HomeMy WebLinkAbout2020-07-21 e-packet@6:00Tuesday, July 21, 2020
6:00 PM
City of South San Francisco
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, CA
TELECONFERENCE MEETING
Special City Council
Special Meeting Agenda
July 21, 2020Special City Council Special Meeting Agenda
TELECONFERENCE MEETING NOTICE
THIS MEETING WILL BE CONDUCTED PURSUANT TO THE PROVISIONS OF THE
GOVERNOR’S EXECUTIVE ORDERS N-25-20 AND N-29-20 ALLOWING FOR DEVIATION
OF TELECONFERENCE RULES REQUIRED BY THE BROWN ACT & PURSUANT TO THE
ORDER OF THE HEALTH OFFICER OF SAN MATEO COUNTY DATED MARCH 31, 2020 AS
THIS MEETING IS NECESSARY SO THAT THE CITY CAN CONDUCT NECESSARY
BUSINESS AND IS PERMITTED UNDER THE ORDER AS AN ESSENTIAL
GOVERNMENTAL FUNCTION.
The purpose of conducting the meeting as described in this notice is to provide the safest environment for staff
and the public while allowing for public participation.
Councilmembers Matsumoto, Nagales and Nicolas, Vice Mayor Addiego and Mayor Garbarino and essential
City staff will participate via Teleconference. Members of the public may submit their comments on any agenda
item or public comment via email or City Council hotline.
PURSUANT TO RALPH M. BROWN ACT, GOVERNMENT CODE SECTION 54953, ALL VOTES
SHALL BE BY ROLL CALL DUE TO COUNCIL MEMBERS PARTICIPATING BY
TELECONFERENCE.
MEMBERS OF THE PUBLIC MAY VIEW A VIDEO BROADCAST OF THE MEETING BY:
Internet: https://www.ssf.net/government/city-council/video-streaming-city-and-council-meetings/city-council
Local cable channel: Astound, Channel 26 or Comcast, Channel 27
Page 2 City of South San Francisco Printed on 12/15/2020
July 21, 2020Special City Council Special Meeting Agenda
Call to Order.
Roll Call.
Agenda Review.
Remote Public Comments - comments are limited to items on the Special Meeting Agenda.
Remote Public Comments Received1.
Members of the public wishing to participate are encouraged to submit public comments in writing in
advance of the meeting by 4:00 p.m. on Tuesday, July 21st. State law prevents Council from taking
action on any matter not on the agenda; your comments may be referred to staff for follow up.
Emails received before the meeting start time will be emailed to the City Council, posted on the
City’s website and will become part of the public record for that meeting. The email and phone line
below will be monitored during the meeting. If a comment is received after the set time or during the
meeting but before the close of the meeting, the comment will still be included as a part of the record
of the meeting. The Clerk will make every effort to read emails received but cannot guarantee such
emails will be read during the meeting, subject to the Mayor’s discretion to limit the total amount of
time for public comments (Gov. Code sec. 54954.3.(b)(1).). Comments that are not in compliance with
the City Council's rules of decorum may be summarized for the record.
Email: [email protected]
Public comments can be made on items not on the agenda, or must clearly identify the Agenda Item Number in
the SUBJECT Line of the email. The length of an email comment shall commensurate to the three minutes
customarily allowed per individual comment, approximately 300 words total.
City Council Hotline: (650) 829-4670
Please limit your voicemail to comply with the 3-minute time limitation for public comment.
Page 3 City of South San Francisco Printed on 12/15/2020
July 21, 2020Special City Council Special Meeting Agenda
ADMINISTRATIVE BUSINESS
Report regarding Observance of Columbus Day as a City Holiday. (Sharon Ranals,
Assistant City Manager)
2.
Report regarding housing program goals, existing housing policies and programs, and
housing fund balances. (Nell Selander, Deputy Director, Economic & Community
Development Department)
3.
Report regarding preventing residential displacement due to COVID-19, including
augmenting the City’s Rental Assistance Program and establishing a new Landlord
Default Prevention Program. (Kris Romasanta, Community Development
Coordinator)
4.
Report regarding the City of South San Francisco’s application to the State of
California for Permanent Local Housing Allocation (PLHA) funds. (Deanna Talavera,
Management Analyst II)
5.
Report regarding a new model to secure housing for households earning between 60%
and 120% of the area median income (Nell Selander, Deputy Director, Economic &
Community Development Department)
6.
CLOSED SESSION
Closed Session:
Conference with Real Property Negotiators
(Pursuant to Government Code Section 54956.8)
Properties: 109 Longford (APN 010-071-050)
City Negotiators: Nell Selander, Deputy Director of Economic and Community
Development and Deanna Talavera, Management Analyst II
Negotiating Parties: City of South San Francisco and Habitat for Humanity
Under Negotiation: Review of Price and Terms
7.
Adjournment.
Page 4 City of South San Francisco Printed on 12/15/2020
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:20-500 Agenda Date:7/21/2020
Version:1 Item #:1.
Remote Public Comments Received
City of South San Francisco Printed on 7/17/2020Page 1 of 1
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From:Daniel Perez
To:All at City Clerk"s Office
Subject:Agenda Item 3 July 21 special meeting
Date:Tuesday, July 21, 2020 1:05:52 PM
Honorable Mayor and City Council,
I am requesting my comments to be read for public.
When discussing housing goals today, please take into consideration long time residents in the Old Town area. We
have faced the brunt of high rise buildings unfairly and am concerned about more housing in our already dense area,
especially in the loss of parks/open areas for community use and enjoyment, added traffic congestion and safety
concerns in emergency situations . I understand housing needs that new biotech companies have brought to SSF, but
Old Town is not equipped to add more high rise buildings without jeopardizing our livelihood and safety.
I have not seen this much high rises in other cities, but if absolutely needed, I believe El Camino Real is a more
suitable area because it will not impact single family homes, there is ample land filled with boarded-up businesses, it
can handle emergency vehicles and it is close to BART. SSF also needs a grocery store and business on El Camino.
Thank you.
Government Code Section 54957.5
SB 343
Agenda: 7/21/2020
Item # 1 Remote Public Comments
From:evangelina portillo
To:All at City Clerk"s Office
Subject:Housing production
Date:Tuesday, July 21, 2020 1:54:18 PM
Promoting housing production but not in Old town! Hello I am a resident of old town ssf and have lived here all my
life. We purchased our home in 1960 on the corner of cypress and pine literally in front of Cypress Park, I am aware
that cypress park and other open space areas maybe converted into high rise buildings. I have watched generations
of neighborhood kids and our own family playing in this park, I can not imagine looking out my window and seeing
a wall of a high rise building, This will devalue our properties and will displace lower income Latino residents and
commercial businesses in the area.
My family has owned a mama/papa Mexican market since 1971 and I would hate to see minority owned businesses
close because the people who move into those buildings will not consume there.
We do not want or need anymore high rise buildings in this neighborhood. What we do need is for funds to go into
our community, keep and modernize Cypress park with new play structures.
Open spaces lots that have been neglected use for community, youth center for our children and cultural garden for
our seniors.
I love South City and would hate to leave because of these high rise buildings continue to take over our
neighborhood community.
Thank you
Sent from my iPhone
From:Luz Jimenez
To:All at City Clerk"s Office
Subject:item 3 July 21 meeting
Date:Tuesday, July 21, 2020 2:24:03 PM
City mayor and Council:
Old Town/Downtown area does not need any more high rise buildings because it will lose its cultural and historical
value and because this area is a single family home area that has been bombarded with high rise buildings that are
out of place for this neighborhood.
It is not wise to build high rise buildings inside of Old Town, just like the building on Miller Ave in front of Wells
Fargo. The neighbors have a wall to look at through their windows. It is very disrespectful and I know you would
not want that for yourselves. it is very sad for them and a shame this project was approved.
I also do not want to see Cypress park, the green area on Pine and the parking lot taken away for high rise buildings.
The park is used by many children and families and it is our only play area. The parking lot is always full because
there is hardly any parking anywhere and I would like to see the green lot on pine be accommodated with benches
for everyone to use. We walk to stores and have no where to sit with our bags. The lot on Armour was already taken
away and replaced with a building.
Thank you.
From:O Perez
To:All at City Clerk"s Office
Subject:Special Mtg Item 3 Housing
Date:Tuesday, July 21, 2020 2:47:41 PM
Honorable Mayor Garbarino and City Council,
I urge City Council to keep high rise buildings in outskirts of SSF, and especially away from the Old Town area
where single family homes are negatively affected, such as Miller Ave high rise. I also urge the City Council to keep
in mind the historical and cultural value that Old Town provides to entire SSF community as a whole from original
Italian immigrants who built this city. Even though the demographics have changed, we bring the same values and
principles to SSF in that we are hard working immigrant families whom value our properties and family life. We are
very proud to be long time SSF residents and wish to maintain the same quality of life.
As mentioned before, Old Town is our home, our pride and joy, through tears and sorrows, our sacred ground, our
birth place, and our resting place.
