City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00485 6/11/2024 Discussion Item 2.
Annual Reports of the Housing Trust Fund Ordinance, Mixed-Income Housing Ordinance, HOME Investment Partnerships Program, Permanent Location Housing Allocation, State Local Housing Trust Fund, Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance, and City-County Affordable Housing Plan
File ID: 2024-00485
Location: Citywide
Recommendation: Receive and file.
Contact: Christine Weichert, Director, Housing Finance, (916) 440-1353, [email protected]; Whitney Hinton, Program Manager, (916) 440-1325, [email protected]; Sacramento Housing and Redevelopment Agency
Presenter: Whitney Hinton, 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-State Local Housing Trust Fund Program Annual Report
7-Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance Annual Report 8-Affordable Housing Plan Annual Report
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, Permanent Local Housing Allocation (PLHA), State Local Housing Trust Fund (LHTF), Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance, and the Affordable Housing Plan Status Report for calendar year 2023. Sacramento Housing and Redevelopment Agency (SHRA) administers these on behalf of the City of Sacramento (City).
File ID: 2024-00485 6/11/2024 Discussion Item 2.
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 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 2023.
Mixed-Income Housing Ordinance - On September 1, 2015, the 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 2023.
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. 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.
State Local Housing Trust fund
The State of California Local Housing Trust Fund (LHTF) provides matching funds on a competitive basis to local and regional housing trust funds dedicated to the creation, rehabilitation, or preservation of affordable housing. Matching grants (dollar for dollar) are awarded to local governments with established sources of affordable housing funds. Local funding sources such as the Mixed Income Housing Ordinance fees and City Housing Trust Funds must be used as the match to be eligible for this program as other funds restricted under federal, or state law are not eligible. Loans for multifamily rental housing projects require tenant income and rent restrictions imposed through a regulatory agreement for 55 years. SHRA has been successful in one recent funding rounds when applying for this program which has brought an additional $5 million in resources to the City. See Attachment 6 for the LHTF Annual report.
File ID: 2024-00485 6/11/2024 Discussion Item 2.
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, HOME, PHLA, and LHTF funds to affordable housing projects. As approved by the Council on November 14, 2023, pre-applications for funding in 2024 will be accepted on January 2 and August 1.
Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance - On November 1, 2016, the 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 2024 to the owners of residential hotels subject to the Ordinance, including an annual certification on the status of the residential hotel. See Attachment 7 for the Residential Hotel Unit Withdrawal, Conversion, and Demolition Ordinance Annual Report.
Affordable Housing Plan
- The County and City of Sacramento entered into a partnership agreement in 2022 to improve coordination on permanent supportive housing (PSH) production and re-housing (RH) efforts for the homeless. The agreement required the preparation of an Affordable Housing Plan (AHP) to analyze the issue and set goals. The AHP was developed in 2023 with community input and approved by the County Board of Supervisors and City Council on October 24, 2023. Attachment 8 provides a review of the goals in the AHP, and the progress made in 2023.
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 May 15, 2024, 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 collected a total of $3,251,111 in fees, interest, and loan repayments in 2023. After accounting for 2023 revenue and subtracting for projects with budgeted expenditures, the balance available for new projects was $4,272,515 as of December
File ID: 2024-00485 6/11/2024 Discussion Item 2.
31, 2023.
The City Mixed-Income Housing Ordinance collected a total of $2,950,947 in fees and interest in 2023. After accounting for 2023 revenue and subtracting for projects with budgeted expenditures, the balance available for new projects was $0 as of December 31, 2023.
The City HOME Investment Partnerships Program received $3,605,962 in entitlement, interest, and loan repayments in 2023. A total of $11,562,129 was expended on projects. After subtracting for funded projects, the balance available for new projects was $798,110 as of December 31, 2023.
The City Permanent Local Housing Allocation Program received $3,663,612 in entitlements in 2023.
A total of $3,534,000 was expended on projects. The available balance for single-family down payment assistance was $970,136, and the available balance for multifamily projects was $188,689.
The State Local Housing Trust Fund Permanent Program received a competitive allocation of $5,000,000 in 2023 and a total of $4,750,000 is available for new projects.
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, 2023 to December 31, 2023
Sacramento Housing and Redevelopment Agency
June 2024
Housing Trust Fund Annual Report for 2023 Page 2
2 HOUSING TRUST FUND ANNUAL REPORT FOR 2023
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.
Citywide Developments
As of July 1, 2023
Building Type/HTF Fee Level (Fee/Sq.Ft.)
