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APPROVE THE ALLOCATION OF 37 LOW-INCOME HOUSING UNITS TO HOUSING AUTHORITY OF THE COUNTY OF SAN JOAQUIN PURSUANT TO ARTICLE XXXIV OF THE CALIFORNIA CONSTITUTION
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RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the allocation of 37 low-income housing units to the Housing Authority of the County of San Joaquin (HACSJ) Sonora Square Apartments project pursuant to Article XXXIV of the California Constitution.
2. Authorize the City Manager, or designee, to take all necessary and appropriate actions to carry out the purpose and intent of this Resolution.
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Summary
Housing Authority of the County of San Joaquin (HACSJ) Sonora Square Apartments project located at 401 South El Dorado Street, Stockton requires 37 units of Article XXXIV of the California Constitution (Article 34) authority. Article 34 requires a local election by voters to approve a low-income housing project when financed in whole or in part by public funds. Stockton voters authorized the City Council to approve low-income housing projects in 2010 and again in 2018.
Staff recommends that the City Council approve 37 units of Article 34 authority to the Sonora Square Apartments project in Downtown Stockton.
DISCUSSION
Background
In Fall 2019, HACSJ proposed to convert existing commercial/office building into housing for low-income households in Downtown Stockton. They are proposing the development of 37 one-bedroom units of multi-family permanent housing targeting extremely low-income (at or below 30% area median income) and very-low-income households (at or below 50% AMI). The development will benefit from the HACSJ allocating the development much needed Project-Based Vouchers (PBV) to make available rental subsidies to ensure that the rents remain affordable. The proposed project would provide affordable housing to lower-income households that constitute HACSJ’s service population.
The Sonora Square Apartments project will be constructed and located on East Sonora Street and South El Dorado Street. All units will be approximately 600 square feet and have a shared laundry/community room. Parking lot spaces will be improved and expanded for residents and an elevator will be available for the multifamily units.
Present Situation
Low-income housing projects, when financed in whole or in part by the federal government, or a state public body, or to which the federal government or a state public body extends assistance require voter approval Article 34 authority.
In November 2010, Stockton voters authorized the City Council to approve low-income housing projects for ten years; this authority will end on December 31, 2020. However, in November 2018, Stockton voters again showed their support for affordable housing. They gave the City Council authority to approve low-income housing projects and to allocate up to 500 units per year for twenty (20) years, with any unused units being carried over from year to year. There is sufficient inventory available to allocate the units.
Staff recommends that the City Council approve the allocation of 37 units of Article 34 authority for the Sonora Square Apartments project.
FINANCIAL SUMMARY
There is no financial impact to the City's General Fund or any other unrestricted fund due to taking the recommended action.