1-' 111\1,1,1.1.1_ CD 0 O O O O 'a -0 -0 CD `< `< 3 N 3. 9 9 Q c O O O O O O O CD CD a CD CD 7 �. o CL ti 0 D D o En a;CL 3 ppmo Q, 3 O O 0 O CA L 0 �, =r 0 ;o o m C v -- 0 M G) gin' ui o� 00 0 v `� m v Q � CD p O c CD n CD O O O Y. CD 7 7 m O- CA 0 Q O'< V `< CD � 0 O �: o V1 N y 10�. Cl) c 0 CD m v 2) O c I. D o o c N N N po N � N /C)CD CD � O p N 6 on O _ 3 C C O as m y Coco dsNQ.CD o. w �I N N $ N N O CL o 0 0 0 0 0 0 0 CCD W ('� O 00 O O O O O O CAD O 0 O O :Ea Q O O O p' p -h <D p N N N Q' y O O O CD c O 6Uyl9Cil (79 � �69 S9 � � wnocr O O O ooc �CD 300 c CD v o 0 0 0 0 0 0 m e OO O O O O O O 00 W y Q; Z CDCLO Ch "m Ch O d CD O U) c O (p C CD :. N O y bA bH ffl CL CD :3 ;1 C ) Ln O 69 � b9 O N c o Cn CD p O p O p O Cl) Q rn y m c 0 0 0 0 0 0 0 0 0 CL a s O O CD 0 O O CD a O 0. O CD O Co CA cn O � C) 0 v n ;17 �', O o m 3 0 o .0 CD a m �' n m <' < �° < 3 o tD w m O CD 0 m o CD CD 0 CD o CD CD Cn CL n a A CD W CO CD N CD Cn N r"" + , .� N a. CO a Activities in City of San Luis Obispo San Luis Obispo County Housing Trust Fund General Networking and Advice • Monthly meetings with City Housing Manager • Monthly review of potential projects at HTF Commission. Meetings Potential Future Projects • HASLO Humbert - Railroad cooperative • Bridge Street Project • Bermant mixed-use development at Marsh and Nipomo • North Choro Street project currently owned by HASLO • Marguerita affordable units