City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00385 6/13/2023 Discussion Item 01.
Annual Reports of the Housing Trust Fund Ordinance, Mixed-Income Housing Ordinance, HOME Investment Partnerships Program, and Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance
File ID: 2023-00385
Location: Citywide
Recommendation: Receive and file annual reports of the Housing Trust Fund Ordinance, Mixed- Income Housing Ordinance, HOME Investment Partnerships Program, Permanent Local Housing Allocation, and Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance.
Contact: Christine Weichert, Director, (916) 440-1353, [email protected], Sacramento Housing and Redevelopment Agency
Presenter: Whitney Bonner, Program Manager, (916) 440-1325, [email protected], Sacramento Housing and Redevelopment Agency
Attachments:
1-Description/Analysis
2-Housing Trust Fund Ordinance Annual Report
3-Mixed-Income Housing Ordinance Annual Report
4-HOME Investment Partnerships Program Annual Report
5-Permanent Local Housing Allocation Program Annual Report 6-Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance Annual Report
Additional Description/Analysis
Issue Detail: This report provides information to fulfill the annual reporting requirements of the City Housing Trust Fund (HTF) Ordinance, Mixed-Income Housing Ordinance, HOME Investment Partnerships (HOME) Program and Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance for calendar year 2022. The Sacramento Housing and Redevelopment Agency (SHRA) administers these ordinances and funds on behalf of the City of Sacramento (City).
Housing Trust Fund
- The City Housing Trust Fund Ordinance authorizes the collection of fees on non-residential construction to fund the development of low and very low-income housing. The HTF
File ID: 2023-00385 6/13/2023 Discussion Item 01.
Ordinance was adopted in 1989 to raise local funds for affordable housing near employment centers.
Fees imposed on non-residential developments generate revenue based on an economic nexus analysis which determined that the construction of commercial projects such as offices, business parks, hotels, warehouses, and shopping centers played a major role in attracting new very low- and low-income workers to Sacramento. See Attachment 2 for the Housing Trust Fund Annual Report for 2022.
Mixed-Income Housing Ordinance
- On September 1, 2015, City Council (Council) adopted a revised citywide Mixed-Income Housing Ordinance (No. 2015-0029) effective November 1, 2015 (Ordinance). The Mixed-Income Housing Ordinance requires an affordable housing impact fee for all new housing units and large subdivisions to assist with the provision of housing for a variety of incomes and household types. The fee-generated revenue is placed in the citywide Housing Trust Fund. It is used to develop affordable housing units with the goal of increasing the supply available for lower-income workers. See Attachment 3 for the Mixed-Income Housing Ordinance Annual Report for 2022.
HOME Investment Partnerships Program
- The federal HOME Investment Partnerships Program
provides grants to fund a wide range of activities, including construction, acquisition, and/or rehabilitation of affordable housing. See Attachment 4 for the HOME Program Annual Report.
Permanent Local Housing Allocation Program - In 2017, Senate Bill 2 created the first permanent source of funding for affordable housing in the State of California. Revenue is generated through recording fees on real estate transactions and will, therefore, vary from year to year depending upon activity. On November 12, 2019, the City Council authorized the Sacramento Housing and Redevelopment Agency (SHRA) to apply to the State of California on behalf of the City to receive and administer the City’s entitlement under the Permanent Local Housing Allocation (PLHA). See Attachment 5 for the Permanent Local Housing Allocation Report.
SHRA follows the Multifamily Lending and Mortgage Revenue Bond Policies approved by the Council on December 3, 2019, for the allocation of the HTF, Mixed-Income Housing Ordinance, and HOME funds to affordable housing projects. As approved by the Council on November 1, 2022, pre- applications for funding in 2023 will be accepted on January 2 and August 1.
Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance - On November 1, 2016,
Council adopted an amendment to the Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance. Pursuant to the Ordinance, SHRA is required to provide an annual report on the number of residential hotel units withdrawn, the number of new units expected based on approved replacement housing plans, and the number of units constructed in anticipation of conversions or withdrawals. To comply with the Ordinance reporting requirements, SHRA sent correspondence in January 2023 to the owners of residential hotels subject to the Ordinance, including an annual certification on the status of the residential hotel. See Attachment 5 for the
File ID: 2023-00385 6/13/2023 Discussion Item 01.
Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance Annual Report.
Policy Considerations: Not applicable.
Economic Impacts: None.
