Operating and CIP Budget Fiscal Year 2015-16

Housing Programs (continued)

limited rehabilitation program open to both seniors and current BMR homeowners and funds from this trust may be used to expand that program.

 CITY OF MORGAN HILL  FY15-16  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

Fund 236- RDCS Housing In-lieu Fee

Prior to issuance of occupancy permits, housing in-lieu funds are collected from market rate housing developers who make development agreement commitments to pay an in-lieu housing fee instead of constructing low- or me- dian- income Below Market Rate (BMR) units. This fund is the only major source of funding left for the City’s hous- ing programs. When active, an average of $1,00,000 is received annually. These fees were suspended for qualified housing allocations as a result of the BMR waiver and reduction program, intended to help stimulate housing con- struction during the recent national economic crisis. Beginning in October of 2012, 50% fees were again being as- sessed from the RDCS process, and full fee collection began again in July, 2014. The legacy housing obligations of the Morgan Hill Redevelopment Agency have associated implementation and de- livery costs that are not eligible for reimbursement from RDA Housing dissolution revenues, but can be recovered from residual receipts and loan repayment from previously constructed projects and loans executed. In addition, beginning in FY 15-16, former RDA Housing funds used in prior years to make ERAF and SERAF payments to the State of California, will be scheduled to be returned to the City’s Housing Fund for use to develop new affordable housing units and preserve housing assets. The calculated repayment amount for the Morgan Hill Successor Agency is $1,177,918 for FY 2015-16. Fund 255- Housing Fund (formerly known as the Successor Agency Housing Fund)

FY 14-15 HIGHLIGHTS

 Create procedures of BMR Program Administration with Neighborhood Housing Services of Silicon Valley (NHSSV), continued monthly and weekly meetings to create best practices, to administer the City’s Below Mar- ket Rate (BMR) Program

 Coordinated NHSSV audit and monitoring of BMR inventory; executed First Time Homebuyer and Foreclosure Prevention education workshops

 Monitored RHNA progress for housing element and assisted with the preparation of the Housing Element up- date

 Followed up on direction provided by City Council at May 7, 2014 Housing strategy update meeting

 Continued negotiations with EAH developer for the family and Transitional Age Youth affordable housing de- velopment, scheduled to begin new construction in FY 15-16

 Facilitated Urban County CDBG grant award for Galvan Park rehabilitation project, approximately $71,337 in park

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

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