Office $3.31
Hotel $3.16
Commercial $2.66
Manufacturing $2.07
Warehouse $0.91
Housing Trust Fund Annual Report for 2023 Page 3
3 The following City Housing Trust Fund Financial Information tables provide the following figures for the fund in 2023, 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
2023 City Housing Trust Fund Financial Information
Beginning Balance
$8,730,384
Income
Fees Collected $371,764
Interest $238,712
Loan Repayment/Adjustment $2,640,635
Total Income $3,251,111
Balance and Total Income
$11,981,495
Expense
Operations $268,980
Projects $7,160,000
Total Expense $7,428,980
Ending Balance
Remaining Project Balances
(committed) $280,000
Balance Available for
Projects (uncommitted) $4,272,515
Ending Balance $4,552,515
Housing Trust Fund Annual Report for 2023 Page 4
4 The 2023 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.
2023 City Housing Trust Fund Development Expenditures
Development Address HTF
Units
Total
Units
Total HTF
Budgeted
HTF 2023
Expenditure
Remaining
Balance
Loan
Maturity
Date
Villa
Jardin/Coral
Gables
2621
Meadowview
Road
10 82
$1,900,000 $0 $140,000 10/1/2078
Mirasol A 1200 Richards
Blvd 28 104 $5,000,000 $5,000,000 $0 12/1/2077
Mirasol D
1381
Swallowtail
Avenue
6 116
$1,400,000 $1,260,000 $140,000 3/1/2080
On Broadway 1121 9th Street 5 140 $900,000 $900,000 $0 5/1/2080 TOTAL 49 442 $9,200,000 $ 7,160,000 $280,000
Housing Trust Fund Annual Report for 2023 Page 5
5 1989-2023 City Housing Trust Fund Income Report
Year
City Fees
Collected
Interest
Income
Income/
Adjustment
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
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 2,228,811
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 2,707,269
2022 963,294 115,285 101,916 1,180,494
2023 371,764 238,712 2,640,635 3,251,111
Total $39,347,149 $4,585,502 $15,233,000 $59,165,651
Housing Trust Fund Annual Report for 2023 Page 6
6 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 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
Housing Trust Fund Annual Report for 2023 Page 7
7 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 The Heights on Stockton 200
Completed Valencia Point 168
Completed Victory Townhomes/Evergreen Estates 76
Completed Willow Glen 135
Completed Mirasol A 104
TOTAL UNITS 3,735
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.
Housing Trust Fund Annual Report for 2023 Page 8
8 Attachment 3
City of Sacramento
Mixed Income Housing Ordinance
Annual Report
for
January 1, 2023 to December 31, 2023
Sacramento Housing and Redevelopment Agency
June 2024
Mixed Income Housing Fund Annual Report for 2023 Page 2
2 MIXED INCOME HOUSING ORDINANCE REPORT FOR 2023
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, 2023
Housing Type Fee
(per Square Foot)
Single-unit and duplex dwellings
(less than 20 dwelling units per net acre) $3.54
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) $3.54
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) $1.53 * “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 th e following figures for the fees generated in 2023, 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
Mixed Income Housing Fund Annual Report for 2023 Page 3
3 2023 City Mixed Income Housing Fund
Financial Information
Beginning Balance
$ 3,034,452
Income
Fees Collected
(single/duplex dwellings) $2,442,536
Interest $65,799
Repayment/Adjustment $442,613
Total Income $2,950,947
Balance and Total Income
$ 5,985,399
Expense
Operations $100,890
Projects $2,128,159
Total Expenses $2,229,049
Ending Balance
Remaining Project
Balances (committed) $4,121,841
Balance Available for
Projects (uncommitted) ($365,491)
Ending Balance $3,756,350
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.
2023 City Mixed Income Housing Fund Expenditures
Development Address MIHO
Units
Total
Units
Total MIHF
Budgeted
MIHF 2023
Expenditure
Remaining
Balance
Loan
Maturity
Date
Mirasol Block
D
1381
Swallowtail
Avenue
6 116 $ 1,400,000 $ 1,260,000 $ 140,000 3/1/2080 On Broadway 1121 9th
Street 3 140 $700,000 $700,000 $0 3/1/2080
39th &
Broadway
3900
Broadway 5 43 $750,000 $ 168,159 $581,841 3/1/2080
The Sequoia 911 K Street 20 89 $3,400,000 $ 0 $3,400,000 4/1/2064 TOTAL 34 504 $ 6,250,000 $ 2,128,159 $4,121,841
Mixed Income Housing Fund Annual Report for 2023 Page 4
4 2016-2023 City Mixed Income Housing Fund Income Report
Year Fees Interest
Income/
Adjustment 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
2023 $2,442,536 $65,799 $ 442,613 $2,950,947
TOTAL $ 9,136,922 $ 249,892 $442,613 $ 9,829,426
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.
