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Home My WebLink About4.05 AffordHousImplePlan CITY CLERK File # 430-80 AGENDA STATEMENT CITY COUNCIL MEETING DATE: July 17, 2001 SUBJECT: Affordable Housing Implementation Program Policies and Guidelines for Use of the City of Dublin Inclusionary Housing In- Lieu Fees Fund Report Prepared by Carol R. Cirelli, Senior Planner ATTACHMENTS: RECOMMENOATIoN'~I · Resolution Approving Policies and Guidelines for Use of the City of Dublin Inclusionary Housing In-Lieu Fees Fund (with the amended Policies and Guidelines attached as Exhibit A) Resolution Approving the Amended Affordable Housing Implementation Program (with the Affordable Housing Implementation Plan attached as Exhibit B) ' Adopt Resolutions FINANCIAL STATEMENT: None DESCRIPTION: On June 19, 2001, the City Council considered a resolution approving the Policies and Guidelines for Use of the Inclusionary Housing In-Lieu Fees Fund. The City Council recommended changes to the policies and guidelines. Staff has completed these changes as shown on Exhibit A of Attachment 1. Changes to the target group section of the Acquisition-Rehabilitation and New Construction of Multi-Family - Rental Units guidelines also required changes to the Affordable Housing Implementation Program. These changes are shown on Exhibit B of Attachment 2. COPIES TO: In-House Distribution ITEM NO. g:\housing\implementation program\city council staff report - Amendment to AHIP Policies and Guidelines RESOLUTION NO. 01 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN RESOLUTION APPROVING POLICIES AND GUIDELINES FOR USE OF THE INCLUSIONARY HOUSING IN-LIEU FEES FUND WHEREAS, in 1996, the City Council adopted the Inclusionary Housing Ordinance requiring that all new residential developments (ownership and/or rental projects) containing twenty (20) or more units be affordable to very low, !ow and moderate income households; and WHEREAS, Section 8.68.080 B. of the Inclusionary Zoning Regulations of the Zoning Ordinance provides the option of paying a fee in-lieu of constructing Inclusionary Units ("In-Lieu Fee"); and WItEREAs, Section 8.68.100 B. of the Inclusionary Zoning Regulations establishes how the Inclusionary Housing In-Lieu Fees Fund shall be used or committed to use by the City for the purpose of providing very low, low and moderate income ownership or rental housing in the City of Dublin; and WHEREAS, on February 6, 2001, the City Council adopted the Affordable Housing Implementation Program that sets forth funding options and program options for purposes of providing affordable housing for specified target groups in Dublin; and WHEREAS, on June 19, 2001 and July 17, 2001, the City Council reviewed and considered all staff reports and recommendations submitted regarding the policies and guidelines for use of the City's housing in-lieu fees incorporating the strategies and funding allocation methods of the Affordable Housing Implementation Program. NOW, THEREFORE, BE IT RESOLVED that the Dublin City Council does hereby find that the Inclusionary Housing In-Lieu Fee Fund policies and guidelines are consistent with the stated purpose and objectives of the City's Zoning Ordinance, Municipal Code and the General Plan. AND, BE IT FURTHER RESOLVED that the Dublin City Council does hereby resolve as follows: SectiOn 1: The City Council adopts the policies and guidelines for use of the Inclusionary Housing ha, Lieu Fee Fund as set forth in Exhibit "A", attached hereto and incorporated herein by this reference. Section 2: This resolution shall become effective immediately upon its passage and adoption. PASSED, APPROVED AND ADOPTED this 17t~ day of July, 2001. AYES: NOES: ABSENT: ABSTAIN: ATTEST: City Clerk K2/G/7-17-01/reso-inlieu-housing. doc (Item 4.5) Mayor OShousing~nclusionary\ccreso inlieufee implementation ¢~- ~'/)~/~ / ATTACHMENT 1 POLICIES AND GUIDELINES .FOR. usE OF THE CITY OF DUBLIN INCLUSIONARY HOUSING IN.LIEU FEES FUND USeS Of the Inctus~on~ry H0~8:i~g In,Lien Fees Fund The City CO~1 has es'tablished.