CITY COUNCIL
Darrell Steinberg, Mayor
Angelique Ashby, Vice Mayor, District 1
Sean Loloee, District 2
Jeff Harris, District 3
Katie Valenzuela, District 4
Jay Schenirer, District 5
Eric Guerra, Mayor Pro Tem, District 6
Rick Jennings, II, District 7
Mai Vang, District 8
CHARTER OFFICERS
Mindy Cuppy, City Clerk
Susana Alcala Wood, City Attorney
Jorge Oseguera, City Auditor
Howard Chan, City Manager
John Colville, City Treasurer
City Council
Financing Authority
Housing Authority
Public Financing Authority
Redevelopment Agency
Successor Agency
915 I Street, 1st Floor, Sacramento
Published by the Office of the City Clerk
(916) 808-5163
SUPPLEMENTAL MATERIAL
D
escription: Attached is supplemental material received after publishing the agenda outlining revisions to the original staff report recommendation and resolution (attachment 3) of Discussion Item 14. The attached recommendation, resolution, and exhibits replace the original staff report recommendation, resolution, and exhibits in their entirety.
For
the Meeting of: Tuesday, October 25, 2022, at 2:00 p.m.
A
genda Item: Discussion Item 14
14. U
pdate to the Comprehensive Siting Plan to Address Homelessness Workplan and Corresponding Funding Recommendations [Two-Thirds Vote Required] File ID: 2022-01553
Location: Citywide
Recommendation: 1) Receive updates to the Comprehensive Siting Plan to Address Homelessness workplan, further aligning it with the adopted regional Local Homeless Action Plan; 2) pass a Motion by two-thirds vote waiving the requirements of Sacramento City Code section 4.04.020.C and Council Rules of Procedure section 7.E.2.d relating to agreements greater than $1,000,000; and 3) adopt a Resolution: a) establishing the FY2022/23 Affordable Housing Project (I02189050) as a new Multi-Year Operating Project; b) authorizing the City Manager or the City Manager's designee to make the budgetary adjustments to available fund balances and projects as outlined in Exhibit A; c) authorizing the City Manager or the City Manager's designee, following appropriate environmental review, to negotiate, enter into, execute, and amend the necessary funding agreements that provide loans or grants in the amounts specified for the projects outlined in Exhibit B; d) authorizing the City Manager or the City Manager's designee to perform all other actions related to the Projects including executing related affordability agreements, amending the HHAP 2 budget, and other documents; e) directing future loan repayments from the Projects to be returned to the Revolving Loan Fund (Fund 2029); and f) authorizing the City Manager or the City Manager's designee to increase the expenditure budget in the FY2022/23 Affordable Housing Project (I02189050) by up to $12,443,880 with a transfer from remaining FY2021/22 year-end resources included in available fund balance in the General Fund/Measure U Fund (Fund 1001/ Fund 2401) to be used for full repayment of expenses from the Reduced Residential Development Impact Fees for Affordable Dwelling Units (Zero Dollar Impact Fee) Program.
Contact: Hector Barron, Assistant City Manager, Municipal Services, (916) 808-2669, [email protected], Mario Lara, Assistant City Manager, Public Safety, (916) 808-8526, [email protected], City Manager's Office, Nick Golling, Homeless Services Program Manager, (916) 808-7816, [email protected], Department of Community Response; Danielle Foster, Housing Policy Manager, (916) 808-1869, [email protected], Office of Innovation & Economic Development City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01553 10/25/2022 Supplemental Material
SUPPLEMENTAL MATERIAL: Update to the Comprehensive Siting Plan to Address Homelessness Workplan and Corresponding Funding Recommendations [Two-Thirds Vote Required]
File ID: 2022-01553
Location: Citywide
Recommendation: 1) Receive updates to the Comprehensive Siting Plan to Address Homelessness workplan, further aligning it with the adopted regional Local Homeless Action Plan; 2) pass a Motion by two-thirds vote waiving the requirements of Sacramento City Code section 4.04.020.C and Council Rules of Procedure section 7.E.2.d relating to agreements greater than $1,000,000; and 3) adopt a Resolution: a) establishing the FY2022/23 Affordable Housing Project (I02189050) as a new Multi-Year Operating Project; b) authorizing the City Manager or the City Manager’s designee to make the budgetary adjustments to available fund balances and projects as outlined in Exhibit A; c) authorizing the City Manager or the City Manager’s designee, following appropriate environmental review, to negotiate, enter into, execute, and amend the necessary funding agreements that provide loans or grants in the amounts specified for the projects outlined in Exhibit B; d) authorizing the City Manager or the City Manager’s designee to perform all other actions related to the Projects including executing related affordability agreements, amending the HHAP 2 budget, and other documents; e) directing future loan repayments from the Projects to be returned to the Revolving Loan Fund (Fund 2029); f) authorizing the City Manager or the City Manager’s designee to transfer up to $9,943,880 from FY2021/22 and/or FY 2022/23 year-end resources included in available fund balance in the General Fund/Measure U Fund (Fund 1001/Fund 2401) to the FY2022/23 Affordable Housing Project (I02189050), to be used to offset the revenue shortfalls identified in Exhibit C, resulting from the Reduced Residential Development Impact Fees for Affordable Dwelling Units (Zero-Dollar Impact Fee) Program; g) acknowledging that to continue the Zero-Dollar Impact Fee Program and offset the resulting revenue shortfalls beyond the budgetary allocations set forth in this resolution, Council must identify a funding source going forward; and h) directing the City Manager or the City Manager’s designee to return to Council in November for additional discussion of the Homeless Housing, Assistance and Prevention (HHAP) Round 4 funding.
