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Presentation by Alameda County on the Bay Area Affordable Housing Bond (Housing and Human Services 20821840)
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To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
Alameda County is coordinating with local jurisdictions to prepare for the potential Bay Area Housing Bond (Affordable Housing Bond), a regional general obligation affordable housing bond that will be under consideration for the November 2024 election put forth by the Bay Area Housing Finance Authority (BAFHA). Eighty percent of the bond proceeds will be distributed to each of nine Bay Area counties and four cities (Oakland, San Jose, Santa Rosa, and Napa); BAFHA will retain the remaining 20% of bond funding to use throughout the region. All jurisdictions that receive funding must adopt local expenditure plans to outline how their funding will be spent. BAFHA will set an official date for submitting expenditure plans, which may be as soon as February 3, 2025. Alameda County is conducting preliminary outreach to inform local jurisdictions of the bond’s requirements and the plan’s spending priorities.
BACKGROUND
Residential rents and the cost of purchasing a home are at all-time highs throughout Alameda County. The City of Alameda (City) is facing an unprecedented housing crisis and the community is directly impacted by rapidly rising rents and low vacancy rates. In the City's Rent Program 2022 Annual Report, 47% of tenant households spend more than 30% of their income on rent. As housing becomes less affordable and the demand outpaces supply, it is becoming harder for residents to afford housing, especially for low-income families and individuals.
City Council adopted a Housing Element that includes a number of programs and policies intended to preserve and expand the City’s supply of affordable housing for very low- and low-income individuals and families and to meet the City’s Regional Housing Needs Allocation (RHNA) goals for housing for all sectors of the community.
BAHFA is proposing a regional Affordable Housing Bond measure for the November 2024 election, which requires a two-thirds (2/3) supermajority approval by voters, and will raise funds to create and protect affordable housing for very low- and low-income renters and homeowners throughout Alameda County. BAHFA’s goal is to raise, administer and allocate funding at a regional scale for tenant protection, affordable housing preservation, and new affordable housing production (referred to as the “3P’s” Housing Strategy).
DISCUSSION
Alameda County is conducting preliminary outreach to inform local jurisdictions of the bond’s requirements and the plan’s spending priorities. As part of these efforts, Alameda County is preparing an expenditure plan for the $10 to 20 billion Affordable Housing Bond to build and preserve long-term affordable rental housing for very low- and low-income individuals and families. Representatives from Alameda County held a community meeting about the Affordable Housing Bond at the Alameda Free Library on March 20, co-hosted by Supervisor Lena Tam and Mayor Marilyn Ezzy Ashcraft, and tonight will present this information about the Affordable Housing Bond to the City Council. As listed in Exhibit 1, the City has an affordable housing pipeline of approximately 1,309 new affordable units to be constructed by 2030, pending funding. If approved, the majority of the Affordable Housing Bond funds will support the development of affordable housing (i.e., new construction), which will help the City’s progress towards meeting its RHNA goals.
ALTERNATIVES
No City Council action is necessary on this matter. This presentation is for information only.
FINANCIAL IMPACT
There is no financial impact to the General Fund to receive information about the proposed Affordable Housing Bond. As noted above, if the Affordable Housing Bond is approved, it will help the City to meet its RHNA goals by providing dedicated funding for the development of affordable housing.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The presentation regarding the Affordable Housing Bond is consistent with the programs and policies contained in the City’s Housing Element.
This action is also consistent with Strategic Plan priority HH3: Further the preservation, rehabilitation, or construction of affordable housing in Alameda.
ENVIRONMENTAL REVIEW
This action does not constitute a “project” as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378 and therefore no further CEQA analysis is required.
CLIMATE IMPACT
Funding from a potential regional Affordable Housing Bond will support infill development and rehabilitation of existing housing stock. Both activities are acceptable under federal regulation and capable of mitigating greenhouse gas emissions.
RECOMMENDATION
Receive a presentation from Alameda County about the Bay Area Affordable Housing Bond.
Respectfully submitted,
Amy Wooldridge, Assistant City Manager
By,
Lisa Fitts, Housing and Human Services Manager
Andre Fairley, Management Analyst
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. 2024 Affordable Housing Pipeline