DEPARTMENT: Planning and Community Development
DEPARTMENT HEAD: Bridgett White
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Briefing on the status of the proposed 2017-2022 Bond Program
SUMMARY:
This item will include a staff briefing on the status of the proposed 2017-2022 Bond Program.
BACKGROUND INFORMATION:
On October 27, 2015, the Housing Commission to Protect and Preserve Dynamic and Diverse Neighborhoods established the Housing Bond and Funding Subcommittee in order to discuss relevant items on the Commission’s FY 2016 Work Plan and to develop recommendations to bring back to the Commission for possible action.
The Housing Bond and Funding Subcommittee first met on November 9, 2015 to begin a facilitated discussion on a framework for a potential affordable housing bond. The Subcommittee has met monthly to continue its facilitated discussion.
On August 2, 2016, the Housing Commission approved the following three (3) recommendations for City Council consideration pertaining to a framework for an affordable housing bond:
1. The Housing Commission recommends a ballot measure in November 2017 to amend the City of San Antonio Charter, eliminating language that restricts the use of general obligation bond proceeds to only public works activities, thereby allowing the City to issue general obligation bonds for housing-related activities.
2. The Housing Commission recommends a ballot measure in May 2017 concerning the City’s issuance of general obligation bonds, the proceeds from which would be administered by the Office of Urban Revitalization San Antonio (OUR SA) for purposes of compliance with applicable Texas law (but with oversight and direction from the City regarding such administration), in an amount between $10 million and $25 million. The Commission also recommends that (i) OUR SA be restructured if necessary to successfully administer the bond activities and (ii) bond-funded activities under this proposition do not result in the permanent displacement of residents. These bond proceeds will be used to acquire identified properties for rehabilitation and made ready for resale and residential redevelopment, which will reduce affordable housing construction costs.
3. The Housing Commission recommends a City-led, comprehensive affordable housing bond measure as soon as November 2017, and in conjunction with a Charter amendment proposal, to provide funding for a broader housing initiative. Activities to be conducted under this subsequent bond program are recommended to include the following (some of which may be accomplished under the program identified in No. 2 above):
a. Gap financing for affordable housing construction;
b. Multifamily housing preservation; and
c. Emergency repair/accessibility improvements.
ISSUE:
The Housing Commission forwarded its approved recommendations for an affordable housing bond framework to the Mayor and City Council in the form of a memorandum dated August 5, 2016. City Council met in a B Session on August 10, 2016 to discuss the proposed citywide 2017-2022 Bond Program.
A series of propositions are expected to be brought forward to voters during the election scheduled for May 6, 2017, totaling an estimated $850 million. The bond program categories will include:
1. Streets, Bridges & Sidewalks
2. Drainage & Flood Control
3. Parks & Recreation
4. Facilities & Improvements
5. Neighborhood Improvements
Staff will provide an update on the progress of the Bond Program, including the status of its recommendations to the Mayor and City Council for an affordable housing bond framework.
ALTERNATIVES:
This item is for briefing purposes only.
FISCAL IMPACT:
This item is for briefing purposes only.
RECOMMENDATION:
This item includes a staff briefing on the status of the proposed 2017-2022 Bond Program.