HomeMy WebLinkAbout08-18-2015 Item 06 Affordable Housing Agreement Update
Meeting Date: 8/18/2015
FROM: Derek Johnson, Director of Community Development
Prepared By: Tyler Corey, Housing Programs Manager
SUBJECT: UPDATE OF LONG-TERM AFFORDABLE HOUSING AGREEMENT
DOCUMENTS
RECOMMENDATION
1. Appropriate $10,000 within the Affordable Housing Fund from unallocated reserves to an
expenditure account to update the City’s long-term affordable housing agreement documents; and
2. Authorize the City Manager to execute the legal services agreement with Goldfarb & Lipman
LLP in an amount not to exceed $10,000 (Attachment 1).
DISCUSSION
Background
Periodically, affordability agreements must be updated to reflect industry standard best practices
and changes in housing law. Included in the adopted 2015-17 Financial Plan Housing Major Cit y
Goal work plan is an action item to update the City’s long-term affordable housing agreement
documents with an estimated cost of $10,000 as shown in the cost summary for this goal
(Attachment 2). Staff is requesting Council authorization to appropriate the unallocated funds
within the Affordable Housing Fund to pay for this effort as they were not allocated as part of the
Affordable Housing Fund’s 2015-16 budget.
Legal Services Selection
Goldfard & Lipman is the preeminent municipal law firm regarding affordable housing. In 2014,
Goldfard & Lipman created affordability documents for the City’s Equity Share Purchase
Program and the firm is familiar with our processes, documents and ordinances. Staff worked
closely with the firm during this process and was very impressed with its level of service,
attention to detail and work products. Staff recommends using Goldfard & Lipman again for the
requested services and has included the legal services agreement for City Manager execution
(Attachment 1).
FISCAL IMPACT
Staff identified that $10,000 was needed to update the long-term affordable housing agreement
documents as part of the Housing Major City Goal. However, this amount was not allocated in
for this purpose in the 2015-17 Financial Plan. The Affordable Housing Fund has adequate fund
reserves to cover this expense.
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Attachments:
1 - Legal Services Agreement
2 - Housing Major City Goal Excerpt
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MAJOR CITY GOALS
HOUSING
RESPONSIBLE DEPARTMENT
The Community Development Department will take the lead on this Major City Goal with assistance from
Administration, City Attorney, Finance, Fire, Police, Public Works, Utilities and Parks and Recreation. The City’s
Administration, Public Works, Finance and Utilities Departmentswill assist with the infrastructure component of
the goal. The City Attorney’s office will assist with new ordinance language for consistency with State law and
review affordable housing loans, contracts and agreements. The Housing Programs Manager (HPM) is tasked
with Housing Element implementation and facilitating provision of affordable housing. The HPM represents the
City on the San Luis Obispo County Housing Trust Fund Commission, Workforce Housing Coalition and Friends
of Prado Day Center Board, while a City Council member serves on the Homeless Services Oversight Council
(HSOC) to implement the 10-Year Plan.
FINANCIAL AND STAFF RESOURCES REQUIRED TO ACHIEVE THE GOAL
Accomplishing this goal will require leadership commitment and ensuring appropriate staff and financial
resources are available towork on and fund these efforts. The City’sHousing Programs are fully subscribed and
there is no more capacity to take on efforts outlined in the work planwithout adding 1.2 Full Time Equivalent
(FTE) staff in additional resources(see Staff Resourceanalysisin Appendix A).These additional resources
include one fulltimetemporary planning technician,10% of the Project Manager’s timefor homeless services
and 10% of the Business Manager’s time for Housing Programs administration. These staff resources are pending
2015-17 Financial Plan Development Services staffing and Contract Services SOPC approval.
Cost Summary
2015-162016-172015-162016-17
Grants-In-Aid (Housing Bdgt)1,6003,000
AH Agreement Consultant Support 10,000
SLO County HTF 30,00030,000
Maxine Lewis Memorial Shelter (Housing Bdgt)1,0001,000
Development Srvcs Staffing & CDD Reorg (ptn SOPC)*102,551103,899
LUCE Implementation and Fee Update (portion of SOPC)*210,000
Zoning Regulations Update (LUCE SOPC phase 2)*150,000
Infrastructure Investment CIP 250,000
Total $355,151$287,899$250,000$0
*A portion of the SOPC supports this work program
Operating ProgramsCapital Improvement Plan
Funding Sources
2015-162016-172015-162016-17
General Fund 280,151257,899
Affordable Housing Fund 75,00030,000
Infrastructure Investment Fund 250,000
Total $355,151$287,899$250,000 $0
Operating Programs Capital Improvement Plan
GENERAL FUND REVENUE POTENTIAL
This is not a revenue-generating work plan. However, a portion of the Housing Programs cost will continue to be
offset by CDBG and the AHF. Staff will continue to seek grant opportunities and partnerships to offset work plan
costs to the General Fund.
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