~ ap~6ved program ligt for which housing in-lieu Fees shall be al10c~ted. Appro. ed Program Types Dublin's inqieu fees shall.be leveraged in the folloWing priority given toward the folloWing apprOVed program types: 1. Acquisition-Rehabilitation 2. New Construction of affordable multi-family units 3. Down-payment assistance 4. Rental Assistance "Leveraging' is the method, by which the City matches in-lieu fees from the Housing In- Lieu Fee'Fund toward approved Pro,am types. SpeCifically the City wi}l match, dollar for dollar, state, federal, or other private ~ds or provide a lump sum based on specific program guidelines. Summaries of each program type are described below: Acquisition-Rehabilitation Acquisition-Rehabilitation refers to the mechanism by which units can be acquired, rehabilitated, and reserved for very low-income and low-income target group housetiolds. New Construction of Affordable Multi-Family Units New Construction of affordable'Multi-FamilY UnitS involves the payment of costs, including fees, associated with new construction of multi-family rental units for "Very LoW Income" and/or "Low Income" target group households and/or ownership' housing for moderate income households. Down-Payment Assistance Down-Payment assistance involves providing a subsidy in the form of a silent second .mortgage or closing cost assistance aimed at helping a family p~chase a new dwelling unit. Once the dwelling unit is resold~ the initial down-payment assistance subsidized by the City would be retUrned to the City and used again for the inclusionary unit's new buyer. Rental Assistance Rental assistance woUld be provided by the City in the form of short-term grants to agenci.e~.it~t a~e v~0rk, i. ng to prevem:~homelessne.ss and provide interim and/or' transition support', for target, hOuSehOlds.. ACQUI$ITIO.N~:~.HABILITATION AND NEW cONSTRUCTION OF AFF'O~ABLE MULTI,FAMILY UNITS General. Policies and Guidelines for Leveraging Dublin's In,Lieu F.ee~ toward AcquisitionxReliabilitafion and :New Construction of Affordable Multi'Family Units. For acquisition-rehabilitation projects, in-lieU funds may be used towards the purchase of existing market-rate units or affordable housing units in which prior affordability provisions are at risk of termination or expiration and where the objective is to maintain or prolong housing affordability. Units that have been rehabilitated using the City' s in- lieu fees shall be exclusively affordable to lower income .renters. For new construction of affOrdable multi-family units~ the City Council may determine to leverage in,lieu fees for mUlti-family residential projects where the Provision of inclusionary units is a possibility. The developer of residential mUlti-family projects for which construction of inclusionary units were required as a condition of project approval would be able to receive financial assistance through the leveraging of in-lieu fees only by submitting a written request to and obtaining approval from the City Council. The City will leverage in-lieU fees toward acquisition-rehabilitation and new construction projects based on the following criteria: Number of affordable units in proportion to the nUmber of overall units in a project Per Unit Cost Term. of Aff0rdability Architecture and quality of design Target groups served with respect to City preferences Long, Term maintenance and management of affordable units Proiect Mix Number of Affordable Units in Proportion to the Number of Overall Units Projects shall be Weighted according to the number of affordable units that are provided in proportion to the overall project. In-lieu fees will not be given to a housing developer ~hat only meets ,he minimum percentage of inelusionary housing units required. per~Unit Cost The City shall assess affordable housing Projects based on the efficiency 0fpropo'sed' projects. Those projects-that proVide a lower-per unit cost while meeting or exceeding target group goals and preferences and maintaining architectural design standards shall be given priority in tel ati. o n to other simi. lar proj ec~ s. Term Of Affordability Affordable units acquired and rehabilitated or constructed using in-lieu fees should be affordable for a period no less than 30 years. The City encourages permanently affordable unit project submittals. Those projects with permanentlY affordable units shall be given consideration over projects with shorter terms of affordability. ArChite.cmre and:QUality ~f:'Design