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HomeMy WebLinkAboutAnnual Program Review for Fiscal Year 2018-19 Affordable Hou !J CITY OF HUNTINGTON BEACH Interdepartmental Memo TO: Honorable Mayor and Mem rs of the C' Council FROM: Oliver Chi, City Manager DATE: December 18, 2019 SUBJECT: Release of Fiscal Year 2018-19 Affordable Housing Trust Fund Annual Report The City adopted an Inclusionary Zoning Ordinance in December of 2004 (the "Inclusionary Ordinance"), which has been amended from time-to-time. The purpose and intent of the Inclusionary Ordinance is "to implement the goals, objectives and policies of the City's Housing Element. It is intended to encourage low- and moderate-income housing, which is integrated, compatible with and complements adjacent uses, and is located in close proximity to public and commercial services." The Inclusionary Ordinance applies to new residential projects of three or more units and requires that a minimum of 10% of all new residential construction be affordable housing units. Housing developers can meet this obligation by 1) providing the affordable units on site, 2) payment of an in lieu fee, or 3) providing the affordable housing units offsite within Huntington Beach. If a developer selects option 2, payment of an in lieu fee, the fee must be deposited in an Affordable Housing Trust Fund (the "Trust Fund"). Trust Funds shall be used for projects which have a minimum of 50% of the dwelling units affordable to very low-and low-income households, with at least 20% of the units available to very low- income households. Reporting requirements under the Inclusionary Ordinance specify that the City Council must review the status of the Trust Fund within 180 days after the last day of each fiscal year (the "Annual Report"). The Annual Report must include the following information: • Amount of in lieu fees collected; and • Expenditures from the Affordable Housing Trust Fund; and • The degree to which the fees collected are assisting the City to provide and encourage low- and moderate-income housing. An Annual Report has never been prepared for City Council Review. Therefore, the annual program review for Fiscal Year 18-19 includes all previous fiscal years since the inception of the Inclusionary Ordinance. For future Annual Reports, the review will only include the previous fiscal year. The attached table outlines the in lieu fees collected, expenditures from the Trust Fund, the fund balance at the end of the fiscal year, and a breakdown of affordable housing units that have been achieved with the assistance of Trust Funds. Of particular note, on February 10, 2014, the City Council approved a regulatory agreement for the Oceana Project and provided $2,000,000 to help underwrite the project. Oceana has a total of 78 units, 77 affordable units and one 1 for the manager.. The breakdown of the affordable units is 8 at extremely low income, 32 at very low income, and 37 at low income. This project is considered 100% �A. _ T T N BEACH CITY OF HUN iNG O C H HInterdepartmental Memo affordable. $253,555 comprise administrative expenses associated with the City's Tenant Based Rental Assistance ("TBRA") program. 121 families (120 very low income and 1 low income) have been assisted through the TBRA program. Attachment: Annual Program Review Cc: Travis Hopkins, Assistant City Manager Michael Gates, City Attorney Robin Estanislau, City Clerk Ursula Luna-Reynosa, Director of Community Development Jennifer Villasenor, Deputy Director of Community Development Kellee Fritzal, Deputy Director OBD Division Jane James, Planning Manager Debbie Gilbert, Senior Administrative Analyst Julie Paik, Analyst Housing o E L C 3 Z ° rn Ln Ln M o 14 1n t m cu 0 v E a o P = 0 u c z > 5 r. 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