City Mixed Income Housing Fund Developments
Project Status Project Name Total Units
Completed Capitol Park 134
Completed The Heights on Stockton 200
TOTAL UNITS 334
Mixed Income Housing Fund Annual Report for 2023 Page 5
5 Attachment 4
City of Sacramento
HOME Investment Partnerships Program
Annual Report
for
January 1, 2023 to December 31, 2023
Sacramento Housing and Redevelopment Agency
June 2024
HOME Investment Partnerships Program Annual Report for 2023 Page 2
HOME INVESTMENT PARTNERSHIPS PROGRAM ANNUAL REPORT FOR 2023
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.
2023 CITY HOME PROGRAM
FINANCIAL INFORMATION
Beginning Balance
$18,630,853
Income
Entitlement $ 2,766,820
Interest $ 162,281
Loan Income/Adjustment $ 676,861
Total Income $ 3,605,962
Balance and Total Income
$22,236,815
Expense
Operations $ 104,403
Project Expenses $ 11,562,129
Total Expense $ 11,666,532
Ending Balances
Remaining Project Balances
(committed) $ 9,772,173
Balance Available for Projects
(uncommitted) $ 798,110
Ending Balance $ 10,570,283
HOME Investment Partnerships Program Annual Report for 2023 Page 3
2023 City HOME Program Expenditures
Project Address HOME
Units
Total
Units
Total HOME
Budgeted
2023 HOME
Expenditure
Remaining
Balance
Loan
Maturity
Date
39th &
Broadway
3021 39th &
Broadway 42 43 $7,500,000 $6,313,192 $1,186,809 3/1/2080 Lavender
Courtyard 16th & F St. 11 53 $1,905,525 $190,552 $0 10/1/2077 Capitol Park 1125 9th
Street 21 134 $3,200,000 $0 $1,010,000 12/1/2077
Northview
Pointe
2314
Northview
Drive
17 67 $2,500,000 $0 $250,000 11/1/2078
Vista Nueva
140
Promenade
Circle
25 117 $683,750 $418,385 $265,364 11/1/2062
On Broadway 1901
Broadway 13 140 $ 2,400,000 $ 1,670,000 $ 730,000 5/1/2080 Mirasol Block
D
1381
Swallowtail
Avenue
15 116 $3,300,000 $2,970,000 $330,000 3/1/2080
Donner Field
Senior
4501 9th
Avenue 31 67 $6,000,000 $0 $6,000,000 TBD
TOTAL 175 737 $27,489,275 $11,562,129 $9,772,173
City HOME Fund January – May 2024 Commitments
Project Address Total
Units
Amount
Committed
Date
Committed
River City
Apartments
1601 69th Street 66 $1,150,000 4/9/2024
TOTAL 66 $1,150,000
HOME Investment Partnerships Program Annual Report for 2023 Page 4
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
Capitol Park 134
Casa de Angelo Sr. 100
Casa Natomas Sr. 59
Copperstone I Family 103
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
Lavender Courtyard 53
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
HOME Investment Partnerships Program Annual Report for 2023 Page 5
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
Vista Nueva 117
Washington Plaza 76
Washington Square 40
Westview Ranch 126
Whispering Pines Apts. 96
Willow Tree 108
Woodhaven Sr. 104
TOTAL UNITS 5,595
HOME Investment Partnerships Program Annual Report for 2023 Page 6
Attachment 5
City of Sacramento
Permanent Local Housing Allocation
Annual Report
for
January 1, 2023 to December 31, 2023
Sacramento Housing and Redevelopment Agency
June 2024
Permanent Local Housing Allocation Fund Annual Report for 2023 Page 2
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM ANNUAL REPORT FOR 2023
The State Permanent Local Housing Allocation (PLHA) provides funding to local governments for housing-related projects and programs that assist in addressing the unmet housing needs of the local communities. The funding will fund a wide range of activities to include increasing the housing supply for households at o r below 60% of area median income, increase assistance to affordable owner -occupied workforce housing, assist persons experiencing or at risk of homelessness, facilitate housing affordability, promote projects and programs to meet the local government’s un met share of regional housing needs allocation, and ensuring geographic equity in the distribution of funds. SHRA administers these funds on the C ity’s behalf as an entitlement jurisdiction. At least 2 5 percent of PLHA must be reserved for single family do wn payment assistance (DPA) households with incomes below 50 percent of Area Median Income (AMI) and the remaining is reserved for multifamily affordable housing projects.