Environmental Considerations: California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA): There is no action being taken, therefore this is not a project pursuant to CEQA Guidelines Section 15378 and is an administrative action under NEPA and is therefore exempt pursuant to 24 Code of Federal Regulations 58.34(a)(3).
Sustainability: Not applicable.
Commission/Committee Action: At its June 7, 2023 meeting, the Sacramento Housing and Redevelopment Commission reviewed the information contained in this report.
Rationale for Recommendation: Not applicable.
Financial Considerations: The City Housing Trust Fund has collected a total of $55,914,539 in fees, interest, and loan repayments since the inception of the fund in 1989. After accounting for 2022 revenue and subtracting for projects with budgeted expenditures, the balance available for new projects was $1,290,384 as of December 31, 2022.
The City Mixed-Income Housing Ordinance has collected a total of $6,878,479 in fees and interest since the inception of the revised Ordinance in 2015. After accounting for 2022 revenue and subtracting for projects with budgeted expenditures, the balance available for new projects was $1,634,452 as of December 31, 2022.
The City HOME Investment Partnerships Program received $6,903,875 in entitlement, interest, and loan repayments in 2022. A total of $4,534,562 was expended on projects. After subtracting for funded projects, the balance available for new projects was $4,063,464 as of December 31, 2022.
The City Permanent Local Housing Allocation Program did not receive any 2022 entitlements. In 2022, a total of $1,210,000 was expended on projects. The available balance for single family down payment assistance was $471,413 and the available balance for multifamily projects was $557,800.
LBE - M/WBE and Section 3 requirements: Local Business Enterprise requirements do not apply to this report. Minority and Women’s Business Enterprise requirements and Section 3 will be applied to all activities to the greatest extent feasible and as required by federal funding.
Attachment 2
City of Sacramento
Housing Trust Fund Ordinance
Annual Report
for
January 1, 2022 to December 31, 2022
Sacramento Housing and Redevelopment Agency
June 2023
Attachment 2
2 HOUSING TRUST FUND ANNUAL REPORT FOR 2020
The Housing Trust Fund (HTF) ordinance was adopted in 1989 to provide local financing for affordable housing near employment centers (Chapter 17.708 of the Sacramento City Code). Fees on non-residential development generate the revenue based on an economic nexus analysis which determined that the construction of commercial developments such as offices, business parks, hotels, warehouses, and shopping centers played a major role in attracting new very low and low-income workers to Sacramento.
Due to the jobs/housing linkage, trust funds assist housing that is to be occupied by persons eligible to be in the labor force. The City’s Housing Trust Fund benefits both very low and low-income households earning up to 80 percent of the area median income.
In 2001, the City Council (Council) amended the City Housing Trust Fund Ordinance to allow the use of commercial development impact fees paid into the North Natomas housing trust fund to be used for the same purposes as the citywide fund. Although the amendment integrated the purposes of the funds, it did not change their different fee schedules. The North Natomas fees are based on land use, while the City fees are based on building types.
On October 12, 2004, the Council approved Ordinance 2004-057 instituting an automatic annual increase for the Housing Trust Fund fee based on changes in the construction cost index. The automatic increase ensures that the fund keeps pace with housing construction costs.
To consolidate fees in one location, on February 14, 2017, the Council removed Chapter 17.708 of the Sacramento City Code and added Article IV to Chapter 18.56 to Title 18 of the Sacramento City Code, relating to the Development Impact Fee (DIF) program. The DIF program was developed to prioritize and restructure impact fees and includes the Housing Trust Fund fees. Council also approved Ordinance 2017-0013 to add Article IV to Chapter 18.56 and deleting Chapter 17.708 of the Sacramento City Code, relating to the Housing Trust Fund fee.
Attachment 2
3 Citywide Developments
As of July 1, 2022
Building Type/HTF Fee Level (Fee/Sq.Ft.)
Office $3.26
Hotel $3.11
Commercial $2.62
Manufacturing $2.04
Warehouse $0.89
The following City Housing Trust Fund Financial Information tables provide the following figures for the fund in 2022, including:
beginning and ending balance
revenue, including the amount of fees collected, interest earned, and income from loan repayments
amount of expenditures for developments and operations amount budgeted, but not expended, for developments
balance available for new developments
2022 City Housing Trust Fund Financial Information
Beginning Balance
$7,759,416
Income
Fees Collected $963,294
Interest $115,285
Loan Repayment $101,916
Total Income $1,180,494
Balance and Total Income
$8,939,910
Expense
Operations $158,526
Projects $51,000
Total Expense $209,526
Ending Balance
Remaining Project
Balances $7,440,000
Balance Available for
Projects $1,290,384
Ending Balance $8,730,384
*On February 7, 2023, City Council approved $2 million of HTF allocation to the San Juan Project.
