Overview
In November 2016, City voters approved a Charter Amendment to create the Affordable Housing Trust Fund. Article I, Section 14 of the City Charter establishes the Trust Fund, sources of revenue, administration and oversight, membership and roles and responsibilities of the Commission, income requirements, permitted uses, and affordability periods.
The Fund is intended to support both rental and for-sale affordable housing for very-low and low-income households. The Trust Fund requires that all revenue be used to help those with incomes at or below 50 percent of the Area Median Income (AMI) as established by the Department of Housing and Urban Development (HUD) (approximately $46,000 for a household of four in 2018) and that at least half of the funds be used to help those with incomes at or below 30 percent of the Area Median Income (approximately $27,000) for a household of four in 2018.
CLICK HERE TO READ THE CHARTER REQUIREMENTS
City Council Bill 18-0221, Ordinance 18-215, Recordation and Transfer Taxes, “Yield” Excise Tax – Dedicated Proceeds to the Affordable Housing Trust Funds, was signed into law on December 12, 2018, and became effective in January 2019. The legislation provides a long-term source of funding through a .06 percent excise tax on the transfer of real property valued at or above $1 million and a 0.15 percent excise tax on the recordation tax for real property transaction value at or above $1 million. Approximately $13 million per year is expected to be generated through the proposed new excise taxes.
CLICK HERE TO READ A COPY OF THE LEGISLATION
The City allocated additional funds to support the Trust Fund as follows:
| FY2020 | $2 million |
| FY2021 | $3.5 million |
| FY2022 | $5 million |
| FY2023 and subsequent years | $7 million |
The Trust Fund is administered by the City’s Department of Housing & Community Development (DHCD) and overseen by an advisory commission that includes representation from housing advocates, developers, financiers, and others with expertise in housing and community development. The Commission is charged with making recommendations to DHCD regarding policies, rules, and regulations pertaining to the implementation, expenditures, and operation of the Fund.