To: Board of Supervisors
Department or Agency Name(s): Board of Supervisors
Staff Name and Phone Number: Supervisor David Rabbitt, 707/565-2241
Vote Requirement: Informational Only
Supervisorial District(s): Countywide
Title:
Title
Bay Area Housing Finance Authority (BAHFA) and Metropolitan Transportation Commission (MTC) Informational Presentation
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Recommended Action:
Recommended action
Receive an informational presentation from the Bay Area Housing Finance Authority (BAHFA) and the Metropolitan Transportation Commission (MTC).
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Executive Summary:
Informational Item
Discussion:
What is BAHFA?
BAHFA is California’s first regional housing finance authority, created by the state legislature through Assembly Bill 1487 (Chiu, 2019) to bring lasting solutions to the Bay Area’s affordable housing needs. Guided by the “3Ps” - production, preservation, and protection - BAHFA offers a powerful set of new financing and policy tools to promote affordable housing development and combat displacement throughout the Bay Area’s nine-county region.
BAHFA is governed by the same geographically diverse board as the Metropolitan Transportation Commission (MTC) and works together with the Association of Bay Area Governments (ABAG) Executive Board. As required by its founding legislation, BAHFA has an Advisory Committee comprised of nine members from throughout the region with expertise in affordable housing finance and the 3Ps.
In June 2022, the BAHFA and ABAG Executive Boards voted to explore putting a regional housing measure on the 2024 ballot. BAHFA is pursuing a $10-$20 billion general obligation (GO) bond measure, which, if passed by voters, would generate capital financing for affordable housing production and preservation, 80% of which would return to the county of origin and 20% of which would be distributed by BAHFA regionally.
BAHFA Year-to-Date Highlights
In preparation for effectively deploying bond revenues, BAHFA has spent the last year testing innovative approaches to addressing the toughest housing challenges.
• Doorway Housing Portal: This online tool, currently in development, will allow renters to search for affordable homes throughout the region and complete an application in less than 10 minutes. Development has been boosted with 13 full-time, pro-bono engineers through a Google.org Fellowship.
• Affordable Housing Pipeline Database: In conjunction with Enterprise Community Partners, BAHFA has developed an inventory of housing developments in the planning stages and calculated the funding they need to start construction. BAHFA will use the database to target investment in locations and projects where it will be most impactful.
• Housing Preservation Pilot: BAHFA’s first in-house capital program will provide $15M to assist community-based organizations acquire and rehabilitate existing properties and convert them to permanent affordability for the long-term protection of low-income tenants.
• Welfare Tax Exemption Preservation Program - This program helps nonprofit affordable developers purchase properties and convert them to permanent affordability by providing the recorded deed restriction and a public funding investment that, under state law, entitles owners to a property tax exemption. BAHFA used these tools to help create new affordability at five properties in 2022.
• Tenant Protection through Anti-Displacement and Homelessness Prevention - BAHFA is deploying resources to assist jurisdictions and service providers coordinate efforts, promote best practices, and integrate resources, all with the goal of protecting vulnerable tenants and preventing homelessness.
Uses of New Housing Funds
80% of all GO bond funds return to the counties of origin (based on assessed property values). Counties will create expenditure plans in coordination with their cities. BAHFA retains 20% of funds raised to invest region-wide with the intent of spurring innovation and efficiency. The cities of Oakland, San Jose, Napa and Santa Rosa receive their own allocations, based either upon size or because they carry 30% or more of their county’s very low-income Regional Housing Needs Assessment (RHNA) obligation. Expenditure rules (e.g., how much of new funds generated should go to each of the 3Ps) are prescribed in AB 1487.
Potential Funding for Sonoma County
With a successful $10B regional bond, Sonoma County would receive approximately $282M. Separately, the city of Santa Rosa would receive approximately $121M due to its RHNA obligations.
2024 Regional Housing Measure Timeline
Spring-Fall 2023: BAHFA makes final revisions to its Business Plan and Equity Framework; provides information to jurisdictions about BAHFA and the 2024 regional measure
Fall-Winter 2023: Business Plan is adopted; public information sessions; BAHFA drafts a regional expenditure plan
Winter-Summer 2024: Final polling on the funding measure; expenditure plan is finalized; BAHFA Board and ABAG Executive Board adopt resolutions to place measure on the ballot
July 2024: Counties place the consolidated measure on their ballots
Fall 2024: Public information continues through November
Strategic Plan:
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Prior Board Actions:
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Fiscal Summary
Narrative Explanation of Fiscal Impacts:
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Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
Power Point Presentation
Related Items “On File” with the Clerk of the Board:
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