Attachment 2
4 The 2022 City Housing Trust Fund Expenditures table below identifies current Housing Trust Fund developments, expenditures, and balance available. For each development, the chart also identifies the Housing Trust Fund restricted units, the total number of housing units, and the loan maturity date.
2022 City Housing Trust Fund Development Expenditures
Development Address HTF
Units
Total
Units
Total HTF
Budgeted
HTF 2022
Expenditure
Remaining
Balance
Loan
Maturity
Date
4995
Stockton
4995 Stockton
Blvd 18 200 $4,000,000 $0 $0 9/1/2078
Villa
Jardin/Coral
Gables
2621
Meadowview
Road
10 82 $1,900,000 $51,000 $140,000 10/1/2078
Mirasol Block
A
1200 Richards
Blvd 28 104 $5,000,000 $0 $5,000,000 12/1/2077
Mirasol Block
D
1381 Swallowtail
Avenue 6 116 $1,400,000 $0 $1,400,000 3/1/2080
On Broadway 1121 9th Street 5 140 $900,000 $0 $900,000 5/1/2080 TOTAL 67 642 $13,200,000 $51,000 $7,440,000
1989-2022 City Housing Trust Fund Income Report
Year
City Fees
Collected
Interest
Income
Loan
Income
Total
Income
1989-1994 4,245,331 95,501 4,340,832
1995 416,276 88,020 504,296
1996 656,201 103,340 759,541
1997 667,167 105,717 821 773,705
1998 1,637,034 184,924 49,188 1,871,146
1999 1,209,832 230,422 5,000 1,445,254
2000 710,079 272,790 15,000 997,869
2001 484,138 184,757 31,313 700,208
2002 2,336,496 10,105 23,642 2,370,243
2003 1,313,586 138,628 123,081 1,575,295
2004 1,166,373 3,642 979,864 2,149,879
2005 1,566,784 156,350 58,905 1,782,039
2006 2,913,727 226,675 204,225 3,344,627
2007 2,700,187 351,634 198,592 3,250,413
2008 2,270,234 273,355 222,170 2,765,759
2009 454,668 123,427 185,748 763,843
2010 257,702 158,357 192,127 608,186
2011 255,282 118,144 242,628 616,054
Attachment 2
5 2012 130,389 235,339 199,417 565,145
2013 382,413 188,291 1,466,191 2,036,895
2014 387,879 191,146 362,430 941,455
2015 916,249 33,472 1,232,395 2,182,116
2016 1,969,735 51,082 2,170,588 4,191,405
2017 1,070,962 91,614 1,865,479 3,028,055
2018 1,894,459 162,374 171,977 2,228,810
2019 1,937,766 197,476 1,104,372 3,239,614
2020 2,135,245 173,162 715,685 3,024,092
2021 1,925,897 81,761 669,611 2,677,269
2022 963,294 115,285 101,916 1,180,494
Total $38,975,385 $4,346,790 $12,592,365 $55,914,539
The City Housing Trust Fund Developments table and map identifies all properties which received Housing Trust Funds and the total number of units produced.
