HomeMy WebLinkAbout8.1 Report on Affordable Housing Fund BalanceAgenda Item 8.1
DUBLIN
CALIFORNIA
STAFF REPORT
CITY COUNCIL
DATE: May 21, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Linda Smith, City Manager
SU B.ECT: Report on Affordable Housing Fund Balance
Prepared by: Jason Earl, Senior Management Analyst
EXECUTIVE SUMMARY:
The City Council requested a report on the Affordable Housing Fund balance, which is currently
approximately $15.6 million. After accounting for the Housing Division's operating costs as well
as project funding already allocated, the remaining fund balance is approximately $5.7 million. In
addition, Staff anticipates the receipt of $6.5 million from the Francis Ranch project later this year.
There are three affordable housing projects in the planning stage, but no Affordable Housing
Funds have been committed to these projects.
STAFF RECOMMENDATION:
Receive the report.
FINANCIAL IMPACT:
None.
DESCRIPTION:
The Fiscal Year 2023-24 end -of year balance in the Affordable Housing Fund was approximately
$15.6 million, as shown in Table 1 below. After considering the operating costs in the current year
and for the next two budget cycles, as well as project funds already allocated by the City Council to
support two affordable housing projects, the remaining unallocated balance is $5.7 million.
Table 1. Affordable Housing Fund Balance and Allocations
6/30/2023 Balance
Projected FY 2023-24 Housing Division Costs*
Amador Station Pre -development Loan (issued in FY 2023-24)
Regional Street Predevelopment Loan (allocated)
Amador Station Development Loan (allocated)
Projected FY 2024-26 Housing Division Costs*
$15.6 million
($0.7 million)
($4.3 million)
($1.0 million)
($2.8 million)
($1.1 million)
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Ending Balance $5.7 million
* Expenditures net of revenue, includes Housing Division operating costs, First -Time Homebuyer Loans,
and interest income
The table above accounts for the Affordable Housing Fund supporting various affordable housing
related programs and services including the First -Time Homebuyer Loan Program and Staff time
over the next two years.
There are three affordable housing projects currently in the initial planning stage and Staff is in
discussions with the respective development teams regarding these projects. However, no
Affordable Housing Funds have been allocated to these projects. The following are the three
projects being contemplated by the development teams:
• The DC (SAHA and Sunflower Hill): 60+/- units for those with intellectual and
developmental disabilities.
• The Transit Center Site D-1 (Eden Housing): 99+/- units of family affordable housing.
• Francis Ranch (Eden Housing and Sunflower Hill): 77 +/- units of affordable housing to
serve low- and very low-income families, with some units allocated for those with
intellectual and developmental disabilities.
In addition, Staff anticipates the receipt of $6.5 million via the approved Affordable Housing
Agreement for the Francis Ranch project. Per the agreement, the developer will provide a lump
sum payment of $500,000 for the Affordable Housing Fund and will pay in -lieu fees for 25
affordable units (which at the current rate of $241,131 would be approximately $6 million). The
developer estimates that they will pull their first building permit in the second half of 2024. This
has not yet been budgeted; it will be included in the Amended Budget as payments occur.
STRATEGIC PLAN INITIATIVE:
Strategy 2: Housing Affordability
Objective D: Facilitate the production of affordable housing for lower income seniors,
workforce, and special needs households.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
The City Council Agenda was posted.
ATTACHMENTS:
None.
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Affordable Housing Fund Balance
City Council
May 21, 2024
II
DUBLIN
CALIFORNIA
Affordable Housing Fund Balance and Allocations
Starting balance as of 6/30/2023
$15.6 million
Projected FY 2023-24 Housing Division Costs*
($0.7 million)
Amador Station Pre -development Loan (issued in FY 2023-24)
($4.3 million)
Regional Street Predevelopment Loan (allocated)
($1.0 million)
Amador Station Development Loan (allocated)
($2.8 million)
Projected FY 2024-26 Housing Division Costs*
($1.1 million)
Ending Balance
$5.7 million
*Expenditures net of revenue, includes Housing Division operating costs, First -Time Homebuyer Loans, and interest income
4
Affordable Housing Projects in Initial Planning Stage
• The DC (SAHA and Sunflower Hill):
— +/- 60 affordable units
— for persons with intellectual and developmental disabilities
• The Transit Center Site D- I (Eden Housing):
— +/- 99 affordable units
• Francis Ranch (Eden Housing and Sunflower Hill):
— +/- 77 low and very low affordable units
— Some units specifically for persons with intellectual and developmental disabilities
5
Anticipated Affordable Housing Revenue
• Francis Ranch:
— $6.0 million in -lieu fees (25 units at current rate of $241, 13 I /unit)
— $500,000 through developer agreed lump sum payment
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Questions?
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