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REDWOOD CITY FAIR AND AFFORDABLE HOUSING ORDINANCE <br /> <br />Economic & Planning Systems, Inc. 41 Affordable Housing Impacts <br />Housing Element and RHNA Implications <br />The potential impacts described above may also affect Redwood City’s ability to <br />advance affordable housing production and preservation over time. If affordable <br />housing becomes more costly or difficult to finance, operate, or preserve in <br />Redwood City, providers may be less likely to advance future projects or may <br />require additional subsidy to do so. Increasing the cost of affordable housing <br />projects is likely to require additional subsidy and extend development timelines, <br />potentially affecting the City's ability to deliver projects needed to meet its RHNA <br />obligations29. <br />The potential impact is most relevant for projects that require public subsidy, <br />tax credit equity, vouchers, or rehabilitation financing. For new affordable <br />housing projects, these impacts are more likely to relate to ongoing program <br />fees, administrative compliance requirements, operating uncertainty, or <br />investor/lender concerns, rather than no-fault eviction or rehabilitation- <br />related requirements. If the proposed Ordinance increases operating costs, <br />creates uncertainty around rent adjustments or reduces investor confidence, <br />projects may take longer to finance or may need additional funding sources <br />before moving forward. Relocation, tenant safety plan, and right-to-return <br />costs are more likely to be relevant for preservation and rehabilitation rather <br />than new affordable housing projects. <br />This does not mean the proposed Ordinance would directly prevent the City from <br />meeting RHNA. However, if affordable housing production or preservation <br />becomes more difficult, the City may face greater challenges implementing its <br />Housing Element, advancing pipeline projects, and maintaining progress toward <br />lower-income RHNA targets. <br /> <br />29 Affordable housing projects generally rely on multiple competitive funding sources, including City and County housing funds and <br />Low-Income Housing Tax Credits. If additional subsidy is required, projects may need to compete in multiple funding cycles, <br />potentially delaying development. There is no guarantee that the City, County, or other funding agencies will have sufficient funding <br />available to provide the additional subsidy necessary to close any resulting financing gap. <br />8.A. - Page 100 of 168 <br />110