Local Preference Ordinance
Housing Standing Committee
February 25, 2025
Government Code Section 54957.5
SB 343 Item Agenda: 02/25/2025 SP HSC Item 3
Staff Recommendation
Staff recommends the Housing Standing Committee to
consider and provide feedback for the proposed Local
Preference Ordinance that would, in the context of deed restricted affordable units:
Give a preference point to applicants who live, have lived, or work in the City during the housing lottery process.
Policy Goals
• Prevent displacement of residents and workers in the City • Provide opportunities for prior displaced residents to return • Codify & expand an existing policy implemented through regulatory agreements to ensure alignment with State/Federal legal and grant requirements.
Background
• Local preference policies prioritize local applicants of deedrestricted affordable units • Preference, not a requirement; other income-eligible applicants are still eligible to apply
• City already has a local preference policy variant implemented through regulatory agreements with property owners
• Current policy provides a preference point to current residents and workers who work at least 20 hours weekly within the City Why an Ordinance?
• State Law alignment: local preference policies for tax-credit funded projects are allowable in the context of local adoption (GOV Code 7061)
• Adoption = resolution or ordinance
• Full evaluation of compliance with fair housing law
• Incorporate policy adjustments informed by AntiDisplacement Roadmap Fair Housing Law Considerations
• Fair housing law must be considered when providing a
preference to a portion of a population over another
• Staff contracted a law firm that specializes in Fair Housing Law to assist staff in drafting a compliant ordinance
• A local preference policy is legally defensible so long as:
• no current/future discriminatory effect towards a protected class. • Serves a legitimate need that overrides discriminatory effect • No feasible alterative practice with less discriminatory effect • Disparate Impact Analysis conducted by a contracted data analyst => no meaningful discriminatory impacts from policy Displacement & Prior Displaced
• 2012-2022: 36% decrease in
Hispanic/Latino households in SSF
making under 150k
• Decrease especially acute for
households making under 75k
• Commonly cited reasons for
relocating from the City
• Proposed policy provides residents,
workers, and displaced residents
greater opportunity to qualify for
safe & affordable homes
Housing
was too
Expensive
My landlord
refused repairs
and I didn’t
know where to
find help
Conditions were
unhealthy and I
couldn’t afford
anything else
Community Input from Anti-Displacement
Roadmap
Policy Structure
Housing Element
Alignment
• Policy EQ-3: Support residents who are atrisk of being displaced • Policy EQ-8: Protect existing residents
from displacement in areas of lower or
moderate opportunity and concentrated
poverty and preserve housing choices and
affordability
• PRSV-5.2 Assist tenants at risk of
displacement
Research Conducted
• Originally targeted as a live preference, expanded to work to eliminate disparate impacts / fair housing concerns
• Point based waitlist system; preference eligible applicants offered units first • Equally weighted preferences, includes former residents Redwood City: Local Preference Policy (2021)
• Establishes 7 targeted preferences tailored to vulnerable populations such as displaced due to BART construction or at-risk of homelessness • Allocation based waitlist system; 75% units reserved for preference policy applicants
• Complicated application process; some preferences require applying separately for a certificate to establish preference eligibility City of Berkeley: Affordable Housing Preference Policy (2024) Applicable Properties
The proposed policy applies to deed-restricted affordable properties resulting from:
• Inclusionary housing requirements
• Density bonus
• Developments acquired, constructed, or rehabilitated with City financing
Housing Lottery: How it Works
Current residents
Former residents
Workers: 20+ hours weekly in SSF
Workers: accepted job offer
1 preference
point (max) =
considered first
All other applicants
0 points =
considered once
preference list is
exhausted
HSC Action
Staff recommends the Housing Standing Committee to
consider and provide feedback for the proposed Local
Preference Ordinance that would, in the context of deed restricted affordable units:
Give a preference point to applicants who live, have lived, or work within the City during the housing lottery process.
Questions?