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6.A. - Page 5 <br /> households) to complete health and safety repairs to preserve existing affordable <br /> housing. Loans made to owners of multifamily properties include rent restrictions <br /> for the life of the loan, typically 15 years. Over the life of the program, there have <br /> been 2,800 loans processed. <br /> Donation of City Land for Affordable Housing: When speaking to affordable housing <br /> developers, the primary obstacle for the creation of new affordable housing is the <br /> shortage of land in the Peninsula, and in particular, land near transit and other <br /> residential amenities such as grocery stores. Central locations near transit and other <br /> amenities make affordable housing projects more competitive for other county, state <br /> and federal funds. The City recently decided to use the downtown City-owned parcel on <br /> Bradford Street for affordable housing. The Request for Proposal process was very <br /> competitive, with 7 proposals submitted. The City selected MidPen Housing as the <br /> preferred developer, and is currently processing their entitlement for 117 affordable <br /> senior units. <br /> Impact Fee - $500,000-2.2 million FY 2016-17: On October 26, 2015, the City Council <br /> adopted affordable housing impact fees on both residential and commercial <br /> development. For market rate residential and office development a developer is charged <br /> $20 per square foot. Adoption of this impact fee is part of the City's community benefits <br /> framework, also known as Partnership Redwood City, which generates fees from <br /> development to support City programs and other community services. It is expected that <br /> between $500,000 and $2,200,000 in affordable housing impact fees will be received in <br /> early 2017. The large range is due to an ongoing lawsuit related to a downtown housing <br /> development. Additional funds will be received if other development in the planning <br /> pipeline are approved. <br /> Affordable Housing within Market Rate Housing Developments — up to 80 <br /> affordable units could be provided onsite in mixed-income housing <br /> developments, at estimated cost of$20 million, if approved: The Impact Fee <br /> ordinance noted above also provides developers with the option of providing affordable <br /> housing onsite rather than paying the fee. It is important to note that State Law currently <br /> prohibits inclusionary housing ordinances that simply mandate the production onsite <br /> affordable housing within market rate rental housing developments. This is the result of <br /> a 2009 court case. Since the adoption of Affordable Housing Impact Fees, two <br /> proposed developments currently under review would provide affordable housing onsite <br /> rather than pay the fee: 801 Brewster (50 affordable units) and 1409 El Camino Real <br /> (30 affordable units). All of these units are being provided at Low or Very Low level as <br /> required by City Council policy. By providing units onsite as part of a market rate <br /> development, government subsidies are not required. It would take over $20,000,000 in <br /> subsidies to develop these units if they were not part of a market rate development (if <br /> they were not part of a market rate development), and a large portion of this amount <br /> would need to come from City sources. <br /> Former Redevelopment Funds - $10.2 million: In April 2014, the City Council <br /> appealed a trial court decision that $10.2 million of affordable housing funds set aside <br /> Page 15 <br />