Contact: Hector Barron, Assistant City Manager, Municipal Services, (916) 808-2669, [email protected], Mario Lara, Assistant City Manager, Public Safety, (916) 808-8526, [email protected], City Manager’s Office, Nick Golling, Homeless Services Program Manager, (916) 808-7816, [email protected], Department of Community Response;
File ID: 2022-01553 10/25/2022 Supplemental Material
Danielle Foster, Housing Policy Manager, (916) 808-1869, [email protected], Office of Innovation & Economic Development
Presenters: Nick Golling, Homeless Services Program Manager, (916) 808-7816, [email protected], Department of Community Response; Danielle Foster, Housing Policy Manager, (916) 808-1869, [email protected], Office of Innovation & Economic Development
Attachments:
1-Description/Analysis
2-Updated Resolution (redlined)
3- Updated Resolution (clean)
4-Exhibit A - Budgetary Adjustments
5-Exhibit B - Affordable Housing Projects
6-Exhibit C - Revenue Shortfalls Related to the Zero-Dollar Impact Fee Program Description/Analysis
Issue Detail: This updated recommendation and resolution includes repayment of existing expenditures in the Reduced Residential Development Impact Fees for Affordable Dwelling Units (Zero Dollar Impact Fee) Program. Further, the updated recommendations would conclude the program once the recommended budgetary allocations are fully utilized, unless additional funding for the program is identified.
This supplemental report is also to more clearly summarize progress made on the Comprehensive Siting Plan and continuing efforts, including the efforts previously outlined in the recommendations and others in assessing potential motel locations and use of future state funding, including HHAP-4 funding. Staff will bring an update on those efforts in November, as part of ongoing comprehensive response in maintaining existing shelter and assessing additional options.
Progress on the Comprehensive Siting Plan:
Based on Table 4: Summary of Priority Sites list and the options listed in the programmatic section of the report, the City has been quite successful in bringing identified locations and programs online.
Specifically, the following locations are completed or in process:
· Larchwood (north) is under construction for the Hospice use identified as Joshua’s House for this site, providing 15 beds, serving 30 people annually · Expansion of North 5
th Street Shelter, adding 41 beds, reaching a total of 163 beds at this location
· Meadowview Village project is now re-imagined to be placed on Fruitridge due to challenges in acquiring the Meadowview property, and this 100-unit project is continuing with funding the
File ID: 2022-01553 10/25/2022 Supplemental Material
City Council approved in June.
· X Street Navigation Center was completed shortly after adoption of the plan, adding 100 shelter beds.
· Expansion of Grove Emergency Bridge Housing from 24 cabins to 50 cabins. · Several Homekey Projects were completed and new ones were added to address unsheltered individuals and families, including:
o Saint John’s Program for Real Change transitional housing units serving up to 22 families at a time and WEAVE permanent housing units for 9 families. o La Mancha motel conversion providing 100 units of housing. o Vista Nueva motel conversion adding another 117 units of housing and transitional spaces for families.
o Sacramento Central Studios currently under construction and adding 93 additional units.
· Additional sites are being assessed for the city’s Motel Voucher Program with the extension of FEMA reimbursements and additional state funding.
