AGENDA REPORT - Laserfiche WebLink

LIHF Analysis and Recommendation Money collected from the Lower Income Housing Fee is placed in the City's Lower Income Housing Fund and utilized in accordance with PMC 17.40 (Attachment 2) that mandates the fees be used in support of the activities to implement the City's Housing Element including, but not limited to, land acquisition, construction, rehab, subsidization, counseling, and assistance to other agencies, business or individuals to expand housing opportunities to lower income households. In accordance with this, the City has used these funds for a range activities including: . Land acquisition including the recently acquired 4138 Vineyard Avenue site for the Kottinger Place Development project . Housing Rehabilitation and Second Mortgage loans for lower income households . Capital improvements for existing housing developments such as Pleasanton Gardens • Loans and grants for special needs housing such as REACH/HOUSE, Inc. . Professional services for studies and services related to affordable housing programs and services including assistance with the recently completed Housing Element update . Loans and financial assistant for new affordable housing projects such as the recently approved Anton Hacienda development. • Reimbursement of staffing costs, including those of the City's Housing Specialist and the Assistant City Manager, for affordable housing services • Support to nonprofit agencies such as the Tri-Valley Housing Opportunity Center, ECHO Housing, and Community Resources for Independent Living (CRIL) Included as Attachment 3 is a February 13, 2013, agenda report that includes a listing of recent projects benefiting from the use of the Lower Income Housing Fund. Of the Lower Income Housing Fund's overall balance, $8 million is appropriated to the Kottinger Place development project and $500K is appropriated to paying the In-Lieu Traffic Impact fee for the St. Anton Development resulting in a current balance of $7.9 million. In addition, the City Council will soon review the option of accepting a payment of $4.5 million from the Auf der Maur development in lieu of it including affordable housing units which if placed in this fund, would increase its balance. In considering a LIHF adjustment, staff is presenting the following four options for City Council and Housing Commission consideration: . Option 1 - Retain the current fee amounts with no adjustment. The current fee schedule calls for the fees to be adjusted annually in an amount equal to the CPI and as a result, the current fee will continue to increase in an amount that is at least somewhat consistent with increased program costs. Further, based on the development feasibility analysis, multi-family, office and R&D/ light industrial development already face feasibility challenges and therefore, no upward adjustment may be appropriate for at least those use categories. Selecting this Page 7 of 12