Policies and Procedures
The City's Affordable Housing Policies and Procedures Handbook is a comprehensive overview of the City's policies regarding density bonuses, inclusionary housing requirements, and the income limits, rent restrictions and sale price calculations that are applicable to affordable housing projects. These policies were adopted by the City Council in June, 2003, and have since been updated to reflect the 2004 area median income. The first part of the handbook is a 3-page executive summary, followed by an overview of the number of affordable housing units provided in the City since 1976.
Housing Over Parking Feasibility Study
The City contracted with Berkeley consulting firm, Economic and Planning Systems, to examine the feasibility of developing affordable housing over surface parking lots owned by the City. The feasibility study was completed in September 2003.
Housing Activity Summary
There are currently over 5,000 affordable housing units in the City, in the following categories:
Units with Recorded Affordability Agreements |
Senior Rental | 1,047 |
Family Rental | 1,127 |
Ownership | 326 |
Group Beds | 416 |
Secondary Dwelling Units | 7 |
Subtotal: | 2,993 |
Single-family Owner-occupied Rehabilitation: | 548 |
Section 8 Certificates and Vouchers currently in use: | 1,570 |
Total Number of Affordable Units in the City: | 5,111 |
More than eleven percent of the dwelling units in the City are affordable as a result of the City's housing programs (there are approximately 37,000 dwelling units in the City, and the number of affordable units, not counting group beds and rehabilitated single-family homes, is 4,147).
The City Housing Program provides assistance to affordable housing in several ways, including through providing loans and grants to developers of affordable housing, and through granting of density bonuses.
City Financing Through Grants and Loans
Since 1973 the City has provided $85 million in grants and loans for affordable housing. This funding has been provided through the City's Housing Rehabilitation Loan Program, through other financial assistance for housing preservation, and through loans and grants to developers of new affordable housing.
Housing Rehabilitation Loan Program
Through its Housing Rehabilitation Loan Program (HRLP) the City provides low-interest loans for the rehabilitation of existing housing units in need of repair or seismic retrofitting. This effort assures the preservation of safe, attractive and affordable housing. Since 1976 the HRLP has loaned and granted nearly $28 million, and has rehabilitated 548 single family homes and 573 low-income rental units.
Housing Preservation (other than the HRLP)
Besides the 1121 units improved through the City's HRLP, an additional 838 units have been preserved as affordable units through acquisition, rehabilitation, or a combination of the two. The City has provided $13.5 million in low-interest financing for projects in this category.
Production of New Affordable Housing
Since 1976 1716 new affordable housing units were (or are currently under construction) built in the City. Using funds from its Redevelopment Agency and other local, state and federal sources, the City provides low-interest loans and grants to developers of new affordable housing units for low-income renters and moderate-income first-time home buyers. The City has provided loans totaling $46.2 million to new affordable housing projects, including landbanking of sites for future new construction.
The following table shows the total number of affordable housing projects and units in the City by occupancy type. It also shows the total City financing for each occupancy type. Although 78% of the affordable units received City financing, some did not. Some affordable projects received a density bonus but no financing, and several projects developed by the Housing Authority were built using only direct federal subsidies or Housing Authority funds.
City's Affordable Housing Projects by Occupancy Type
Project Type|
(Occupancy) | Number of Projects | Number of Units | Amount of City Financing |
Senior Rental | 30 | 1,047 | $21,002,466 |
Family Rental | 98 | 1,127 | $32,277,591 |
Ownership | 31 | 326 | $6,391,707 |
Owner-Occupied Mobilehomes | 2 | 70 | $305,000 |
Single Family Rehab | N/A | 548 | $14,842,537 |
Group Housing (# of beds) | 12 | 416 | $4,982,808 |
Secondary Dwelling Units | 7 | 7 | 0 |
Landbanked/Predevelopment | 3 | N/A | $2,220,000 |
Total Since 1976 | 183 | 3,427 | $85,022,109 |
Funding Sources
The largest source of City affordable housing financing is the City's Redevelopment Agency. Note that projects assisted by the Redevelopment Agency must be located within the Central City Redevelopment Project Area (CCRP), unless certain required findings are made by the City Council.
Another major source of City affordable housing financing is the HOME program, which is a federal block grant program established in 1990. The HOME program allocates funds to jurisdictions by a formula based on various indicators of housing need.