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HomeMy WebLinkAboutItem 3.3 Endorse Countywide Housing Bond CITY OF DUBLIN 4so -�a AGENDA STATEMENT CITY COUNCIL MEETING DATE: SEPTEMBER 10, 1990 SUBJECT: Endorsement of a countywide Housing Bond Program on the November ballot and approval of a resolution authorizing participation by the City in the programs funded by the bond issue. REPORT PREPARED BY: Dennis Carrington, Senior Planner L EXHIBITS ATTACHED: 1 . Resolution 2 . Letter dated July 25, 1990 from the Building Industry Association signed by Gary Hambly. 3 . Letter dated August 2 , 1990 from Alameda County Housing Council signed by Charles Santana. 4 . Summary of the Alameda County Housing Bond Program. RECOMMENDATION: 1 . Receive the Staff Report. y� 2 . Receive presentations from Jack d-� Shepherd of the County Department of Housing and Community Development and from Mark Stechbart of the Alameda County Housing Council . 3 . Review the attached letters and report. 4 . Endorse the Housing Bond Program measure on the November ballot. 5. Adopt resolution authorizing participation by the City in the programs funded by the Housing Bond Program. FINANCIAL STATEMENT: The Housing Bond Program would be financed by a $150 ,000,000 general obligation bond. There would be no impact on the General Fund of the City. Properties would be assessed to pay for the program. The projected average assessment for the first 10 years of the program is $10 per $100,000 of assessed value. DESCRIPTION: On August 7 , 1990, the Alameda County Board of Supervisors acted to place a Housing Bond Program on the November 1990 ballot. The bond measure, which would require a 2/3 vote in favor to pass, is being sponsored by the Alameda County Housing Council and the Building Industry Association. The measure would establish a countywide Housing Bond Program to construct, rehabilitate and acquire rental housing for low-income senior citizens, disabled persons, and homeless families with children. Projects would be subject to local city council approval. The program also could to provide down payment assistance loans to qualified first-time homebuyers. The program would provide as many as 4 ,000 affordable rental units and assist as many as 800 first-time homebuyers. ITEM NO COPIES TO: Linda Gardner, HCD Larry Tong Dennis Carrington HCD File Agenda File [HBP] The rental projects would be either new construction or rehabilitated structures. There would be no typical design to the units because each would be built to blend into existing neighborhoods. Sites for these homes would be chosen on the basis of access to transportation, shopping, services required by each group, and employment opportunities. Developments would include a mix of market-rate and affordable homes, and may include a mix of family, senior, and disabled units as well . Developments to be funded would be selected by committees from the north, south and east areas of the county. The committees would be made up of one representative appointed by each city council in the area and one representative appointed by the Board of Supervisors. All funded developments would require the approval of the local governing body in the jurisdiction where it would be located. These units would only be rented to households with very low incomes (earning less than 50% of the Alameda County median income adjusted for family size) and could pay no more than 30% of their income for rent. 11he homeownership program would establish a revolving loan fund to assist first-time homebuyers with down payments. Partici.oati.on in this nrnaram wnuld be limited to households at or below the median income level adjusted for family size. The homebuyer would have to be currently living or working in Alameda County, and must be purchasing the home as their principal residence. The program would provide a maximum of $30,000 towards a down payment or to reduce the first mortgage. This loan would be secured by a secondary mortgage on the house. The homebuyer would have to provide at least 5 percent of the total purchase price. The secondary mortgage would have a below-market interest rate, and no payments would be due until the house is sold, refinanced, or the owner no longer needs the assistance. Loan recipients would be requalified every 5 years to assess their financial status. Upon repayment, the proceeds will provide further funding for the Housing Bond Program. The total bond issue would be approximately $150 ,000,000, with $55,000 ,000 for senior housing, $21 , 500,000 for disabled housing, $55 ,000 ,000 for homeless family housing, and $12 ,000,000 for first-time homebuyers. $6 , 500 , 000 would be used for administration and issuance costs. Each city and the unincorporated county would be guaranteed a minimum allocation of $4 ,500,000 for rental housing. A $10 ,000,000 fund would be allocated to East County (Dublin, Livermore, Pleasanton and unincorporated areas) for rental housing. The funds in the homeownership component would be allocated by county sub-area. East County would receive $3 ,000 ,000. Jack Shepherd of the Alameda County Department of Housing and Community Development and Mark Stechbart of the Alameda County Housing Council will attend the City Council meeting and make brief presentations. Staff recommends that the City Council endorse the Housing Bond Program measure on the November ballot and that it adopt a resolution approving participation by the City in the Housing Bond Program. 