p~pp~ieant~ request~g in,lieu fees for. affordable housing projects shall maintain the same high stand~a~ with resPect to deSign characteristics and quality that the City demands for its market rate unit projects. Target Groups Served With Respect to City Preferences The following target groups are listed in order of preference for acquisition-rehabilitation and new construction of affordable multi-family construction projects: Acquisition-Rehabilitation 'This program shall serve the following target households whose income does not exceed 80% of the County median income. If more than one request for funding is received at a time, priority will be given to applications/proposals that best serve the target groups and order of preference listed below: 1 .' Dublin Residents who are seniors 2. ReSidents of Dublin who are permanently disabled 3. Residents of Dublin m~d non-residents who are members of Dublin's workforce (Cit:~ personnel~ D'u'blh~. pot.ice ol~.~.ce.s, Dubth.~ fi.re fighl:ers, teachers~ rem.il clerks, ba,nk '_tellers, grocery clerks, and others in. the re'raj.1 and cu. stome service industries 'fbr 4. Families with Children that Currently reside in Dublin 5. Other Dublin Residents 6. Non-Resident Seniors 7. Non-Resident Disabled Persons 8, Other NOn-Residents Applicants reqUesting in4ieu fees for acqUisition-rehabilitation Projects should incorporate hoW their development proposals will serve the target groups. Projects that serve a variety of the target groups are encouraged, but those projects that exclUsively serve a target group will be evaluated based on the order of preference listed fOr each targe~ grouP t:cpe. For ex~ple, aequi,Sition~ehabilitation project,s that exclusively serve seniors willbe given more Weight than a~quisition-rehabilitati0n projects that exclusively serve Members of Dublin's Workforee. New Construction of Multi-Family Units "l"l-,~e .,-,~.r~f~.,-~ ~ .... r .......~,~f '[~, ~.h~ 1,~-t'~.~O .... .,.x~ [~.lc~t;~,~c. ~';~r. lol'~i,~,~ ~'l~' /)~O~,_~q~rl OD q O ABAG"s final Regicmat Housing Needs Detelaninafion altoca~ion 'fbr Dublin, _~0 ~ of~e ................ low-mcom, chouseho , d0% 20%to rots will be dedicated to vew Iow; ......... "- ~ Ids. low ............. lox~ income household , ~d 20% ; ........... ~- - ~' s' 50% to :income hoUseholds. h, ~'q':~';~:;~ +~' '+~ .... ;""~ ..... ;~'"'~" .......... "" .............. ~":'~ ........ tfmore ~. one reqoest for ~ng. is received, m a time, p~i.ority will be given to applications/proPoSals that best se~e ~e t~get groups ~d order of preference listed below for renial ~ts and omership ~its: Rental Units 1. Dublin Residents who are seniors 2. Residents of Dublin who are permanently disabled 3. Residents of Dublin and non-:residents who are members of Dublin's workforce (City personnel, Dublin police officers, Dubl~ fire fighters, teachers, retail clerks~ bank ' tellers~ grOcery clerks, and others in the retail and customer service industries for employers in Dublin) 4. Families with children that currently reside in Dublin 5. Other Dublin Residents 6. NOn-Resident Seniors 7. Non-Resident Disabled Persons .. 8. Other Non-Residents For-Sale Units 1. Residents of Dublin who are First-Time home buyers and members of Dublin's workforce (City personnel, Dublin police officers, Dublin fire fighters, teachers, retail 4 ciei~k~', b~ teiiers~ .grocery clerks, and others in the retail and customer service industries for-emPloyers in Dublin) ReSidents 'of Dublin who are FirSt-Time home buyers Other Dublin ResidentS NOn?Residents of Dublin who are First-Time home buyers Long,Term Maintenaaee and MaOagement of Affo?dab!e units ' Priority. shall be given to projects that effectively demonstrate how the affordable units and overall project will be maintained and managed' over a minimum of a thirty-year period. Prqiec!. Mix Priori.