Operating and CIP Budget Fiscal Year 2015-16

Housing Programs [Funds 234, 235, 236, and 255]

 CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16 OPERATING AND CIP CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY 15-16  OPERATING AND CIP BUDGET  CITY OF MORGAN HILL  FY15-16  OPERATING AND CIP BUDGET Given that the City of Morgan Hill has made a major commitment to affordable homeownership, staff will work to- wards creating a sustainable framework that prioritizes the preservation of the BMR housing stock, and considers the regional needs of affordable homeownership. Having invested over 25 years building the affordable housing program with one of the highest per capita affordable housing ratios in the State, preservation and sustainability have contin- ued to be a concern. In the “Post-RDA Era”, cities have been required to use creative means to continue to fund their programs and manage their existing housing stock, work to strike a balance between cost, efficiency, responsive ser- vice and the multiple components of administering a large BMR portfolio from new construction, sales, resales, to ongoing monitoring and compliance. In 2012, the City collaborated with Neighborhood Housing Services Silicon Valley (NHSSV) for administration of its BMR Program. This enabled the City to blend the need to conserve staff and over- head costs and lay the groundwork for contracting with an outside agency to administer the Program. In the next phase of the partnership, Staff will refine and solidify internal processes, coordinate efforts between the administra- tor and the City, and establish independent program components that will allow the City to sustain any organizational changes in nonprofits, furthering efforts to protect the BMR portfolio. There are several major components to this effort, including establishing a Regional Working Group around affordable homeownership to explore strategies to preserve affordable housing stock, seeking legislative solutions, and examining opportunities and strategies to build additional affordable housing supply. In addition, the FY 15-16 budget proposes to add one Municipal Services Assistant (MSA) to augment the Housing Manager functions. The various components of the BMR Program require consistent and parallel coordination be- tween the City and the administrator. The shear number of loans, size of the existing BMR portfolio, as well as the ongoing new construction of BMRs requires significant oversight to ensure a timely response to the Developer, the administrator (NHSSV), homeowner and new homebuyers. The additional MSA will also respond to walk-ins and calls from residents requesting housing related assistance. HOUSING FUNDS To implement its housing mission the Community Development Agency administers the following housing related funds: Fund 234 – 8250 Mobile Home Rent Commission Funds are collected from an annual fee charged to mobile home park owners with month-to-month rental spaces af- fected by the City’s Mobile Home Rent Ordinance (Municipal Code Chapter 5.36). The City Council convenes an ad hoc committee of the Planning Commission whenever a petition is received for a rent increase. Fund 235-Senior Housing Trust This fund was established by a one-time developer in-lieu contribution and is intended to be used for senior housing or senior housing-related support services. Approximately $120,000 remains in the fund. Given the elimination of the RDA and the Senior Rehab Grant Program, staff will explore the possibility of using this fund to cover the cost of re- taining a non-profit partner to provide “life line” or emergency repairs for fixed income seniors. The City is starting a

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