Thank you for taking my comments into consideration. I trust you will see the value in preserving Old Town as a
historical and rich part of town that no other area provides. There are many other reasons to not consider more high
rise buildings in Old Town, such as preserving Cypress Park, Pine lots and other empty green areas for community
use and enjoyment for many more years to come. Our families will be eternally thankful for City Council's
thoughtful consideration. I understand housing shortages and needs and I will leave that decision to your best
judgement to areas that have ample empty lots and several traffic lanes for emergency purposes.
Respectfully,
Olga Perez
From:Marcela Rivera
To:All at City Clerk"s Office
Subject:Agenda item 4 public comment
Date:Tuesday, July 21, 2020 3:27:19 PM
To whom it may concern:
Since California continues to open and close based on covid-19 case numbers. I think it is important that we extend
rental assistance to our residents. During these times people should not have to put their health at risk because they
fear eviction. We need to protect our community members and keep people at home.
Marcela Rivera
Sent from my iPhone
From:Kimberly Hui
To:All at City Clerk"s Office
Subject:Agenda Items 1, 4, 5 and 6
Date:Tuesday, July 21, 2020 3:57:34 PM
Good afternoon all,
As of 2017, 55 cities across the United States celebrate Indigenous People's Day instead of
Columbus Day. South San Francisco should also take the initiative and recognize Christopher
Columbus only perpetuated genocide on the Indigenous People. He did not "discover"
America as Indigenous people already existed on the land. South San Francisco can show
solidarity with all Indigeous People by changing Columbus Day to Indigenous People's Day.
As for the agenda items regarding housing. Ensure that the long time residents of South San
Francisco will be able to continue living here. We have made South San Francisco what it is
today. Do all that you can to prevent people from relocating especially during the current
pandemic (moving or becoming homeless during this pandemic can increase the risk of
COVID transmission and possibly other health effects).
Any rent assistance program that benefits those that have been impacted by COVID-19 needs
to be approved and implemented as soon as possible.
Any attempt at constructing more affordable housing, needs to do so with consideration to the
following things:
1. Environmental Impact
2. Resiliency of Buildings
3. Affordability (Renters should not have to spend over 50% of their income on rent)
4. Current neighborhood design
Although the effort to construct affordable housing is needed, please consider the current
neighborhood geography and lifestyle prior to starting construction.
Thank you,
Kimberly Hui
From:Russell Lee
To:All at City Clerk"s Office
Subject:Rental Assistance
Date:Tuesday, July 21, 2020 3:58:12 PM
Please expand rental assistance to more South City residents! We're on the verge of an
eviction crisis because of this pandemic. No one deserves to be put out onto the streets,
especially families and vulnerable peoples, just because they cannot afford to live in the city
they grew up/helped built in anymore. It's the right thing to do and a faster/less effort way of
alleviating the housing crisis now rather than waiting for housing to be built. I've never had to
worry about housing and I always assumed we considered it a human right to be sheltered.
Please consider expanding the rental assistance program!!
Thank you for your time and stay well.
--
Class of 2021
From:Retesh Gupta
To:All at City Clerk"s Office
Subject:Item 3
Date:Tuesday, July 21, 2020 4:29:11 PM
Hi,
Please keep high rises out of Old Town and keep Cypress park and Pine Lots for community! The community day in
and day out states where they stand and you still ignore us. Please listen to us for once.
Retesh Gupta
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:20-456 Agenda Date:7/21/2020
Version:1 Item #:2.
Report regarding Observance of Columbus Day as a City Holiday.(Sharon Ranals, Assistant City Manager)
RECOMMENDATION
It is recommended that the City Council consider issues related to the observance of Columbus Day as a
City holiday.
BACKGROUND/DISCUSSION
In the context of the racial justice movement,City Council has asked staff to provide some information on the
observance of Columbus Day as a City holiday.Columbus Day is one of twelve full-day,and two half-day,paid
holidays granted to full time staff each calendar year.A schedule of annual City holidays for 2020 and 2021 is
attached.Columbus Day is traditionally observed on the second Monday in October,falling on October 12 in
2020.
Columbus was an Italian explorer and colonizer on behalf of Spain,who set sail across the Atlantic Ocean in
search of a faster route to the Far East only to land at the New World.Credited with discovery of America,he
ironically never set foot in the United States,anchoring in the Bahamas.Columbus Day celebrations date back
to 1792,when New York City celebrated the 300th anniversary of the 1492 voyage of Christopher Columbus.
The holiday was observed by some states through proclamations,and was first recognized as a United States
federal holiday in 1934.Italian Americans faced significant religious and ethnic prejudice,and latched onto the
celebration of Columbus Day as a way to mainstream and humanize themselves in the face of rampant
discrimination,with the observance representing for many the values of discovery and risk that are at the heart
of the American dream.
Italian Americans have played an important role in the history of South San Francisco.In the early years they
comprised a significant percentage of the workforce of the Swift &Co.Meat Company,and were employed in
truck farming producing flowers,pigs,ducks,vegetables and flowers.There was a steady influx of Italian
immigrants to South San Francisco from 1910 through the 1930’s,with many working in the industrial firms
located on the east side of town,establishing businesses in the downtown,and building homes in the residential
areas.Italian Americans have had an important influence on the social,political,and cultural life of South San
Francisco.
While Columbus Day is viewed by some as an observance of the discovery of the New World,and a celebration
of the contributions of Italian Americans,others point out that millions of people already inhabited the
Americas before the exploration of Columbus,and the Vikings had reached North America nearly five centuries
earlier.These advocates cite the enslavement and decimation of local populations carried out by Columbus,and
the path that was opened for European colonization of lands inhabited by native people,and do not believe that
Columbus should be celebrated as a hero.
For Native Americans,Columbus Day has long been hurtful,evoking the violent history of 500 years of
colonial oppression at the hands of European explorers and those who settled here.Historians have chronicled
the behavior of Columbus and his party,which according to the UCLA American Indian Studies Center,
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Version:1 Item #:2.
included “pillaging, raping and generally setting in motion a genocide of the people who were already here.”
The celebration of Columbus Day in the United States began to decline at the end of the 20th century,although
many Italian Americans and others continue to champion it.Many cities,led by the City of Berkeley in 1992 on
the 500th anniversary of his landfall,have rejected celebrating Columbus Day,preferring to recognize
Indigenous Peoples’Day.A number of cities have followed suit,including Austin,Boise,Cincinnati,Denver,
Los Angeles,Mankato,Portland,Santa Fe,Seattle,St.Paul,Phoenix,Tacoma,and many others.Sandusky,
Ohio has made Election Day a paid holiday by swapping it for Columbus Day.
In 2019 Governor Newsom issued a proclamation stating that,“Instead of commemorating conquest today,we
recognize resilience.For the first time in California state history,we proclaim today as Indigenous Peoples’
Day.”In the Bay Area,the County of San Mateo adopted a resolution on July 7,2020,to designate the second
Monday in October as Indigenous Peoples’Day in conjunction with Columbus Day,with both being observed.
San Francisco has moved from Columbus Day to Indigenous Peoples Day and Italian American Heritage Day.
East Palo Alto changed Columbus Day to Cesar Chavez Day.South San Francisco Unified School District does
not observe Columbus Day.
If City Council were interested in making a change to the observance of Columbus Day,or any other city-
observed holiday,it should be noted that these dates are specified in the Memorandums of Understanding
(MOU’s)for employee bargaining units.Depending upon the nature of the change,some negotiation or contract
amendment could be required.
STRATEGIC PLAN
Consideration of this information relates to Strategic Plan Priority #1:Workforce Development,by
demonstrating cultural and racial sensitivity;as well as Strategic Plan Priority #6,Community Connections,by
celebrating diversity and inclusion in the community and Bay Area.
FISCAL IMPACT
The financial impact of changes to City-observed holidays could range from having no financial impact,for
example an existing holiday is re-named,to having significant impact if a new holiday were granted to
employees.Staff can provide City Council with a more detailed analysis of the costs if any changes are
contemplated.
CONCLUSION
City Council requested that staff provide some background information regarding Columbus Day to help
inform a dialogue about this City-observed holiday.
Attachment 1: 2020-2021 City Holiday Schedule
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Note: Day of Holiday Observation—Holidays which fall on a Sunday shall be observed on the following Monday.
Holidays falling on a Saturday shall be observed on the previous Friday. Half-day holidays shall be observed
on the workday immediately previous to the day Christmas Day and New Year’s Day are observed.
CITY OF SOUTH SAN FRANCISCO
INTER-OFFICE MEMORANDUM
DATE: October 4, 2019
TO: All Department/Division Heads
FROM: Mich Mercado, Human Resources Manager
SUBJECT: 2020 & 2021 Holidays
2020 HOLIDAY OBSERVANCE 2021
Wednesday, January 1 New Year’s Day Friday, January 1
Monday, January 20 Martin Luther King, Jr. Day Monday, January 18
Monday, February 17 President’s Day Monday, February 15
Monday, May 25 Memorial Day Monday, May 31
Friday, July 3 Independence Day Monday, July 5
Monday, September 7 Labor Day Monday, September 6
Monday, October 12 Columbus Day Monday, October 11
Wednesday, November 11 Veteran’s Day Thursday, November 11
Thursday, November 26 Thanksgiving Day Thursday, November 25
Friday, November 27 Day following Thanksgiving Day Friday, November 26
Thursday, December 24 Christmas Eve (4 hrs) Thursday, December 23
Friday, December 25 Christmas Day Friday, December 24
Thursday, December 31 New Year’s Eve (4 hrs) Thursday, December 30
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:20-489 Agenda Date:7/21/2020
Version:1 Item #:3.
