HomeMy WebLinkAboutR-10915 Allocating affordable housing funds to support the ongoing operating expenses of the SLO County housing trust fund in the amount 80000RESOLUTION NO. 10915 (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ALLOCATING AFFORDABLE HOUSING
FUNDS TO SUPPORT THE ONGOING OPERATING EXPENSES OF THE
SAN LUIS OBISPO COUNTY HOUSING TRUST FUND IN THE AMOUNT
OF $80,000.
WHEREAS, on July 1, 2017, the San Luis Obispo City Council allocated $30,000.00 in
Affordable Housing Fund (hereinafter referred to as "AHF") monies to the San Luis Obispo
County Housing Trust Fund (hereinafter referred to as "HTF") for operating expenses for fiscal
year 2017-18, and $30,000.00 in AHF monies to HTF for fiscal year 2018-19; and
WHEREAS, on April 15, 2018, the HTF requested an additional $20,000.00 in AHF
monies to be dispersed by $10,000.00 for HTF operating expenses for fiscal year 2017-18, and
$10,000.00 for HTF operating expenses for fiscal year 2018-19; and
WHEREAS, this additional $20,000 will allow the HTF to improve the ability and
feasibility of the entitlement and construction of affordable housing projects in the City; and
WHEREAS, the City Council of the City of San Luis Obispo met in the Council Chamber
of City Hall, 990 Palm Street, San Luis Obispo, California, on July 10, 2018, for the purpose of
considering a request for Affordable Housing Fund (AHF) assistance; and
WHEREAS, the proposed project by the San Luis Obispo County Affordable Housing
Trust Fund (HTF) meet eligibility criteria established by the City Council; and
WHEREAS, Housing Element Program 5.16 provides direction for the City to "continue
to provide resources that support the SLO County Housing Trust Fund's efforts to provide below-
market financing and technical assistance to affordable housing developers as a way to increase
affordable housing production in the City of San Luis Obispo"; and
WHEREAS, the City Council has duly considered all evidence, including the testimony
of the applicant, interested parties, and the evaluation and recommendations by staff presented at
said meeting.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Environmental Determination. The project is excempt from environmental
review per Section 15061(b)(3) General Rule of the CEQA Guidelines. The project is an action
to award funding.
SECTION 2. Findings. The City Council does hereby make the following findings in
support of the proposed AHF award:
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Resolution No. 10915 (2018 Series)
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a) Eligibility: Use of the AHF for the requested purpose will increase or improve the
City's affordable housing inventory and promote General Plan policies regarding
housing, as follows:
i) The Housing Trust Fund is eligible for Affordable Housing Funds because it
increases the City's affordable housing inventory and implements several
General Plan policies regarding housing. The HTF provides loans to affordable
housing developers to increase the supply of below-market housing.
b) Need: There exists a substantial or overarching need for the type of unit to be assisted,
as follows:
i) The City of San Luis Obispo has a substantial need for affordable housing to
meet goals stated in the City's General Plan Housing Element. The HTF
supports affordable housing for those who earn nothing, up to 1501/o of the area
median income (AMI). The HTF lending focuses on the lower end of this
income range, with the 92.5% of 832 units financed to date for households
earning up to 80% of AMI.
c) Suitability: The project to be assisted is appropriate for its location both in terms of
land use and design, as follows:
i) Since the first loan closed in 2005, the HTF has provided approximately $19.3
million to finance 37 projects throughout San Luis Obispo County. Ten ofthese
loans were located in the City of San Luis Obispo, which received about $3.8
million of their financing. The HTF only provides loans to projects that have
received all City planning entitlements.
d) Timing: The project would better serve the City's needs if it were built immediately
as opposed to later, as follows:
i) Affordable housing is greatly needed within the City of San Luis Obispo. The
grant of these additional AHF funds will allow for the HTF to frequently issue
more loans to affordable housing developers for projects within the City.
e) Financial Effectiveness: But for the requested funding, the project would not be
economically feasible; or AHF funding "leverages" significant additional funding from
other sources, as follows:
i) This is a highly effective use of the City's Affordable Housing Funds, as the
HTF has been extremely successful in bringing government grants into the
community. Between 2009 and 2014, the HTF secured $3.3 million in grants
from the CDFI Fund of the US Treasury. The also received nearly $2.1 million
from the California Local Housing Trust Fund Matching Grant Program
(LHTF) between 2010 and 2017, and secured state tax credits for $2.5 million
in bank investors. These grants and tax credits allow the HTF to offer better
rates and terms affordable housing developers.
f) Readiness: The project has all necessary City approvals and is ready to proceed, as
follows:
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Resolution No. 10915 (2018 Series)
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i) The City has concurrently allocated funding for operating costs for the HTF
since 2005, and has been one of the strongest and most consistent funders and
supporters. This award will allow for future available funding for affordable
housing projects.
SECTION 3. Affordable Housing Fund Award, San Luis Obispo County Housing Trust
Fund. The City Council does hereby approve an Affordable Housing Fund grant award to San
Luis Obispo County Housing Trust Fund in the additional amount not to exceed $80,000 to support
ongoing operating expenses per the 2017-19 Financial Plan.
Upon motion of Council Member Pease, seconded by Vice Mayor Christianson, and on the
following roll call vote:
AYES: Council Members Gomez, Pease and Rivoire,
Vice Mayor Christianson and Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 10th day of July 2018.
Maya} Hei
ATTEST:
1
Teresa Purrington, City Cl r
OVED AS TO FORM:
J. Wistine Dietrick, City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this 2-e day of :�C�,� \/ _ ?-01 $
Teresa Purrington, City Cle
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