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Report regarding a resolution authorizing the City of South San Francisco's application for $2,362,500 from California's Local Housing Trust Fund ("LHTF") Program and approving a City Letter of Funding Commitment to Eden Housing providing matching funds for an 82-unit affordable rental housing project at 201 Baden Avenue (Julie Barnard, Economic Development Coordinator)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution authorizing application for and receipt of Local Housing Trust Fund Program Funds, and approving and authorizing City staff to issue a Letter of Funding Commitment to Eden Housing to provide funding for an affordable rental housing project at 201 Baden Avenue.
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BACKGROUND/DISCUSSION
The Local Housing Trust Fund (LHTF) is a newly established State funding source to finance new affordable housing construction. The program is administered by the State of California's Department of Housing and Community Development (HCD) and is funded by the Veterans and Affordable Housing Bond Act (Proposition 1), a $4 billion bond approved by voters in 2018.
The State has committed a total of $57 million dollars to the LHTF program. Program funds awarded must be designated to provide construction loans and/or permanent financing loans to pay for construction or rehabilitation of affordable rental housing projects, emergency shelters, permanent supportive housing, transitional housing and affordable homeowner projects. Program funds may also be used to assist income-eligible first-time homebuyers to purchase homes and to rehabilitate houses owned by income-eligible occupants. Accessory Dwelling Units (ADUs) or Junior Accessory Dwelling Units (JADUs) construction and conversion programs are also eligible.
The City is eligible to apply for funds between $1 million and $5 million with a one-to-one matching funds requirement. Applications will be scored on several criteria including the source of matching fu...
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