4 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING PARTICIPA`T'ION BY THE CITY IN A COUNTYWIDE PROGRAM TO CONSTRUCT, REHABILITATE AND ACQUIRE HOUSING FOR LOW-INCOME SENIOR CITIZENS, DISABLED PERSONS, AND HOMELESS FAMILIES WITH CHILDREN, SUBJECT TO LOCAL CITY COUNCIL APPROVAL, AND TO PROVIDE DOWN PAYMENT ASSISTANCE LOANS TO QUALIFIED FIRST-TIME HOMEBUYERS WHEREAS, the Alameda County Housing Council proposes the implementation of a countywide program to construct, rehabilitate, and acquire up to 4 ,000 rental housing units reserved for occupancy by very low income senior citizens, disabled persons, or homeless families with children; and the program will also increase opportunities for homeownership in the county by providing down payment assistance loans to qualified first-time homebuyers; and WHEREAS, the Alameda County Board of Supervisors has called for a countywide election to authorize the program and to authorize the issuance of general obligation bonds of the County to finance the program; and WHEREAS, the program may provide financing for the construction, rehabilitation, and acquisition of such rental housing to be located in the City of Dublin (the "City") , subject in each case to approval by the City Council of the City of Dublin (the "City Council") ; and WHEREAS, the City Council desires to approve the participation by the City in this countywide program and to approve the calling by the County of the election on a countywide basis; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Dublin as follows: 1. The participation by the City in the proposed housing program is hereby approved, subject to the approval hereafter by the City Council of each rental housing development to be located in the City. 2 . The calling by the County of a countywide election to authorize the implementation of the program is hereby approved. 3 . This resolution shall not create, or authorize the creation of, any liability of the City or any of its funds or properties for any purpose of the program. /hsgbond UuHIBIT I 4 . This resolution shall take effect immediately upon this passage and approval . PASSED, APPROVED, AND ADOPTED this 10th day of September, 1990. AYES: NOES: ABSENT: Mayor ATTEST: City Clerk /hsgbond L L �aN CAC/,, J °Pti� EASTERN DIVISION BUILDING INDUSTRY ASSOCIATION 1280 BOULEVARD WAY #211, WALNUT CREEK, CA 94595 BUILDING INDUSTRY ASSOCIATION! (415) 932-8884 (415) 444-8711 July 25, 1990 RECEIVED JUL 26 1990 Mayor Paul Moffatt City of Dublin CITY OF DUBLIN P.O. Box 2340 Dublin, CA 94568 Dear Mayor Moffatt: The Building Industry Association, in cooperation with the Board of Supervisors and the Alameda County Housing Council, is sponsoring an affordable housing bond issue for the November 1990 ballot. We are seeking voter approval of a $16 increase per $100, 000 of assessed valuation to finance a $150 million, thirty year bond. The bulk of the program funded by the bond would involve housing for seniors, handicapped and families with children, with a small portion of the program involving first time home-buyer mortgage buy-down. We anticipate about 3 , 000 units being built or rehabilitated. The program provides for local control of project approval, a dedicated local share of program funding and traditional local input through the planning approval process. The Alameda Board of Supervisors will consider placing the issue on the November ballot at their August 7 meeting. Subsequent to that action, local cities will be approached for a formal resolution endorsing the measure and entering the municipality into the program. We are asking for both your city's formal involvement, and that of Council and yourself as the political leadership of your community. We have a poll that clearly shows over 65% general public support (among consistent voters) for the program plan. With some program points receiving 75%+ support, the voting public clearly understands that the lack of affordable housing is a very corrosive problem in society today. But we need to assemble a coalition of local elected officials and opinion makers to attain the required 2/3 affirmative vote for passage. RHIBIT HEADQUARTERS WEST BAY SOUTHERN NORTHERN REGIONAL OFFICES: (415)820-7626 (415)364-9008 (408)243-5889 (707)584-9133 San Ramon Redwood City Santa Clara Rohnert Park AFFILIATED WITH NATIONAL ASSOCIATION OF HOME.BUILDERS AND CALIFORNIA BUILDING INDUSTRY ASSOCIATION July 25, 1990 Page Two Therefore, we would appreciate it if you would review the enclosed program design. We anticipate that this issue will be