TITLE
Recommendation to authorize City Manager to: 1) adjust Housing Trust Fund to include all existing City affordable housing funding sources except Housing Authority Funding; and 2) request The Long Beach Housing Development Company to annually review the need for potential Housing Trust Fund sources and report out to the City Council as necessary. (Citywide)
DISCUSSION
Background
On September 19, 2006, the City Council considered the adoption of a condominium conversion fee to provide funding for the Housing Trust Fund (HTF). After public testimony and Council discussion, Council requested staff to return to Council with a summary ofthe options available to fund the HTF.
This report presents a summary of the HTF funding options and an outline of the proposal and funding currently available to support the efforts to increase the availability of affordable housing within Long Beach.
Funding Options
On June 11, 2002, the City Council requested the City Manager to prepare a report regarding the feasibility of establishing a Housing Trust Fund (HTF) and to identify potential revenue sources. The City contracted with David Paul Rosen and Associates (ORA) to prepare the report, which was completed in July 2003.
In conducting the study, staff instructed ORA to investigate only new revenue sources that did not take away funds from the General Fund, inasmuch as that was the time when the City's General Fund account was in dire need of revenue. The report concluded that a commercial linkage fee ($10-15 per square foot) for new non-residential development, and inclusionary housing requirements for new residential development of 10% for rental housing and 15% for ownership housing was feasible. In lieu fees, for projects that did not provide the on-site housing, $14,000 per rental unit and $12,000 per ownership unit were suggested in the study.
On October 11, 2005, the City Council approved the creation of a HTF and requested the City Attorney to prepare an ord...
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