· The Emergency Housing Vouchers were brought online last year by Sacramento Steps Forward and the Sacramento Housing and Redevelopment Agency, and additional housing is needed to help individuals and families transition into permanent housing. · The City has also continued contracts from the previous Pathways Program to continue rehousing efforts with unsheltered clients who did not transition into CalAIM. · The City brought online the Auburn Outreach and Engagement Center at the former Science Center, providing both respite and services together.
· The City is continuing conversations with the County about a Downtown Service Center and additional tiny home locations as part of the Partnership Agreement.
It is noteworthy that the City assesses sites, both old and new, and programmatic opportunities as they arise to seek the most effective methods for response. Adapting based on additional feasibility information and new options allows the City to stretch resources further and provide resources in a more timely and effective way.
This table summarizes the sheltering being provided with City funding and in partnership with SHRA, non-profit service providers, and location motels currently:
Location or Program Type of Shelter Population Max Population Meadowview Navigation
Center
Congregate Women only 100
X Street Navigation Center Congregate Co-ed adults 100 North 5th Street Shelter Congregate Co-ed adults 163
Motel Voucher Program 5 Motels/370
rooms
Mostly women and
children
Approx. 450
Miller Park North Safe Parking Coed, families 50 Vehicles/50 people
Miller Park West Safe Ground 60
tents
Co-ed adults 100 people
LGBT Center Various Transitional Aged
Youth (TAY)
Approx. 40
Wind Youth Services Emergency
Shelter
TAY 18
Waking the Village Emergency
Shelter
TAY Parents with
children
20 The Grove Emergency
Shelter
TAY 50
Auburn Blvd. Outreach and
Engagement Center
Short-term
respite
Co-ed/families 50
11 Programs Total: 1,141
File ID: 2022-01553 10/25/2022 Supplemental Material
Location or Program Type of Shelter Population Max Population Meadowview Navigation
Center
Congregate Women only 100
X Street Navigation Center Congregate Co-ed adults 100 North 5th Street Shelter Congregate Co-ed adults 163
Motel Voucher Program 5 Motels/370
rooms
Mostly women and
children
Approx. 450
Miller Park North Safe Parking Coed, families 50 Vehicles/50 people
Miller Park West Safe Ground 60
tents
Co-ed adults 100 people
LGBT Center Various Transitional Aged
Youth (TAY)
Approx. 40
Wind Youth Services Emergency
Shelter
TAY 18
Waking the Village Emergency
Shelter
TAY Parents with
children
20 The Grove Emergency
Shelter
TAY 50
Auburn Blvd. Outreach and
Engagement Center
Short-term
respite
Co-ed/families 50
11 Programs Total: 1,141
Staff anticipates returning to the City Council during November for additional discussions on the usage of HHAP-4 funding and contract updates/extensions to the city motel voucher program.
Policy Considerations: These actions address an existing financial liability for the City and future potential expenses by not charging impact fees on affordable housing units. This program has been beneficial in providing affordable housing units within the City and staff is supportive of its continuance, with the identified resources in place. The actions in this report address existing expenses and continue funding for this program through the fiscal year, providing time for future planning of the program.
Additionally, the City continues to provide a mix of shelter and housing options as additional housing can be brought online. Staff will return in November to update Council and gain direction on the programming of HHAP-3/HHAP-4 funding with a balanced approach that allows Council to:
· Fully utilize FEMA reimbursement and available funding for non-congregate sheltering. · Continue to provide immediate response until long-term housing options are brought online. · Continue a comprehensive response to preventing and reducing homelessness.
The City will also proceed with County conversations and a continuum of options through the City- Council Partnership Agreement. Future augmenting opportunities and resources will be programmed towards the City’s response to homelessness in these ways. It is important to act timely on the items being recommended for action so that the continuum of options can continue to be expanded and be brought online quickly.
Resolution 2022- October 25, 2022 Page 1 of 4
RESOLUTION NO. 2022-
Adopted by the Sacramento City Council
October 25, 2022
Resolution Approving Allocations of Funds to Affordable Housing Projects and Programs
BACKGROUND
A. Homelessness is an existential threat to the individuals living without quality housing and to the public health and safety of the residents and businesses in Sacramento.
The right to an adequate standard of living for every resident of the City is one that must be protected and advanced by the actions and commitment of all levels of government, including the City of Sacramento. The interconnectedness of homelessness, housing, and public health must inform the current and future policy, partnerships, prioritization of work programs, and budget allocations to prevent homelessness and reduce the number of people experiencing it.
