Agda Pkt 2025.01.27 Joint SA PFA

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Page 8 of 14 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org The cost to build one affordable unit is approximately $800,000 to $1 million. To make these projects a reality, the City and developers must leverage a diverse mix of local, state, federal, and private investments. The City typically plays a significant role in supporting affordable housing developers as they seek funding for their projects. Funding sources include housing fees, federal CDBG and HOME funds, and former Redevelopment Agency Low to Moderate Income funds. Over the next 12 to 18 months, the City is expected to underwrite and potentially provide financial assistance for up to five new affordable housing developments. In addition to the current pipeline of housing units in development, staff are assessing whether any City- controlled parcels could be suitable for affordable and/or mixed-use housing. If viable, staff will provide recommendations as part of the FY 2025-26 budget process. Recent Guidance from the Metropolitan Transportation Commission (MTC) Requires Policy Changes to Ensure the City Will Qualify for Regional Funding MTC is the transportation planning, financing and coordinating agency for the nine-county San Francisco Bay Area and administers various planning and infrastructure funding programs for Bay Area jurisdictions, including the One Bay Area Grant (OBAG) funding program. Over the previous three OBAG funding cycles, Redwood City has been awarded $12.1 million for various roadway and traffic safety improvements and pavement projects. This funding is critical, as the City does not have sufficient funding to maintain or improve its current roadway infrastructure. All agencies that receive funding through MTC are required to comply with MTC’s policies related to land use, transportation, housing, and air quality. Starting with the next OBAG cycle scheduled to begin in 2026 (OBAG 4), eligibility for OBAG funding, and potentially other funding through MTC, will be dependent on local jurisdictions’ implementation of MTC’s updated Transit-Oriented Communities (TOC) Policy (adopted in September 2024). The TOC Policy consists of the following four elements: 1. Minimum residential and commercial office densities for new development; 2. Affordable housing production, preservation and protection, and stabilizing businesses to prevent displacement; 3. Parking management; and 4. Transit station access and circulation. To meet the TOC Policy, the City will need to adopt new or amend existing polices to align with MTC’s requirements. The Housing Division, in collaboration with other city departments, will undertake this work throughout 2025. A staff report providing additional background and analysis of the MTC-TOC policy was presented at the November 4, 2024, City Council Meeting. MTC has a menu of policies within the housing production, preservation and protection categories and cities are required to have at least two policies adopted by 2026 in each category. Preliminary analysis indicates that the City’s in compliance with the preservation policy category but only partially compliant in the production and protection categories. The City has plans to address the production policy requirements through the update of its affordable housing nexus study and Affordable Housing Ordinance in 2025, in conjunction with 21 Elements. However, in order to meet the protection policy requirements, 8.A. - Page 8 of 21 166