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Impact Fee Ordinance in 2015 the HHCC recommended the City measure the results of <br />the new Housing Impact Fee to evaluate its effectiveness in producing affordable units. <br />Due to the current fractured state of inclusionary zoning law, where only it is only legal to <br />require inclusionary zoning on ownership, not rental, housing developments, the HHCC <br />determined it would not benefit Redwood City to adopt an inclusionary zoning ordinance at this <br />time. In Redwood City an ordinance would apply only to ownership units and very few of these <br />are being produced or are likely to be produced in the near future. It’s common for ordinances <br />to apply to ownership developments that include 10 or more units and these types of <br />developments are very scarce in Redwood City. <br /> <br />IMPACT FEE STRATEGY <br />The HHCC recommended the City Council adopt a strategy for the use of the City’s new <br />Affordable Housing Fund, created from the new Housing Impact Fees. The Council <br />agreed and requested the HHCC provide draft guidelines. The HHCC was not able to <br />prepare and recommend draft guidelines in time to include them in this staff report along <br />with their three other policy recommendations. However, the HHCC has a well- <br />established funding strategy for Community Development Block Grant (CDBG) and <br />Home Investment Partnership (HOME) funds that includes funding criteria and a ranking <br />tool that has been successfully used to award funds to affordable housing projects. <br />Their strategy, criteria and ranking tool were developed several years ago, are reviewed <br />annually and updated as necessary to continue to be effective for the allocation of <br />limited CDBG and HOME funds. The HHCC typically receives more requests for funding <br />than there are funds available. The funding criteria and ranking tool help the HHCC <br />prioritize applications for funding when multiple applications are received to make the <br />best use of funds. <br />Requests for funding are first evaluated by staff to ensure submittals are complete and <br />include all the required project information (e.g. pro forma, appraisal, etc.) and <br />supporting documents necessary for evaluation. Once staff confirms submittals are <br />complete and meet the established funding requirements the HHCC then uses their <br />ranking criteria to evaluate each application. Some of the evaluation criteria includes the <br />following: <br />· Funds can be used to support projects that provide assistance to extremely low, very <br />low, low and moderate income households to support the following programs and <br />activities: <br />o Acquisition of sites for affordable housing <br />o New construction of affordable housing <br />8.A. - Page 8