Report regarding housing program goals,existing housing policies and programs,and housing fund balances.
(Nell Selander, Deputy Director, Economic & Community Development Department)
RECOMMENDATION
Staff recommends that the City Council hold a study session on housing program goals,existing housing
policies and programs, and housing fund balances.
BACKGROUND/DISCUSSION
Below is a brief description of the City’s housing policies and programs,as well as the current unencumbered
cash balances of the City’s housing funds and the goals they serve.
City Housing Goals
The policies and programs described below help serve the City’s housing goals, which include:
·Preventing displacement and homelessness prevention;
·Creating and preserving affordable housing units;
·Promoting housing production at all income levels;
·Leveraging local dollars by seeking and utilizing federal, state, and regional housing resources.
“Affordable housing”and “below market rate (BMR)housing”refers to residential units made affordable to
low and moderate income households.Typically,affordable for-sale housing targets households earning 120%
or less of the area median income.In San Mateo County,that is a family of four earning less than $171,700 or
an individual making less than $120,200.On the other hand,affordable rental housing targets households
earning less than 80%of the area median income.That is a family of four earning less than $139,400 or an
individual making under $97,600.
Existing Housing Policies & Program
City Council has adopted numerous policies and programs to advance the above-mentioned housing goals,
including those described below.
Rental Assistance Program
One of the most effective tools the City has in preventing homelessness and displacement is its rental assistance
program.The YMCA Community Resource Center located on Huntington Avenue in South San Francisco
administers the program,which provides rental assistance to low income South San Francisco residents
experiencing an immediate financial hardship.More recently,the program has been augmented significantly to
provide assistance to residents impacted by COVID-19 and the Shelter in Place Order.In Fiscal Year 2019-
2020,City Council appropriated $250,000 for the program.Council appropriated another $250,000 for the
program in the current fiscal year.
Housing Nonprofits
Through its Community Development Block Grant program and housing funds,the City supports a number of
nonprofit community organizations that provide critical housing resources,including shelters,home repairs,
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File #:20-489 Agenda Date:7/21/2020
Version:1 Item #:3.
nonprofit community organizations that provide critical housing resources,including shelters,home repairs,
legal assistance, and referral services.
Inclusionary Housing Ordinance
For years,the City has had an inclusionary housing ordinance requiring developers of market rate,for-sale
housing to include a set-aside of below market rate units.In 2018,following State legislation allowing it,the
City Council voted to expand the inclusionary housing ordinance to market rate,rental housing developments.
These inclusionary housing policies ensure that a percentage of all new housing units constructed in South San
Francisco are set aside for households earning under 120% of the area median income.
Commercial Linkage Fee
Prior to 2012,the City,through the South San Francisco Redevelopment Agency,had a direct and steady source
for funding for affordable housing.After the State dissolved redevelopment agencies in 2012,the City was left
without this important source of funding to support housing organizations and fund new affordable housing
development.To help begin to make up this shortfall,in 2018,the City Council adopted a commercial linkage
fee.This fee is charged on new commercial development to help offset the impact it has on the need for
affordable housing.
Program Administration
Critical to the success of the City’s housing program is its administration.City staff monitor existing affordable
housing units -reviewing annual rent increases for rental units and ensuring for-sale units are occupied
according to their deed restrictions -and negotiate affordable housing agreements for new developments.
Central to the administration of the housing program is having transparent guidelines.
Staff have spent the past year collecting best practices,reviewing past practices,and drafting new below market
rate housing guidelines for both rental and for-sale housing.Staff intend these new guidelines to provide
instruction to market-rate housing developers and occupants of below market rate units on the specific
requirements they must follow.The goal is to provide a framework to ensure new affordable units remain
restricted to below market rates for at least 55 years.
Housing Fund Balances
The City has three housing funds,which it can use to preserve affordable housing,fund the construction of new
affordable housing development,to support housing programs,and for administration.These three housing
funds have the following origins and unencumbered cash balances.
Low and Moderate Income Housing Asset Fund - Fund 241
Fund 241 has an unencumbered cash balance of $2.25 million as of July 1,2020.This fund’s assets were
transferred to the City as the Housing Successor to the former South San Francisco Redevelopment Agency.
This fund will eventually be expended,as there are no new significant revenues being deposited into it.What
little revenues it derives are from loan repayments and earned interest.
Housing Trust Fund - Fund 205
Fund 205 has an unencumbered cash balance of $850,000 as of July 1,2020.This fund derives revenue from
developer in lieu fees and community benefit payments.If a developer has an inclusionary housing requirement
(a below market rate unit set-aside)and is able to pay an in lieu fee,this is where those funds are deposited.
City Council set the in lieu fee for affordable housing units quite high -$308,000 per required below market
rate unit -so it is unlikely that many developers will pay the fee rather than build the affordable units.As a
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result, this fund is unlikely to grow significantly in the coming years.
Commercial Linkage Fees - Fund 823
Fund 823 has an unencumbered cash balance of $2.8 million as of July 1,2020.This fund derives its revenue
from impact fees paid by commercial developers to offset their impact on the need for affordable housing.As
our biotech cluster continues to grow,this fund is expected to grow substantially in the coming years.Currently,
the charge on biotech and office development is $15 per square foot. Hotel and retail uses pay a lower fee.
FISCAL IMPACT
There is no impact to the General Fund of receiving this report.
CONCLUSION
The staff reports that follow this aim to continue further the goals set forth in this staff report,utilizing both
City housing funds and State grants.To follow is a report on the City’s Rental Assistance Program and a
proposal to create a Landlord Default Prevention Program,as well as reports on the Permanent Local Housing
Allocation, a State source of affordable housing funding, and a new model for securing middle-income housing.
Attachments:
1.Presentation
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Housing Program Goals,
Policies & Programs, and
Fund Balances
City Council
Study Session
July 21, 2020
Housing
Goals
Preventing displacement &
homelessness prevention
Creating & preserving affordable
housing units
Promoting housing production at all
income levels
Leveraging local dollars using federal,
state, and regional resources
2
Who is
affordable
housing for?
3
Household Size
1 2 3 4
Extremely low (< 30%)$36,540 $41,760 $46,980 $52,200
Very Low (30-50% AMI)$60,900 $69,600 $78,300 $87,000
Low (50-80% AMI)$97,600 $111,550 $125,500 $139,400
Median (100%AMI)$100,150 $114,500 $128,800 $143,100
Moderate (80-120%)$120,200 $137,350 $154,550 $171,700
Area Median Income (for San Mateo County)
Existing
housing
policies &
programs
Rental Assistance Program
Housing Nonprofits
Inclusionary Housing Ordinance
Commercial Linkage Fee
Program Administration
4
Housing fund
balances
Fund 241 (Low/Mod Housing Fund)
$2.25 million balance
Fund 205 (Housing Trust Fund)
$850,000 balance
Fund 823 (Commercial Linkage Fee)
$2.8 million balance
5
Tonight’s
study session
Displacement reduction programs
Permanent Local Housing Allocation
New model for middle-income
housing
Closed session
6
QUESTIONS?
7
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:20-469 Agenda Date:7/21/2020
Version:1 Item #:4.
Report regarding preventing residential displacement due to COVID-19,including augmenting the
City’s Rental Assistance Program and establishing a new Landlord Default Prevention Program.(Kris
Romasanta, Community Development Coordinator)
RECOMMENDATION
Staff recommends City Council hold a study session regarding preventing residential
displacement due to COVID-19,including augmenting the City’s Rental Assistance Program and
establishing a new Landlord Default Prevention Program.
BACKGROUND
Since March 16,2020,the Shelter in Place (SIP)Order issued by San Mateo County has had a
devastating economic impact to the local economy,disproportionately affecting low-income South
San Francisco renters.In response,Council appropriated $250,000 in Fiscal Year (FY)2019-2020 for
Rental Assistance and appointed YMCA as the program administrator.
Since the SIP Order,YMCA has seen a five to six-fold increase in requests for rental assistance.Of
436 requests for rental assistance,the initial appropriation for the City’s Rental Assistance Program
was able to serve 76 households.Rent requests ranged from $400 to $4,500,with the average
request being $3,300.Of the 76 households served,62%of households have children under the age
of 18, 20% are headed by single parents, and 6% are seniors.
Under the County of San Mateo’s residential eviction moratorium,which protects renters in South
San Francisco,there is a temporary hold on evictions for non-payment of rent due to income loss
associated with COVID-19.Renters are obligated to pay missed rent payments within 90 days of the
moratorium’s expiration,with additional 30-day extensions available up to 90 days.This is consistent
with the Governor’s executive order to allow local eviction moratoria and to prohibit enforcement of
evictions by law enforcement or courts until July 28,2020.Should the County’s moratorium expire on
July 28,2020,as it is set to do,back rent payments would come due at the end of October 2020,or
as late as the end of January 2021.
