DATE:
January 21, 2025
TO:
LaTanya Bellow, City Manager
FROM:
Chadrick Smalley, Community Development Director
SUBJECT:
Fiscal Year 2024 Affordable Housing Expenditure Plan And Program Annual Report
STAFF RECOMMENDATION
The attached FY24 Affordable Housing Expenditure Plan and Affordable Housing Program Annual Report details expenditures and programmatic activities though Fiscal Year (“FY”) 2024. The report includes sections detailing the use of Measure C Affordable Housing Bond proceeds, the status of the City’s Below Market Rate (“BMR”) portfolio, and progress on all activities in the Affordable Housing Bond Administration and Expenditure Plan (“Expenditure Plan”). No actions are recommended in association with this report at this time, although its content can inform future activities and Council decisions.
BACKGROUND
Affordable Housing Administration and Expenditure Plan
In June 2018, Emeryville voters approved Measure C, a $50 million general obligation bond to fund affordable housing initiatives. These funds support the City's Housing Element and General Plan policies, which aim to increase affordable housing opportunities for low-income and special-needs populations. On March 2, 2021, the City Council adopted Resolution No. 21-13 approving the Expenditure Plan, which guides the allocation of Measure C Housing Bond proceeds alongside other funding sources, including State and Federal grants, Housing Successor Agency, and Housing Impact Fee funds. Resolution No. 21-13 also designated the Budget Advisory Committee as the Bond Oversight Committee for Measure C Housing Bonds. In May 2023, the City sold Measure C Housing Bonds. This report fulfills the requirement for an annual report, as outlined in the Expenditure Plan.
Affordable Housing Program
In July 2014, the City Council retitled and amended Article 4 of Chapter 5 of Title 9 of the City of Emeryville’s Planning Regulations as the Affordable Housing Program. The purpose of the Affordable Housing Program is to lessen the shortage of housing which is affordable to moderate, median, low and very low-income households by ensuring developers include BMR units in residential developments of a certain size and to establish a housing impact fee for the creation of affordable housing units. This report fulfills the requirement for an annual report, pursuant to the Affordable Housing Program at Emeryville Municipal Code section 9-5.418.
DISCUSSION
Affordable Housing Administration and Expenditure Plan
Key accomplishments since the adoption of the Expenditure Plan include:
BMR Acquisition Program: Utilized Measure C and Housing Successor Agency funds to acquire and preserve two affordable housing units, which were sold to income-qualified purchasers with affordability restrictions.
Rental Housing Production: Closed on the $16M development loan for the construction of 89 affordable rental units at 3600 San Pablo Avenue (Nellie Hannon Gateway), including 45 permanent supportive housing units for formerly homeless individuals.
First Home Emeryville Program: Approved program guidelines to launch a homebuyer assistance program providing up to $200,000 in down payment assistance to low- and moderate-income households.
Emeryville Accessible Living Initiative (EALI): The City was awarded $575,000 in Pro-Housing Pilot Incentive Program funds from the California Department of Housing and Community Development to implement a residential accessibility program.
Looking ahead to FY25, staff plans to:
Launch and Implement Affordable Housing Plan Programs: Staff will launch and implement the following programs:
First Home Emeryville, down payment assistance program.
EALI, residential accessibility improvement program.
Adopt Program Guidelines: Staff will draft and seek City Council approval of guidelines for the following Expenditure Plan programs:
Rental Preservation Program
Development Opportunities Program
Ensure Housing Bond Compliance: Staff will continue to ensure the expenditure of Measure C Housing Bond proceeds are in compliance with the Measure C Housing Objectives.
Affordable Housing Program
Key accomplishments under the Affordable Housing Program include:
Leased: Ten residential rental projects creating 234 BMR units have been built and leased since 2014.
Under Construction: One residential rental project creating 89 BMR units is currently under construction.
Entitled: Two residential rental projects creating 71 BMR units have been entitled and are pending building permits to start construction.
Maintain BMR Homeownership Portfolio: 239 BMR Homeownership units have been created between 1993 and 2009. Seven BMR Homeownership units have been lost due to foreclosure. No BMR homeownership units were lost during FY24, and, as noted above, two units at risk of loss were retained through the BMR Acquisition Program in FY24.
Looking ahead to FY25, staff plans to:
Ensure BMR Homeownership Portfolio Compliance: Continue to monitor the owner occupancy status of the 232 units in the BMR Homeownership portfolio Ensure BMR Rental Portfolio Compliance: Continue to monitor the leasing status of the BMR Rental portfolio and ensure all BMR Rental projects have updated marketing plans and waitlists, so that vacant BMR units can be occupied quickly.
Modify BMR Rental Guidelines: Modify the BMR rental guidelines to improve the tenant recertification process, clarify the BMR waitlist policy, and develop a BMR Parking policy for existing developments.
Fiscal Impact
Under the Expenditure Plan, the City has expended $15,623,602 (24%) of the $64,516,793 original funding allocation. Measure C Housing Bonds represent $4,576,500 of the expenditures made through FY24. An additional $575,000 was awarded to the City in Prohousing Pilot Incentive funds in 2023, bringing the total funding available to $65,091,793. The $575,000 in Prohousing Incentive funds must be expended by June 2025 and is reflected in the updated Expenditure Schedule within the report.
Staff Communication with the Public
The Budget Advisory Committee, serving as the Bond Oversight Committee for the Measure C Housing Bonds pursuant to Resolution No. 21-13, reviewed the Measure C Housing Bond section of the Annual Report on December 5, 2024.
Staff intends to share the Annual Report with the Housing Committee at a Special meeting in January 2025.
Conclusion
The Annual Report highlights the progress the City has made towards implementing the Expenditure Plan and producing below market rate units throughout the City. Details on the Expenditure Plan activities, expenditures, Measure C Housing Bond compliance and Affordable Housing Program compliance are included in the attached comprehensive affordable housing report.
PREPARED BY: Valerie F. Bernardo, Community and Economic Development Coordinator II Approved and Forwarded to the
City Council of the City of Emeryville:
LaTanya Bellow, City Manager
ATTACHMENT:
FY24 Affordable Housing Plan and Affordable Housing Program Annual Report FY24 Affordable Housing Plan and Affordable Housing Program Annual Report City Council Meeting | January 21, 2025
City of Emeryville
CALIFORNIA
MEMORANDUM