(y slxall be given t:o projects tlhat: i.nclude a.fi. oi dable uni.ts mixed w:ith market I¢. te tmlts. DO~-PAYMENT ASSISTANCE· AND RENTAL ASSISTANCE General guidelines for using Dublin's in-lieu fees for down-payment assistance and rental assistance programs shall follow the strategy outlined in the Affordable Housing Implementation. program for each respective program. The City, on an annual basis, shall approve and allocate funding for a down-payment assistance program. Provision of funds for .this program shall provide financial assistance in the form of second mortgage loans with deferred and/or below market interest payments to supplement the financing needed to acquire a home. loan. The guidelines and criteria for determining an eligible homebuyer shall be established for each down- payment assistance program that shall be approved on an annual basis. On an annual basis, the City shall'distribute a Notice of Funds Availability for the rental assistance program and award grants to chosen agencies. Target Groups Served With Respect to City Preferences The down-payment assistance program shall serve the following target groups that are · listed in preferential order: · 1. Residents of Dublin who are First-Time home buyers 'am~ ormembers of Dublin'S workforce (City personnel, Dublin'poliCe officers, Dublin fire fighters, teachers, retail clerks, bank tellers, grocery clerks, and others in the retail and customer service industries for employers in Dublin) 2. Residents of Dublin who are First-Time home buyers 3. Other Dublin Residents 4. Non, Residents of DUblin who are Fii~st-Time home buyers Fifty percent..of the .f~ds allocated to. rental assistance program~ sh~ll serve those persons whose: income level fa}Is below 50% of the area median income. The remaining 50% of allocated funds shall serve those persons .whose income leVel is between 50% and 80% of the CoUnty median income. COMMUNITY DEVELOP~NT BLOCK GRANT PROGRAM If deemed appropriate, the City Council may establish a target or cap each year for the amoUnt of the Housing Fund, 'w]~ic!~, that may be' made available to supplement the City's Community Development Block Grant (CDBG) Program. Th:is ca:p shall be determined in conjunction with the annual CDBG funding allocation process. DI~CT FINANCI~ ASSISTANCE .Direct financial aSsistance shall be given to projects or activities that are related to one or more of the program options described in the Affordable Housing Implementation Program (e.g., assistance to housing development corporations, non-profit associations, equity participation loans, grants, subsidization, participation leases, loans to develop affordable housing or other public/private parmership arrangements). CITY COUNCIL APPROVAL REQU~D The use of housing in-lleu funds for any activity shall be subject to review and approval by the City Council on a case-by-case basis to ensure consistency with Chapter 8.68 of the Dublin Zoning Ordinance and with the housing in-lieu fund policies and guidelines. The application of the housing in-lieu fund policies shall similarly be subject to the provisions and requirements o'f ChaPter 8.68. AS a condition of funding for any. individual case, the City Council may reqUire the execution of an agreement between the City and the beneficiary to establish standards and restrictions for the use of housing in- lieu funds, commitments to use the funding for its intended purpose, provisions for repayment of fUnds (e.g., upon resale of property), etc. G:\housing\implementation program\program guidelines RESOLUTION NO. -01 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ADOPTION OF THE AFFORDABLE HOUSING IMPLEMENTATION PROGRAM AMENDMENT WHEREAS, the State mandated local jurisdictions, including cities, provide housing for all income levels; and WHEREAS, the Association of Bay Area Governments issued a 2000 Regional Housing Needs Determination for bay area cities and counties and assessed that Dublin would need to provide 5,436 additional units (percentages of which must be affordable to very low-income, low income, moderate- income and above moderate-income households); and WHEREAS, the City of Dublin has collected in-lieu fees from developers dedicated to funding affordable housing programs to provide housing for all income levels, including very low-income, low- income, and moderate-income levels; and WHEREAS, on April 4, 2000, the Dublin City Council held aworkshop to examine 1) possible funding options for affordable housing programs, 2) programs on which to spend the in-lieu fees that are collected, and 3) potential target groups toward which the programs could serve; and WHEREAS, on October 