Staff believe those who have sought rental assistance through YMCA are in the minority and that
there are many more South San Francisco residents who have been unable to make rent and will
have back-rent due later this year.Local quantitative data is scarce,but according to the U.S.Census
Bureau,14%of California renters did not make rent payments in May.And while the unemployment
rate in San Mateo County in May was 11.1%,the unemployment rate in South San Francisco was
14.8%, demonstrating that the City’s service-rich workforce has been hard hit.
With these statistics in mind,staff believe renters are using unemployment benefits,savings,funds
from friends and family,and government resources like rental assistance programs to pay rent.When
unemployment benefits run out,savings are exhausted,and the generosity of family and friends
fades,South San Francisco residents who are not able to access financial relief -in the form of
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fades,South San Francisco residents who are not able to access financial relief -in the form of
federal stimulus,state support,or local rental assistance -may be displaced through eviction actions
when the courts reopen.
Consequently,staff believe there will be a surge in rental assistance requests as the County
moratorium expires and rents begin to become due.To assist more renter households in South San
Francisco,Council appropriated an additional $250,000 on June 24,2020 for the City’s Rental
Assistance Program.With this report,staff recommends augmenting the Rental Assistance Program
with newly-available State funds and establishing a Landlord Default Prevention Program with a
portion of the City’s allocation of State CARES Act funds to target especially vulnerable properties
and tenants.
DISCUSSION
Staff is recommending a combined approach to preventing displacement -targeting tenants directly
through the City’s Rental Assistance Program and supporting smaller,debt-burdened landlords at risk
of default and,consequently,displacement of their tenants,through a new Landlord Default
Prevention Program.
Rental Assistance Program
The City’s Rental Assistance Program may provide up to 1.5 months rent for low-income households
earning 80%or less of the area median income.The renter household must have a valid lease (or
sublease)and demonstrate income loss due to COVID-19 of the SIP Order.Households that do not
meet these basic eligibility criteria are supported with different funding sources also administered by
YMCA. At this time, staff does not recommend making any changes to the Program eligibility criteria.
Funding
The City currently funds its Rental Assistance Program through Fund 241,allocating the maximum
allowed to be spent from the fund annually for homeless prevention,$250,000.Council’s first
appropriation for the Program in FY 19-20 was depleted in three months and the second
appropriation for FY 20-21 is also expected to be spent quickly.Staff have identified an additional
source of funding for tenant-based rental assistance,the State’s Permanent Local Housing Allocation
Fund (PLHA).
PLHA is a five-year entitlement from the State that the City must apply for by August 2020.If
approved,the City will receive roughly $215,000 each year for five years.Staff recommends
dedicating the first two years of PLHA funding to the Rental Assistance Program and the remaining
three years to affordable housing development.Staff have provided a more detailed discussion of the
PLHA application in a companion staff report for July 21,2020,as well as in the staff report for
Council to consider a formal action on the PLHA application on July 22, 2020.
Including existing appropriations from the City’s Fund 241 and anticipated allocations from PLHA,
staff anticipate the following funding for the City’s Rental Assistance Program.
Fund 241 PLHA Total
FY 19-20 $250,000 N/A $250,000
FY 20-21 $250,000 $215,000 $465,000
FY 21-22 TBD $215,000 $215,000
Total $930,000
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Landlord Default Prevention Program
While the City’s Rental Assistance Program targets tenants,it is agnostic to whether or not the rental
assistance payment is going to a landlord operating at slim margins versus another landlord who is
making significant profits.To target especially vulnerable tenants living in properties at risk of
foreclosure,staff recommends establishing a Landlord Default Prevention Program.The Program
would provide grants to property owners facing hardship as a result of nonpayment of rent due to
COVID-19, in exchange for waiving missed rent payments of low income tenants.
Staff understand smaller,debt-burdened landlords to be at particular risk of foreclosure due to the
SIP Order.While the County’s eviction moratorium protects tenants from eviction due to non-payment
as a result of COVID-19,it does not protect multi-family property owners who have seen reduced
revenues for the same reason.Additionally,unlike the forbearance banks have provided to home
mortgage holders,many commercial lenders have not provided loan payment deferrals for
commercial (multi-family) mortgages.
The State legislature considered but failed to pass Assembly Bill (AB)2501,which would have
protected landlords from foreclosure if they were unable to make mortgage payments due to
nonpayment of rent from tenants impacted by the pandemic.Specifically,AB 2501 would have
provided forbearance to homeowners and multifamily borrowers for rent relief to any tenants,banning
borrowers from evicting or penalizing tenants for nonpayment of rent.Debt-burdened landlords thus
continue to face increased risk of foreclosure,which may result in tenant eviction and displacement.
Although AB 828,an active bill in the committee process,would provide a temporary moratorium on
foreclosures and evictions until 15 days after the COVID-19 state of emergency has ended,it does
not provide financial relief likely required for some particularly hard-hit landlords to hold onto their
properties.
Due to these conditions,staff recommend Council consider establishing a Landlord Default
Prevention Program.The Program would provide grants to certain smaller,debt-burdened landlords
who need assistance paying their mortgage and other property expenses due to their tenants’
inability to pay rent.These landlords would then be required to waive those missed rental payments
for lower income tenants for a specific time period.
Program Implementation
If the program is authorized by Council,staff would develop an application and invite landlords with
lower income tenants who have experienced loss of rental income and are at risk of foreclosure are
encouraged to apply.Applicants would be ranked based on need and number of tenants at risk of
displacement.
Program Eligibility
The proposed program is aimed at assisting mom-and-pop landlords who own nine residential units
or less in South San Francisco,rent to at least one low-income household,and have been
economically impacted due to COVID-19.The program would provide up to $1,000 toward the
monthly rent and expenses for each affected unit occupied by a low-income household.The
assistance would be limited to three months,for a total of up to $3,000 per unit.Since the grant is on
behalf of the tenant,the landlord would be required to provide equal amount of rent relief for the
affected low- income tenant.
In addition to the criteria described above,the landlord must demonstrate that they rely on rent as
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In addition to the criteria described above,the landlord must demonstrate that they rely on rent as
their source of income or are in default on the first mortgage for the affected property.In addition,the
property owner must:
·Demonstrate a loss of rental income as of March 17, 2020;
·Provide proof of property ownership and non-payment or reduced payments of rents by
tenants;
·Provide a current lease or general ledger with tenant transactions; and
·Be in good standing with the City (no code violations or liens).
If directed by Council to launch the Program,City staff would finalize the program design and
guidelines based on Council direction.Similar to the administration of the City’s affordable housing
programs,running the Landlord Default Prevention Program will involve contacting and following-up
with landlords,verifying landlord and tenant documentation,and approving or denying grant
applications.
If Council would like to target a broader range of landlords and tenants for assistance under this
program,the income threshold could be raised to include landlords with moderate income tenants,
earning up to 120% of the area median income.
Los Angeles and Mountain View have implemented similar landlord default prevention programs.
Funding
Staff recommends allocating $280,000 of the City’s $838,111 CARES Act allocation to fund the
Landlord Default Prevention Program.The appropriation for this spending is included in the July 22,
2020 City Council staff report and action regarding the CARES Act fund allocation.At this funding
level,the Program would serve 10-15 landlords,translating into rent relief for roughly 75 tenant
households.
FISCAL IMPACT
There is no impact to the General Fund of receiving this presentation or directing staff to proceed with these
programs.Two action items on the July 22,2020 City Council meeting agenda,if approved,will appropriate
funds to augment the Rental Assistance Program (through PLHA)and establish the Landlord Default
Prevention Program (through the CARES Act).
RELATIONSHIP TO STRATEGIC PLAN
Renter protection measures address the following Strategic Plan area:Strategic Plan Priority Area 2
Quality of Life, Initiative 2.3 - Promote a balanced mix of housing options in South San Francisco.
CONCLUSION
Staff is seeking direction on augmenting the City’s Rental Assistance Program by directing the first
two years of PLHA funding to the Program,and on establishing a Landlord Default Prevention
Program funded by a portion of the City’s allocation of CARES Act funds.
Attachment:
1.Residential Displacement Presentation
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Displacement
Reduction
Programs
Rental Assistance Program
FY 19-20 : $250,000 (Fund 241) appropriated
Served 76 households impacted by COVID -19
Of the 76 households served
62% of households have children under the age of 18
20 % are headed by single parents
6% are seniors
Landlord Default Prevention Program
Target vulnerable tenants living in properties at risk of foreclosure
Serve 10-15 landlords, providing rent relief for 75 tenants
1
Displacement
Reduction
Programs
Landlord Default Prevention Program
Grants of up to $1,000 toward monthly rent for up to 3 months per unit ($3k/unit)
Program Eligibility
Aimed at assisting mom-and-pop landlords who own 9 units or less, rely on rent as source of income, rent to at least 1 low-income household, and be economically impacted by COVID-19.
