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<br />Allowed Uses for the Lower Income Housing Fund <br /> <br />Prior to the implementation of the City IZO in 2001, fees were collected regularly as <br />developments had greater leeway in electing to pay the fee rather then provide affordable units. <br />However, since the IZO was implemented in 2001, most developments have provided units <br />rather then paying the fee. Currently, a development will pay fees if: <br /> <br />The size of the development is less then 15 units. (These developments are exempt from the <br />IZO.) <br /> <br />The City Council determines that the affordable housing needs of a project will best be met <br />by paying the fees rather then providing units. <br /> <br />Developments providing affordable housing units since the approval of the IZO include Nolan <br />Farms, Bernal Duet Homes, Greenbriar Apartments, The Gardens at Ironwood, Assisted Living <br />Facility and Silverstone Homes. Because the City was finalizing the Vineyard Avenue Specific <br />Plan at the time the IZO was under review, it was determined that units covered by this specific <br />plan would be exempt. <br /> <br />Staff has included a summary of inclusionary zoning ordinance provisions of neighboring cities <br />as Attachment 5. <br /> <br />The fees paid since 1978 have gone into the City's Lower Income Housing Fund (UHF). In <br />July 1994, the City Council adopted a set of policies and guidelines for use of the UHF (see <br />Attachment 1). In summary, the UHF can be used for the following general activities: <br /> <br />· Property acquisition (land and/or existing multi-family housing units) <br />· New construction (e.g., construction costs, payments for fee waivers, etc.) <br />· Rehabilitation (to either add new affordable units or maintain affordability in existing units) <br />. Housing counseling / public services related to housing <br />· Financial activities (e.g., direct financial assistance to affordable projects, provision of <br />second mortgage loans for below-market units, loan guarantees, leveraging of other funding <br />sources, etc.) <br /> <br />Attachment 3 summarizes the main projects and activities for which the UHF has been used in <br />the past. In addition to the items on the attachment, staff has used this fund for a number of <br />consultant studies related to projects that may not be reflected above. As an example, <br />approximately $40,000 was used for the financial consultant services for the Assisted Living <br />project. <br /> <br />SR:06:116 <br />Page 3 <br />