Item 23 - Public Hearing for FY 2025-29 5 Year Plan, Annual Action Plan for CDBG, HOME, and ESG Programs

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116 MA-40 Barriers to Affordable Housing Negative Effects of Public Policies on Affordable Housing and Residential Investment A barrier to affordable housing is a public policy or nongovernmental condition that constrains the development or rehabilitation of affordable housing, such as land use controls, property taxes, state prevailing wage requirements, environmental protection, cost of land and availability of monetary resources. Barriers to affordable housing differ from impediments to fair housing choice in that barriers are legally permissible, whereas impediments to fair housing choice are typically unlawful. The City’s 2021-2029 Housing Element includes an identification and prioritization of significant contributing factors that impede fair housing and/or result in disproportionate housing needs. Through discussions with stakeholders and fair housing advocates, community feedback, and the assessment of fair housing included in the Housing Element, the City identified the following fair housing issues: -Displacement risk -Lack of safe and sanitary housing -Housing overcrowding -Low household incomes -Exposure to environmental hazards -Lack of quality education and job training The primary factor contributing to these housing issues is the limited availability of resources to subsidize housing development to the point that units are affordable to low- and moderate-income households. The elimination of local Redevelopment Agencies by the State of California resulted in the loss of a crucial resource for the development and preservation of affordable housing. This was the most significant public policy change impacting affordable housing and residential investment. While there are mechanisms whereby certain affordable housing assets tied to the former Redevelopment Agencies may be utilized today, these resources are finite and scarce. EXHIBIT 1