Must demonstrate:
Rental income loss as of March 17, 2020
Proof of property ownership & non-payment or reduced rent payments
Provide current lease or tenant transactions
Good standing with the City
2
Displacement
Reduction
Programs
Rental Assistance Program
FY 20-21 : $250,000 (Fund 241) appropriated
FY 20-21: $215,000 (PLHA) recommended
FY 21-22: 215,000 (PLHA) recommended
Landlord Default Prevention Program
FY 20-21: $280,000 (CARES Act) recommended
3
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:20-386 Agenda Date:7/21/2020
Version:1 Item #:5.
Report regarding the City of South San Francisco’s application to the State of California for Permanent Local
Housing Allocation (PLHA) funds. (Deanna Talavera, Management Analyst II)
RECOMMENDATION
Staff recommends that the City Council hold a study session regarding the City of South San Francisco’s
application to the State of California for Permanent Local Housing Allocation (PLHA) funds.
BACKGROUND/DISCUSSION
In 2017,Governor Brown signed a 15-bill housing package focused on the state’s housing shortage and high
housing costs.The Permanent Local Housing Allocation (PLHA)originates from the Building Homes and Jobs
Act (SB 2),which is intended to help local governments implement plans to increase its affordable housing
stock.The legislation directs the California Department of Housing and Community Development (HCD)to
use 70%of the revenue collected to provide financial assistance to local governments for eligible housing-
related projects and programs to assist in addressing the unmet housing needs of their local communities.
The State generates funding for PLHA through recording fees on real estate transactions.Therefore,the funding
will vary from year to year depending upon activity.South San Francisco’s allocation for the first year of PLHA
is $217,980.Further,the State estimates that the City will receive $1,307,880 over the first five years.Up to 5%
of funds ($10,899 in the first year)may be used for program administration,covering a portion of the costs for
staff who carry out affordable housing activities.
HCD issued a Notice of Funding Availability (NOFA)for PLHA in February 2020,with applications accepted
on an over-the-counter basis beginning in April and through July 2020.For South San Francisco,the
application process is not competitive because funding is allocated on an entitlement basis;however,the City
must submit an application that complies with the NOFA guidelines,including a description of how South San
Francisco intends to use its PLHA funds.
Per the NOFA, eligible activities include the following.
1.The predevelopment,development,acquisition,rehabilitation,and preservation of multifamily,
residential live-work,rental housing that is affordable to extremely low-,very low-,low-,or moderate-
income households, including necessary operating subsidies.
2.The predevelopment,development,acquisition,rehabilitation,and preservation of affordable rental and
ownership housing,including Accessory Dwelling Units,that meets the needs of a growing workforce
earning up to 120-percent of AMI,or 150-percent of area median income (AMI)in high-cost areas
(South San Francisco is considered a high-cost area).
3.Matching portions of funds placed into Local or Regional Housing Trust Funds.
4.Matching portions of funds available through the Low-and Moderate-Income Housing Asset Fund
pursuant to subdivision (d) of HSC Section 34176.
5.Capitalized Reserves for Services connected to the preservation and creation of new permanent
supportive housing.
6.Assisting persons who are experiencing or at risk of homelessness,including,but not limited to,
providing rapid rehousing,rental assistance,supportive/case management services that allow people toCity of South San Francisco Printed on 7/17/2020Page 1 of 2
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providing rapid rehousing,rental assistance,supportive/case management services that allow people to
obtain and retain housing,operating and capital costs for navigation centers and emergency shelters,and
the new construction, rehabilitation, and preservation of permanent and transitional housing.
To comply with the PLHA program guidelines,staff recommends the funds be allocated toward the following
eligible activities:
1.In the first two years, 95% of the PLHA funds will be used for the Rental Assistance Program;
2.In the final three years,95%of the PLHA funds will be used to support the predevelopment,
development,acquisition,rehabilitation,and preservation of affordable rental and ownership housing,
including Accessory Dwelling Units,that meets the needs of a growing workforce earning up to 150%
of AMI in high-cost areas;
3.In each year,5%of the PLHA funds will be used for program administration,covering a portion of the
costs for staff who carry out affordable housing activities.
If the community’s needs change over the first five-year period of PLHA,the City may amend its spending plan
by Council resolution and application to the State.Staff feels confident that HCD would readily accept any
changes that comply with the program guidelines,as has been the case with other HCD-administered housing
entitlements, such as SB 2 Planning Grants.
FISCAL IMPACT
There is no impact to the General Fund of applying for the PLHA funds.HCD estimates the City will receive
approximately $1,307,888 in PLHA entitlement over a five-year period.The actual amount of funding will vary
each year based on real estate activity in the State.Staff proposes to use the allowed five percent of the PLHA
funds to support program administration,which may defray some costs from the General Fund or the City’s
housing funds.
CONCLUSION
On July 22,2020,Council will be asked to consider adopting a resolution approving the PLHA grant
application for submission.The application has been drafted according to the staff recommendation discussed
above.Should Council prefer to go a different route and allocate PLHA funds according to a different plan,
staff will prepare and present an errata sheet to Council at its July 22, 2020 meeting.
Attachments:
1.PLHA Formula Allocation Application
2.PLHA 5 Year Spending Plan
3.Housing Study Session Presentation
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Final Filing Date: April 27, 2020 through July 27, 2020 at 5 P.M. PST
Permanent Local Housing Allocation
(PLHA) Formula Allocation
2020 Application
State of California
Governor, Gavin Newsom
Lourdes Castro Ramírez, Secretary
Business, Consumer Services and Housing Agency
Douglas R. McCauley, Acting Director
Department of Housing and Community Development
Program Design and Implementation, PLHA Program
2020 West El Camino Avenue, Suite 150, Sacramento, CA 95833
PLHA Program Email: [email protected]
"Red" shaded cells indicate the Sponsor has failed to meet a requirement of the program. Point cells in the Scoring worksheet shaded in "red" indicate that the Sponsor has failed to
meet the minimum points required.
Instructions Rev. 5/20/20
When opening this file, a yellow banner at the top may appear with a button that says "Enable Content". It is essential that you click this box so that the macros are
enabled. Enabling macros is necessary for full worksheet functionality. Macros do not work with Microsoft's Excel version for Apple Mac.
HCD will only accept applications through a postal carrier service such as U.S. Postal Service, UPS, FedEx or other carrier services that provide date stamp verification confirming
delivery to HCD’s office. A complete original application and an electronic copy on a USB flash drive with all applicable information must be received by HCD via postal carrier no
later than 5:00 p.m. on:
Monday, July 27, 2020
Applications must be on the Department’s forms and cannot be altered or modified by the Applicant. Excel forms must be in Excel format and unprotected, not a .pdf document. For
application errors please fill out the Application Support worksheet and email the entire workbook to Application Support for application errors at [email protected].
General Instructions (Additional instructions and guidance are given throughout the Supplemental Application in "red" text and in cell comments.
Guideline references are made with "§" and the corresponding guideline section number.
"Yellow" cells are for Sponsor input. Failure to provide the required attachments and documentation may disqualify your application from consideration or may negatively impact your
point score.
Required attachments are indicated in "orange" throughout the Supplemental Application. Failure to provide the required attachments and documentation may disqualify your
application from consideration or may negatively impact your point score. Electronically attached files must use the naming convention in the Supplemental Application. For
Example: "App1 Payee Data" for Sponsor 1 Payee Data Record/STD. 204.
Threshold items are indicated in "blue" cells.
Sponsor must complete the following worksheets in the PLHA Formula Allocation Application.
Formula Allocation Application
X App1 Signature Block Signature Block - upload in Microsoft Word Document Included
302(c)(4) Plan
Legislative Contacts
Checklist
App1 Resolution PLHA webpage for Resolution Document Included
Included
Disclosure of Application (California Public Records Act Statutes of 1968 Chapter 1473): Information provided in the application will become a public record available for
review by the public, pursuant to the California Public Records Act Statutes of 1968 Chapter 1473. As such, any materials provided will be disclosable to any person making a
request under this Act. The Department cautions Applicants to use discretion in providing information not specifically requested, including but not limited to, bank accounts, personal
phone numbers and home addresses. By providing this information to the Department, the Applicant is waiving any claim of confidentiality and consents to the disclosure of
submitted material upon request."
Binder
Tab #
Threshold
Requirement Electronic File Name Document Description Included?
1 X
2
3 X App1 TIN Taxpayer Identification Number Document
Included
Included
§302(c)(4)(D) Evidence that the Plan was authorized and adopted by resolution by the Local
jurisdiction and that the public had an adequate opportunity to review and comment on its
content.
Plan Adoption 5
Legally binding agreement between Delegating and Administering Local Governments 4 X Applicant Agreement
PLHA Page 2 Instructions & ChecklistDRAFT
City Zip
Local Government Formula Allocation Rev. 5/20/20
Yes
§302(c)(4) Does the application include a Plan in accordance with §302(c)(4)?
CA Zip: 94080 San Mateo
§300(d) Is Applicant delegated by another Local government to administer on its behalf its formula allocation of program funds?
File Name:PLHA webpage for Resolution Document Attached and on USB?