3, 2000, the Dublin City Council directed Staff to research specific programs, funding options, and target groups for the purpose of allocating Dublin's in-lieu fees; and WHEREAS, the programs options researched included down payment assistance, acqUisition- rehabilitation, City assistance for creating new affordable multi-family units, and rental assistance; and WHEREAS, the funding options that were researched were 1) implementing Commercial Linkage Fee and 2) doubling the in-lieu fees; and WHEREAS, the target groups studied consisted of 1) seniors, 2) teachers, 3) first-time home buyers, 4) low-income renters, and 5) disabled persons; and 6) members of Dublin's Workforce, including CitY and non-City personnel WHEREAS, guidelines were developed for implementing the fore,mentioned programs, funding options, and target groups in the attached document referenced as the Affordable Housing Implementation Plan; and WHEREAS, on February 6, 2001, the City Council adopted the Affordable Housing Implementation Program; and WHEREAS, on June 19, 2001, the City Council considered the Policies and Guidelines for the use of the City's inclusionary housing in-lieu fees fund with changes to the target group section of the Acquisition-Rehabilitation and New Construction of Multi-Family - Rental Units guidelines, which required changes to the same target groUp section of the Affordable Housing Implementation Program; and WHEREAS, the Affordable Housing Implementation Program has been amended to reflect the target group changes. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby adopts the amended Affordable Housing Implememation Plan (EXItlBIT A}. PASSED, APPROVED AND ADOPTED this 17th day of July, 2001. AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk K2/G/7-17-01/reso-affordablehousing.doc (Item 4.5) gShousing~aplementation programXsecond cc reso adopting HIP AFFO~ABLE HOUSING IMPLEMENTATION PLAN As adopled by CitY CoUncil on February 6, 2001 Revised. June 19, 2001 A serious shortage of affordable housing exists in the State, Bay Area and in the Tri Valley. The State Legislature has stated that "the lack of affordable housing'' is a critical problem which threatens the economic, enviromental, and social quality of life in California" Of particular concern is the shortage of housing for low-income and moderate,income households. (Government Code Section 65589,5') The L~g:is!~:.':h~ e~acteg ~O'!!~ies t° cn~o~age more affordable housing: requiring cites. ,o ~d~ss the i'ssue .i:n'their.ho~sing eiement~i P~ovid~ for. de~s~W li'mifi~g the gr0~ds on which affordalsie housing devei:¢pments may. be disapproved, and others. (Government Code Sections 65583, 65589.5(d), 65852.150, 65913, 65915.) In response to'a demons~at~d need for affordable housing and. Sta~e mandates, the City of Dublin will implement funding.Policies and program approaches to Serve Selected tai~get groups. This Affordable Housing Implementation Plan contains policy .guidelines that, once implemented, will assist residents in the Community and Tri-Valley area in meeting their housing needs and provide a range of housing opportunities for all income levels. These guidelines will be incorporated into Dublin's Inclusionary Regulations know as Section 8.68 of the Dublin Zoning Ordinance and enacted through corresponding resolutions and staff action. FU~!N'G AFFO~~LE H:OUS~G PRO.G~MS intent. The 'City of Dublin Shall implement policies designed to generate adequate funding for affordable housing programs referenced in Section III.A of this report and in correlation with the purposes and intent of the Inclusionary Regulations. Be Funding Options Funding options are as follows: 1. In-lieu Fees. pending fmal approval from the City CoUncil~ Dublin's in-lieu fees shall be increased to $2.00 per square foot for single-family developments and $1.50 for multi,family development. 