City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00847 4/8/2025 Item 2.
Sacramento Housing and Redevelopment Agency (SHRA) Workshop: Affordable Housing Policy and Funding Impacts
File ID: 2025-00847
Location: Citywide
Recommendation: Review, discuss and provide direction to staff on Affordable Housing Policy and Funding Impacts.
Contact: La Shelle Dozier, Executive Director, (916) 440-1319, [email protected]; Kecia Boulware, Deputy Executive Director Development, (916) 440-1324, [email protected]; Sacramento Housing and Redevelopment Agency
Presenter: Kecia Boulware, Deputy Executive Director Development, (916) 440-1324, [email protected], Sacramento Housing and Redevelopment Agency Attachments:
1-Description/Analysis
2-PowerPoint Presentation
Description/Analysis
Issue Detail: At its December 3, 2024, meeting, the City Council requested that SHRA staff return during the first quarter of 2025 to provide a presentation on its approach and actions in response to anticipated changes in federal funding under the newly elected presidential administration. The Council requested SHRA provide details on:
· Impact of loss of federal funding to SHRA and its provision of housing · Data Analysis of changing Affordable Housing landscape · Programmatic plans and policies to preserve existing housing and continue to develop new housing
· Collaboration efforts between City and County
SHRA relies on the U.S. Department of Housing and Urban Development (HUD) for 72% of its revenue, making it particularly vulnerable to federal budget adjustments and therefore is significantly impacted by funding changes at the federal level.
File ID: 2025-00847 4/8/2025 Item 2.
On March 14, 2025, Congress passed a continuing resolution maintaining the 2024 federal budget levels, essentially keeping funding flat. In light of this, SHRA remains committed to operating under fiscally conservative measures and anticipates continued flat or reduced federal funding under the current administration.
During the presentation, SHRA will highlight its resilience and achievements during previous periods of similar fiscal constraints, such as the elimination of Redevelopment and the COVID-19 pandemic.
Staff will also present an analysis of SHRA’s evolving portfolio and the demographic shifts of the households served over the past decade, with a focus on trends such as the development of newly constructed units and a shift toward smaller household sizes.
Lastly, SHRA will outline potential strategies and resources required to diversify its funding sources, reduce reliance on federal funds, and continue fulfilling its mission of providing affordable housing and community development.
Policy Considerations: No policy changes are recommended at this time.
Economic Impacts: None.
Environmental Considerations: California Environmental Quality Act (CEQA): The proposed actions consist of governmental fiscal, organizational or administrative activities that will not result in direct or indirect physical changes in the environment, and as such, do not constitute a “project” under CEQA, Guidelines Section 15378 (b)(4).
National Environmental Policy Act (NEPA): The proposed actions consist of governmental administrative and management activities and are therefore categorically exempt under NEPA, 24 CFR 58.34(a)(3).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Not applicable.
Financial Considerations: Not applicable.
Local Business Enterprise (LBE): Not applicable.
SHRA Workshop: Affordable Housing Policy and Funding Impacts April 8, 2025
Attachment 2
SHRA Forward Planning Workshop
• Federal Update
• Continuing Resolution – 2024 Budget Levels
• Emergency Housing Vouchers expected to sunset in 2026 • Anticipate 10-15% HUD funding reduction in 2026
• State Update
• Governor’s budget excludes new general funds for Affordable Housing • Proposed California Housing and Homelessness Agency
• Continued emphasis on Homeless Housing with Proposition 1 Bond funds • SHRA Proactive Forward Planning
• City/ County Collaboration
Resilient Evolution
2008 - 2011 2012 2013 2014
Foreclosure Crisis
Creation of RAD
• Contingency
Planning
Sequestration
• 25% Staff
Reduction
• Loss of $55
million annually
Dissolution of
Redevelopment
• Extend our
reach
• High Rise
Conversion
Increase
Multifamily
Finance
• NSP
• Asset
Repositioning
2015 +
2017-2019 2020 2021 2022-2024
• Statewide
Funding
Preference
Shift to Homeless
Housing
• ~18,000
families
• $190 million
Launch S.E.R.A.
• 250 Shelter
Beds
• 1,325 Exits to
Housing
COVID Pandemic
Homeless Shelters
• Address
Deferred
Maintenance
• HomeKey
• RAD
• HCV Shortfall
New Normal
Federal Funding
Uncertainty
2025
Resilient Evolution
• Continuing
Resolution
FY2024
Policy Impacts
Housing Choice Voucher
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Homeless @
Admission
1-2 person
Household
Families w/
Children
2014 2019 2024
Public Housing
0%
10%
20%
30%
40%
50%
60%
70%
Homeless at Admission Families w/ Children
2014 2019 2024
Policy Impacts
Housing Choice Voucher Public Housing
$471 $872
$8,381
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
Avg. Due at Move Out
2014 2019 2024
$643
11,803 $8,351$752
11,122 $8,438
$1,352 12,552
$17,317
0 5,000
10,000
15,000
20,000
Avg. Subsidy per
Unit
No. of Vouchers
Leased
Monthly HAP
Amount
2014 2019 2024
Lending Priorities
77 182
278
124
321
401
76 78
613
PRESERVATION RECAPITALIZTION NEW
CONSTRUCTION
UNITS
2014 2019 2024
• Pre- 2019
a. Preservation
b. Recapitalization
c. New Construction
• Workforce
• Post 2019
a. Preservation
b. New Construction
• PSH, Vets,
Workforce
c. Recapitalization
Policy Impacts – New
Construction
4% 0
53% 50%
63%
71%
Pct. Units - Extremely LI Developments w/ PBV
New Units Financed
2014 2019 2024
• Pre- 2019
• Balanced between new
construction and
rehabilitation
• Diversity of Household
Sizes
• Post 2019
• Tax- Exempt Bonds now
competitive
• State HCD Programs
advantage ELI
• Higher Operating Costs
Finance
PIH
HCV
Policy Impacts
• Decrease in Homeless Individuals – Point in Time
Count
• Exceeded Affordable Housing Plan goal on delivery of
Permanent Supportive Housing units and Affordable
Housing units
• Increased reliance on competitive State funding
programs
• Deeper Affordability and Reliance on Project Based
Vouchers
• Serving smaller households with higher operational
costs
• End of SERA program
• Public Housing
• 6,500+ At-Risk Units in SHRA financed
portfolio
• Continuum of Affordability Levels
• Infrastructure Funding
• PSH Services Funding
Preservation
New
Construction
Housing Stability
Path Forward
• Track and Monitor Housing Choice Voucher funding shortfall • Explore all opportunities to reduce reliance on federal funds • Increase leverage of limited housing funds
• Develop strategy to balance Preservation and New Construction of Affordable Housing
• Reinforce City/County Collaboration
• Consider feasibility study for Local Housing Bond
• Support State Affordable Housing Bond Initiative