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Report regarding a resolution authorizing the City of South San Francisco's application for $5,000,000 from the State of California's Local Housing Trust Fund Program and a resolution approving funding commitment letters for Rotary Gardens and 1051 Mission Road. (Nell Selander, Economic & Community Development Director)
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RECOMMENDATION
Recommendation
Staff recommends City Council adopt a resolution authorizing the City of South San Francisco's application for $5,000,000 from the State of California's Local Housing Trust Fund Program and a resolution approving funding commitment letters for Rotary Gardens and 1051 Mission Road.
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BACKGROUND/DISCUSSION
The Local Housing Trust Fund (LHTF) Program is a dollar-for-dollar matching program administered by the State of California's Department of Housing and Community Development (HCD) dedicated to funding affordable rental housing development and preservation. It is funded by the Veterans and Affordable Housing Bond Act (Proposition 1), a $4 billion bond approved by voters in 2018. The 2024 Notice of Funding Availability (NOFA) for the LHTF Program makes available $53 million for this statewide, competitive grant program. The maximum possible award is $5 million.
As a dollar-for-dollar matching grant, the LHTF Program requires the applicant, in this case the City, commit local housing trust fund dollars in advance of its application for a specific purpose. The purpose can be something as broad as the construction of new affordable rental housing serving predominantly households earning less than 30% of the area median income (see Attachment 1 for income limits). However, the City receives additional tie breaker points for pre-committing these matching funds to a specific project, not just a broad category of projects.
Additionally, the matching funds (or assets, such as land) must be held by the City's housing trust fund, with revenue generated from non-residential sources. In this case, the City...
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