State:
Attached and on USB? Yes
§302(c)(3) Applicant certifies that, if the Local Government proposes allocation of funds for any activity to another entity, the Local government’s selection process had no
conflicts of interest and was accesible to the public.
§302(c)(2) Applicant certifies that submission of the application was authorized by the governing board of the Applicant.
Eligible Activities, §301
§302(a) Housing Element compliance: Applicant or Delegating Local Government's Housing Element was adopted by the Local Government’s governing body by the
application deadline and subsequently determined to be in substantial compliance with state Housing Element Law pursuant to Government Code Section 65585.
Yes
Yes
YesApplicant agrees to adhere to §501, Audits/Monitoring of PLHA Files.
YesApplicant agrees to adhere to §500, Accounting Records.
Yes
§302(c)(5) Applicant certifies that the Plan submitted is for a term of five years. Local Governments agree to inform the Department of changes made to the Plan in each
succeeding year of the term of the Plan.Yes
§302(c)(6) Applicant certifies that it will ensure compliance with §302(c)(6) if funds are used for the acquisition, construction, or rehabilitation of for-sale housing projects or
units within for-sale housing projects.
§302(c)(8) Has Applicant attached a program income reuse plan describing how repaid loans will be reused for eligible activities specified in Section 301?Yes
Yes
Administration
Taxpayer Identification Number Document Attached and on USB? Yes
Instructions: If the Local Government Recipient of the PLHA Formula Allocation delegated its PLHA formula allocation to a Local Housing Trust Fund or to another Local Government,
the Applicant (for which information is required below) is the Local Housing Trust Fund or administering Local Government. The PLHA award will be made to the Applicant (upon meeting
threshold requirements) and the Applicant is responsible for meeting all program requirements throughout the term of the Standard Agreement.
The 302(c)(4) Plan template worksheet requires first choosing one or more of the Eligible Activities listed below. If "Yes" is clicked, the 302(c)(4) Plan worksheet opens a series of
questions about what precise activities are planned. Some specific activities, such as providing downpayment assistance to lower-income households for acquisition of an affordable
home, could be included under either Activity 2 or 9. Please only choose one of those Activities; don't list the downpayment assistance under both Activities.
If the PLHA funds are used for the same Activity but for different Area Median Income (AMI) level, select the same Activity twice (or more times) and the different AMI level the Activity
will serve. Please enter the percentage of funds allocated to the Activity in only the first Activity listing to avoid double counting the funding allocation.
Eligible Applicants §300
§300(a) and (b) Eligible Applicants for the entitlement and Non-entitlement formula component described in Section §100(b)(1) and (2) are limited to the metropolitan cities and urban
counties allocated a grant for the federal fiscal year 2017 pursuant to the federal CDBG formula specified in 42 USC, Section §5306 and Non-entitlement local governments.
Applicant: City of South San Francisco
Address:
County:
Yes
Entity Address 400 Grand Avenue South San Francisco State CA 94080
On behalf of the entity identified below, I certify that: The information, statements and attachments included in this application are, to the best of my knowledge and belief, true and
correct and I possess the legal authority to submit this application on behalf of the entity identified in the signature block.
7/27/20
Signature Date
Entity name:City of South San Francisco Phone Number: 650-829-6620
City Manager
Certifications
Mike Futrell
TitleAuthorized Representative Printed Name
Applicant agrees to adhere to §503, Reporting.Yes
Applicant agrees to adhere to §502, Cancellation/Termination.
File Name:
§302(c)(4)(D) Applicant certifies that the Plan was authorized and adopted by resolution by the Local Government and that the public had an adequate opportunity to review
and comment on its content
§302(c)(7) Applicant certifies that it will ensure that the PLHA assistance is in the form of a low-interest, deferred loan to the Sponsor of the Project, if funds are used for the
development of an Affordable Rental Housing Development. The loan shall be evidenced through a Promissory Note secured by a Deed of Trust.Yes
Threshold Requirements, §302
Applicant Agreement Legally binding agreement between Delegating and Administering Local
Governments
§301(a)(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects, or matching funds invested
by a county in an affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The
county fiscal incentives shall be in the form of a grant or low-interest loan to an affordable housing Project. Matching funds investments by both the county and the city
also shall be a grant or low-interest deferred loan to the affordable housing Project.
§301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance.
§301(a)(8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments.
§301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing.
§301(a)(6) Assisting persons who are experiencing or At-risk of homelessness, including, but not limited to, providing rapid re-housing, rental assistance, supportive/case
management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new
construction, rehabilitation, and preservation of permanent and transitional housing.
§301(a)(5) Capitalized Reserves for services connected to the preservation and creation of new permanent supportive housing.
§301(a)(4) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176.
§301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds.
§301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, including Accessory Dwelling Units
(ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for occupancy
for a term of no less than 30 days.
Yes
§301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to
Extremely low-,Very low-, Low-, or Moderate-income households, including necessary operating subsidies.
Included?§301(a) Eligible activities are limited to the following:
Eligible Applicant Type: Entitlement
Local Government Recipient of PLHA Formula Allocation: South San Francisco
400 Grand Avenue
City: South San Francisco
Yes
§302(b) Applicant or Delegating Local Government has submitted the current or prior year's Annual Progress Report to the Department of Housing and Community
Development pursuant to Governemnt Code Section 65400. Yes
File Name:
Approximate PLHA Formula Allocation Amount:$10,899Allowable Local Admin (5%):$217,980
No
App1 TIN
App1 Signature Block
App1 Resolution
§300(d) If Applicant answered "Yes" above, has the Applicant attached the legally binding agreement required by §300 (c) and (d)?
Signature Block - upload in Microsoft Word Document Attached and on USB? Yes
File Name:
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
PLHA Page 3 Formula Allocation ApplicationDRAFT
§302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government’s Housing Element.
The Plan is consistent with the City's Housing Element framework, including the below Housing Plan sections: Section 5.6-
which states that the City shall assist the homeless and those at risk of being homeless by funding emergency shelters, temporary housing, transistional programs and general housing
assistance and services. Section 6.1- Promote the provision of
housing by both the private and public sectors for all income groups in the community. Specifically, Policy I-4, which states that the City shall work with for-profit and non-profit
developers to promote the development of housing for extremely low-, very low-, and lower income households.
§301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-,very low-
, low-, or moderate-income households, including necessary Operating subsidies.
§302(c)(4) Plan Rev. 5/20/20
§302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.
The allocated funds will be used for the following purposes: (1) Assisting persons who are experiencing or at risk of homelessness, including, but not limited to, providing rapid
rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing. (2) Provide developer loans to help fund predevelopment,
development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing
workforce earning up to 120-percent of AMI, or 150-percent of AMI in high-cost areas such as South San Francisco. (3) The remaining allowable funds will be used for costs related to
the administration of the above activities and staff and overhead costs directly related to carrying out the eligible activities described above.
§302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of
Area Median Income (AMI).
When allocating funding for developer loans, the City will prioritize investments in affordable rental housing developments that target households with incomes at or below 60 percent
AMI. The City of South San Francisco, through the use of Census data and HUD criteria, has designated two geographic areas as lower income (<80%). These areas are considered
target areas where the City's annual CDBG and HOME fund allocations are spent. The primary goals for the use of PLHA funds will include affordable housing development, affordable
housing preservation, rental assistance and services that will increase and preserve the affordable housing stock for households at or below 60% AMI. Additionally, the City continues to
seek funding sources and partnerships with private and nonprofit organizations for additional investments in the City's affordable housing stock.
Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301))
§301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that
meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for occupancy for a term of no less than 30
days.
§302(c)(4)(E)(ii) Area Median
Income Level Served 80% 80% 80%TOTAL
Complete the table below for each proposed Affordable Rental and Ownership Housing Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting
households at more than one level of Area Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the
percentage of annual funding allocated to the Activity one time (to avoid double counting).
Type of Affordable Housing
Activity Rental Rental Rental
280§302(c)(4)(E)(ii) Unmet share of
the RHNA at AMI Level 280
§302(c)(4)(E)(i) Provide a description of how allocated funds will be used for each proposed Affordable Rental and
Ownership Housing Activity.
Percentage of Funds Allocated for Affordable
Owner-occupied Workforce Housing
Funding Allocation Year 2019 2020 2021 2022 2023
PLHA Page 4 302(c)(4) PlanDRAFT
§301(a)(6) Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management
services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and
preservation of permanent and transitional housing.
§302(c)(4)(E)(ii) Projected
Number of Households Served 20 20 20 60
§302(c)(4)(E)(i) Percentage of
Funds Allocated for Each
Affordable Housing Activity
95% 95% 95%
Major steps/actions by City Council included the approval and adoption of the PLHA allocation and plan and prioritization of affordable housing development as outlined in the City's
Housing Element. The following is a proposed schedule for the implementation of the use of funds:
(1) Establish program guidelines and procedures for the use of funds- September 2020 (2) Partner with an Affordable Housing Developer for use PLHA loan funds- October 2021- (3)
Execute PLHA construction loan agreement and necessary deed restriction- December 2022 (4) Project Certificate of Occupancy - December 2023.
