Adopted Budget (Final Document)

Housing Programs (continued) the market-rate housing to satisfy the 15% Inclusionary Housing Requirement, and the fee for Rental Residential Projects within the Downtown is $14.50 per habitable square foot of the residential building area of the market-rate housing to satisfy the 10% Inclusionary Housing Requirement. These fees were adopted by City Council July 25, 2018. These fees will be updated based on inflation every year. In December of 2022, the City Council directed staff to return with a proposal to adjust the Housing in-lieu fees in the Spring of 2022. Fund 237- BEGIN (Building Equity and Growth in Neighborhoods Program) The State of California implemented BEGIN to reduce local regulatory barriers to affordable homeownership housing and provide down-payment assistance loans to qualifying first – time low- and moderate-income homebuyers. In 2007, the City of Morgan Hill received a grant award of $2,160,000 in BEGIN funds for the Madrone Plaza affordable ownership development. Repayment of these funds can be used city wide as down payment assistance for qualified low and moderate income BMR homebuyers. Fund 238 – CalHome The State of California implemented the CalHome Program to enable low- and very low-income households to become or remain homeowners. Grants were distributed to local public agencies and nonprofit developers to assist individual first-time homebuyers through deferred-payment loans for down payment assistance, home rehabilitation, including manufactured homes not on permanent foundations, acquisition and rehabilitation, homebuyer counseling, self-help mortgage assistance, or technical assistance for self-help homeownership. All funds to individual homeowners were in the form of loans. The state granted CalHome funds in the amount of $600,000 in November of 2007 and another $900,000 in May of 2009 to South County Housing Corporation (SCH). In January of 2018, the City assumed 11 Morgan Hill CalHome loans from SCH totaling $357,023. The City now administrates the loans and upon repayment can be distributed as down payment assistance to qualified low income BMR homebuyers. Fund 255- Housing Fund (formerly known as the Successor Agency Housing Fund) The Low and Moderate Income Housing Asset Fund (“LMIHAF”) was established pursuant to Health and Safety Code Section 34176(d) and is held by the City of Morgan Hill in its capacity as the Housing Successor to the former Redevelopment Agency of the City of Morgan Hill (“RDA”). The permitted use of funds includes Monitoring and Administration, Homeless Prevention and Rapid Rehousing Services, Development, New Construction, Acquisition, Rehabilitation and Preservation of affordable housing. The LMIHAF Funds must be used on housing related services and development to serve households earning 80% and less of the area median income.

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