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6.A. - Page 6 <br /> under a 1990 agreement with the Legal Aid Society ("LAS") should instead be paid to <br /> taxing entities. LAS, which had filed its own lawsuit challenging the same order from the <br /> State's Department of Finance, joined in the appeal filed with the Third Appellate District <br /> in Sacramento. <br /> While Redwood City's auditor and the successor agency's oversight board determined <br /> the $10.2 million was contractually obligated to be spent on affordable housing, the <br /> state Department of Finance overturned that decision. Both Redwood City and LAS <br /> then filed their lawsuits. <br /> The trial court determined that because there were no agreements in place to spend the <br /> funds on specific housing projects, they were "uncommitted" and thus available for <br /> distribution by the State to the local taxing agencies. Redwood City believes that an <br /> appeal may result in a greater understanding that affordable housing funds are indeed <br /> committed funds that must be amassed in greater quantities before being earmarked for <br /> specific projects. <br /> The appeal is still pending and could take an unknown number of months to be notified <br /> of a court hearing date. However, if the City prevails in the appeal there will be $10.2 M <br /> available to be used to develop and preserve affordable housing. These funds could be <br /> provided to a qualified affordable housing organization to acquire existing multifamily <br /> housing for conversion to affordable housing to help reduce displacement of low income <br /> households. It could also be used to acquire available land for development of <br /> affordable housing. <br /> Utility Users Tax (UUT) - $1.5 million: Redwood City voters adopted a Utility Users <br /> Tax (UUT) in 1988. Funds from the UUT are dedicated to the City's Capital <br /> Improvement Program (CIP). In the 2015-16 CIP budget, the Council opted to place <br /> some of these funds in the City's existing affordable housing fund. These funds will go <br /> towards funding the City's "Fire Safety First Program". This program will provide <br /> forgivable loans to multi-family home owners in exchange for stabilizing rents over a <br /> certain period of time. The City has already received property owner interest, and <br /> intends to move forward with this program in early 2017. <br /> Affordable Housing In-Lieu Funds - $1.4 million: Redwood City received <br /> approximately $1.4 million in housing in lieu funds from the One Marina project. These <br /> funds were invested in the construction of new affordable housing by awarding them to <br /> Habitat for Humanity to construct 20 units of ownership housing in downtown Redwood <br /> City. This project is currently going through the planning process. <br /> Future Funding Sources and Actions endorsed by Finance/Audit Committee <br /> The Finance and Audit Committee met and recommended that staff and the Council <br /> move forward with the following programs: <br /> Page 16 <br />