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6.A. - Page 7 <br /> City Council Endorsement of San Mateo County Measure K: Measure K is on <br /> the November 8, 2016 ballot and would generate approximately $85 million <br /> countywide over 20 years. Measure K extends the one-half cent sales tax <br /> authorized by Measure A in 2012 for another 20 years; sales tax is set to expire in <br /> 2023. <br /> A portion of Measure K funds would provide funding for affordable housing in San <br /> Mateo County and provide affordable homes for seniors, people with disabilities, <br /> veterans and working families (including teachers and first responders). The <br /> Committee recommended that a resolution of support be adopted by the Council. <br /> The resolution in support is attached. <br /> Short-Term Vacation Rental Transit Occupancy Tax: In October 2016, the City <br /> Council recommended that the City enter into negotiations with short-term <br /> vacation rental companies (Airbnb, etc.) to collect Transit Occupancy tax. The <br /> Council also directed these funds be dedicated to affordable housing. These <br /> negotiations were put on hold, as a related state measure was under <br /> consideration and staff focused on other work. The state measure did not move <br /> forward, however, and the Committee agreed that these negotiations should <br /> therefore be finalized quickly. Staff has been speaking to Airbnb recently and <br /> expects the Council will consider the final agreement in early 2017. Staff <br /> estimates that approximately $400,000 could be collected annually. Per the <br /> Council motion, these funds would be dedicated towards affordable housing. <br /> City Owned Land: Although the details of City owned parcels were not <br /> discussed, the Subcommittee made a general recommendation that appropriate <br /> City owned parcels be used to produce affordable housing, or sold to produce <br /> funds for affordable housing. The Committee expressed interest in designating <br /> such housing to serving those with special needs. More details on potential City <br /> owned parcels will be presented to the City Council on an upcoming agenda. <br /> HEART: The City has contributed funds to the Housing Endowment and Regional <br /> Trust (HEART) of San Mateo County for years. The Committee recommended <br /> that the City strengthen this relationship, and continue utilizing HEART as a <br /> potential funding source for Redwood City based affordable housing projects. In <br /> particular, the Committee suggested it might be most effective to utilize HEART <br /> funds for acquisition rehabilitation projects, which tend to be less expensive than <br /> new housing on a per unit basis. <br /> Support for Affordable Units within Market-Rate Housing Developments: The <br /> Committee noted that while production of new affordable housing developments is <br /> important, it is also very expensive. It is unrealistic to believe the demand for <br /> affordable housing will be met solely through the production of subsidized <br /> affordable housing developments. The Committee therefore had a preference that <br /> affordable housing units be provided within market rate developments to the <br /> Page 17 <br />