1 4
0 5
1 CITY OF SAN MATEO
RESOLUTION NO. __ (2026)
APPROPRIATING $1M IN LOW AND MODERATE INCOME HOUSING ASSET FUNDS, $3M IN COMMERCIAL LINKAGE FEE FUNDS AND $1M IN GENERAL FUND HOUSING SET-ASIDE FUNDS INTO THE CITY OF SAN MATEO
PRO-HOUSING RESERVE ACCOUNTS
WHEREAS, on August 19, 2026, the Community Relations Commission held a public meeting to receive public comments and provide input on City housing funding priorities; WHEREAS, on September 8, 2026, the City Council received an update and provided direction on a five- year funding strategy for housing programming, including whether to pursue a Prohousing Designation, a competitive program run by the California Department of Housing and Community Development (HCD) that gives designated jurisdictions priority for a variety of HCD funding opportunities; and WHEREAS, the City’s 2023-2031 Housing Element (HE) workplan, among other things, calls for identifying ways to create a stand-alone housing fund and prioritizing local housing funds to assist in the production of affordable units under Policy H1.2: Utilize Public Funding and Properties for New Affordable Housing; and
WHEREAS, the City’s Housing Element Policy H1.2 (Utilize Public Funding and Properties for New Affordable Housing) calls for the City to support affordable housing development at City-owned sites; and WHEREAS, to be competitive for a Prohousing Designation, establishing an affordable housing fund is a key recommendation under Category 4B Fiscal Incentives in the Prohousing Designation application; and WHEREAS, the City has sufficient funds in its various restricted housing funds, including the Housing Successor Fund (Fund 255), Commercial Linkage Fee (Fund 270), and General Fund Housing Set-Aside (Fund 130) to support the above-named Housing Element policies, and policies related to affordable housing production, preservation and rehabilitation; and
WHEREAS, the City Council, on September 8, 2026, directed staff to pursue Prohousing Designation and to establish and capitalize new Pro-Housing Reserve Accounts with an initial amount of $5,000,000 to support the production, preservation and rehabilitation of affordable housing; and WHEREAS, a total appropriation of $5,000,000, of which $1,000,000 is from the Housing Successor fund (Fund 255), $3,000,000 is from the Commercial Linkage Fee fund (Fund 270), and $1,000,000 from the General Fund Housing Set-Aside fund (Fund 130) is necessary to establish the Pro-housing Reserve Accounts.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN MATEO, CALIFORNIA, HEREBY RESOLVES that:
1. This fund appropriation is not a project of CEQA because it is an organizational or administrative activity that will not impact the environment (CEQA Guidelines Section 15378(b)(5).
2. The appropriation of $1,000,000 from the Low and Moderate Income Housing Asset Fund (Fund 255), $3,000,000 from the Commercial Linkage Fee fund (Fund 255), and $1,000,000 from the General Fund Housing Set-Aside fund (Fund 130) into the City of San Mateo Prohousing Reserve Accounts is approved.