TO: Napa County Housing Commission
FROM: Jennifer Palmer, Executive Director of Housing Authority
REPORT BY: Jennifer Palmer, Executive Director of Housing Authority
SUBJECT: Discussion on the Bay Area Housing Finance Authority Bond Initiative
RECOMMENDATION
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Executive Director of Housing Authority requests discussion to update commissioners on the Bay Area Housing Finance Authority and a potential bond initiative. No action needed.
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EXECUTIVE SUMMARY
On July 25, 2023, staff presented the Housing Commission with an overview of the Bay Area Housing Finance Authority’s (BAHFA) mandate to create regional solutions that meet the Bay Area’s affordable housing needs. Today, staff will provide an update to the proposed bond and its local implications. This is a standing item, no action needed.
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
In 2019, the California Legislature established the Bay Area Housing Finance Authority, or “BAHFA”, via Assembly Bill 1487 to help meet the Bay Area’s housing needs. Specifically, BAHFA has adopted a “3Ps Framework” to ensure housing is available to all Bay Area residents, no matter their income: 1. Protection for current residents to avoid displacement, 2. Preservation of existing housing affordable to lower- and middle-income residents, and 3. Production of new housing at all income levels, especially affordable housing.
Currently the Bay Area’s nine counties and 101 cities address most housing issues individually, with limited staff and financial resources. BAHFA encourages and supports coordination, regional thinking and working together to tackle the housing crisis on a larger scale. The BAHFA Board (which is compromised of the same members as the Metropolitan Transportation Commission (MTC)), and the Association of Bay Area Governments (ABAG) Executive Board share governing responsibilities for BAHFA. In addition, a 9-memer Advisory Committee provides consultation to BAHFA and the ABAG Executive Board to assist their decision-making.
In 2020, the Bay Area was on track to pursue a $10 billion General Obligation (GO) bond measure but the economic hardships resulting from the COVID 19 pandemic forced postponement. Since that time, BAFA has been building its internal team as well as strengthening relationships with local jurisdictions and key housing stakeholders across the region. BAHFA is now exploring placement of a $10 billion GO bond dedicated to affordable housing on the November 2023 ballot across the region’s nine counties. Such a measure would generate gap funding to produce and preserve as many as 45,000 affordable homes, providing housing for more than half a million low-income households. Because affordable housing financing almost exclusively relies on leveraging local, state and federal funds, the $10 billion raised is estimated to leverage an additional $15 billion in other affordable housing resources. GO bonds must pass with a two-thirds majority vote.
On July 25, 2023, staff presented an overview of the proposed bond and its local implications. Today, staff will provide an update to the bond. No action needed.