City Housing Trust Fund Developments
Project Status Project Name Total Units
Completed 1048 Jean Avenue 1
Completed 10th and T 13
Completed 1100 Harris Avenue 1
Completed 1221 Rivera Drive 1
Completed 1440 Rene Avenue 1
Completed 1500 Q Street 6
Completed 18th & L Mixed-Use Development 176
Completed 2151 68th Avenue 1
Completed 2221 63rd Avenue 1
Completed 2761 Utah Street 1
Completed 3836 Dayton St. 1
Completed 63 Butterworth Ave. 1
Completed 700 Block of K 137
Completed 729 Morrison Avenue 1
Completed 7445 Carella Drive 1
Completed 7588 Red Willow Street 1
Completed 7672 Manorside Drive 1
Completed 7860 Deerhaven Way 1
Completed 7th & H 150
Completed Atrium Court Apartments 224
Completed Bel-Vue Apartments 22
Completed Capitol Park Hotel 134
Attachment 2
6 Completed Copperstone Village 103
Completed Coral Gables Apartments 4
Completed Danbury Park 140
Completed Del Paso Nuevo Phases I-III 77
Completed Del Paso Nuevo Phase IV 37
Completed Fremont Mews 119
Completed Kelsey Village 20
Completed Kennedy Estates Apartments 98
Completed La Valentina 81
Completed Land Park Woods 75
Completed Lemon Hill Townhomes 74
Completed Morrison Point Subdivision 22
Completed North Avenue Apartments 80
Completed Pensione K Apartments 137
Completed Phoenix Park 360
Completed Phoenix Park II 182
Completed Ridgeway Studios 22
Completed Silverado Creek Apartments 168
Completed St Anton Building 64
Completed Surreal Estates, Ink 11
Completed Terracina Gold, Village 1 And 3 160
Completed Terracina Gold, Village 2 120
Completed Terracina Meadows Apartments 156
Completed Valencia Point 168
Completed Victory Townhomes/Evergreen Estates 76
Completed Willow Glen 135
TOTAL UNITS 3,565
Parties interested in receiving notices of meetings at which this report is presented may request to be placed on a notification list. Notice of the time and place of the meeting will be mailed 15 days prior to the meeting. Written requests should be made to SHRA and are valid one year from the date on which they are filed. Renewal requests for mailed notices should be made on or before April 1st of each year.
Attachment 2
7 Attachment 3
City of Sacramento
Mixed Income Housing Ordinance
Annual Report
for
January 1, 2022 to December 31, 2022
Sacramento Housing and Redevelopment Agency
June 2023
Attachment 3
2 MIXED INCOME HOUSING ORDINANCE REPORT FOR 2022
On September 1, 2015, the City Council (Council) repealed Chapter 17.712 of the City Code, known as the Mixed Income Housing Ordinance (No. 2000-039), and adopted a revised citywide Mixed Income Housing Ordinance (No. 2015-0029) effective November 1, 2015 (Ordinance). As part of this revision, the City contracted with a consultant to perform a residential nexus analysis which demonstrates the relationship between the development of market-rate residential units and the need for additional workforce housing. The revised Ordinance requires an affordable housing impact fee for all new housing units and large subdivisions to provide housing for a variety of incomes and family types. The fee-generated revenue is placed in a citywide Housing Trust Fund and used to develop affordable housing units with the goal of increasing the supply available for low-income households earning up to 80 percent of the area median income.
Pursuant to subsection 17.712.070 of the revised Ordinance, this annual report provides information on revenue and production generated by the City Mixed Income Housing Ordinance’s housing impact fees.
Housing Impact Fee
As of July 1, 2022
Housing Type Fee
(per Square Foot)
Single-unit and duplex dwellings
(less than 20 dwelling units per net acre) $3.49
High density single-unit and duplex dwellings
(20 dwelling units per net acre or more*) $0.00
Multi-unit dwellings
(less than 40 dwelling units per net acre) $3.49
High density multi-unit dwellings
(40 dwelling units per net acre or more*) $0.00
Conversion of a nonresidential building to a residential use $0.00 Dwelling units in the Housing Incentive Zone (See Figure 1) $1.51 * “Net acre” for the purposes of this fee, means the total area of a site excluding portions that cannot be developed, such as public and private streets, and open space.
The following City Mixed Income Housing Financial Information tables provide the following figures for the fees generated in 2022, including:
beginning and ending balance
revenue, including the amount of fees collected and interest earned amount of expenditures for operations and developments amount budgeted, but not expended, for developments
balance available for new developments
Attachment 3
3 2022 City Mixed Income Housing Fund
Financial Information
Beginning Balance
$ 3,102,473
Income
Fees Collected
(single/duplex dwellings) $464,283
Interest $15,731
Total Income $480,014
Balance and Total Income
$ 3,582,487
Expense
Operations $66,343
Projects $481,692
Total Expenses $548,035
Ending Balance
Remaining Project
Balances $1,400,000
Balance Available for
Projects $1,634,452
Ending Balance $3,034,452
*On May 9, 2023, City Council approved $700,000 of HTF for the On Broadway Apartments Project.
Production Accomplished
The City Mixed Income Housing Fund Expenditures table below identifies current funding commitments of a Mixed Income Housing development , expenditures and remaining balance. For each development, the chart also identifies the Mixed Income Housing restricted units, the total number of housing units and the loan maturity date.