2023 CITY PLHA PROGRAM
FINANCIAL INFORMATION
Beginning Balance
$ 2,239,213
Income
2023 Allocation $3,663,612
Total Income $3,663,612
Balance and Total Income
$ 5,902,825
Expense
Operations $0
Multifamily (MF) Projects $3,300,000
Single Family (SF) Projects $234,000
Total Expenses $3,534,000
Ending Balance
MF Remaining Project
Balances (committed) $1,210,000
Balance Available for MF
Projects (uncommitted) $188,689
Balance Available for SF
Projects (uncommitted) $970,136
Ending Balance $2,368,825
Permanent Local Housing Allocation Fund Annual Report for 2023 Page 3
2023 City PLHA Multifamily Program Expenditures
Project Address Total
Units
Total PLHA
Budgeted
2023 PLHA
Expenditure Remaining Balance
Central
Sacramento
Studios
1100 H
Street 92 $1,210,000 $0 $1,210,000
On
Broadway
1901
Broadway 140 $ 3,300,000 $3,300,000 $0 TOTAL 232 $4,510,000 $3,300,000 $1,210,000
2023 City PLHA - Single Family Down Payment Assistance Expenditures
City PLHA Fund January – May 2024 Commitments
Project Address Total
Units
Amount
Committed
Date
Committed
River City
Apartments
1601 69th Street 66 $850,000 4/9/2024
TOTAL 66 $850,000
Total
Assisted
Families
Total PLHA
Budgeted
2023 PLHA
Expenditure
Remaining
Balance
5 $1,204,136 $234,000 $907,136
Permanent Local Housing Allocation Fund Annual Report for 2023 Page 4
Attachment 6
City of Sacramento
State Local Housing Trust Fund
Annual Report
for
January 1, 2023 to December 31, 2023
Sacramento Housing and Redevelopment Agency
June 2024
Local Housing Trust Fund Annual Report for 2023 Page 2
STATE LOCAL HOUSING TRUST FUND PROGRAM ANNUAL REPORT – CITY OF SACRAMENTO - 2023
The State Local Housing Trust Fund (LHTF) provides matching funds on a competitive basis to local and regional housing trust funds dedicated to the creation, rehabilitation, or preservation of affordable housing. Matching grants (dollar for dollar) are awarded to local governments with established sources of affordable housing. Local funding sources such as Mixed Income Housing Ordinance fees and City Housing Trust Funds must be used as the match to be eligible for this program as other funds restricted under federal, or state law are not eligible. Loans for multifamily rental housing projects require tenant income and rent restrictions imposed through a regulatory agreement for 55 years. SHRA was successful in the 2023 funding round for this program which has brought an additional $ 5 million in resources to the City as outlined below.
2023 CITY LHTF
FINANCIAL INFORMATION
LHTF Awards
MF Housing Development – 2023 Award $ 5,000,000
Total Income $ 5,000,000
Beginning Balance
$5,000,000
Expense
Projects $0
Operations $250,000
Total Expense $250,000
Ending Balance
Remaining Project
Balances
(committed)
$0
Balance Available for
Projects
(uncommitted)
$4,750,000
Ending Balance $4,750,000
Attachment 7
City of Sacramento
Residential Hotel Unit Withdrawal, Conversion,
and Demolition Ordinance
Annual Report
for
January 1, 2023 to December 31, 2023
Sacramento Housing and Redevelopment Agency
June 2024
Residential Hotel Unit Withdrawal, Conversion, and Demolition Annual Report for 2023 Page 2
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 adopted an amendment to the relocation ordinance that specificall y 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 the 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 (under rehabilitation)
Capitol Park (construction complete)
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.
