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Award of Affordable Housing Funds <br />November 24, 2015 <br />Page 2 <br />b) Approve and authorize the Mayor and City Clerk to execute the agreement with <br />Community Development Partners and approve Budget Amendment No. 16BA-013, <br />transferring $1,975,000 from the Affordable Housing Reserve Account to fund the <br />Newport Shores Project; <br />c) Approve and authorize the Mayor and City Clerk to execute the agreement with <br />Habitat OC Partners and approve Budget Amendment No. 16BA-013, transferring <br />up to a maximum $600,000 from the Affordable Housing Reserve Account to fund <br />the Senior Home Repair Program; and <br />d) Authorize staff to negotiate an agreement with Seaview Lutheran Plaza for the <br />remaining balance of approximately $1.6 million of the Affordable Housing Fund for <br />the proposed renovations and accessibility improvements. <br />FUNDING REQUIREMENTS: <br />The current balance of the Affordable Housing Reserve Account is approximately <br />$4.2 million and is sufficient to fund the proposals as recommended. <br />DISCUSSION: <br />Background <br />As a result of the City's former Inclusionary Housing Ordinance, the City has collected <br />approximately $4.2 million in the Affordable Housing Fund (Fund). The fees were paid <br />by developers of residential housing in -lieu of providing affordable units. The purpose of <br />the Fund is to construct, rehabilitate, or subsidize affordable housing or assist other <br />governmental entities, private organizations or individuals to provide or preserve <br />affordable housing. <br />To assist with decision making for use of the Fund, Attachment C contains the City's <br />2014-2021 Housing Plan from the Housing Element of the General Plan, which includes <br />quantified objectives for new construction, rehabilitation, and preservation, and the <br />City's housing goals, policies, and programs. <br />With direction received from the City's Affordable Housing Task Force (AHTF) in 2013, <br />staff contacted owners of existing affordable housing complexes that are at -risk of <br />converting to market -rate housing due to expiration of affordability covenants. This was <br />an attempt to negotiate affordability extensions (preservation goals) in exchange for <br />funds; however, there was a lack of interest on the part of the property owners. <br />25-2 <br />