§301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds.
§302(c)(4)(E)(iv) Period of
Affordability for the Proposed
Activity (55 years required for
rental housing projects)
55 Years 55 Years 55 Years
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of each Affordable Rental and Ownership Housing project.
Assisting persons who are experiencing or at risk of homelessness, focusing on rental assistance and supportive/case management services through the City's core agency, the YMCA.
The allocated funds will augments the City's CDBG and Housing Trust Fund allocations to provide these services to the residents of South San Francisco, prioritizing those whose AMI
levels are low and very low.
Complete the table below for each proposed Activity to be funded with 2019-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area
Median Income, please list the Activity as many times as needed to capture all of the AMI levels that will be assisted, but only show the percentage of annual funding allocated to the
Activity one time (to avoid double counting).
§302(c)(4)(E)(i) Percentage of
Funds Allocated for the
Proposed Activity
95.00% 95.00%
Funding Allocation Year 2019 2020
TOTAL§302(c)(4)(E)(ii) Area Median
Income Level Served 60% 60%
§301(a)(4) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176.
§301(a)(5) Capitalized Reserves for Services connected to the preservation and creation of new permanent supportive housing.
§302(c)(4)(E)(i) Provide a description of how allocated funds will be used for the proposed Activity.
§302(c)(4)(E)(ii) Unmet share of
the RHNA at AMI Level 277 277
Type of Activity for Persons
Experiencing or At Risk of
Homelessness PermanentPermanentPLHA Page 5 302(c)(4) PlanDRAFT
§301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing.
On February 26, 2020, the City Council approved an allocation from the Housing Trust Fund for rental assistance for South San Francisco residents facing financial hardships. In
response to a surge of unemployment claims and loss of income in the local community due to impacts from COVID-19. Following disbursement of the PLHA funds, the City will work
with the YMCA, the core agency designated by San Mateo County to serve South San Francisco, in creating program guidlines to administer the rental assistance program.
120
§302(c)(4)(E)(iv) Period of
Affordability for the Proposed
Activity (55 years required for
rental housing projects)
n/a n/a
§302(c)(4)(E)(ii) Projected
Number of Households Served 60 60
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity.
§301(a)(8) Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments.
§301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance.
§301(a)(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects, or matching funds invested by a county in
an affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The county fiscal incentives shall be
in the form of a grant or low-interest loan to an affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan
to the affordable housing Project.
File Name: Plan Adoption
§302(c)(4)(D) Evidence that the Plan was authorized and adopted by resolution by the
Local jurisdiction and that the public had an adequate opportunity to review and comment
on its content.
Attached and on USB? Yes
PLHA Page 6 302(c)(4) PlanDRAFT
Activity Location 12 (if different from applicant location)
District #First Name Last Name
State Senate Member
U.S. House of Representatives
Activity Location 11 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 10 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 9 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 8 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 7 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 6 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 5 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 4 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 3 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 2 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 1 (if different from applicant location)
District #First Name Last Name
State Assembly Member
Rev. 5/20/20Legislative and Congressional Information
U.S. House of Representatives 14 Jackie Speier
District #First Name Last Name
State Assembly Member 22 Kevin Mullin
Provide the Legislative and Congressional information for the applicant and each activity location, (if different than applicant location), included in this application.
To locate or verify the Legislative and Congressional information, click on the respective links below and enter the applicant office location zip code, the activity location
site zip code(s) (i.e. zip code(s) where activities are performed), and any additional activity location site(s), as applicable.
Applicant Office Location
State Senate Member 13 Jerry Hill
California State Assembly California State Senate U.S. House of Representatives
PLHA Page 7 Legislative Contacts DRAFT
District #First Name Last Name
State Assembly Member
State Assembly Member
State Senate Member
U.S. House of Representatives
U.S. House of Representatives
State Senate Member
U.S. House of Representatives
U.S. House of Representatives
Activity Location 25 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Senate Member
State Senate Member
Activity Location 22 (if different from applicant location)
District #First Name Last Name
U.S. House of Representatives
Activity Location 24 (if different from applicant location)
Activity Location 23 (if different from applicant location)
District #First Name Last Name
State Assembly Member
District #First Name Last Name
State Assembly Member
State Senate Member
State Senate Member
U.S. House of Representatives
Activity Location 21 (if different from applicant location)
Activity Location 20 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Assembly Member
State Senate Member
U.S. House of Representatives
U.S. House of Representatives
Activity Location 18 (if different from applicant location)
District #First Name Last Name
District #First Name Last Name
State Assembly Member
State Senate Member
State Senate Member
U.S. House of Representatives
Activity Location 17 (if different from applicant location)
Activity Location 16 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 15 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 14 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
Activity Location 13 (if different from applicant location)
District #First Name Last Name
State Assembly Member
State Senate Member
U.S. House of Representatives
State Assembly Member
PLHA Page 8 Legislative Contacts DRAFT
25
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
Justification:
Issue #Program
Name & Tab Section Cell#Update/Comment Urgency ADT Status Status
Date
Organization:Email:Contact Phone:
Application Development Team (ADT) Support Form Rev. 5/20/20
Please complete the "yellow" cells in the form below and email a copy to: [email protected]. A member of the Application Development Team will respond to
your request within ASAP.
Full Name:Date Requested:Application
Version Date:
PLHA Page 9 Appplication SupportDRAFT
City of South San Francisco Five Year Spending Plan
Permanent Local Housing Allocation
Year Percentage Eligible Expense Percentage Eligible Expense
1 95% Assist persons who are experiencing,
or at risk of, homelessness by
providing rapid rehousing, and rental
assistance services that allow people
to obtain and retain housing.
5% Program administration,
as allowed under the fund
guidelines.
2 95% Assist persons who are experiencing,
or at risk of, homelessness by
providing rapid rehousing, and rental
assistance services that allow people
to obtain and retain housing.
5% Program administration,
as allowed under the fund
guidelines.
3 95% Predevelopment, development,
acquisition, rehabilitation, and
preservation of affordable rental and
ownership housing, that meets the
needs of those earning up to 120%
AMI or 150% of AMI in high-cost
areas.
5% Program administration,
as allowed under the fund
guidelines.
4 95% Predevelopment, development,
acquisition, rehabilitation, and
preservation of affordable rental and
ownership housing, that meets the
needs of those earning up to 120%
AMI or 150% of AMI in high-cost
areas.
5% Program administration,
as allowed under the fund
guidelines.
5 95% Predevelopment, development,
acquisition, rehabilitation, and
preservation of affordable rental and
ownership housing, that meets the
needs of those earning up to 120%
AMI or 150% of AMI in high-cost
areas.
5% Program administration,
as allowed under the fund
guidelines.
Application for Permanent Local Housing Allocation FundsCity CouncilStudy SessionJuly 21, 2020
PLHANon Competitive Grant, SSF to receive approximately $1.3 million over 5 yearsMust submit an application that complies with guidelines and a description of how funds will be spentStaff recommends the following allocations:14YEAR ELIGIBLEACTIVITYYears 1 ‐2 95% of funds used for Rental AssistanceYears 3‐5 95% of funds used for development of affordable rental and ownership housing for AMI’s up to 120%5% annually used for program administration
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:20-490 Agenda Date:7/21/2020
Version:1 Item #:6.
Report regarding a new model to secure housing for households earning between 60%and 120%of the area
median income (Nell Selander, Deputy Director, Economic & Community Development Department)
RECOMMENDATION
Staff recommends that the City Council hold a study session on a new model to secure housing for households
earning between 60% and 120% of the area median income (middle-income housing).
BACKGROUND/DISCUSSION
Catalyst Housing Group (Catalyst),a private real estate development and management firm,recently
approached City staff about a new financing model to acquire and deed restrict market rate rental units for
middle-income housing (60%to 120%of the area median income)using Essential Housing Revenue Bonds
issued by CalCHA.After some very preliminary investigation into the model and the firm,staff is bringing this
item forward to City Council to gauge interest in conducting additional due diligence and potentially joining
CalCHA and pursuing a partnership with Catalyst.
Why Middle-Income Housing?
Federal,State,and regional funding for the development,acquisition,and rehabilitation of affordable rental
housing is often restricted to households earning 60%of the area median income (AMI)or below.Meanwhile,
private market-rate developments may include a relatively small percentage of affordable units,leaving most of
the units affordable only to those earning well above a moderate income (or above 120%AMI).This has led to
a gap in the housing market for low-to moderate-income households,described as the “missing middle.”
“Workforce housing” or “middle-income housing” often refers to units set aside for these households.
CalCHA and Catalyst
The California Community Housing Agency (CalCHA)was created as a Joint Powers Authority (JPA)and
political subdivision of the State in 2019.Unlike other JPAs,it was specifically established for the purpose of
financing projects that provide,preserve,and support affordable housing for middle-income households.It does
this by issuing its own governmental purpose bonds to acquire existing,market rate,multi-family housing and
converting it to rent-restricted rental housing for middle-income households.The type of bonds issued do not
require voter approval.they are obligations only of CalCHA-not the members of the JPA-and are financed with
revenue from rents.