Residential Hotel Unit Withdrawal, Conversion, and Demolition Annual Report for 2023 Page 3
Exhibit A: Residential Hotels Map
Residential Hotel Unit Withdrawal, Conversion, and Demolition Annual Report for 2023 Page 4
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. 6 26 $650 $600
Golden 1010 10th St. 4 26 N/A $850
Subtotal 52
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 1100 H 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 C 320 Dos Rios Street 22
Mirasol Village D 1381 Swallowtail Avenue 28
Ridgeway Studios 914 12th St. 22
Sequoia 911 K Street 89
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 889
TOTAL UNITS
Total Subject to the Ordinance and Regulated/Replacement Units 941 Total Required per the Ordinance 712
Total Surplus/Banked Units 229
Attachment 8
City-County Affordable Housing Plan
Report
for
October 2023 to April 2024
Sacramento Housing and Redevelopment Agency
June 2024
Affordable Housing Plan Page 2
CITY-COUNTY AFFORDABLE HOUSING REPORT
The County and City of Sacramento entered into a partnership agreement in 2022 to improve coordination on permanent supportive housing (PSH) production and re -housing (RH) efforts for the homeless. The agreement required the preparation of an Affordable Ho using Plan (AHP) to analyze the issue and set goals. The AHP was developed in 2023 with community, Board, and Council input and approved by the County Board of Supervisors and City Council on October 24, 2023. Below is a summary of progress made to date.
Affordable Housing Plan - Permanent Supportive Housing Goals
# Activity Lead
Entity
Initial Action Due
Date
Current Status
1 Complete a zoning code
amendment to eliminate
zoning barriers to
permanent supportive
housing. Develop a
compatible plan check
process for permanent
supportive housing
projects in alignment
with the City of
Sacramento’s process.
County Receive Board of
Supervisors approval of
a zoning code
amendment. Initiate an
updated Plan Check
Process to define
space/programming
requirements for
permanent supportive
housing.
2024 This Zoning Code Amendment
was approved on May 7. Review
of Plan check process to follow.
2 Facilitate the
development of
additional affordable
housing units by
amending the current
program or creating a
new affordable housing
fee deferral or waiver
program.
County
Explore options for the
adoption of additional
fee waiver or deferral
programs.
2024 Board Workshop held on April
10, 2024. Staff directed to report
back with additional
information.
3 Develop partnerships
with new affordable
housing developers to
increase permanent
supportive housing
production.
SHRA
Identify and work with
potential new
affordable housing
developers.
2026 2023 SHRA worked with a new
developer partner, Hope
Cooperative
4 Encourage the
development of publicly
owned parcels (both state
and local) that might be
suitable for permanent
SHRA Review the inventory
of parcels owned by the
State of California
and/or the City/County
of Sacramento and
2025 SHRA Staff working on draft of
RFP for sites to be released in
2024. The City continues to
work through the Surplus Land
Act for City owned properties
Affordable Housing Plan Page 3
supportive housing
development.
SHRA and determine
which ones are best
suited for development.
Prioritize sites that are
near transit and
employment centers
and that are in high-
opportunity areas.
Pursue land assembly
as funds are available.
suitable for housing
development and garner interest
from developers.
5 Establish a tracking
process that monitors the
production of new
permanent supportive
housing units.
SHRA Develop a matrix and
determine a process for
annual updates.
2024 SHRA Staff have final draft in
review. Plan to post to website
in 2024.
6 Coordinate the timing of
funding competitions
amongst partners to the
greatest extent feasible.
SHRA
Evaluate existing
competitive funding
competitions and make
recommendations to
governing boards for
consolidation or timing
changes if needed.
2025 Conducting background research
on this item.
7 Investigate a Cooperation
Agreement with
neighboring counties to
discuss advocacy for
changes to the Tax Credit
Allocation Committee
and the California Debt
Limit Allocation
Committee policies and
other state legislation.
For example, discussion
of current statewide
prioritization of sites in
high opportunity areas
which present a
disadvantage to
established urban areas.
SHRA Assemble meetings of
interested jurisdictions
to discuss the
feasibility of an
agreement and
proposed policy
changes.
2024
SHRA Staff developing survey
to distribute to neighboring
cities and counties to gauge
interest in this item and to
provide more clarity on issues
and concerns. Plan to release
survey in April/May 2024.
8 Construct or convert a
minimum of 300
permanent supportive
SHRA
Initial Action -
Endeavor to ensure that
a pipeline of projects
Annual
2023 New Units Completed
372 Permanent Supportive
Housing (PSH)/ 262 Affordable
Affordable Housing Plan Page 4
housing units and 100
affordable housing units
annually. Consider the
prioritization of
efficiency units,
particularly in the
downtown core. Units
will be developed
utilizing the current
allocation process,
adopted guidelines, and
anticipated current
revenue.
exists to meet this goal
and that funding is
secured.