2. Commercial Linkage Fee. NexuS Study. Pending final approval from the City Council, staff will have the Nexus Study prepared that is required to implement a commercial linkage fee. bo Fee Determination. The Commercial linkage fee shall be calculated using a formula determined by the results of the required Nexus Study and adopted via ordinance and existing in-lieu fee resolution by the City Council,. :" Page 2 of 7 The progr~ options proposed in this section will assist in providing affordable housing for specified target groups in the City by assisting in the development and preservati'on of private and non-profit affordable owner and rental housing for lower-income households and related programs that help residents to enter or remain in low-cost housing.. These. program options include dOWn payment assist~ce, a~qui.sition~fehabilitati~n, rentfl assistance; and new constmctibn ofaffOMable multi. f~ily units: Be Approved Program Types. Dublin coUld collect apprOXimately. $21 million.in in-lieu fees based on projected development over the next fix~e years, if a commercial linkage fee is implemented and the current, in-lieu fe~. are doubled (assming that developers continae to pay the in,lieu.fees instead of prOviding.unitS Under the 5% inciusionaryreqUirement). Dublin currently has collected aboUt $5.1 million in housing in-lieu fees to date. The City Council could adopt the priority program list beloTM and leverage the collected affordable housing in-lieu and commercial linkage fees in order of processing priority. For acquisition- rehabilitation and new construction of affordable multi-family unit projects, the City Council could approve funding on a.project-by-project basis. The agencies and amoUnts of in-lieu fees allocated to dowmpayment :assistance and r'ental assistance programs could be determined and approved annually by the City CoUncil and distribiited.acCording to the CitY's'fisCal year cycle. Priority 1: AcqUisition,Rehabilitation (satisfies State's Housing Element requirements for creating permanently affordable units but does not count toward meeting ABAG's Regional Housing Needs Determination Numbers) This option deals primarily with housing for low-income renters many of who may be designated target group ,members, e,.g. seniors, teachers, and some members of the workforce. Based on the projects Profiled in the Supplemental Affordable Housing Report, City assistance 'for each acqUisition-rehabilitation project coUld potentially range from $230,000 to $750,000. Primary costs to the City for acquisition-rehabilitation leveraging will occur in matching Federal and State funds and initially supporting developer applications for state and federal financing, AcqUisition-Rehabilitation demonstrates the best oppOrtunity to produce the most affordable units with the least cost, because there are no land develoPment or construction costs. AdditiOnal benefitS for acquisition- rehabilitatiOn include the ability to keep the units affordable via a deed restriction, thus satisfying the State's requirements for permanent affordability. Page 3 of 7 Steate~' .. "'' - At;least 'once :e~Y fi~ :!~e=s~'~e :ci~ ~v~nto~- ~hte~t~al a~qu~i~ion~t~habiii~ion sites by .c0mpi!~g a list of p~0P¢~.'0wners .imerested ~n selling. ~eff mflti~fmily.~ts, so ~at if and when'the City is apProached by interested developers ~e City can dis~ibute ~s list to them. A~ually, the City shall issue, a Request for QUalifications ~Q) to for-profit ~d non-profit developers for ~e p~oses of ma~mi~ng a viable contact list of nomPr0fit aM f0r~Profit'deVel0pers in ~e evem the City i~ approached by a mulmf~!y.um proper~ owne~ ~is~g. to sell.. T0 i~iate p~sSib!e-~cqu~'s:iti0n-' rehabilitation ptojectS';'~ ~e CitY shall'alSO a~ually issue ~ ~:P ~at ~dica/es available ~fl~g and request that deVeloperS identify pOsSible properties and sub~it a development proPOSal. Once an appropriate site has been identified and contact established wi~ ~e property owners, ~e developers would negOtiate with those proper~ owner's and apPlY for additional state and ~federal fin~cing, The C.i~ would' support the developer'S propog~ by contractually 'dedicating ~e necessaw ~ds to an escrow or some o~er holding account until ~e developer can secure complete financing. In cases where ~e City has dedicated ~nding towed an acquisition-rehabilitation project ~d the developer can not secure complete or adequate financ~g, ~e ~nd~g shill be shifted back into ~e housing in-lieu fee ~d. b. Target Groups This option will serve the folloWing target households whose income does not exceed 80% of the County. median income. If more than one request for funding is received at a time, priority will be given to applications/proposals that best serve the target groups and order of preference listed below: 1. Dublin Residents who are seniors 2. Residents of Dttblin who are. permanently disabled 3. Residents of Dublin ~n.d hon.