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HomeMy WebLinkAbout10-20-2015 Item 10 - Affordable Housing Fund Appropriation for San Luis Obispo County Housing Trust Fund Meeting Date: 10/20/2015 FROM: Michael Codron, Community Development Director Prepared By: Jenny Wiseman, Planning Technician SUBJECT: AFFORDABLE HOUSING FUND APPROPRIATION FOR THE SAN LUIS OBISPO COUNTY HOUSING TRUST FUND (HTF) RECOMMENDATION Appropriate $60,000 from the Affordable Housing Fund for the San Luis Obispo County Housing Trust Fund. DISCUSSION Background Council identified housing as a Major City Goal in the 2015 -17 Financial Plan. Included in the work plan to accomplish this effort is an action item to use the Affordable Housing Fund to support the HTF’s operating expenses. The Housing Major City Goal budget includes a line item to accomplish this task in the amount of $30,000 in fiscal year 2015-16 and $30,000 in fiscal year 2016-17, for a total of $60,000 (Attachment A). Staff is requesting Council authorization to now appropriate the funds from the Affordable Housing Fund to pay for this effort. Overview of HTF The San Luis Obispo County Housing Trust Fund (HTF) is a Community Development Financial Institution (CDFI) that provides financing, technical assistance and advocacy to increase the supply of affordable housing in the City. The HTF provides funding for affordable housing projects, including property acquisition, construction, and refinancing. HTF staff also serves as a resource to City staff working with developers on affordable housing projects. The HTF’s Executive Director, Jerry Rioux, maintains a high profile in the community as an advocate for affordable housing projects, and serves on the Workforce Housing Coalition Board. ENVIRONMENTAL REVIEW The project is exempt from environmental review per Section 15061(b)(3) General Rule of the CEQA Guidelines. Appropriation of the funds from the AHF will support the operations of the HTF. Each project financed by the HTF in the City will be subject to CEQA at the time the project is filed. It can be seen with certainty that the proposed action to appropriate funding to the HTF for operating expenses will have no significant effect on the environment. 10 Packet Pg. 70 FISCAL IMPACT The City Council approved $60,000 to support the HTF’s operating expenses in the 2015 -17 Financial Plan (Attachment A). The act of appropriating funds from the AHF has no impact on the General Fund. ALTERNATIVE 1. Do not appropriate the AHF funds. This action is not recommended as the funds have already been approved through the 2015-17 Financial Plan. Attachments: a - Housing Major City Goal Budget Excerpt 10 Packet Pg. 71 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. C-26 10.a Packet Pg. 72 At t a c h m e n t : a - H o u s i n g M a j o r C i t y G o a l B u d g e t E x c e r p t ( 1 1 3 8 : A H F A p p r o p r i a t i o n f o r H o u s i n g T r u s t F u n d ) Page intentionally left blank.