CITY COUNCIL STAFF REPORT
MEETING DATE: MAY 18, 2016
PREPARED BY: Rebecca Garcia, Housing Manager
APPROVED BY: City Manager
PDATETITLE
HOUSING PROGRAM UPDATE
END
RECOMMENDATION(S)
RECOMMENDATION
1. Receive Housing Program Update;
2. Adopt Below Market Rate Program Resolution;
3. Authorize City Manager to Amend Nyanda & Associates HouseKeys Below Market Rate Agreement; and
4. Authorize City Manager to enter into an agreement with Rebuilding Together for a Rehab, Blight Busters Program.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Maintaining Fiscal Responsibility
2016 Focus Areas
Enhancing Our Services
Participating in Regional Issues
REPORT NARRATIVE:
During the May 18, 2016 City Council meeting, the Housing Team will provide an update on the City's Housing Program and discuss:
? Purpose and History of the City's Support for Affordable Housing
? Housing Program Updates
? Below Market Rate (BMR) Program Update
? Five Year Proforma
Morgan Hill's primary housing mission is to continue the City's legacy to improve, preserve, and create safe, quality, rental and ownership housing in Morgan Hill for residents at all income levels. Historically, the City has built a model Program with one in every ten units being restricted. The City has produced more affordable ownership housing per capita than any other City in the State. In the absence of redevelopment, this successful program will be challenged to identify opportunities to both support administrative costs of the BMR Program, as well funding sources to deeply subsidize the production of affordable rental units at very low and extremely low affordability levels. In FY 15-16 the Housing Division continued to evaluate and respond to the effects of the elimination of the Redevelopment Agency and the resulting loss of $4 million in annual affordable housing funding to support the rehabilitation and development of affordable housing in Morgan Hill.
State law requires ea...
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