View Supplemental Legislation - 12/13/2024 — Oakland City Council, December 9, 2024

As amended by the City Council at the December 9, 2024 City Council meeting and amended to correct clerical errors

APPROVED AS TO FORM AND LEGALITY

___________________________
CITY ATTORNEY’S OFFICE

OAKLAND CITY COUNCIL

ORDINANCE NO. ________________C.M.S.

ORDINANCE AMENDING OAKLAND MUNICIPAL CODE CHAPTER

15.62 “AFFORDABLE HOUSING TRUST FUND” TO ALLOW FUNDS

DISTRIBUTED TO THE CITY UNDER REDEVELOPMENT

DISSOLUTION LAWS TO BE USED FOR ANY LAWFUL PURPOSE

UPON A DECLARATION OF EXTREM E FISCAL NECESSITY BY THE

CITY COUNCIL

WHEREAS, Oakland Municipal Code (“OMC ”) Chapter 15.62 establishes the Affordable Housing Trust Fund; and

WHEREAS, a portion of the funds in the Affordable Housing Trust Fund a re a set-aside of 25% of funds distributed to the City as a taxing entity unde r the laws dissolving redevelopment agencies; and

WHEREAS, OMC section 15.62.040 provides that the funds in the Affordab le Housing Trust Fund shall be used only for specified purposes; and

WHEREAS, the City Administrator recommends that the requirements of Oak land Municipal Code (“OMC”) Chapter 15.62 are suspended upon a decla ration of extreme fiscal necessity by the City Council so that the Affordable Housing Tr ust Fund revenue may be used for any lawful government purposes as provided in the Ordinance adopted by the voters; and

WHEREAS, pursuant to Resolution No. 90327 C.M.S., the City Council decl ared an extreme fiscal necessity for the fiscal year 2024-2025 budget cycle; and now, therefore, be it

WHEREAS, the City Administrator recommends amending OMC section 15.62. 040 to allow the portion of funds in the Affordable Housing Trust Fund that come from funds distributed to the City as a taxing entity under the redevelopm ent dissolution to be used for any lawful purpose upon a declaration of fiscal necessity by the City Council

2 NOW, THEREFORE, THE CITY COUNCI L OF THE CITY OF OAKLAND DOES ORDAIN AS FOLLOWS:

SECTION 1. Amendments to Section 15.62.040 of the Oakland Munic ipal Code.

Oakland Municipal Code section 15.62.040, “Use of Funds”, is he reby amended to read as follows (deleted text is indicated with strikeout text, and add ed text is indicated with double underline text):

15.62.040 Use of Funds

A. Funds deposited into the A ffordable Housing Trust Fund, and all interest and investment earnings thereon, shall be used to increase, improve, and prese rve the supply of affordable housing in the City, with priority given to housing for very lo w-income households. For purposes of this paragraph, to "p reserve" affordable housing me ans to acquire, finance, refinance, or rehabilitate housi ng that is at immi nent risk of loss to the affordable housing supply (including housing that is restricted to affordable hous ing or housing that is otherwise provided at an affordable rent or an affordable h ousing cost to lower income households or very low income house holds) due to termination of use restricti ons, non-renewal of subsidy contract, mortgage or tax default or foreclosure, rent increase s, conversion to market-rate housing or other uses, demolition , or physical conditions that are likely to result in vacation of the property.

Funds may also be used to cover reasonable administrative or re lated expenses of the City not reimbursed through processing fees. No portio n of the Affordabl e Housing Trust Fund may be diverted to other purposes by way of loan or otherwise.

Funds in the Affordab le Housing Trust Fund shall be used in acc ordance with the adopted housing element to the City's Gene ral Plan, the Consolidated Plan, and subsequent housing plans adopted by the City Council, to subs idize or assist the C ity, other government entities, nonprofit organizations, private organizations or firms, or individuals in the construction, preservation or substantial reha bilitation of affordable housin g. Monies in the Affordable Housing Trust Fund may be disbur sed, hypothecate d, collateralized or otherwise employed for these purposes from time to time as the City Administrator so d etermines is appropriate to accomplish the purposes of the Affordable Housing Trust Fund. E ligible uses include, but are not limited to, assistance with staff costs or other administra tive costs attributab le to a specific affordable housin g project, equity participation in affordable housing projects, l oans and grants (including, predevelop ment loans or grants ) to affordable housi ng projects, or other public/private partners hip arrangements. Mon ies from the Afford able Housing Trust Fund may be extended for the be nefit of rental housi ng, owner occupied h ousing, limited equity cooperatives, mutual housing dev elopments, or other types of af fordable housing projects. Not more than fifteen percen t (15%) of the funds deposited into the Affordable Housing Trust Fund from Affordable Housin g Impact Fees may be used for housing aff ordable to moderate income households unless this limit is waived by the City Council with a specific finding that the waiver is in the best interests of the City.

