HomeMy WebLinkAboutRES NO 124-2021RESOLUTION NO._1 2 4 m 2 0 Z 1
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BAKERSFIELD ESTABLISHING THE BAKERSFIELD
AFFORDABLE HOUSING TRUST FUND.
WHEREAS, the State of California is in the midst of a housing crisis, where
there is insufficient housing for all Californians, especially in the provision of
affordable housing for the residents of the State; and
WHEREAS, the State Legislature has adopted "prohousing local policies" to
facilitate the planning, approval, or construction of additional housing, of which
the establishment of the Bakersfield Affordable Housing Trust Fund (AHTF) is
identified as a qualifying incentive; and
WHEREAS, the City Council desires to further the policies, goals and
programs of the Housing Element of the City's General Plan and to help facilitate
the development of affordable housing within the City; and
WHEREAS, the City Council finds that 27% of low income households are
currently cost burdened and overpaying for housing, including moderate income
households 30% are overpaying for housing; overall 36% of households are cost
burdened and overpaying for housing, and on January 27, 2021, 2,150 individuals
experienced homelessness in Kern County, demonstrating a need for more
housing for all income levels; and
WHEREAS, the City Council finds that the City is an important contributor in
the economic make-up of the Central Valley region and that the expected future
expansion of development within the City will increase the need for workforce
housing; and
WHEREAS, the City Council finds that providing a variety of housing options
to residents of all income levels is socially and economically beneficial to the City
and would allow a larger share of an employee's income to be spent within the
community; and
WHEREAS, the City Council finds that the creation and establishment of an
AHTF as a source of revenue and economic development tool to assist in the
development of affordable housing to meet the housing needs of the City's Very
Low, Low and Moderate Income Households is a general benefit to the City that
will promote the health and welfare of the residents and businesses by providing
housing opportunities and reducing homelessness within the City; and
WHEREAS, the City Council further finds that an AHTF is consistent with the
policies and goals of the Housing Element of the City's General Plan; and <16PX-"N
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WHEREAS, it is the intent of the City Council to establish an AHTF which will
be funded by PSVS Measure funds at minimum of $500,000 annually for five years,
Permanent Local Housing Allocation funds and other public or private sources;
and
WHEREAS, the City Council intends to utilize the AHTF to foster a mix of
residential projects assisted by the AHTF and to disperse affordable housing
projects throughout the City to achieve a balance of housing in all
neighborhoods and communities; and
WHEREAS, the types of projects eligible for consideration under the
Bakersfield Affordable Housing Trust Fund include, but not limited to:
1) Creation of new affordable units including Permanent Supportive
Housing;
2) Emergency Shelters and Transitional Housing;
3) Preservation of existing affordable housing;
4) Assistance with multi -family rehabilitation programs;
5) Conversion of market rate units and hotels to affordable housing units;
6) Construction, conversion, or rehabilitation of ADUs or JADUs, consisting
of a loan or grant to a homeowner to build, convert, or rehabilitate an
ADU or JADU;
7) Administrative costs for affordable housing programs and projects;
8) Pre -development costs including development fees of affordable
housing units;
9) Program development, feasibility studies, research or community
engagement efforts focusing on housing matters; and
10) Purchase of land for the development of affordable housing projects.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield
as follows:
1. The above recitals and findings are true and correct and are
incorporated herein by reference.
2. The City Council finds and declares that it is necessary and in the best
interest of the City to establish and create the Bakersfield Affordable Housing Trust
Fund for the public purpose of preserving, providing and developing affordable
housing within the City.
3. The City Council of the City of Bakersfield directs the City Manager to
establish and create an AHTF into which revenues collected for the purpose of
preserving, providing and developing affordable housing within the City are
deposited.
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4. The City Council hereby adopts and approves the Administrative
Guidelines for the distribution, expenditure and use of funds within the Affordable
Housing Trust Fund as shown in Exhibit A, attached hereto and incorporated by
reference herein.
