SR 06:116 - Laserfiche WebLink

6B pLEASANTONo SUBJECT: City Council Staff Report April 18, 2006 Housing Division REVIEW OF POTENTIAL FUTURE USES FOR THE CITY'S LOWER INCOME HOUSING FUND STAFF RECOMMENDATION: SUMMARY: Provide staff with direction regarding desired short and long-term uses for the City's Lower Income Housing Fund. The City Council is in the process of a General Plan review. As part of that process, the City Council has requested an opportunity to fully review the City Lower Income Housing Fund ("LII-IF") with the goal of establishing priorities or goals for future expenditures to assist with developing an affordable housing unit strategy. This approach recognizes that the long- term growth of this fund is somewhat limited and as a result, it is necessary to have a blueprint that enables these funds to be utilized in a manner consistent with Council goals. Further, the use of this fund should be related to meeting the City's short and long-term affordable housing needs, including Pleasanton' s share of the Regional Housing Needs Determination (RHND). Honorable Mayor and Members of the City Council: BACKGROUND: In 1978, the City first established a Lower-Income Housing Fee ("fee") of $400 per unit for new residential projects. Any unit that was affordable to a low income household (80% of the Area Median Income, or AMI) was exempt from payment of the fee, and if at least 25% of the units in a project were affordable at low income levels, the entire project was exempt from the fee. The fee remained at $400 per unit until 1990, when the City made a major adjustment based on the results of a detailed nexus fee study. At that time, separate fee rates were established for single-family ($1,800 per unit) and multi-family ($600 per unit) residential projects. In addition, SR:06:116 Page I