B. On January 5, 2021, the City Council unanimously approved the preparation of a siting, operations, programmatic, and financing plan and committed to a Council-led process to engage the community, identify public and private properties for shelter and housing, identify funding sources, and provide authority to the City Manager to implement it. The resulting Comprehensive Siting Plan to Address Homelessness was approved on August 10, 2021 and a substantial workplan update was approved on April 12, 2022.
C. According to the 2019 Point-in-Time Homeless Count released by the Sacramento Steps Forward, which is Sacramento’s Continuum of Care, the County of Sacramento had a homeless population of 5,570 individuals, a majority of whom are sheltered and unsheltered on any given night in the City of Sacramento. The 2019 Point-in-Time Count also estimates that in 2019 between 10,000 and 11,000 individuals would be unsheltered at some point over the year. In 2022, the Point-in-Time Count increased to 9,278 homeless individuals in Sacramento County. A disproportionate share of these homeless individuals are people of color. There has been an increase in local homelessness as a result of the COVID-19 pandemic, population relocation, and further housing market constraints, finding that approximately 16,500 to 20,000 experience homelessness over the course of a year in Sacramento County.
D. Since 2019, housing affordability in the state has worsened with rising rents and limited new construction of affordable and permanent supportive housing. The City Council declared a Shelter Crisis annually since January 14, 2020 under chapter 7.8 Resolution 2022- October 25, 2022 Page 2 of 4
of division 1 of title 2 of the California Government Code and directed the City Manager to take action to streamline the provision of homeless shelters (Resolution 2020-0017). While the City has made great progress in ensuring 1,100 spaces for sheltering and notable increases in the production of affordable and workforce housing, more housing is needed.
E. Recent increases in higher-income households relocating from the Bay Area have placed further demand on the local housing market. Regionally, over the last year, median household income increased by twelve percent, far outpacing the typical three percent average. It is estimated that these increases are primarily resulting from new residents, making the housing market more competitive than ever.
F. The City Council has also acknowledged that to reduce the number of persons experiencing homelessness for the first time and persons who return to homelessness after previously experiencing it, homeless-prevention, diversion, workforce-training and job-placement resources are a priority and those resources have been allocated accordingly.
G. Since March 2020 when the COVID-19 pandemic was declared a public health emergency in California, the City Council has allocated significant funding from one- time funding sources to provide shelter and emergency housing.
H. In an effort to provide a systematic and comprehensive approach to address the humanitarian crisis of homelessness, staff from the City, County, SHRA, and Sacramento Steps Forward have been collaborating in the implementation of a Coordinated Access System (funded by the City Council and partners) and in the creation and adoption of a Sacramento Local Homeless Action Plan to implement a regional response to homelessness. The Local Homeless Action Plan includes prevention/diversion programs, shelter and housing options, and necessary supportive services, as directed by the City Council, the County Board of Supervisors, and the Continuum of Care Board and Committees.
I. The recommended actions in this report are consistent with the 2021-2029 Housing Element, which encourages the provision of a variety of quality housing types to encourage neighborhood stability, including options for extremely low-income households (Resolution No. 2021-0259); the City Council’s adopted Housing Trust Fund Framework from January 28, 2020; and the Council’s efforts under the Comprehensive Siting Plan and the Local Homeless Action Plan to further affordable housing and reduce local instances of homelessness. On June 28, 2022, the City Council directed staff to bring back recommendations to further alignment of the Comprehensive Siting Plan and the Local Homeless Action Plan.
The recommendations include commitment of funds to both State Projects (BRIDGE Resolution 2022- October 25, 2022 Page 3 of 4
Affordable Housing and CADA/Mutual Affordable Housing) and to projects initiated by local non-profits and developers (The Kind Project South, Donner Field Affordable Housing, Oak Park Affordable Housing, collectively “Local Projects”). The State Projects have already been approved by the Department of General Services and are infill projects exempt from CEQA pursuant to CEQA Guidelines section 15332 (Bridge Affordable Housing, Notice of Exemption filed January 14, 2022; CADA/Mutual Affordable Housing, Notice of Exemption filed September 14, 2022). The City’s establishment of a funding mechanism for the Local Projects is not a project pursuant to CEQA Guidelines section 15378(b)(4) because it does not constitute the commitment to or approval of any particular project. The City retains the sole and independent discretion as the lead agency to decide whether to approve the Local Projects. As currently described, the Local Projects will be single family units exempt from CEQA pursuant to CEQA Guidelines sections 15268 and 15303 and multi-unit projects subject to the City’s Ministerial Housing Ordinance and exempt from CEQA pursuant to CEQA Guidelines section 15268.
