Laserfiche WebLink
6.A. - Page 3 <br /> Income Level and Unit Ty_ pe Development Cost Affordability Gap <br /> Very Low Income <br /> Studio $205,000 $168,448 <br /> 1 Bedroom $287,000 $234,741 <br /> 2 Bedroom $397,700 $329,975 <br /> 3 Bedroom $479,700 $389,967 <br /> Average Affordability Gap $280,783 <br /> Low Income <br /> Studio $205,000 $135,677 <br /> 1 Bedroom $287,000 $197,267 <br /> 2 Bedroom $397,700 $287,798 <br /> 3 Bedroom $479,700 $341,165 <br /> Average Affordability Gap $240,477 <br /> Moderate Income <br /> Studio $205,000 $92,204 <br /> 1 Bedroom $287,000 $147,583 <br /> 2 Bedroom $397,700 $231,904 <br /> 3 Bedroom $479,700 $276,573 <br /> Average Affordability Gap $187,066 <br /> *Data source: Residential Impact Fee Nexus Study, Strategic Economics& Vernazza Wolf <br /> There are two important things to note in the table above. First, the analysis is based on <br /> 2013 construction and land costs, and construction costs and land costs have increased <br /> significantly over the past three years. Therefore, today's affordability gaps are likely <br /> even higher. Second, the Council has generally directed staff to focus on the <br /> production of low and very low income units, which require a greater level subsidy per <br /> unit and therefore a greater total subsidy. Nonetheless, the chart reflects that fact that it <br /> is very expensive to produce affordable housing. <br /> Existing Affordable Housing Funding Sources <br /> The following is a list of current affordable housing funding sources and how those <br /> funds are spent: <br /> Community Development Block Grant / Home Investment Partnership Program <br /> (CDBG/HOME) - $773,000 FY 2016-17. Since the end of Redevelopment, the primary <br /> way the City Council has funded affordable housing cases is through CDBG and HOME <br /> funds received through the U.S. Department of Housing and Urban Development. <br /> Although all of these funds do not have to be spent entirely on housing, the City has <br /> historically spent most of the funds on housing causes. The City awarded $1.2M in <br /> CDBG and HOME grant funds for fiscal year 2016-2017 that will support affordable <br /> housing preservation programs, new affordable housing development, homeless <br /> services and economic development programs. For fiscal year 2016-2017 <br /> approximately $773,000 of CDBG and HOME funds were allocated to affordable <br /> housing activities: <br /> Page 13 <br />