Laserfiche WebLink
6.2.D. - Page 1 <br /> RE PO RT <br /> To the Honorable Mayor and City Council <br /> From the Cit Mana er <br /> June 24, 2013 <br /> SUBJECT <br /> Use of One-time Former Redevelopment Agency Housing Funds Returned by San <br /> Mateo County <br /> RECOMMENDATION <br /> Adopt a resolution approving an appropriation amendment transferring $200,000 from <br /> the City's General Fund to the Low and Moderate Income Housing Asset Fund for the <br /> purpose of providing funding for affordable housing opportunities and authorizing a one- <br /> time commitment of $25,000 to the Housing Endowment and Regional Trust (HEART). <br /> BACKGROUND <br /> With the dissolution of Redwood City's Redevelopment Agency a portion of the funds <br /> ($448,000) formerly held by the Redevelopment Agency's Low and Moderate Income <br /> Housing Fund was returned by San Mateo County and deposited into the City's General <br /> Fund in FY 2012-13. In response to affordable housing advocates, San Mateo County <br /> has offered a matching grant program to cities willing to use all or a portion of these <br /> property tax funds for affordable housing projects. The Redevelopment Agency <br /> provided funding for HEART programs on behalf of Redwood City. <br /> ANALYSIS <br /> San Mateo County has identified up to $13million in funds they are willing to use as a <br /> match for cities implementing affordable housing projects and programs. Staff has <br /> identified a number of potential affordable housing opportunities, but not all are <br /> immediately ready for implementation. The one program that is easiest to implement <br /> and would supplement efforts the City already supports is grants for home <br /> improvements to low and very low income residents. Staff recommends that $200,000 <br /> in City funds be set aside for matching funds to the County's program. If approved by <br /> the County, this would augment the City's affordable housing program by $400,000. <br /> Because these funds would be unencumbered by many of the rules associated with <br /> federal funds, such as HOME loans, staff believes they can be readily absorbed in the <br /> community, thereby expediting badly needed improvements throughout the City. The <br /> remaining property tax funds are recommended for retention to assist in other efforts, <br /> such as the City's legal fees associated with recovering $10 million in affordable <br /> housing funds lost with the redevelopment dissolution. These funds can also assist in <br /> the administration of the City's housing program. <br />