discussed at the August 8 Council of Mayors meeting. Our Alameda County government affairs director, Mark Stechbart, will be calling you in the next few days to discuss the program and the poll data in more detail. If you have any questions, please feel free to call. Best regards, �(L Richard. D. Baker Gary Hdmbl Y President Senior Vice President BIANC, Eastern Division BIANC Alameda County Housing Council August 2, 1990 The Honorable Paul Moffatt Mayor of Dublin Dublin Civic Center P.O. Box 2340 Dublin, CA 94568 Subject: Alameda County Housing Council Proposed Seniors, Disabled, Homeless Families Housing Bond Dear Mayor Moffatt: The Alameda County Housing Council is a local public/private partnership working to increase the supply of affordable housing in Alameda County. To this end, the Housing Council is working to increase the capacity of local nonprofit housing development organizations, to obtain below-market sites and properties suitable for housing production and to increase the amount of public financial resources available for affordable housing. As part of its effort, the Housing Council is developing an affordable housing program financed with a $150 million general obligation bond. This program will fund the development or purchase and rehabilitation of affordable rental housing for very low-income senior citizens, disabled persons, and homeless families with children. The proposal also includes a pilot program to provide downpayment assistance to first-time homebuyers. To move forward, the program must be approved by a two-thirds vote of the electorate. On August 7, the Housing Council is requesting that the Board of Supervisors place the bond program on the November 1990 ballot. Once the measure is on the ballot, the Housing Council will come before each city council in the county to request your support of the housing bond program and to approve its operation within your city. The program -is designed with a great deal of local control. A minimum of $4.5 million will be allocated for new rental housing within each city. Developments to be funded will be selected by committees for the north, south and east areas of the county. These committees will be made up of one representative appointed by each city council in the area and one representative appointed by the Board of Supervisors. In addition, all funded developments must have the approval of the local governing body in the jursidiction where it will be located. 3 224 West Winton Ave. Room 169 / Hayward, CA 94544 / (415) 670-5404 August 2, 1990 Page 2 An outline of the proposed housing bond program, as well as a summary of the Housing Council's goals and strategy, is enclosed. I will also be making a presentation on the Program at the August meeting of the Mayor's Conference. If you would like more information prior to our presentation to your city council, please contact me or Jack Shepherd at 670-5941. The proposed housing bond program is an exciting step forward in meeting the affordable housing needs of all of the citizens of Alameda County. We are looking forward to discussing this effort with you. Your support will be critical to the successful passage of the bond measure and the subsequent creation of thousands of affordable housing units locally. Sinc r etsa ta na Chairman, Alameda County Housing Council Supervisor, Second District Enclosure cc: Each City Council Member City Manager 1892H Alameda County Housing Council: Housing Bond Proposal: SUMMARY * Affordable housing opportunities for very low-income people: Senior citizens Disabled individuals Homeless families with children * Homebuying assistance for first-time homebuyers with no greater than median incomes * Projected total bond amount: $150 million * Number of units financed in each component: 600 to 1,200 units ($55 million) for senior citizens 250 to 500 units ($21.5 million) for the disabled 500 to 1,000 units ($55 million) for homeless families 400 to 800 loans ($12 million) for first-time homebuyers 1879H-11 7/19/90 EXHIBIT Alameda County Housing Council: Housing Bond Proposal RENTAL HOUSING PROGRAMS * Reserved for very low-income households * Developments may include a mix of market-rate and program units * Neighborhood sensitive design; possibly include community space * Ground-floor units will be adaptable for wheelchair accessibility where possible * Energy efficient. design * Located with easy access to transportation, shopping, services, schools, and employment. * Some developments will be new construction and some will entail purchase and rehabilitation of existing buildings y Rents will be as low as possible while covering operating expenses, and will be no greater than 30 percent of 50 percent of median household income, based on unit size * Long-term affordability Senior Housing * At least one member of the household must- be 62 years old or older * All units will be wheelchair adaptable * Estimated allocation is $55 million, which will finance a minimum of approximately 650 units Disabled Housing * At least one member of the household must be disabled * Estimated allocation is $21.5 million, which will finance a minimum of approximately 250 units Homeless Family Housing * All households must have children and must have last resided in a shelter or be referred by an established social service or shelter provider * Estimated allocation is $55 million, which will finance a minimum of approximately 500 units -2- Alameda County Housing Council: Housing Bond Proposal HOMEOWNERSHIP PROGRAM * All households must be at or below median income, currently $44,100 for a family of four * Priority given to persons currently living or working in Alameda County * Owner must occupy home purchased with assistance from this program * There will be an intensive outreach campaign before the program begins to alert current renters to the assistance provided and to foster a belief in the possibility of homeownership * Program will provide a maximum loan of $30,000 as down payment assistance to first-time homebuyers secured by a second mortgage Homebuyer must provide at least 5 percent of the total purchase price * The loan will be at a below-market interest rate * Owner must requalify every 5 years, and no payments are due until the house is sold or refinanced, or the owner no longer needs assistance * Loan repayments will provide further funding for the Housing Bond Program * Estimated allocation $12 million, which will finance a minimum of approximately 400 loans -3- Alameda County Housing Council: Housing Bond Proposal ALLOCATION OF FUNDS Rental Component • Each city and the unincorporated county will receive a guaranteed minimum of approximately $4,500,000 • This amount will help finance approximately 50 to 150 units, depending on how it is leveraged • The remaining amount will be allocated to a pool for each County subarea of the county, depending on population, as follows: North County - $27,000,000 Souty County - $27,000,000 East County - $10,000,000 Homeownership Component * Each subarea will receive an amount based on population as follows: North County - $4,500,000 South County - $4,500,000 East County - $3,000,000 -4- Alameda County Housing Council: Housing Bond Proposal PROJECT SELECTION Rental Component • Project selection will be through a competitive process • Selection process will include staff review, selection of projects by a subarea committee, and ratification by the Board of Supervisors • Projects must first meet minimum requirements in order to be considered: Specified design criteria City approval Development- costs at or below the maximum Prevailing wages for employees County-level local hiring preference * Project ranking criteria include: Developer experience Location Construction financing committment Total costs Amenities and/or unit size Additional design criteria Ability to leverage additional funds Percentage of affordable units Long-term affordability Homeownership Component * Some loans will be given on a first-come, first-serve basis to qualified applicants Others will be reserved for specific new developments or targeted to specific areas -5- Alameda County Housing Council: Housing Bond Proposal DEVELOPMENT PROCESS Rental Component * Three RFP cycles over a period of approximately three years, corresponding to issuance of a portion of the total bond amount, approximately 146 million with each issue * All rental components of the program will be included in each cycle * RFP cycles will be open to all nonprofit developers and to joint ventures between nonprofit and for-profit developers Homeownership Component • Funded fully in one cycle • Intensive marketing program before start date to alert all possible qualified applicants -6- Alameda County Housing Council: Housing Bond Proposal ADMINISTRATION Rental Component • Primarily nonprofit ownership • Management can be nonprofit or for-profit and will be selected based on quality and cost of services • Program will set initial rents, approve rent increases, and ensure maintenance of high quality Homeownership Component * Administered similarly to single-family mortgage revenue bond program or mortgage credit certificate program -7- Alameda County Housing Council: Housing Bond Proposal FINANCIAL PROPOSAL • Total bond issue of approximately $150 million • Rental program total of $131.5 million: Seniors - $55 million; Disabled - $21.5 million; Homeless Families - $55 million; • Down payment loan fund of $12 million • Probably three issues for rental program, about $46 million in each • Rental program will issue tax-exempt bonds, possibly 501(c)(3) bonds or private activity bonds • Homeownership will be funded in one issue, either taxable or tax-exempt • Administrative and issuance costs funded in bond of about $6.5 million -8- Alameda County Housing Council: Housing Bond Proposal BOND ELECTION * Requires approval by two-thirds of the voters * Board must put measure on ballot at meeting on August 7, 1990 * Program will seek approval from each city council to operate within that city. -9-