2022 City Mixed Income Housing Fund Expenditures
Development Address MIHO
Units
Total
Units
Total MIHF
Budgeted
MIHF 2022
Expenditure
Remaining
Balance
Loan
Maturity
Date
4995 Stockton
Blvd.
4995 Stockton
Blvd. 5 200 $ 1,000,000 $ 481,692 $ 0 9/1/2078 Mirasol Block
D
1381
Swallowtail
Avenue
6 116 $ 1,400,000 $ 0 $ 1,400,000 3/1/2080 TOTAL 11 316 $ 2,400,000 $ 481,692 $ 1,400,000
Attachment 3
4 2016-2021 City Mixed Income Housing Fund Income Report
Year Fees Interest
Loan
Income Total Income
2016 $565,192 $0 $0 $565,192
2017 $1,103,186 $6,563 $0 $1,109,749
2018 $626,768 $30,399 $0 $657,167
2019 $2,179,716 $51,530 $0 $2,231,246
2020 $1,059,719 $56,907 $0 $1,116,626
2021 $695,522 $22,963 $0 $718,485
2022 $464,283 $15,731 $0 $480,014
TOTAL $6,694,386 $184,093 $0 $6,878,479
SHRA follows its Multifamily Lending and Mortgage Revenue Bond Policies approved by Council on December 3, 2019, for the allocation of the Mixed Income Housing Ordinance funds.
Recommended Changes to Chapter 17.712
There are no recommended changes at this time.
Adjustments to the Fee
The fees established pursuant to this section shall be adjusted automatically to take into consideration inflation on July 1 of each year by a factor equal to the percentage increase, if any, in the construction cost index for San Francisco (based on 1913 U.S. average = 100) during the 12 months ending on the preceding March 1 as published by Engineer News Record/McGraw-Hill Construction Weekly, or any substitute index that the city council adopts by resolution.
Developments
No developments have completed construction to date; however, Capitol Park Hotel is expected to be completed in 2023.
Attachment 4
City of Sacramento
HOME Investment Partnerships Program
Annual Report
for
January 1, 2022 to December 31, 2022
Sacramento Housing and Redevelopment Agency
June 2023
Attachment 4
HOME INVESTMENT PARTNERSHIPS PROGRAM ANNUAL REPORT FOR 2022
The federal HOME Investment Partnerships Program (HOME) provides grants to fund a wide range of activities including construction, acquisition, and/or rehabilitation of affordable housing. SHRA administers these funds on the C ity’s behalf as an entitlement jurisdiction. At least 20 percent of HOME -assisted units in each project must be reserved for households with incomes below 50 percent of Area Median Income (AMI) and the remaining reserved for households with incomes below 60 percent of AMI.
2022 CITY HOME PROGRAM
FINANCIAL INFORMATION
Beginning Balance
$16,261,540
Income
Entitlement $ 2,823,258
Interest $ 92,305
Loan Income $ 3,988,312
Total Income $ 6,903,875
Balance and Total Income
$23,165,415
Expense
Operations $ 95,166
Project Expenses $ 4,439,396
Total Expense $ 4,534,562
Ending Balances
Remaining Project Balances $ 14,567,389
Balance Available for Projects $ 4,063,464
Ending Balance $ 18,630,853
Attachment 4
2022 City HOME Program Expenditures
Project Address HOME
Units
Total
Units
Total HOME
Budgeted
2022 HOME
Expenditure
Remaining
Balance
Loan
Maturity
Date
39th &
Broadway
3021 39th &
Broadway 42 43 $ 7,500,000 $ 491,353 $ 6,733,087 3/1/2080 Lavender
Courtyard 16th & F St 11 53 $ 1,905,525 $ 0 $ 190,552 10/1/2077 Norwood
Annex
3301
Norwood Av 11 15 $ 1,100,000 $ 1,050,000 $ 0 5/1/2076 Northview
Pointe
2314
Northview
Drive
17 67 $ 2,500,000
$2,250,000 $ 250,000 11/1/2078
Victory
Townhomes
& Dixieanne
1075 &
1048
Dixieanne
Ave
11 76 $ 2,430,000 $ 648,043 $ 0 5/1/2076 Vista Nueva
140
Promenade
Circle
25 117 $ 683,750 $ 0 $ 683,750 11/1/2062 On
Broadway
1901
Broadway 13 140 $ 2,400,000 $ 0 $ 2,400,000 5/1/2080 Mirasol
Block D
1381
Swallowtail
Ave
15 116 $3,300,000 $ 0 $3,300,000 3/1/2079 Capitol Park
Hotel 1125 9th St. 21 134 $ 3,200,000 $ 0 $ 1,010,000 12/1/2077 TOTAL 166 761 $25,019,275 $4,439,396 $14,567,389
The City HOME Developments table identifies all properties that received HOME funds and the total number of units produced and currently regulated, followed by a map with the location of each development.
