65A -AFFORDABLE HOUSING DEVELOPMENT PROJECTS AND OPTIONS

Home Browse Search

EXHIBIT 2 RESTRICTIONS AND USES OF AFFORDABLE HOUSING FUNDS Housina Successor Aaencv (Housina Authorit The Housing Authority assumed the role of the Housing Successor Agency to the former Redevelopment Agency when the Redevelopment Agency was dissolved in February 2012, which includes the funds and properties in the Low and Moderate Income Housing Asset Fund. Funds must be used to develop, acquire, rehabilitate, acquire long-term affordability covenants for, or preserve lower income housing (at or below 80% of the area median income (AMI)). At least 30% of the funds must be spent on extremely low income housing (at or below 30% AMI) and no more than 20% of the funds may be spent on housing for households earning between 60-80% AMI. These requirements must be met over a 5 -year period. If an agency fails to meet these requirements in any 5 -year period, at least 50% of the funds in each fiscal year must be spent for extremely low income households until the extremely low income target is met. If the agency exceeds the expenditure limits for households earning between 60-80% AMI, the agency is prohibited from spending funds on housing in that income range until the limit is met. Units developed with these funds have the following affordability requirements: 55 -years for rental units and 45 -years for for-sale/ownership units. Rent, affordable sales price and income limits are determined by methodologies set by the State of California. If the Agency has fulfilled all replacement, affordable housing production, and monitoring, database compilation and web site publication requirements, it may spend up to $250,000 per fiscal year on homeless prevention and rapid rehousing services. Inclusionary Housina Funds The City's Inclusionary Housing Ordinance prescribes the use of the monies deposited into the Inclusionary Housing Fund, which are to "be used to increase and improve the supply of housing affordable to Moderate, Low, Very Low and Extremely Low Income Households in the City". Funds shall be used in accordance with the City's Housing Element, Consolidated Plan, or subsequent plan adopted by the City Council to construct, rehabilitate, or subsidize affordable housing or assist other government entities, private organizations, or individuals to do so. The Inclusionary Housing Fund may be used for the benefit of both rental and owner - occupied housing. Eligible uses include, but are not limited to, assistance to housing development corporations, equity participation loans, grants, pre -home ownership co - 65A -9