Fiscal Year 2013-2015 Special Budget Meeting

D FILED OFFICE O F ^ m a^T^i CitR* DISTRIBUTION DATE: 6/11/13. immZ\ AM 8:58 MEMORANDUM CITY OF OAKLAND TO: HONORABLE MAYOR & FROM: Donna Hom CITY COUNCIL SUBJECT: Affordable Housing in the Mayor's DATE: June 11,2013 FY 2013-15 Proposed Policy Budget City Administrator Date Approval Isl Deanna J. Santana 6/11/13 REVISED - INFORMATION The purpose of this information memorandum is to clarify the status of funding in the Mayor's FY 2013-15 Proposed Policy Budget and at the direction of Mayor Quan, provide her latest proposal regarding affordable housing. The affordable housing program is one of the programs that suffered both from the dissolution of the redevelopment agency as the result of state law changes and the sequestration as a result of the federal budget reduction. Since 2011, funding for affordable housing has decreased by 85%, from $13 million to $2 million per fiscal year. Rising operating costs also contributes to the reduction in funding available for projects. To date, with the dissolution of redevelopment, local governments have been relatively on their own to provide for affordable housing programs, both by covering the costs of staff and policy goals. The Mayor's FY 2013-15 Proposed Policy Budget requested to utilize $1.8 million one-time bond funds to pay for 7 staff in year one. The Mayor further proposed to use up to $2.6 million in one-time revenue to pay for the housing staff for year two. Additionally, there will be no additional funding available for programs except for funds allocated by the U.S. Department of Housing and Urban Development (HUD) through the HOME Partnership grant. The City received notification that it will receive $2,259,656 in HOME Partnership grant funds for HUD in FY 2013-14. This is $1.7 million less than in prior years where the City received $3.9 million. The majority of these funds will underwrite the City's Annual Notice of Funding Availability (NOFA) for affordable housing development. The City will allocate $2 million of the HOME funds for the NOFA for affordable housing projects in FY 2013-14. This is a decrease of overall funding available for affordable housing. This is a continuous decreased funding compared with prior years (See table below):