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HEREBY CERTIFY that the foregoing Resolution was passed and adopted by
the Council of the City of Bakersfield at a regular meeting thereof held on
JUL -14 2021 by the following vote: ✓ V"- ✓
YES: COUNCILMEMBER: ARIAS, GONZALES, WEIR, SMITH, FREEMAN, GRAY, PARLIER
NOES: COUNCILMEMBER: N_ 1b VVI
ABSTAIN: COUNCILMEMBER: ( pnQ
ABSE COUNCILMEMBER: wQ,il
J LIE DRIMAKIS, CMC
CITY CLERK and Ex Officio Clerk of the Council of
the City of Bakersfield
APPROVED JUL 14 2021
By: — I g9AAM uoon V
KAREN -601-1
MAYOR
APPROVED AS TO FORM:
VIRGINIA GENNARO
CITY ATTORNEY
q
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UA H. RUDNICK
ty City Attorney
JHR/ag
Attachment: Exhibit "A" AHTF Administrative Guidelines
S:\EDCD_Shared\CD-Affordable Housing\Affordable Housing Trust Fund\Resolution Establishing AHTF 6.30.21.docx
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Exhibit A
BAKERSFIELD
ECONOMIC & COMMUNITY
DEVELOPMENT
CITY OF BAKERSFIELD
AFFORDABLE HOUSING TRUST FUND
Administrative Guidelines
Statement of Purpose
The purpose of the Bakersfield Affordable Housing Trust Fund, (hereinafterreferred to as the
AHTF), is to assist in the creation and preservation of affordable housing in the City of
Bakersfield for the benefit of very low, low and moderate -income households..
Definitions
"Accessory Dwelling Unit (ADU) means a dwelling unit, which is attached, detached, or
located within the living area of the existing dwelling or residential dwelling unit and provides
complete independent living facilities for one or more persons pursuant to Government
Code (GC) Section 65852.2 and 65852.22. It shall include permanent provisions for living,
sleeping, eating, cooking, and sanitation on.the some parcel as the single-family dwelling
is situated. An ADU also includes an efficiency unit, as defined in HSC Section 17958.1, or a
manufactured home, as defined in HSC Section 18007.
"Junior Accessory Dwelling Units" ("JADUs") shall have the some meaning as defined by GC
Section 65852.22(g) (1).
"Affordable Housing" for purposes of these Guidelines shall mean rental or for sale housing
that is affordable to moderate, low, very -low and/or extremely income households.
"Area median income" or "AMI" is established for metropolitan areas or non -metropolitan
counties by the U.S. Department of Housing and Urban Development (HUD), pursuant to 42
U. S. C. Chapter 1437 et seq., to establish local income classification levels. These
classifications are also used in California housing law with respect to income eligibility limits.
The most recent applicable county median family income published by the Department,
available at the HCD website, http://www.hcd.ca.gov/grants-funding/income-limits/state-
and-federal-income-limits.shtml.
"Extremely low income household" shall mean a household having an income not
exceeding thirty (30) percent of AMI adjusted for household size.
"Very low income household" shall mean a household having an income not exceeding
fifty (50) percent of AMI adjusted for household size. �aAKF�
AHTF Administrative Guidelines
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As adopted by the City Council on July 14, 2021 by Resolution No. = 21 Page 1 ofa- . FI�I (I
"Low income household" shall mean a household having an income not exceeding eighty
(80) percent of the AMI adjusted for household size.
"Moderate income household" shall mean a household having an income not exceeding
one hundred twenty (120) percent of the AMI adjusted for household size.
Affordable Housing Trust Fund Established
By adoption of Resolution No. on , 2021, the City Council establishes a
separate trust fund under the name of the "Affordable Housing Trust Fund" to set aside
earmarked funds.
Accumulated and future PSVS measure funds .designated for affordable housing by City
Council and Permanent Local Housing Allocation funds shall be deposited directly into the
AHTF.
The AHTF may.accept donations from individuals or organizations other than the City of
Bakersfield. Such donations may not be designated for a specific project or purpose and
may be used for purposes as determined by the City Council.