-residents who are members of Dublin's workforce (City' perso:nn.el., Dublin police officers. Dublin fire figh:ters, teachers, retail clerk.s~ bank tellers, grocery clerks, and othe:rs in. the retail and customer service i:t~duswies for employers in I)ublh~)inc!u.dcs r'~;*~"~"~ ........ cm ................ -~ ...... ~1 te:'~ch.e.rs) 4. Families with children that currently reside in Dublin 5. Other Publin Residents 6. Non-Resident Seniors 7. Non-Resident Disabled persons 8. Other Non-Residents · Page 4 of 7 Priority 2: ConsteUetiOn of.ne? affordable milltifamfly' units (sari.sties state':s Housing Element requirements and counts toward meeting ABAG's Regional H0uSii~g Needs Determination Numbers) This option is the least affordable due to high land and consWuction costs. Primary costs to the City would occur in having to' buy down (subsidize) the cost-of the units either to the developer, or through defeiTed,or zero interest' loans to the target household Or both. However~ possibilities exist'for, creating permanent affoi~dable housing by cbnstrueting new affordable multi-family unitS each fmie a new residential h0usiiig development.applieation is under consideration by the City, increasing the oppommities for multi-family unit constrUction, unlikle acquisition-rehabilitation, where the opportunities are scarce. a. Strateg?g The CitY shall on a project-by-project basis negotiate and offer developers of five or more units a per-unit subsidy toward the development of inclusionary units and/or offer loans on a deferred or zero interest basis to target households that purchase inclusionary units. If necessary, the City shall provide additional subsidies to bridge the affordability gap ! between target income groups for both rental and ownership units. The City Council shall approve the subsidy amounts and target income group levels for each project. The units sUbsidized by the City shall be recorded at the County Clerk's office with deed '. restrictions, indicating their aff0r~ability for a period no less than 60 years. Staff will negotiate the terms and conditions of the subsidy on a project-by-project basis. b. Target.Group~ This option is governed by the Inclusionary Regulations stipulation that 40% of the units will be dedicated to very low-income households, 40% to low-income households, and 20% to above moderate-income households. In addition to the inclusionary requirements and if more than one request for funding is received at a time, priority will be given to applications/proposals that best serve the target groups and order 'of preference listed below: i.) Rental Units 1. Dublin Residents who are seniors 2. Residents of Dublin who are permanently disabled 3. Residents of Dublin and non-residents who are members of Dublin's workforce (City personnel, Dublin police officers,. Dublin fire fighters, teachers, retail clerks, bank tellers, grocery clerks, and others in the retail and customer service industries for employers in Dublin) 4. · Families with children that currently reside in Dublin 5. Other Dublin Residents 6. Non-Resident Seniors Page 5 of 7 7. Non,Resident Disabled Persons 8, Ot~' ~°ri;!~e.siaents ii) Per-Sale Units 1. Residents of Dublin who are First-Time home buyers and members of'Dublin's workforce (City personnel, Dublin police officers, Dublin fire fighters, teachers, retail clerks, bank tellers, grocery clerks, and others in the retail and customer service industries for employers in DUblin) 2. ResidentS of Dublin who are First~Tlme home buyers 3. Other Dublin Residents 4. Non-Residents of'Dublin who are First-Time home buyers Priority 3: DoWn payment AsSiStance (DOes not .satisfy State HoUsing Element Requirements or counts toward'meeting .ABAG's RegiOnal ~H0Uaing NeedS. DeterminatiOn Numbers) PrOgrams funded under this oPtiOn woiild typically range in sUbsidy from $15,000 to $50,000. EStimates for the number %f hOuseholds served would be determined by the amount allocated. For instance, if 25% of