Title
a. Support approving an increase in estimated appropriations in the amount of $350,000 in the Economic Development Department's Inclusionary Housing Fund appropriations Unit 009-8208-DEO002; and
b. Support authorizing the Auditor-Controller to amend the FY 2014-15 Economic Development Department Community Development adopted budget, Fund 009, Unit 8208 and Appropriation Unit DEO002, to increase estimated appropriations by $350,000.
Report
RECOMMENDATION
It is recommended that the Budget Committee:
a. Support approving an increase in estimated appropriations in the amount of $350,000 in the Economic Development Department's Inclusionary Housing Fund appropriations Unit 009-8208-DEO002; and
b. Support authorizing the Auditor-Controller to amend the FY 2014-15 Economic Development Department Community Development adopted budget, Fund 009, Unit 8208 and Appropriation Unit DEO002, to increase estimated appropriations by $350,000.
SUMMARY
This request is to increase appropriations within Economic Development Department's Inclusionary Housing Fund 009. The increase in appropriations is necessary to enable the County to exercise its option to purchase an inclusionary home before the home is sold at foreclosure and lost from the inclusionary housing inventory. There is currently enough fund balance in Fund 009 cover this unanticipated expenditure.
DISCUSSION
The Board of Supervisors adopted an Inclusionary Housing Ordinance in 1980 to require developers to develop and support affordable housing in the County. Since the program began, more than 250 units of owner occupied affordable housing have been developed. There are three ways that the County loses these units: 1) the term of affordability is reached; 2) the County fails to exercise its option to purchase a home when the owner sells and another income qualified buyer cannot be found; and, 3) when senior lien holders sell the home through foreclosure proceedings.
When an owner purch...
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