Villa Jardin - 38 PSH Units
Capitol Park - 80 PSH Units
Central Sac Studios – 92 PSH
Units
Vista Nueva - 116 PSH Units
Sunrise Point - 46 PSH Units
Mirasol A - 103 Affordable
Units
Salvador - 159 Affordable Units
2024-25 units in pipeline
PSH Units in development - 727
Affordable Units in
Development - 1390
9 Review options for
establishing a fund with
contributions from both
the City and the County
for the development of
permanent supportive
housing.
SHRA
Review funding
sources to which the
City and County have
access that could be
used for this purpose
and review with
governing boards.
2026
pending
10 Explore new state and
local legislation
(including replacement
for redevelopment
funding and other
funding opportunities)
and bond initiatives for
increased funding.
Identify and pursue
additional federal
funding opportunities
such as community
project funding
(earmarks) to develop
and construct affordable
housing.
SHRA Conduct an analysis of
redevelopment
alternatives and report
back to the Board of
Supervisors and City
Council as appropriate.
Explore and support
other legislation to
increase available
funds for development.
County Housing Trust
Fund Ordinance fees
have recently been
increased and City
Council is reviewing an
increase to their Mixed
Income Housing
Ordinance fee.
2024 activities
Mixed Income Housing
Ordinance Update
Monitored State Legislation
Advocated for Federal Project
Funding
Analyzed options for new
funding strategies
11 Explore the adoption of a
vacant property tax.
City Continue the City
staff’s process of
reviews with the City’s
Law and Legislation
Committee and City
2024 Per the direction of the City's
Law and Legislation committee,
polling has begun to gauge the
feasibility of including the
adoption of a vacant property
Affordable Housing Plan Page 5
Council to determine
support for a tax.
tax on the November 2024
ballot.
Affordable Housing Plan - Rehousing Goals
# Activity Lead Entity Initial Action Due
Date
Current Status
1 Develop a full
landscape analysis of
both current rehousing
capacity and future
need.
SSF Use the landscape
analysis to determine
ongoing funding needs
for rehousing and
programmatic
improvements to
improve efficacy of
existing programs.
Create an integrated
process for referring
clients to services.
Identify and conduct
outreach to non-
“homeless” rehousing
providers to connect
them into the
Coordinated Access
System.
2025 Rapid Rehousing inventory
completed; Gaps analysis is
underway and should be
completed in March; Item
added to Regional
Coordinated Homeless
Action Plan.
2 Develop systemwide
rehousing service
standards and
performance metrics.
County/SSF Develop a universal
definition of rehousing
and establish minimum
level of support services
and access standards for
all rehousing activities.
Conduct outreach to
people with lived
experience to identify
barriers, needs, and
opportunities.· Update
coordinated access
workflows, written
protocols, and tools for
screening, assessment,
triage, and referral to
rehousing assistance.
Establish routine
reporting standards for
clients receiving
rehousing assistance.
2024 Rehousing standards
completed and were adopted
by CoC in 2023 and will be
reviewed by City and County
in May/June 2024. Reporting
template developed; Other
actions identified in Regional
Coordinated Homeless
Action Plan are underway.
Affordable Housing Plan Page 6
3 Develop partnerships
with organizations
outside of the public
homeless response
system to increase
system capacity for the
provision of rehousing
services.
County/SSF/
City
Recruit and provide
training to new
rehousing service
providers with the goal
of expanding and
diversifying those
providing rehousing
assistance.
2025 This will be a focus in 2024
with Access Point work in the
Regional Coordinated
Homeless Action Plan
4 Identify and develop
ongoing funding
sources to expand
rehousing capacity and
provide ongoing rental
assistance funding.
City/County/
SSF
Identify and allocate
funding for 29 full-time
equivalent staff to
provide rehousing case
management at an
average caseload of 22
per employee. Identify
and allocate funding for
at least 220 new rapid
rehousing case slots
annually.
2026 Gaps analysis is being
updated to determine funding
needs and resources to fill
Rapid Rehousing slots.
5 Design and pilot a new
system-level shared
housing program.
SSF/ City/
County
Identify funding and
initial program design. ·
Provide education and
technical assistance to
providers to expand
rehousing opportunities
with shared housing.
Examine ways to
facilitate shared
housing.
2025 Project is on hold.
6 Lobby for additional
funding at the state
and federal level for
ongoing rental
assistance funding.
SSF/ SHRA Convene a stakeholder
group and develop a
strategy to seek rental
assistance funding.
2025 To be included in Cap-to-Cap
discussions in April; City has
applied for Emergency
Response Grant that could
support rental assistance for
rapid rehousing pilot.