The Home Repair Program Project dedicates funds to the repair of existing private structures and is exempt from CEQA pursuant to CEQA Guidelines section 15301 as maintenance of existing City facilities. The same exemption applies to the transitional housing contract and other programming.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. All evidence presented having been duly considered, the findings, including environmental findings regarding this action, as stated above, are found to be true and accurate and are hereby approved.
Section 2. In accordance with updates to the Comprehensive Siting Plan and with the Local Homeless Action Plan, the City is focusing increased resources on the implementation of homeless prevention and the production of more permanent affordable housing.
Section 3. The FY2022/23 Affordable Housing Project (I02189050) is established as a new Multi-Year Operating Project.
Section 4. The City Manager or the City Manager’s designee is authorized to make the budgetary adjustments to available fund balances and projects as outlined and attached as Exhibit A to this Resolution.
Section 5. The City Manager or the City Manager’s designee is authorized, following appropriate environmental review if necessary, to negotiate, enter into, execute, and amend the necessary funding agreements, subject to legal review and approved as to form by the Office of the City Attorney, that provide loans or Resolution 2022- October 25, 2022 Page 4 of 4
grants in the amounts specified for the projects outlined and attached as Exhibit B to this Resolution. Such funding agreements shall require the immediate return of funds to any projects subject to City review and not approved by the City.
Section 6. The City Manager or the City Manager’s designee is authorized to perform all other actions related to the Projects listed above, including conducting any legally required environmental review, executing related affordability agreements, approved as to form by the Office of the City Attorney, amending the HHAP 2 budget with the State, and producing other Project documents.
Section 7. Future loan repayments from these Projects are to be returned to the Revolving Loan Fund (Fund 2029) as payments are received. Any additional interest collected by the City in the Housing Trust Fund can be used to cover the City’s administrative costs of servicing the loans and for additional affordable housing development.
Section 8. The City Manager or the City Manager’s designee is authorized to increase the expenditure budgettransfer up to $9,943,880 from FY2021/22 and/or FY 2022/23 year-end resources included in available fund balance in the General Fund/Measure U Fund (Fund 1001/Fund 2401) to in the FY2022/23 Affordable Housing Project (I02189050), by up to $9,943,880 with a transfer from remaining FY2021/22 and/or FY 2022/23 year-end resources included in available fund balance in the General Fund/Measure U Fund (Fund 1001/Fund 2401) to be used to offset the revenue shortfalls identified in Exhibit C, resultingfor full repayment of expenses from the Reduced Residential Development Impact Fees for Affordable Dwelling Units (Zero -Dollar Impact Fee) Program.
Section 9. To continue the Zero-Dollar Impact Fee Program and offset the resulting revenue shortfalls beyond the $9,943,880 identified in Section 8 and the $3,000,000 allocated to the Program in Section 4 (as set forth in Exhibit B), Council must identify a funding source going forward.
Section 10. The City Manager or the City Manager’s designee will return to Council in November for additional discussion of the Homeless Housing, Assistance and Prevention (HHAP) Round 4 funding.
Resolution Exhibits:
Exhibit A – Budgetary Adjustments
Exhibit B – Affordable Housing Projects
Exhibit C – Revenue Shortfalls Related to the Zero-Dollar Impact Fee Program Resolution 2022- October 25, 2022 Page 1 of 4
RESOLUTION NO. 2022-
Adopted by the Sacramento City Council
October 25, 2022
Resolution Approving Allocations of Funds to Affordable Housing Projects and Programs
BACKGROUND
A. Homelessness is an existential threat to the individuals living without quality housing and to the public health and safety of the residents and businesses in Sacramento.
The right to an adequate standard of living for every resident of the City is one that must be protected and advanced by the actions and commitment of all levels of government, including the City of Sacramento. The interconnectedness of homelessness, housing, and public health must inform the current and future policy, partnerships, prioritization of work programs, and budget allocations to prevent homelessness and reduce the number of people experiencing it.
B. On January 5, 2021, the City Council unanimously approved the preparation of a siting, operations, programmatic, and financing plan and committed to a Council-led process to engage the community, identify public and private properties for shelter and housing, identify funding sources, and provide authority to the City Manager to implement it. The resulting Comprehensive Siting Plan to Address Homelessness was approved on August 10, 2021 and a substantial workplan update was approved on April 12, 2022.