All moneys remaining in the AHTF at the end of any fiscal year, whether or not expended
by the City, remain within the AHTF.
Distribution & Use of Housing Trust Fund Assets
1) Distributions may be made to individuals and/or private or public, profit or non -for-
profit entities.
2) The types of investments the fund may make include: construction loans and/or
permanent financing loans, gifts, grants, loan guarantees, letters of credit or other
forms of credit enhancement, or other disbursements deemed necessary and
appropriate to fulfill the purposes of the AHTF.
3) Types of projects in which the AHTF may invest include:
a. Creation of new affordable units including Permanent Supportive Housing;
b. Emergency Shelters and Transitional Housing;
c. Preservation of existing affordable housing;
d. Assistance with multi -family rehabilitation programs;
e. Conversion of market rate units and hotels to affordable housing units;
f. Construction, conversion, or rehabilitation of ADUs or JADUs, consisting of a loan
or grant to a homeowner to build, convert, or rehabilitate an ADU or JADU;
g. Administrative costs for affordable housing programs and projects;
h. Pre -development costs including development fees of affordable housing units;
i. Program development, feasibility studies, research or community engagement
efforts focusing on housing matters; and .
j. Purchase of land for the development of affordable housing projects.
State Matching Fund Program Uses
State Local Housing Trust Funds (Program Funds) shall be used by the City to provide
construction loans and/or deferred payment permanent financing loans at simple interest
rates of no higher than 3 percent per annum, for payment of predevelopment costs,
acquisition, construction, or rehabilitation of Eligible Projects.
AHTF Administrative Guidelines
As adopted by the City Council on July 14, 2021 by Resolution No. -21 Page 2 of3 m
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The affordability of all assisted units shall be restricted for not less than 55 years. ADUs/JADUs
must be restricted to occupancy by.households with incomes of no more than 120 percent
of AMI at an Affordable Rent for a minimum of 10 years.
City Matching Funds must be utilized on a dollar -for -dollar basis for the same Eligible Project
for which program funds are used, as required by HSC Section 50843.5(c). Administrative
expenses of up to 5 percent of Program Funds and up to 5 percent of City Matching Funds
are allowed.
At least 30 percent of the Program Funds, after deducting administrative expense, and the
City Matching Funds shall be expended on assistance to Extremely Low -Income Households.
To comply with this requirement, dwelling units or shelter beds must be Affordable to, and
restricted for, Extremely Low -Income Households with household income of no more than
30 percent of AMI.
No more than 20 percent of the Program Funds, after deducting administrative expense,
and the City Matching Funds shall be expended on assistance to Moderate -Income
Households. To comply with this requirement, dwelling units must be Affordable to, and
restricted for, Moderate -Income Households with household income of no more than 120
percent of AMI.
The remaining Program Funds and City Matching Funds shall be expended on assistance to
Lower -Income Households. To comply with this requirement, dwelling units must be
Affordable to, and restricted for, Lower -Income Households with household income of no
more than 80 percent of AMI.
Management
The Economic and Community Development Director shall serve as the Manager, of the
Affordable Housing Trust Fund. The responsibilities of the Manager, subject to direction of the
City Council, shall include:
a. Maintaining all records of the AHTF;
b. Assisting prospective applicants requesting AHTF support in the preparation and
presentation of their applications;
c. Monitoring the use of monies distributed to successful applicants for AHTF support to
assure ongoing compliance with the purposes of the AHTF and the conditions under
which these monies were granted or loaned; and
d. Reporting annually to the City Council regarding the operation and activity of the
AHTF with assistance from the City's Finance staff.
The City Manager, or designee, in coordination with the Manager of the Affordable Housing
Trust Fund shall be responsible for the following:
a. Disbursing and collecting AHTF monies.
b. Maintaining and managing a separate account or accounts for HTF monies.
c. Maintaining financial records for the AHTF.
AHTF Administrative Guidelines
As adopted by the City Council on July 14,2021 by Resolution No. -21
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