3 B. Notwithstanding th e provisions of Subs ection A. above, fund s deposited into the Affordable Housing Trust Fund fro m fines and pena lties received under the Foreclosed and Defaulted Residential Property Registratio n Program pursuant to Section 8.54.620 of this Code, or from fines, penalties, or other funds und er other programs that designate the use of funds deposited into th e Affordable Housing T rust Fund for fore closure prevention or mitigation purposes, may be used for foreclosure prevention and mitigation activities, including but not limit ed to homebuyer or te nant assistance, re habilitation, housin g counseling, education, outreach, a nd advocacy activities , along with staff costs or other administrative costs attributable t o such activities. Upon a finding by the Ci ty Council or the City Administrator that funds are no longer needed for foreclosure prevention or mitigation activities, suc h funds may also be used f or other eligible Affo rdable Housing Trust Fund uses or for other low incom e or very low-income tenant or homebuyer assistance. Funds received pursuant to Section 8. 54.620 shall be approp riated to a separat e project. For f unds received under the Foreclo sed and Defaulted Resid ential Property Registr ation Program or other programs that designate the use of funds for foreclosure preven tion or mitigatio n purposes, the City Administrator or his or her designee is authorized to awar d grants and ente r into grant contracts or service contracts without returning to the City Co uncil in amounts not to exceed one hundred thousand do llars ($100,000.00).

C. Notwithstanding the provisi ons of Subsection A. above, until June 30, 2027, funds deposited into the Affordable H ousing Trust Fund from the set aside of funds dis tributed to the City as a taxing entit y under the Dissoluti on Laws may also be used for services and interventions aimed at: preventi ng displacement of low-income renters from their homes; preventing the displacem ent of low-income, s enior, or disabled homeowners from their homes; rehousing for homeless residents; or protecting low-income rent ers from poor housing conditions leading to displacement. These services and activiti es may include, but are not limited to, housin g counseling and outreac h, rapid-rehousing, l egal services, and housing assistance funds for tenants an d homeowners who are lower incom e households or very low- income households and who are at risk of losing their home or b ecoming homeless.

Notwithstanding the above, until June 30, 2018, funds deposited into the Affordable Housing Trust Fund from the set aside of funds distr ibuted to the City as a taxing entity under the Dissolution Laws may also be used for services for homeless res idents.

D. Notwithstanding the provisi ons of Subsection A. above, funds deposited into the Affordable Housing Trust Fund from the Down town Oakland Speci fic Plan Zoning Incentive Program may be used toward any project to increase , improve, and preser ve the supply of affordable housing in the City, i ncluding in the Downt own District (D-DT) whenever possible to preserve, protect an d produce affordable h ousing toward the exp licit goal to maintain downtown as a mixed-income community.

E. Notwithstanding the provisions of Subsection A, above, upon a declaration of Extreme Fiscal Necessity by the City Council, the City Council may appropriate funds deposited into the Affordable Housing Trust Fund fro m the set-aside of funds distr ibuted to the City as a taxing entity under the laws dissolving redevelopment agencies for any lawful purpose . In any given fiscal year, the amount the Council may appropriate shall not exceed fifty percent of the estimated revenue budgeted from said funds.

4 SECTION 2. Severability. If any section, subsection, sentence, clause or phrase of thi s Ordinance is for any reason held to be invalid or unconstitutio nal by decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Chapter. The City Council hereby declares that it would have p assed this Ordinance and each section, subsection, clause or ph rase thereof irrespective of t he fact that one or more other sections, subsections, clauses or phrases may be declared invalid or unconstitutional

SECTION 3. Effective Date. This ordinance shall become effective immediately on final adoption if it receives six or more affirmative votes; ot herwise it shall become effective upon the seventh day after final adoption.

IN COUNCIL, OAKLAND, CALIFORNIA,

PASSED BY THE FOLLOWING VOTE:

AYES – FIFE, GALLO, JENKINS, KALB, KAPLAN, RAMACHANDRAN, REID, AND

PRESIDENT FORTUNATO BAS

NOES –
ABSENT –
ABSTENTION –

ATTEST:

ASHA REED
City Clerk and Clerk of the Council of the
City of Oakland, California

D a t e o f A t t e s t a t i o n :

3387445v1/ARM

NOTICE AND DIGEST