the estimated $21 million (~ $5.25 million) that could be collected from in-lieu and commercial linkage fees over the next five years were allocated to down-payment assistance programs, about 105 to 350 households could be served. Although units produced under this option will not satisfy ABAG's requirements as permanently affordable unless in'conjunction with the purchase of an inclusionary unit, it has the capability' of'assisting members of the workforce and households lacking money for down-payment and closing costs the chance to own units in Dublin, a. Strategy · Annually staffwill inventory and review available down payment aSsistance programs, administer program funding, and evaluate the City's down-payment assistance programs. The City Council will, via resolution, annually approve and allocate funding for the City's down-payment assistance programs. For now, the City should continue to participate in the Alameda County Mortgage Credit Certificate Program and begin participation in the following down-payment assiStance programS: · Community Assisted Shared Appreciation (CASA) Program--S200,000, · East Bay Delta Lease Purchase Program--No funding required, · California Housing Loan Insurance Fund (CaHLIF) Home Loan 97 & 3 Program-- $I0~000 The City shall consider expanding its participation to other programs, such as CHFA's HELP Program and the School Facility Fee Down Payment Assistance Program, after a period of one year (when staff gains experience and exposure to the programs and funding processes). b. Target Groups ThiS option will serve the following target groups that are listed in preferential order: Page 6 of 7 Priority 4: 1. Residents. of Dub.l~n who are FirSt,Time home buyers and. members-of Dublin, s /g; :.,' . ''' ~ , '.": ~ .': : ' ~:;: '..., ;:':~.' - '"~.~, ! :- .} ~ '". '2:':":.'' i"'" ,":. el~i~:b~ ~t~iie~,' g~a~:~ et~k~; '~ 6ther~ in.~he'~t~il ~d.~stomer :se~iee ~s~tfies'for.' emp!oyers in DUblin) 2. Residents of Dublin whO are First-Time home buyers 3. Other Dublin Residents 4. Non-Residents of Dublin Who are First-Time home buyers Regtal. :~sSis'tanee (sptisfies' State,s' H0USigg Element requirements fOr preventing homelessness and providing hOusing.~'SiStanee~o lower income hOUSeholds) The City would provide re~tal assistance in the form of short,term grants to agencies. The funds would be allOcated annually or another period of frequency set by the City Council to agencies that are working to prevent homelesSness, and provide interim and or transition support-for t~get households. The City should continue funding Allied Housing's Seh01arship PrOgram that will require a maximum.S36;000 in in-lieu fees' for the 200i/2002 FiScal Year (depending on HOME funds allocation for housing Subsidies) and begin funding Echo Housing's Rental Assistance Program with an initial annual allo~ati0n from in-lieu fees of $20,000. a. Strategy The City will distribute annually a Notice of Funds Availability (NOFA) that lists the criteria and deadline for applyi.ng for available rental assistance funds. The City Council wil:i annually award the grants 'to chosen agen6ies~ Staff will monitor the grants for compliance and administratively distribute funds. b. Target groups 50% of the funds allocated to rental assistance programs shall serve those persons whose income level falls below 50% of the area median income. The remainin$ 50% of allocated funds shall serve those persons whose income levelis between 50% and 80% of the County median income. C. Method of Allocation. For each acquisition-rehabilitation and new construction of affordable unit project, the City Council shall, via a resolution, determine the .amount of in-lieu fees to be allocated. For down-payment assistance and rental assistance programs, the City Council shall, via a resolution, annually select participating agencies and determine the amount of in,lieu fees allocated to those programs at least once annually from the date that. this Housing implementation Plan takes effect. Amendments to Program Types and Funding Allocation. The City Council may amend program types, funding allocation, and/or target group priorities through adoption of a resolution on an annual basis. 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