STAFF REPORT
DATE: August 13, 2024
TO: Justin Hess, City Manager
FROM: Patrick Prescott, Community Development Director VIA: Simone McFarland, Assistant Community Development Director, Housing and Economic Development
BY: Maribel Leyland Housing Authority Manager
SUBJECT: Burbank Housing Corporation Partnership and Introduction of Master Loan Agreement Proposed Changes
SUMMARY
The Burbank Housing Corporation (BHC) has been the C ity’s long -time affordable housing partner in the community, successfully creating more than 320 affordable units in the last 25 years utilizing the C ity’s restricted housing funds . These funds include federal HOME Investment Partnership (HOME) funds and Low - and Moderate-Income Housing funds of the former Redevelopment Agency .1 BHC’s portfolio of units have restricted rents for the C ity’s Extremely-Low, Very-Low, Low- and Moderate-Income households. This affordability restriction is in place for a minimum of 55 years , and City staff works closely with BHC on an annual basis to ensure affordability requirements are met.
2 BHC was formed and incorporated ( Bylaws and Articles of Incorporation) with the assistance of the former Redevelopment Agency and City in October 1997 as a 501(c)(3) nonprofit housing development company and C ommunity Housing Development Organization (CHDO) with a nine- member board representing various community organizations. Two appointees to the BHC B oard are made by the City of Burbank/Burbank Housing Authority Board.3
1 Redevelopment Agencies were dissolved in the State of California as of February 1, 2012. 2 Affordability terms vary by funding source. The 55-year term is the most restrictive. 3 The Burbank Housing Authority is the Successor Housing Agency that monitors all the housing assets (except any monies in the Low- and Moderate-Income Housing fund), rights, powers, duties, obligations, liabilities, and functions previously performed by the former Redevelopment Agency.
COMMUNITY
DEVELOPMENT
2 The study session presentation will provide:
1) An overview BHC’s formation, history, and mission;
2) A summary of the affordable housing units created and managed; 3) A summary of the community uses and programs that BHC operates and manages;
4) An explanation of the financing utilized to fund the creation of the affordable housing units (restricted housing funds); and
5) A proposal from BHC for proposed amendments to the Master Loan Agreement for the City’s financing.
The study session presentation is for informational purposes only. Staff will return to Council at a later date to present a detailed analysis of the proposed amendments to BHC’s requested term changes and staff’s recommendation. It is anticipated that there will be a minimum of three future meetings for Council to provide feedback and direction for each area of policy considerations, generally summarized in three categories: 1) Proposed Financial Amendments, 2) Proposed Administrative Amendments; and 3) Other Financial Policy Decisions.
ENVIRONMENTAL REVIEW
The study session presentation is not subject to the California Environmental Quality Act (CEQA) under State CEQA Guidelines § 15060(c)(2), in that the study session presentation will not result in a direct or reasonably foreseeable indirect physical change in the environment, and is further and independently exempt from the California Environmental Quality Act under State CEQA Guidelines § 15061(b)(3), in that it can be seen with certainty there is no possibility the study session presentation will have a significant effect on the environment.
FISCAL IMPACT
There is no fiscal impact to the C ity as the study session presentation is for information only and no action is being taken.
CONCLUSION
In the last 25 years, the partnership between the City and BHC has benefited the Burbank community with the creation of more than 320 affordable housing units with long- term affordability covenants to keep those units affordable for a minimum of 55 years. In addition, BHC has managed community serving uses to assist households in BHC units and households throughout the community if space is available. BHC partners with local service providers to offer programming at five different Family Resource Centers , and they oversee the accredited operator for two childcare centers, all for the benefit of lower income residents. Looking ahead, BHC is proposing changes that will allow them to continue this work for the community. Their proposal will be discussed over a span of several presentations to Council addressing one or two proposed terms at a time.
ATTACHMENT
None.