Catalyst,a private firm working in concert with CalCHA,identifies the multi-family assets,puts up any
necessary deposits,and works through closing requirements and due diligence.At the close of escrow,the
property is transferred to CalCHA and Catalyst stays on as the asset manager.Catalyst receives a fee for their
pre-closing work, as well as for their asset management services.
How Does the Model Work?
For Catalyst to begin actively looking for opportunities within a jurisdiction,that jurisdiction must vote to join
CalCHA as an Additional Member.Joining the JPA is free,there is no liability created for a city,and the city
may leave at any time.The JPA agreement specifically states that the members of the JPA have no
responsibility for the debts and obligations of the JPA.The JPA also agrees to indemnify and defend memberCity of South San Francisco Printed on 7/16/2020Page 1 of 4
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File #:20-490 Agenda Date:7/21/2020
Version:1 Item #:6.
responsibility for the debts and obligations of the JPA.The JPA also agrees to indemnify and defend member
agencies from any liabilities related to the ownership and management of the rental housing.
To-date,CalCHA and Catalyst have pursued large Class A multi-family assets.These newer,larger projects
benefit from economies of scale and typically have fewer immediate rehabilitation costs.However,the model
can also apply to older assets that are at risk of losing their affordability covenants or new construction projects.
CalCHA’s most recent acquisition,in the City of Livermore,is significantly smaller than its other assets and
was constructed several decades ago.CalCHA’s ownership will restore the project’s affordability covenants,
which had expired.
Once a multi-family asset is identified and an offer accepted,CalCHA issues its own governmental purpose
bonds to finance the acquisition.As a government entity,CalCHA qualifies for a by-right governmental
ownership property tax exemption.Savings from this tax exemption,along with low-cost tax-exempt financing,
allow CalCHA to drive down rents to serve middle-income households.With the bond issuance and acquisition,
the units in the multi-family asset are deed restricted for middle-income households.The deed restriction on the
units is tied to the term of the bond - 30 years.
As part of the transaction,the City would enter into a Purchase Option Agreement with CalCHA.In years 15
through 30 of the life of the bonds,the City may exercise its purchase option and take title to the property.The
cost would be the outstanding debt balance at that point in time.At year 30,when the last dollar of debt is
repaid,the City may take title for free.The City is not required to take ownership of any property -it may
transfer its option to another entity,such as a non-profit developer,or direct CalCHA to sell the asset on the
open market and remit all proceeds to the City.If the city does exercise its option,the property would then be
an asset of the City and the Council at that point can decide to retain, sell, or redevelop it.
Affordability Levels & Existing Tenants
Generally,the units in the multi-family asset are allocated as follows:one third for 60 to 80%AMI,one third
for 80%to 100%AMI,and one third for 100%to 120%AMI.Additionally,since CalCHA acquires existing
assets,there are usually tenants living in them.Tenants that meet income requirements can remain and rent is
lowered to their affordability level.CalCHA has a non-displacement clause in place,therefore any tenants who
are over-income are allowed to remain living at the property while continuing to pay market-rate rents.Once
they decide to move out of the property,their unit is backfilled with a household meeting the program income
requirements. Rent increases are capped at four percent annually.
Pros and Cons
As previously mentioned,staff have not fully vetted this model,CalCHA,and Catalyst.However,staff felt it
prudent to share this model with Council and receive feedback about whether or not to begin more exhaustive
due diligence and prepare a recommendation to Council.Several other Bay Area cities have joined CalCHA as
Additional Members to secure middle-income housing.They include Livermore,Hayward,Menlo Park,
Larkspur,Mountain View,Santa Rosa,Napa,and the County of Marin.CalCHA currently has three assets:390
units in Santa Rosa,286 units in Fairfield,and 342 units in Larkspur.They are in the process of closing a
transaction in Livermore.
An advantage of this model is that it can accelerate bringing middle-income units to market,as it relies on
existing housing stock.Rather than a three to five-year lead-time on a new building,if CalCHA is able to
secure an asset in South San Francisco,the units would begin to be offered to middle-income households
immediately after closing.As simply a JPA member and the hosting jurisdiction,the City would have no
financial or maintenance obligation for the property during the term of the 30-year bond.The City may also
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File #:20-490 Agenda Date:7/21/2020
Version:1 Item #:6.
financial or maintenance obligation for the property during the term of the 30-year bond.The City may also
retain the asset after the term of the bond,giving the City the opportunity to maintain it as affordable housing or
use it for another purpose, receiving long-term cash flows generated by the asset.
There are some disadvantages to this model.First,because CalCHA and Catalyst primarily seek out newer
Class A assets and qualify for the governmental ownership property tax exemption,some high property tax
generating properties could be removed from the tax rolls.For example,a property like Cadence Phase I
generates roughly $400,000 in property taxes annually,with just under $64,000 of that going to the City.Of
course,this would have an impact on the various taxing entities,not just South San Francisco.Secondly,and
although it is an advantage because of the considerable equity there will be in the asset without any remaining
debt burden,receiving a property that is more than 30 years old at the end of the bond term could become a cost
burden to the City.After 30 years,properties often have significant maintenance costs,and if development
economics change substantially it may not have the same resale value or development potential that a larger
multi-family property in South San Francisco has today.
An unresolved issue is whether or not the City could obtain credit for these new deed-restricted units against its
Regional Housing Needs Allocation (RHNA).Understanding that this is of substantial interest to local
jurisdictions,Catalyst is actively working with the California Department of Housing and Community
Development,as well as MTC/ABAG,on legislation to give credit for conversion of these assets from market
rate to below market rate.
Finally,as noted above,to bring this program to South San Francisco,the City would have to become an
Additional Member of the JPA.As an Additional Member,the City would have no obligations with regarding
the governance of the JPA.The City Council would not have to appoint a representative to the JPA Board or be
involved in management of the JPA.The JPA agreement includes a provision that states that the members of the
JPA are not responsible for the JPA’s debts and obligations,including the bonds.It also requires the JPA to
defend and indemnify members from liabilities related to the management of the rental property,including
housing discrimination and landlord-tenant disputes.The City would therefore receive a high degree of
protection from the risks associated with the program.Nevertheless,as with all JPA membership,it is not risk-
free.In the event of significant litigation against the JPA,such as by bondholders,the plaintiffs could attempt to
include JPA members.The JPA agreement provisions should protect the City,but as the City Council knows,
the outcome of litigation is uncertain.
FISCAL IMPACT
There is no impact to the General Fund associated with holding this study session.Should Council direct staff
to conduct further due diligence on this model,CalCHA,and Catalyst and bring forward a recommendation
with Council on how to proceed,staff would do so with assistance from the City Attorney’s Office and with
limited support from on-call housing consultants.These costs would be covered by the operating budgets in the
City’s housing funds.
CONCLUSION
Staff is seeking direction from Council on whether or not there is interest in pursuing this model to secure
middle-income housing in South San Francisco. If Council is interested in learning more about CalCHA,
Catalyst, and this financing model, staff will conduct additional due diligence and prepare a recommendation
for Council on how to proceed.
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File #:20-490 Agenda Date:7/21/2020
Version:1 Item #:6.
Attachments:
1.Presentation
City of South San Francisco Printed on 7/16/2020Page 4 of 4
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New Model to Secure
Middle-Income
Housing
City Council
Study Session
July 21, 2020
What is
middle-
income
housing?
60% to 120% of the area median income
2
Why middle-
income
housing?
Most federal, state, regional funding for
affordable housing targeted below 60% AMI
Inclusionary housing, although often geared to
these middle incomes, makes up a small
percentage of all units
3
CalCHA
California Community Housing Agency
Joint Powers Authority
Established to create and preserve middle-
income housing
Issues bonds to acquire market-rate housing and
deed-restrict them for middle-income
households
4
Catalyst
Private firm working with CalCHA
Identifies multi-family assets and puts down any
necessary deposits
Works through due diligence and closing
requirements
Acts as asset manager, once CalCHA acquires the
property
5
Process
City joins SSF
CalCHA & Catalyst identify a property
30-year bonds are issued
Property is acquired and deed-restricted
When bonds are paid off, City may take
ownership, direct CalCHA to sell, or assign
ownership to a housing provider
6
For
consideration
Pros
Quickly provide
middle-income
housing
City has control of
asset after 30 years
(or earlier for a price)
Cons
Reduction in
property tax from
asset
Maintenance
responsibilities if City
takes ownership
7
Next Steps
If Council is interested in the model, staff would:
1.Conduct more intensive due diligence into the
model, CalCHA, and Catalyst
2.Prepare a comprehensive report to Council
and recommendation with how to proceed
8
QUESTIONS?
9
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:20-416 Agenda Date:7/21/2020
Version:1 Item #:7.
Closed Session:
Conference with Real Property Negotiators
(Pursuant to Government Code Section 54956.8)
Properties: 109 Longford (APN 010-071-050)
City Negotiators:Nell Selander,Deputy Director of Economic and Community Development and Deanna
Talavera, Management Analyst II
Negotiating Parties: City of South San Francisco and Habitat for Humanity
Under Negotiation: Review of Price and Terms
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