AgdaPkt 2003-06-02 - Laserfiche WebLink

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5.5 Three fundamental considerations should be integral to the Housing Endowment: initial capitalization, long term sustainability, and leveraging of public - private partnerships. The specific tactics for each of these considerations will vary depending on the specific funding goal established for the Housing Endowment. 1. Initial Caoitalization — Initial capitalization (i.e., the first two years) is important to allow the Housing Endowment to have an immediate impact on a pressing need. If the goal for initial capitalization is high, two tactics might be considered. The first is a bond, which would require a 2/3 affirmative vote of the electorate in San Mateo County. The second would be the issuance of debt. One possibility for securing the debt might include using the funds from the Redevelopment Agencies in the county as security. [RDA funds would serve as the security for the re- payment obligation]. If a lower goal is set for initial capitalization, other alternative tactics might be considered. One is applying for proceeds from the November statewide housing bond (assuming the measure is successfully passed). Another is to set a goal and have cities fund one -third of the goal, the county fund one -third of the goal, and to challenge the private sector to fund the final third. 2. Lono Term Sustainabilitv — In order to have funds available over a longer period of time, tactics need to be developed which will bring a guaranteed source of income to the Endowment on an annual and ongoing basis. A private sector tactic would be the establishment of an ongoing fund raising campaign where foundations, corporations, and private individuals can contribute at any point of the year. Public sector tactics would be primarily related to tax mechanisms. This could be accomplished through an increase to a present tax or by a commitment to provide all or a percentage of the growth in a tax source (above current levels). Taxes to be considered would be Transient Occupancy Tax, Real Estate Property Transfer Tax, and Sales Tax. A new Parcel Tax could also be considered. An additional public sector option would be the imposition of a commercial development linkage fee. Proceeds from such a fee established by cities and the county would be placed with the Housing Endowment. A cap on this fee could be set for jurisdictions and once they have reached this cap, their annual contribution to the Housing Endowment would be fulfilled and any additional funds from the commercial development linkage fee would be maintained by the jurisdiction collecting the fee. 3. Leveraoino of Public- Private Funds — V