C. According to the 2019 Point-in-Time Homeless Count released by the Sacramento Steps Forward, which is Sacramento’s Continuum of Care, the County of Sacramento had a homeless population of 5,570 individuals, a majority of whom are sheltered and unsheltered on any given night in the City of Sacramento. The 2019 Point-in-Time Count also estimates that in 2019 between 10,000 and 11,000 individuals would be unsheltered at some point over the year. In 2022, the Point-in-Time Count increased to 9,278 homeless individuals in Sacramento County. A disproportionate share of these homeless individuals are people of color. There has been an increase in local homelessness as a result of the COVID-19 pandemic, population relocation, and further housing market constraints, finding that approximately 16,500 to 20,000 experience homelessness over the course of a year in Sacramento County.
D. Since 2019, housing affordability in the state has worsened with rising rents and limited new construction of affordable and permanent supportive housing. The City Council declared a Shelter Crisis annually since January 14, 2020 under chapter 7.8 Resolution 2022- October 25, 2022 Page 2 of 4
of division 1 of title 2 of the California Government Code and directed the City Manager to take action to streamline the provision of homeless shelters (Resolution 2020-0017). While the City has made great progress in ensuring 1,100 spaces for sheltering and notable increases in the production of affordable and workforce housing, more housing is needed.
E. Recent increases in higher-income households relocating from the Bay Area have placed further demand on the local housing market. Regionally, over the last year, median household income increased by twelve percent, far outpacing the typical three percent average. It is estimated that these increases are primarily resulting from new residents, making the housing market more competitive than ever.
F. The City Council has also acknowledged that to reduce the number of persons experiencing homelessness for the first time and persons who return to homelessness after previously experiencing it, homeless-prevention, diversion, workforce-training and job-placement resources are a priority and those resources have been allocated accordingly.
G. Since March 2020 when the COVID-19 pandemic was declared a public health emergency in California, the City Council has allocated significant funding from one- time funding sources to provide shelter and emergency housing.
H. In an effort to provide a systematic and comprehensive approach to address the humanitarian crisis of homelessness, staff from the City, County, SHRA, and Sacramento Steps Forward have been collaborating in the implementation of a Coordinated Access System (funded by the City Council and partners) and in the creation and adoption of a Sacramento Local Homeless Action Plan to implement a regional response to homelessness. The Local Homeless Action Plan includes prevention/diversion programs, shelter and housing options, and necessary supportive services, as directed by the City Council, the County Board of Supervisors, and the Continuum of Care Board and Committees.
I. The recommended actions in this report are consistent with the 2021-2029 Housing Element, which encourages the provision of a variety of quality housing types to encourage neighborhood stability, including options for extremely low-income households (Resolution No. 2021-0259); the City Council’s adopted Housing Trust Fund Framework from January 28, 2020; and the Council’s efforts under the Comprehensive Siting Plan and the Local Homeless Action Plan to further affordable housing and reduce local instances of homelessness. On June 28, 2022, the City Council directed staff to bring back recommendations to further alignment of the Comprehensive Siting Plan and the Local Homeless Action Plan.
The recommendations include commitment of funds to both State Projects (BRIDGE Resolution 2022- October 25, 2022 Page 3 of 4
Affordable Housing and CADA/Mutual Affordable Housing) and to projects initiated by local non-profits and developers (The Kind Project South, Donner Field Affordable Housing, Oak Park Affordable Housing, collectively “Local Projects”). The State Projects have already been approved by the Department of General Services and are infill projects exempt from CEQA pursuant to CEQA Guidelines section 15332 (Bridge Affordable Housing, Notice of Exemption filed January 14, 2022; CADA/Mutual Affordable Housing, Notice of Exemption filed September 14, 2022). The City’s establishment of a funding mechanism for the Local Projects is not a project pursuant to CEQA Guidelines section 15378(b)(4) because it does not constitute the commitment to or approval of any particular project. The City retains the sole and independent discretion as the lead agency to decide whether to approve the Local Projects. As currently described, the Local Projects will be single family units exempt from CEQA pursuant to CEQA Guidelines sections 15268 and 15303 and multi-unit projects subject to the City’s Ministerial Housing Ordinance and exempt from CEQA pursuant to CEQA Guidelines section 15268.
The Home Repair Program Project dedicates funds to the repair of existing private structures and is exempt from CEQA pursuant to CEQA Guidelines section 15301 as maintenance of existing City facilities. The same exemption applies to the transitional housing contract and other programming.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. All evidence presented having been duly considered, the findings, including environmental findings regarding this action, as stated above, are found to be true and accurate and are hereby approved.
