Operating and CIP Budget Fiscal Year 2015-16

Housing Programs (continued)

 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 will receive continuing program income from the Agency’s legacy projects and assets, as well as one-time ERAF and SERAF repayments. The focus of the Community Development Department has been to “right size” housing programs to match avail- able City resources, and balance that with the need to protect existing housing investments, ensure long term finan- cial sustainability and adopt strategies to improve efficiency such as the ability to leverage the contractual services of 3 rd party non-profit agencies. The housing program is currently only administering “core functions” related to the RDCS and State mandated obligations and the legacy housing obligations and assets of the former Agency. How- ever, over the last couple of years the City has accumulated over $6 million in housing funds. During the next 5 years, as ERAF and SERAF repayments accrue and if the robust housing market continues to generate substantial housing in lieu fees, the City may be able to fund 1-2 new affordable housing developments over the next 5-7 years. The city is also very interested in pursuing additional funding opportunities – County programs like the potential “Boomerang funds” match, working with Community Development Fund Institutions, Federal grants – that will lev- erage the City’s housing dollars to create additional affordable housing. For FY 15-16, $2,500,000 in housing program expenditures are proposed for Fund 236; $321,850 in salaries and $61,718 in internal services charges. $150,000 will be expended on the Housing Element/General Plan update. No funds for housing program expenditures are proposed for Fund 255; however $209,524 in salaries and $80,936 in internal services charges will be charged. In total, $5,132,410 in housing related expenditures are proposed, if one housing development is funded, supporting 3.67 FTE’s. In spite of RDCS allocations and projects with BMR waivers pending, it is anticipated that $700,000 in housing in-lieu fee revenue for eligible BMR units will be received. This should remain fairly level for the next few years unless RDCS policy modifications are implemented, the housing market slows down or RDCS allocations are reduced at the end of the current General Plan update process.

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