City HOME Developments
Project Name Total Units
7th & H Street 150
Arbors (Oak Park Senior), The 56
Atrium Court 224
Bel-Vue 22
Broadway Sr. 120
Cannery Place (Township 9) 180
Casa de Angelo Sr. 100
Casa Natomas Sr. 59
Copperstone I Family 103
Attachment 4
Coral Gables 3
Creekside Village Sr. 296
Curtis Park Court 91
Dixieanne Apts. (Evergreen Estates) 55
Florin Meadows 244
Forrest Palms Sr. 40
Fremont Building 69
Glen Ellen Circle 35
Globe Mills 143
Greenfair Sr. 386
Hurley Creek Sr. 207
Kelsey Village 20
La Valentina 81
Land Park Woods 75
Lemon Hill 73
Natomas Park 213
Northpointe Park 180
Norwood Annex 15
Pensione K 129
Phoenix Park I 178
Phoenix Park II 182
Quinn Cottages 60
Ridgeway Studios 22
River Garden Estates 124
Russell Manor Senior 66
Serna Village 83
Shenendoah 100
Sherwood 14
Shiloh Arms 106
Sierra Vista 78
Silverado Creek 85
Southcrest 30
St. Anton Building 65
St. Francis Terrace 48
Steven's Place Apts. 16
Victory Townhomes 21
Villa Jardin Apts. 44
Village Park 50
Washington Plaza 76
Washington Square 40
Westview Ranch 126
Whispering Pines Apts. 96
Willow Tree 108
Woodhaven Sr. 104
TOTAL UNITS 5,291
Attachment 4
Attachment 5
City of Sacramento
Permanent Local Housing Allocation
Annual Report
for
January 1, 2022 to December 31, 2022
Sacramento Housing and Redevelopment Agency
June 2023
Attachment 5
PERMANENT LOCAL HOUSING ALLOCATION ANNUAL REPORT FOR 2022
The Permanent Local Housing Allocation (PLHA) provides funding to local governments in California for housing -related projects and programs that assist in addressing the unmet housing needs of their local communities. Revenue is generated through recording fees on real estate transactions and will, therefore, vary from year to year depending upon activity.
At least 20 percent of PLHA funds must be expended for Affordable Owner -Occupied Workforce Housing, and the program prioritizes investments that increase the supply of housing to households that are at or below 60 percent of the Area Median Income (AMI), adjusted for household size.
2022 CITY PLHA
FINANCIAL INFORMATION
Beginning Balance
$2,357,067
Ending Balances
Remaining Project Balances
$1,210,000
Balance Available for Single Family Projects $471,413
Balance Available for Multifamily Projects $557,800
Ending Balance $ 2,239,213
*On May 9, 2023, City Council approved $3.3 million of PLHA for the On Broadway Apartments Project.
2022 City PLHA Expenditures
Project Address PLHA
Units
Total
Units
Total PLHA
Budgeted
2022 PLHA
Expenditure
Remaining
Balance
Loan
Maturity
Date
Central
Sacramento
Studios
1100 H
Street 8 93 $1,210,000 $0 $1,210,000 3/1/2062
TOTAL 8 93 $1,210,000 $0 $1,210,000
The City PLHA Developments table identifies all properties that received PLHA funds and the total number of units produced and currently regulated , followed by a map with the location of each development.
Developments
No developments have completed construction to date; however, Central Sacramento Studios is expected to be completed in 2023.
Attachment 5
Attachment 5
Attachment 6
City of Sacramento
Residential Hotel Unit Withdrawal, Conversion,
and Demolition Ordinance
Annual Report
for
January 1, 2022 to December 31, 2022
Sacramento Housing and Redevelopment Agency
June 2023
Attachment 6
RESIDENTIAL HOTEL UNIT WITHDRAWAL, CONVERSION, AND DEMOLITION
ORDINANCE ANNUAL REPORT
Beginning in the 1920s, residential hotels were a major source of affordable housing in the downtown Sacramento area. By 1986, sixteen residential hotels remained. To mitigate the effect of displacement of very low-income households (who were the hotels’ primary residents) as the hotels were closed, the Sacramento City Council (Council) adopted an ordinance requiring that relocation benefits be paid to residents of Single Room Occupancy (SRO) residential hotels upon withdrawal or conversion to other uses.
