Bay Area Housing Finance Authority (BAHFA)
Regional Affordable Housing Bond
Oakland City Council
June 4, 2024
• In 2017-18, local elected officials and
stakeholders gathered to identify solutions
to the region’s affordable housing
challenges
• Goal was to move from DIY for all 109
jurisdictions to collaborative solutions
• Lack of affordable housing funding a
common condition
• In 2019, local leaders partnered with State
Legislature to enable a new, regional
approach
BAHFA’s History: 7+ Years in the Making
BAHFA’s Core Power
To raise revenue regionally to address
systemic challenges in housing affordability
and housing stability across the 3Ps:
1. Production of new affordable housing
2. Preservation of existing affordable
housing
3. Protections for low-income residents and
people at risk of homelessness
BAHFA’s Mission
1. Collaborate with cities and counties
2. Add Value
3. Improve our housing delivery system
3 Bay Area Housing
Finance Authority
(BAHFA) was created
in 2019 to help solve
housing affordability
challenges
Proposed 2024
Regional
Housing Bond
▪ Up to $20 billion
▪ Build and preserve ~72,000 affordable
homes across the nine counties
▪ Requires voter approval
▪ Eligible uses set forth in statute and
state constitution
▪ Most ambitious housing program in
region’s history
4 Substantial Benefits to Every County
County & Direct City Allocations $10B GO Bond $20B GO Bond Alameda County (excluding Oakland) $984 M $2 B
Oakland $383 M $765 M
Contra Costa County $925 M $1.9 B
Marin County $352 M $704 M
Napa County (excluding City of Napa) $100 M $200 M
City of Napa $79 M $158 M
San Francisco City and County $1.2 B $2.4 B
San Mateo County $1 B $2.1 B
Santa Clara County (excluding San Jose) $1.2 B $2.4 B San Jose $1 B $2.1 B
Solano County $248 M $497 M
Sonoma County (excluding Santa Rosa) $282 M $564 M
Santa Rosa $121 M $242 M
Regional Funding (BAHFA administered) $2 B $4 B
5 Substantial Benefits to Every County
County and City: 80% Regional Program: 20%
6 Production
≥ 52%
Production
≥ 52%
Preservation
≥ 15%
Preservation
≥15%
*Protection
≥ 5% *Protection
≥5%
≤10% Local
Government
Incentive Grant
Program
Flexible
28%
Flexible
18%
*Exception for GO Bonds: currently, state law does not allow bond proceeds to be spent on non-capital (e.g., services) costs.
How Funds Can Be Spent
7 2024 Affordable Housing Bond:
Local Expenditure
Planning
✓ Oakland City Council must adopt its
Expenditure Plan and transmit to
Alameda County
✓ Must include minimum 52% for
production, 15% for preservation,
5% for protections
✓ Production must prioritize projects that
help meet ELI, VLI, and LI RHNA
targets
✓ 28% Flexible Funds can be for housing
and “housing-related uses”
✓ To the “extent feasible” the Plan should
include specific projects and programs
✓ If Expenditure Plan satisfy all criteria,
they will be approved as a matter of law
8 County and Direct-
Allocation City
Expenditure Plans
(the 80%)
✓ All housing must be deed-
restricted
✓ Minimum 30-year deed term for
Production projects meeting RHNA
obligations
✓ All housing must be affordable,
with cap of 120% AMI
✓ Rental, ownership and interim
housing all eligible
✓ Everything must conform to
Expenditure Plan
✓ Everything must be constitutional
9 General Rules
for County and
Direct-Allocation City
Expenditure Plans
(the 80%)
10 2024 Affordable Housing Bond:
Regional Expenditure
Planning
By building upon the successful model of the
NYC Housing Development Corporation
(HDC) model, BAHFA can:
▪ Support a diverse set of projects and programs
▪ Achieve self-sustaining operations
▪ Generate a new source of recurring funding for
programs and project subsidies
▪ Establish a regional, mission-driven lending agency
not reliant on recurring taxpayer support
HDC Performance
Metrics
2017-2022:
• Bonds Issued: $1.5-
$2.7B annually
• Subsidy Committed:
$102-$325M
annually
• Projects Financed:
27-44 annually
• Units Financed:
9,600-15,000
annually
11 BAHFA’s Goals as a Regional Finance Agency
BAHFA’s Goals & Growth
Early Years
FUNDING SOURCES:
$2-$4 Billion in GO Bonds
REGIONAL CAPACITY:
Enhanced administrative
capacity, technical expertise,
regional leadership
PROGRAMS:
Mortgage loans, subsidies,
local government grants,
Doorway
Years 10 and On
FUNDING SOURCES:
Diversified revenue streams
REGIONAL CAPACITY:
Public mortgage lender,
established track record &
credibility, financial strength
PROGRAMS:
Broader range of financing
products & programs,
including technical
assistance and protections
12 ▪Annual reporting on regional expenditures and progress towards goals
• Posting on BAHFA’s website
▪Annual financial reporting to state by BAHFA
▪Regular, independent auditsof BAHFA
▪Citizen oversight committee will annually review
expenditures and issue reports
Accountability
13 2024 Housing Bond Approval Timeline*
BAHFA
Advisory
Committee
Jan
BAHFA
Oversight
and
ABAG
Housing
Committees
Feb
ABAG
Executive
Board
Apr BAHFA
BoardMay BAHFA
BoardJun
* Dates are subject to change
Recommend
Recommend
Approval
Final
Discussion
Final
Approval
14