Section 2. In accordance with updates to the Comprehensive Siting Plan and with the Local Homeless Action Plan, the City is focusing increased resources on the implementation of homeless prevention and the production of more permanent affordable housing.
Section 3. The FY2022/23 Affordable Housing Project (I02189050) is established as a new Multi-Year Operating Project.
Section 4. The City Manager or the City Manager’s designee is authorized to make the budgetary adjustments to available fund balances and projects as outlined and attached as Exhibit A to this Resolution.
Section 5. The City Manager or the City Manager’s designee is authorized, following appropriate environmental review if necessary, to negotiate, enter into, execute, and amend the necessary funding agreements, subject to legal review and approved as to form by the Office of the City Attorney, that provide loans or Resolution 2022- October 25, 2022 Page 4 of 4
grants in the amounts specified for the projects outlined and attached as Exhibit B to this Resolution. Such funding agreements shall require the immediate return of funds to any projects subject to City review and not approved by the City.
Section 6. The City Manager or the City Manager’s designee is authorized to perform all other actions related to the Projects listed above, including conducting any legally required environmental review, executing related affordability agreements, approved as to form by the Office of the City Attorney, amending the HHAP 2 budget with the State, and producing other Project documents.
Section 7. Future loan repayments from these Projects are to be returned to the Revolving Loan Fund (Fund 2029) as payments are received. Any additional interest collected by the City in the Housing Trust Fund can be used to cover the City’s administrative costs of servicing the loans and for additional affordable housing development.
Section 8. The City Manager or the City Manager’s designee is authorized to transfer up to $9,943,880 from FY2021/22 and/or FY 2022/23 year-end resources included in available fund balance in the General Fund/Measure U Fund (Fund 1001/Fund 2401) to the FY2022/23 Affordable Housing Project (I02189050), to be used to offset the revenue shortfalls identified in Exhibit C, resulting from the Reduced Residential Development Impact Fees for Affordable Dwelling Units (Zero-Dollar Impact Fee) Program.
Section 9. To continue the Zero-Dollar Impact Fee Program and offset the resulting revenue shortfalls beyond the $9,943,880 identified in Section 8 and the $3,000,000 allocated to the Program in Section 4 (as set forth in Exhibit B), Council must identify a funding source going forward.
Section 10. The City Manager or the City Manager’s designee will return to Council in November for additional discussion of the Homeless Housing, Assistance and Prevention (HHAP) Round 4 funding.
Resolution Exhibits:
Exhibit A – Budgetary Adjustments
Exhibit B – Affordable Housing Projects
Exhibit C – Revenue Shortfalls Related to the Zero-Dollar Impact Fee Program Exhibit A
Project
Number/
Dept ID
Project Name
ARPA
Reinvestment
(1003)
Operating
Grants
(2702)
2005 TAB Oak Park
CIP Taxable (3816)
2005 TAB Oak Park
CIP Tax-Exempt
(3817)
Measure U
(2401) Total
C15001400 Property Acquisition for Siting Locations (470,675) (470,675) C15001500 Siting Plan Location Buildout (2,208,664) (2,208,664) G02000960 HHAP II Program (3,456,710) (3,456,710)
I02000200 Homeless Housing Initiative (4,167,500) (4,167,500) I02180300 Oak Park Broadwa y (445,646) (445,646)
I02180300 Oak Park Broadwa y (2,185,756) (2,185,756)
I80611000 ARPA Reinvestment Funds (8,530,664) (8,530,664) 60001015 Available Fund Balance (246,354) (246,354)
60001015 Available Fund Balance 1,185,756 1,185,756
I02189050 FY2022/23 Affordable Housing Project 11,210,003 3,456,710 692,000 1,000,000 4,167,500 20,526,213 Fund
Budgetary Adjustments
Exhibit B
Affordable Housing Projects
Project Name Project Description Amount & Source
Paratransit
The Kind Project South-
7141 Woodbine Avenue
216 low-income units to be developed in
partnership with Paratransit and private
equity. Utilizes partnership programs
(Transition-Aged Youth, RIL, City Year,
etc.) to address rent subsidies and on-
site services. 10 homeless set-aside
units for City referral
CSP: $7,966,713
Measure U: $459,500
Total: $8,426,213
$39,010 per unit subsidy
BRIDGE Affordable
Housing- 440 Arden Way
124 units on state surplus property
combined with city surplus property.
Includes extremely low to low-income
units, 21 homeless set-aside units
CSP: $243,290
HHAP II: $3,456,710
Total: $3,700,000
$29,839 per unit subsidy
CADA/Mutual Affordable
Housing- 805 R Street
242 units on state surplus property.
