Bay Area Housing
Finance Authority
2024 Regional
Housing Bond
Agenda
Overview of Bay Area Housing
Finance Authority (BAHFA)
Regional Housing Bond Measure
Expenditure Planning
Next Steps
Q & A
Presenter: Megan Basinger, Director
Housing and Community Services Department
December 5, 2023
2 BAHFA’s Mission
To address systemicchallenges in
housing affordability and housing stability
across the 3Ps
1. Production of new affordable
housing
2. Preservation of existing affordable
housing
3. Protections for low-income residents
and people at risk of homelessness
3 Bay Area Housing
Finance Authority
(BAHFA) was created
to solve housing
affordability
challenges
How BAHFA Works
4
BAHFA is the first regional housing finance agency in California, created by the State Legislature in 2019 to offer new tools and innovative solutions to the Bay Area’s housing challenges
Core power is to raise new revenue for housing, subject to voter approval Collaborates with cities and counties, improves systems and funds housing across the whole Bay Area
Currently conducting pilot programs to advance affordable housing goals across the 3Ps
BAHFA’s Pilot Programs
1. Doorway: Online portal to find and apply for available affordable housing. Launched summer 2023.
2. Affordable Housing Pipeline: Completed database tracking 33,000 homes in predevelopment and in need of funding.
3. T ax Exemption Preservation Program: Preserved affordability for 325 households in five buildings. Ongoing program.
4. Preservation Pilot: An upcoming $15 million program to acquire and preserve affordability of apartments occupied by lower-income residents.
5. Priority Sites Development: Crafted a $28 million program that will catalyze affordable homes near transit on public land or repurposed malls/office parks.
6. Rental Assistance to Prevent Homelessness: An upcoming $5 million program for extremely rent-burdened seniors, people with disabilities, and other at-risk tenants.
5
Proposed 2024
Regional
Housing Bond
$10-20 billion to invest in affordable
housing
Requires voter approval
Funds disbursed over 10+ years
Eligible uses set forth in statute and
state constitution
6 7
1 2
Related 2024 Measure
Amend the statewide constitution to lower the voter approval threshold for affordable housing general obligation bonds (among other items) from 66.7% to 55%.
Assembly Constitutional Amendment 1 (Aguiar-Curry) will place a measure on the November 2024 ballot that would:
Apply to the Bay Area Regional Housing Bond on the same November 2024 ballot.
Significant Funding to Every Community
County & Direct City Allocations $10B GO Bond $20B GO Bond Alameda County (excluding Oakland) $984 M $2,000 M
Oakland $383 M $765 M
Contra Costa County $925 M $1,900 M
Marin County $352 M $704 M
Napa County (excluding City of Napa) $100 M $200 M
City of Napa $79 M $158 M
San Francisco City and County $1,200 M $2,400 M
San Mateo County $1,000 M $2,100 M
Santa Clara County (excluding San Jose) $1,200 M $2,400 M San Jose $1,000 M $2,100 M
Solano County $248 M $497 M
Sonoma County (excluding Santa Rosa) $282 M $564 M
Santa Rosa $121 M $242 M
BAHFA $2,000 M $4,000 M
8 Total Bond Allocation Estimate for
Santa Rosa*
9 Bond
Allocation
Estimated
Share Amount
Approximate Bond
Allocation
Total GO Bond Allocation 100% $121 million
Administration of Programs and
Services 5% $6 million
Balance to Disperse 95% $115 million
Balance to Disperse Level $115 million
Production 52% min. $60 million
Preservation 15% min. $17 million
Tenant Protections** 5% min. $6 million
Flexible Funding 28% $32 million
* Bond allocation amounts will change when updated with 2023-2024 Assessed Values from the California State Board of Equalization. The figures aboveare based on 2020 Assessed Values. ** State law does not allow bond proceeds to be spent for non-capital (i.e., services) costs so funds assigned to tenant protection must be reassigned absent a change in law.
How Funds Can be Spent
County and City: 80% Regional Program: 20%
10 Production
≥ 52%
Production
≥ 52%
Preservation
≥ 15%
Preservation
≥15%
*Protection
≥ 5% *Protection
≥5%
≤10% Local
Government
Incentive Grant
Program
Flexible
28%
Flexible
18%
*Exception for GO Bonds: currently, state law does not allow bond proceeds to be spent on non-capital (e.g., services) costs.
Regional Coordination and Accountability
BAHFA
Governed by local elected officials across
the Bay Area serving on MTC.
Advisory committee with public members
with expertise across the 3Ps.
Regional and local expenditure plans posted
on BAHFA website.
Annual report to state legislature on
expenditures and outcomes.
Assists localities with development
of local expenditure plans.
Monitors expenditures for compliance with
state law/regulations.
Cities and Counties
Counties must conduct public outreach
and engage with their cities to inform
county expenditure plans.
Plans are subject to BAHFA and ABAG
Executive Board review .
Local elected officials responsible for
project-level funding decisions,
consistent with local expenditure plans
Annually report on expenditures and
outcomes.
11 BAHFA’s Investment Goals
Support Innovative, Diverse and Cost-Efficient Housing:
Build more types of housing to meet different needs in population and geography
Spur innovation to deliver homes faster and at lower cost Financial Sustainability: Over time, BAHFA will generate money from its loan programs, which can go back into
communities and provide more affordable homes without
additional taxpayer support.
Equity and Environmental Sustainability: BAHFA will
invest in projects that serve those who are most in need and help address climate change.
12 Distribution Basics for 80% of Bond
80% to County of
Origin
• Based on Assessed
Value
• Counties Decide
Which Entity Shall
Distribute (e.g., a
Housing Department)
San Jose, Oakland and
San Francisco Receive
Direct Allocation
• Big Cities Create Their
Own Expenditure
Plans
Cities that Carry 30%+
of County’s Lower
Income RHNA Obligation
Can Choose to Receive
Direct Allocation
• Santa Rosa and City of
Napa Can Receive a
Direct Allocation and
Create Their Own
Expenditure Plans
Cities and Counties
May Use 5% of Funds
for Administration
Costs
13 County and City governing boards must
approve Plans at a noticed public
meeting
Must include minimum 52% for
production, 15% for preservation,
5% for protections
Production should prioritize projects
that help meet Extremely Low, Very
Low, and Low Income RHNA targets
28% Flexible Funds can be for housing
and “housing-related uses”
If Expenditure Plans satisfy all
criteria, they will be approved as a
matter of law
14 Cities’ and Counties’
EXPENDITURE
PLANS
GENERAL RULES
for Cities and
Counties
All housing must be deed-
restricted, but term of restriction
is not defined
All housing must be affordable,
with cap of 120% AMI
Rental, ownership and interim
housing all eligible
Everything must conform to
Expenditure Plan
15 Regional Housing Bond Timeline
16 BAHFA/ABAG
Counties/Cities
Public Involvement
Key
2024 Spring 2024 Summer 2024 Fall 2024 2025
ENGAGEMENT
POLICY
DECISIONS
ELECTION
ACTIONS
ABAG & BAHFA Vote
to place bond on ballot
Mar – June 2024
BAHFA submits Measure to
County Elections Offices
by Aug 9, 2024
ELECTION DAY
Nov. 5, 2024
Public Workshops Public Information
Recommended
Draft of County/Local
Expenditure Plans
Summer 2023
Counties/Cities hold
Public Hearings*
Fall 2023
Counties/Cities
Adopt Expenditure
Plans
No sooner than
Feb 2025
*(≈Nov 2024 – Feb 2025)
We are
here
17 Questions?
18