TITLE
Recommendation to receive and file the report from MuniFinancial pertaining to the Housing Trust Fund. (Citywide)
DISCUSSION
In conjunction with the City Council's discussion about a proposed condominium conversion fee on January 23, 2007, staff was instructed to update the 2003 Housing Trust Fund study. Specifically, City Council requested the following:
1. Update the 2003 inclusionary housing study;
2. Update the 2003 commercial linkage fee study;
3. Examine Long Beach's condo conversion market and make recommendations regarding appropriate condo conversion fee levels in converted buildings;
4. Examine Long Beach Redevelopment Agency funds and make recommendations regarding the adequacy of our existing redevelopment housing set-aside; and
5. Provide advice on approaches to an inclusionary zoning ordinance.
Staff circulated a Request for Proposal for the study and entered into a contract with MuniFinancial in May 2007 to review and perform the tasks listed above. The consultant gathered relevant information and conducted a community meeting on May 29, 2007 to hear stakeholders' concerns and issues relevant to the study.
The data verification and analysis took longer than anticipated. MuniFinancial submitted a draft report in October 2007, which included findings and recommendations. However, because of the volatility of the real estate market, specifically the dramatic changes to the housing market in 2007 and early 2008, staff directed MuniFinancial to review its assumptions and revalidate its findings and recommendations. In June 2008, MuniFinancial submitted the attached report.
MuniFinancial's Findings and Conclusions:
MuniFinancial's study showed that if the City Council so decides, the City could:
1) Adopt an inclusionary zoning policy for new residential developments that would require developers to set aside 10 percent of total new homeownership units for moderate-income households and set aside 5 percent of new rental units ...
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