AgdaPkt 2015-05-18 Closed and Joint SA and PFA

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9.B. - Page 2 On February 9, 2015 Council heard a report from staff regarding the City's housing programs and policy. The three areas of focus included: (1) increasing the overall supply of housing (2) programs and new regulations aimed to allow existing Redwood City residents to "stay in place" and (3) the creation of new funding sources and incentive structures necessary for the production of affordable housing. In line with the third category noted above (funding sources), the City has also actively sought funds from residential developers that would be used for affordable housing investments within the community. This includes the contribution of a $1.42 million payment from the developers of the One Marina project. At the February 9 Council meeting, the Council affirmed the intention to invest these funds by partnering with Habitat for Humanity on their proposed 20 affordable ownership units in the Downtown area. The purpose of this report is to outline several options the City has to make these funds available to Habitat for Humanity for their proposed project. The approval of funding arrangement does not approve the project itself. If and when a project is submitted, it will need to be reviewed in accordance with the Redwood City Municipal Code and the California Environmental Quality Act. However, due to the many hurdles affordable housing developers face in a competitive market, it is necessary to confirm funding sources early on in the development process. ANALYSIS The City would partner with Habitat for Humanity — Greater San Francisco (Habitat) for the development of 20 affordable ownership units at 612 Jefferson Avenue, currently a vacant site within the Downtown Precise Plan area. Habitat is an independently funded local affiliate of Habitat for Humanity International. Habitat is currently celebrating their 25th anniversary serving areas of San Francisco, Marin and the Peninsula (San Mateo County). Habitat has previously completed three projects in Redwood City: Hope Court, a six-unit townhome-style development, Lincoln Avenue an eight-unit townhome-style development, and Rolison Road, a 56-unit condominium-style development. Income-qualified homeowners typically invest 500 hours of "sweat equity" during the development of the housing units and participate in educational seminars and classes regarding home ownership and financing. Habitat units are sold to partner families with affordable, zero interest mortgages. Habitat does not realize financial profit from the sale of the units. The City and Habitat have had a cooperative and productive relationship for many years. Habitat would be an ideal partner and developer of the Jefferson site.