Includes extremely low to low-income
units, 15 homeless set-aside units
CSP: $3,000,000
$12,397 per unit subsidy
Eden Housing Donner
Field Affordable Housing-
4501 9th Avenue
67 units on Redevelopment-Housing
surplus property. Includes extremely-
low to very-low income senior units in
the Stockton Boulevard area. 35
homeless set-aside units. Conditioned
upon timely execution of Disposition &
Development Agreement with Eden.
Redevelopment: $692,000
Measure U: $558,000
Total: $1,250,000
$18,657 per unit subsidy
Oak Park Affordable
Single-Family Lots-
Scattered
10 affordable ownership units on
Redevelopment-Housing surplus
property. Includes very-low to low-
income units in the Oak Park area.
Additional funding to accelerate
construction of lots.
Redevelopment: $500,000
$50,000 per unit subsidy
Subject to Match of SHRA
$1,000,000 that covers
project soft and hard costs.
Home Repair in Oak Park
Area (Habitat Rock the
Block Program)
Estimated 70-100 low-income
homeowners with potential code and
health & safety repairs are assisted in
maintaining their housing. Expands
program to year-round.
Redevelopment: $500,000
$7,143 per unit subsidy
Subject to Match of Habitat
$500,000
Reduced Residential
Development Impact Fees
for Affordable Housing
Units (Zero Dollar Impact
Fee) Program (Authorized
by Resolution 2019-0185)
Authorizes a zero-dollar rate for certain
development impact fees for qualified
affordable housing. Estimated to cover
approximately 600 units with the zero-
dollar fee rate.
$3,000,000 for estimated
current fiscal year impact
fees
TOTAL 659 new construction units,
729 to 759 new construction and repair
$29,981 per unit
construction subsidy/
$18,562 per unit combined
FY
Values FY19 FY20 FY21 FY22
Sum of North Natomas Public Land Acquisition: 272 9,240.00 $ 174,885.00$ Sum of North Natomas Public Facilities Fee Adjustment: 270 Sum of North Natomas Regional Land Acquisition: 273 7,580.00$ 151,690.00$ Sum of North Natomas Transit Fee: 271 2,356.00 $ 160,428.00$ Sum of North Natomas Drainage Fee: 274
Sum of PDIF: 287 171,823.59 $ 804,054.03 $ 379,529.84 $ 567,859.98 $ Sum of PDCI: 267 101,877.53 $ 443,935.17 $ 201,869.22 $ 326,838.36 $ Sum of River District fee: 380 169,485.24 $
Sum of Central City Transportation: 390 41,585.05 $ 25,205.70 $ 86,724.77 $ 40,187.37 $ Sum of Central City Public Facilities: 391 6,778.45 $ 4,368.25 $ 8,648.66 $ 6,542.13 $ Sum of Central City Sewer: 393 25,096.10 $ 15,221.40 $ 58,411.50 $ 19,003.33 $ Sum of Central City Water: 392 19,379.00 $ 12,000.95 $ 38,966.49 $ 23,987.81 $ Sum of Central City Administration: 394 2,890.05 $ 1,749.70 $ 5,595.96 $ 2,803.77 $ Sum of Railyards Infrastructure: 306 326,140.00 $ 676,168.00 $ Sum of Railyards Interchange: 307 15,341.00 $ 31,808.00 $ Sum of Railyards Com Facilities: 308 92,046.00 $ 190,848.00 $ Sum of Railyards Admin: 309 12,995.00 $ 26,956.00 $ Sum of Greenbriar Regional Park: 433 137,247.76 $
Sum of Greenbriar Fire: 434 57,276.62$
Sum of Greenbriar Community Center: 435 57,925.04 $
Sum of Greenbriar Transit: 436 52,737.72 $
Sum of Water Development Fee: 211 239,283.07 $ 494,785.01 $ 169,142.39 $ 244,552.77 $ Sum of Sewer Development Fee: 212 -
$
1,414.38$ 421.94$
Sum of Combined Sewer Development Fee: 403 320,969.05$ 827,183.29$ 81,581.63$ 334,289.00$ Sum of North Natomas Public Facilities Fee: 270 33,353.00$ 1,400,817.00$ FY19 FY20 FY21 FY22 Total
982,210.89$ 5,133,745.12$ 1,336,079.54$ 2,491,844.52 $ 9,943,880.07 $ Exhibit C