Adoption of the 1986 relocation ordinance followed a moratorium on residential hotel conversion passed in 1983 in response to the loss of six hotels from the 1970s to 1983.
In 2006, Council a dopted an amendment to the relocation ordinance that specifically identified ten SRO hotels and required that relocation benefits be paid to residents in the event of a conversion or demolition of one of these properties. The amended relocation ordinance also imposed an obligation on the City to maintain an inventory of not less than 712 SRO units.
On November 1, 2016, Council adopted an amendment to the Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance, No. 2016-0043 (Ordinance), City Code Chapter 18.20. Council approved the amendments to the Ordinance and other technical changes. The amendments included removal of rehabilitated, regulated or replaced SROs, and required the remaining four un-rehabilitated and un-regulated SROs to remain subject to the Ordinance (Exhibit A - Residential Hotels Map).
Pursuant to the Ordinance, the Sacramento Housing and Redevelopment Agency (SHRA) is required to provide an annual report on the number of residential hotel units withdrawn, the number of new units expected based on approved replacement housing plans, and the number of units constructed in anticipation of conversions or withdrawals. In order to comply with Ordinance reporting requirements, SHRA sent c orrespondence in January of 2020 to th e owners of residential hotels subject to the Ordinance, including an annual certification on the status of the residential hotel (Exhibit B - Residential Hotel Certification Summary).
SRO Residential Hotels Subject to the Ordinance
The Ordinance currently pertains to the following four residential hotels:
Subject to the Ordinance
Congress (unregulated)
Golden (unregulated
Sequoia (unregulated)
Capitol Park (under rehabilitation; will be 134 regulated units)
Attachment 6
Replacement/Withdrawn Units
A list of replacement and withdrawn units covered by the Ordinance is included in Exhibit B.
Replacement units must be comparable units with rents that do not exceed 40% of the Sacramento area median income (AMI), are located in close proximity to transportation and services, and have recorded affordability covenants.
Boulevard Court
Information on the 75-unit Boulevard Court development, completed in 2011, is also included in the Certification Summary pursuant to the development’s special permit and Council Resolution 2008-526 (Exhibit C - Boulevard Court Certification Summary).
Attachment 6
Exhibit A: Residential Hotels Map
Attachment 6
Exhibit B: Residential Hotels Certification Summary
NON-REGULATED UNITS SUBJECT TO THE ORDINANCE
Property Address Total No.
Vacant Units
Original &
Current No. Units
Monthly Rent
with Bathroom
Monthly Rent
without
Bathroom
Congress 906 12th St. 5 27 $650 $600
Golden 1010 10th St. 24 26 N/A $795
Sequoia 911 K St. 42 89 $544 $518
Subtotal 142
REGULATED/REPLACEMENT UNITS
Property Address Current No.
Units
7 & H 625 H St. 150
Bel-Vue 1123 8th St. 5
Cannery Place 601 Cannery Ave. 2
Capitol Park Hotel 1125 9th Street 134
Central Sacramento Studios 1100H Street 92
Globe Mills 1131 C St. 12
La Valentina 429 12th St. 11
Lavender Courtyard 1616 F St. 48
Mirasol Village Block A 1200 Richards Blvd. 22
Mirasol Village Blocks B and E 321 Eliza St. 15
Mirasol Village Block C 320 Dos Rios Street 22
Mirasol Village Block D 1381 Swallowtail Avenue 28
Ridgeway Studios 914 12th St. 22
Shasta 1017 10th St. 79
Studios at Hotel Berry 729 L St. 105
The WAL 1108 R St. 21
YWCA 1122 17th St. 32
Subtotal 800
TOTAL UNITS
Total Subject to the Ordinance and Regulated/Replacement Units 942 Total Required per the Ordinance 712
Total Surplus/Banked Units 230
Attachment 6
Exhibit C: Boulevard Court Certification Summary
Address
Total
Number
Vacant Units
Current No. Units
with Bathroom
Monthly Rent
with Bathroom
(1 bedroom)
Monthly Rent
with Bathroom
(Studio)
Resident
Services
5321 Stockton
Blvd.
6 74 $570 $532 Yes