AgdaPkt 2019-02-11 Joint SA PFA - Laserfiche WebLink

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Attachment 1 6.E. - Page 8 of 16 7.A. - Page 2 The ordinance requires that all fees collected be deposited into the City's Affordable Housing Fund ("Fund") to be used to increase and preserve the supply of housing affordable for extremely low, very low, low and moderate income households. The ordinance also allows applicants to request an alternative to paying the fees, which could include the provision of a percentage of affordable units built on site, built offsite, donation of land for development of affordable housing and other options. Annually, the City is required to report on the use of the fees that are deposited to the Affordable Housing Fund to demonstrate it has met the State requirement for investment in eligible activities within five years of receiving them. Establishing funding allocation guidelines that set priorities for the use of the Affordable Housing Fund will speed the process expending these funds on affordable housing production and preservation. One of the City's goals is to maximize this new Fund by creating a permanent and sustainable source of funds for affordable housing development and preservation. Through the Affordable Housing Fund the City can leverage millions of dollars in public and private funding investments to increase and preserve affordable housing in Redwood City. There will be a substantial amount of funding available for affordable housing investment within the next year and a continual fund source for future years. On May 21, 2018, City Council introduced an inclusionary housing ordinance that requires developers of market -rate housing at 20 units and greater to provide 20% of the units at various affordability levels. Projects between five and 19 units would continue to pay the Affordable Housing Impact Fee. As part of Council adoption of this ordinance (scheduled for the June 23, 2018 City Council meeting), the Affordable Housing Impact Fee requirements would be moved to new Zoning Ordinance Article 29 (Requirements for Affordable Housing). Housina and Human Concerns (HHCC) Housina Policv Recommendations In 2016, after holding community meetings on the topic of affordable housing, the HHCC made several housing -related recommendations to the City Council that included the development of guidelines for the use of the Affordable Housing Fund. The City Council agreed with the recommendation as well as others that included Minimum Lease Terms and Relocation Assistance Ordinances. The activities described in this staff report and the staff recommendations respond to Council direction to study and adopt funding guidelines. 117