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HomeMy WebLinkAboutItem 3.2 - 1151 Alameda County Affordable Housing Bond Page 1 of 2 STAFF REPORT CITY COUNCIL DATE: September 20, 2016 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: Informational Presentation on the Alameda County General Obligation Bond for Affordable Housing Prepared by: Kim Obstfeld, Housing Specialist EXECUTIVE SUMMARY: The Alameda County Board of Supervisors has authorized a $580 million general obligation bond for affordable housing to be considered by voters on the November 2016 ballot (Measure A1). Housing programs funded through the bond would help address the affordable housing needs (rental and ownership) of lower and middle income households in the County. County staff are now providing informational presentations to jurisdictions throughout the County to educate the public on the measure and programs proposed to be funded through bond proceeds. STAFF RECOMMENDATION: Staff recommends that the City Council receive the presentation on the Alameda County General Obligation Bond for Affordable H ousing from staff of the Alameda County Housing and Community Development Department. FINANCIAL IMPACT: Under the bond funding plan adopted by the Board of Supervisors, the City of Dublin would be eligible for a base allocation of $8,831,465 in funds fo r rental housing development projects, and would have access to an additional $27,332,372 regional rental development funding pool for the East County (including Livermore and Pleasanton). Eligible Dublin residents would also have access to funds allocated for Countywide down payment assistance and home rehabilitation program funds. DESCRIPTION: On June 28, 2016, the Board of Supervisors approved a bond funding plan to guide the use of a $580 million general obligation bond for housing and bond measure l anguage. The bond is Measure A1 on the November 2016 ballot. Page 2 of 2 The bond would be paid for through an assessment of approximately $12 -14 per $100,000 on the assessed residential property value for owners in Alameda County. County staff estimates that the bond will be issued three times over a six year period, approximately every two years as follows: $200 million in 2017, $200 million in 2019, and $100 million in 2021.The bonds are expected to be outstanding for approximately 26 years. The actual amount assessed to individual property owners each year will depend on the amount of the outstanding bonds and the interest rate when the bonds are issued. The funding plan includes allocations for the following programs: affordable rental housing development, ownership housing development, housing maintenance and improvement, and down payment assistance. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Housing Bond Fact Sheet Fact Sheet We have a Housing Crisis in Alameda County. Affordable housing is getting harder and harder to find. It’s too expensive and out of reach for many seniors, veterans, people with disabilities, low-income families and others most in need. While many working families now spend 50% or more of their income on housing, state and federal funding for affordable homes has decreased 89%. Experts estimate a current shortfall of more than 60,000 affordable homes in Alameda County for very low-income families, with at least 5,000 homeless, and hundreds of thousands of working residents needing help—NOW. A Viable Solution has emerged: Alameda County elected officials, policy makers, and community members have been collaborating to find a solution. The solution has emerged: An AFFORDABLE HOUSING BOND on the November ballot. The goal of this bond is to create and protect affordable housing options for people who need it most in Alameda County—seniors, veterans, people with disabilities, and many in the workforce whom we count on to help deliver essential services, including teachers, electricians, plumbers, EMT workers and others who simply can’t find affordable housing close to where they work in Alameda County. What’s included in the Measure? Three BIG GOALS: Help people who are struggling with housing costs. Help the homeless and other vulnerable populations with long-term affordable housing. Help people buy homes. Affordable Housing Bond 2 1 3 2016 Alameda County HOMEOWNER Programs: Down Payment Assistance Loan Program ($50M) GOAL: to assist middle-income working families to purchase homes and stay in Alameda County. Homeowner Housing Development Program ($25M) GOAL: to assist in the development of housing, improve the long-term affordability of housing for low-income households, and help first-time homebuyers stay in the county. Housing Preservation Loan Program ($45M) GOAL: to help seniors, people with disabilities, and other low-income homeowners to remain safely in their homes. Provides small loans to pay for accessibility improvements, such as ramps, widened doorways, and grab bars. Provides rehabilitation loans for deferred maintenance such as roofs, plumbing, and electrical systems to seniors/people with disabilities/low-income households at 80% of area median income. RENTAL HOUSING Programs: Rental Housing Development Fund ($425M) GOAL: to create and preserve affordable rental housing for vulnerable populations, including lower-income workforce housing. Developments will remain affordable over the long-term— estimated to be for at least 55 years. Innovation and Opportunity Fund ($35M) GOAL: to respond quickly to capture opportunities that arise in the market to preserve and expand affordable rental housing and/or prevent tenant displacement— e.g. rapid response, high-opportunity predevelopment and site acquisition loans. FUNDING Allocations: Funding will be allocated throughout Alameda County. Homeowner program funds and rental innovation program funds to be allocated countywide. For allocation of Rental Housing Development Program funds, see charts on the back of this sheet. 2016 Alameda County Affordable Housing Bond FACTS This Measure will raise 580 million dollars for affordable housing across Alameda County. ALL funds from the proposed bond MUST STAY LOCAL, dedicated to affordable housing needs in Alameda County ONLY. This measure includes independent annual audits to ensure funds are spent as approved by voters. The cost to property owners is projected to be $12-$14 per $100,000 of assessed value (not to be confused with market value). The assessed value of a property is often much lower than its market value. The typical Alameda County homeowner would pay $48-$56 per year, or less than $5 per month to support this critical initiative. Questions? Want more information? Contact: alcohousingbond@acgov.org HALF OF FUNDS TO BASE CITY ALLOCATIONS City Base Allocations by: Total Population City of Alameda $10,370,727 City of Albany $2,588,918 City of Berkeley $15,796,369 City of Dublin $8,831,465 City of Emeryville $2,799,109 City of Fremont $33,264,459 City of Hayward $20,298,294 City of Livermore $12,722,700 City of Newark $6.029,275 City of Oakland $54,803,565 City of Piedmont $2,431,300 City of Pleasanton $13,720,684 City of San Leandro $11,907,775 Unincorporated County $19,671,892 City of Union City $9,763,468 ALAMEDA COUNTY TOTAL $225,000,000 HALF OF FUNDS TO REGIONAL POOLS Regional Pools Allocations by: % of Total Need-Blend of Poverty and RHNA LI & VLI North County 44.7% $89,325,065 Mid County 24.9% $49,803,134 East County 13.7% $27,332,372 South County 16.8% $33,539,429 ALAMEDA COUNTY TOTAL 100.0% $200,000,000 Rental Housing Development Program REGIONAL FUNDING ALLOCATION throughout Alameda County North County Region: Albany, Berkeley, Emeryville, Oakland and Piedmont. Mid County Region: Alameda, Hayward, San Leandro, and Unincorporated County. South County Region: Fremont, Newark and Union City. East County Region: Dublin, Livermore, and Pleasanton. For more information go to: www.acgov.org/board/housingbond.htm Homeowner Program funds ($120 Million) and Rental Housing Innovation and Opportunity Program funds ($35 Million) to be allocated countywide.Allocations based on average of % AV and % Total Population, with minimum no less than original projections.