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AGENDA REPORT
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| | | | | | | | DATE:
| October 20, 2020
| TO:
| Mayor and City Council
| FROM:
| Stefan T. Chatwin, City Manager 
| | SUBJECT: | Resolution 2020-203 of the City Council of the City of Fairfield Authorizing the Submittal of an Application to the California Department of Housing and Community Development for Funding Under the CalHome Program; the Execution of a Standard Agreement if Selected for Such Funding and Any Amendments Thereto; Adoption of the Program Guidelines for Junior Accessory Dwelling Units and Accessory Dwelling Units; and Any Related Documents Necessary to Participate in the CalHome Program |
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| | | | | | | | | RECOMMENDED ACTION | | Adopt resolution. |
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| | | | | | | | | STATEMENT OF ISSUE | | Development of additional workforce housing units is needed in Fairfield. In addition, new State statutes require the City to remove impediments to permit the development of Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU) as part of meeting its affordable housing goals and obligations. The Housing Department has created an ADU/JADU program to help finance unit construction through state grant funds. |
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| | | | | | | | | DISCUSSION | The production of ADUs is a new emphasis at the state level, effective this year. Ordinance 2020-05 was recently adopted to update the Fairfield City Code to comply with new State law.
ADUs are housing units created when garages are converted into legal dwelling units or when a standalone building with a permanent foundation is constructed on the property of an existing single-family home. JADUs are those that are created by remodeling an existing single-family home to create a new separate legal dwelling unit within the home’s existing square footage. Junior units will have a 500 square foot dimension limit.
Under the City’s program, the ADU/JADU units will be created with income-qualified homeowners. The new units will then be rented to income-qualified tenants at rents that fall within state and federal affordability limits. Additionally, the proposed City program will be slightly more limited than the ADU improvements permitted by State law in that it will only provide funding to certain improvements. Providing loans only for newly constructed units and rooms rather than funding modular units is the key distinction of the City’s program.
The attached Draft Program Guidelines more fully describe how the Program would operate, loan limits for ADU and JADU construction, procedures for approving borrowers, income limits for participants, construction management, etc. If selected for funding, the City’s guidelines must be submitted to California Department of Housing and Community Development (HCD) for approval. They are attached in draft form for reference and would be subject to any changes required by HCD. Adopting the Program Guidelines now will allow the City to go forward with a pilot program and if funding is provided by the HCD, they will be submitted for final HCD approval.
HCD offers the CalHome Grant Program with multiple affordable housing activities. That program has added ADU and JADU construction as an eligible activity in their grant program. The CalHome Program issued a NOFA soliciting grant applications for the construction of new housing units at existing owner-occupied, single-family homes.
The City is proposing a pilot program with a grant-funded activity that will assist several homeowners with the creation of ADU/JADU’s on their property. If funded, the program will offer fully deferred loans at three percent interest to qualifying homeowners. The loans will have a due on sale provision in the event the home is sold, transferred, or ceases to be the principal residence of the borrower. The loans will cover the entire cost of each project with no requirement for borrower funds.
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| | | | | | | | | FINANCIAL IMPACT | | The proposed ADU pilot program will be funded solely with the CalHome grant. The grant provides sufficient funds for the new unit construction and grant administration costs. There is no requirement for local funds. Limited staff time by the Planning Division and Building Division will be involved in the processing of permits, which are minimal due to the new State requirements that are in effect. Repayment of the loans over time will be retained by the Housing Services Department to fund future housing activities that meet CalHome requirements. |
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| | | | | | | | | CITY COUNCIL WORKPLAN | Community Safety
| Community Infrastructure | Quality of Life | | Financial and Operational Sustainability | Economic Development | Travis Air Force Base |
| City Council Goal this item supports:
Financial and Operational Sustainability, Quality of Life |
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| | | | | | | | | Project: | Under consideration for a future Workplan
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| | | | | | | | | PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION | Public contact has not occurred at this stage. If the program is funded staff will use multiple public outreach methods to announce and explain the program to potential participants.
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| | | | | | | | | ALTERNATIVE ACTION | | The City Council could elect not to proceed with the grant application for this funding cycle. If the resolution is not adopted, the next application opportunity would be next year. Given the local need to increase the supply of workforce housing, such a delay is not recommended. |
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| | | | | | | | | STAFF CONTACT | LaTan Jones, Director of Housing Services
(707) 428-7647
ljones@fiarfield.ca.gov
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| | | | | | | | | COORDINATED WITH | City Attorney's Office, Community Development Department
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| REVIEWERS: | | Reviewer | Action | Date | | Answerer | Approved | 10/5/2020 - 6:45 PM | | Jones, LaTanna | Approved | 10/6/2020 - 3:30 PM | | Gassaway, David | Approved | 10/6/2020 - 4:02 PM | | Alexander, Amber | Approved | 10/7/2020 - 1:01 PM | | Alexander, Amber | Approved | 10/9/2020 - 12:44 PM |
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