SR 06:116 - Laserfiche WebLink

STAFF RECOMMENDATION The above Summary of Potential Futures Uses of the Lower Income Housing Fund table directs approximately 65% of available and potential new fee revenue to Kottinger Place and the reserve for new low and very low income developments. While this later group will most likely be new developments, it could also be used for acquisition of existing developments with the goal of creating new low and very low income rental units. Further, note that the $1.5 million earmarked for repayment of the assisted living project's HELP loan is included only as "insurance" in the event this loan is not be repaid by BRIDGE Housing. Based on loan agreements with BRIDGE, the loan will be repaid to the City on a priority basis. However, if cash flow is unavailable, the City would need to pay the loan in 2015. If this occurs, BRIDGE will repay the City in subsequent years. The identification of potential future uses for the UHF will assist the City with maximizing the use of this limited resource and enable staff to focus its efforts in specific areas. Table F provides a general outline identifYing a range of uses based on Housing Commission action, comments from residents and interest groups and staff analysis. Staff is recommending the City Council review Table F and provide comment regarding the proposed uses. Staff anticipates the Council will add, delete, amend or endorse these uses. While the dollar amounts provide a general perspective, the magnitude of thes uses, may be more important in setting a roadmap for future fund expenditures. At this time, staff does not anticipate Table F as presented or amended, will be part of the City Budget, rather, as noted, it will represent a road map upon which future decisions regarding uses of the UHF may be based. As an example, based on the above, staff would not respond favorably to a developer inquiring about the availability of significant City funds to support moderate ownership housing. Notwithstanding the above uses, staff is also recommending the Council continue a conservative approach to fund expenditures. While there is currently a significant reserve in this fund, the future growth of the UHF is uncertain, and as a result, focusing on expenditures that provide a return of investment, take advantage of funding from other sources, and maximizes developer contributions assures that the fund can be used well into the future to meet the City's short and long term needs. FISCAL IMPACT The UHF currently has an unencumbered balance of approximately $7.4 million. While this is adequate to meet some needs, meeting the City's long term needs in a way that is consistent with RHND goals or the goals/programs included in the Housing Element of the General Plan, may require a significant portion of available and projected new resources. Because the future growth of the UHF is uncertain, staff continues to recommend a conservative approach with emphasis on projects that provide a return on UHF loans or contributions. Council action will not have a direct impact on current funds. SR:06:116 Page 9