DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Verónica R. Soto, AICP
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Briefing of the Risk Mitigation Policy update
SUMMARY:
The purpose of the Risk Mitigation Policy is to establish the guidelines and eligibility by which the risk mitigation fund can be used to provide relocation and emergency assistance to residents who may experience displacement.
BACKGROUND INFORMATION:
The FY 2019 Adopted Budget includes $25 million of general fund money for Affordable Housing initiatives including $17 million in new funding. The budget includes $11.7 million for housing preservation and repair, $3.2 million for homebuyer assistance, $1.4 million to develop a coordinated housing system, $7.7 million for gap financing, and a $1 million risk mitigation fund.
While the purpose of this policy is to assist residents who have been displaced, the City has an approach to prevent displacement that will be implemented as part of the 10-year Affordable Housing Business Plan. The City’s approach will leverage rehabilitation and preservation funding to target rental properties in need of repair, rehabilitation, and preservation in order to prevent families from becoming displaced because of redevelopment. The Affordable Housing Business Plan also allows for an outreach campaign to target vulnerable populations and share information regarding homeownership, fair housing, and available programs to keep residents housed.
The Risk Mitigation policy was reviewed by the Comprehensive Plan Committee (CPC) on December 12, 2018 and again on January 16, 2019. The CPC recommended that staff receive additional public feedback. In response, staff released an online and paper survey, held five rather than three community input meetings, held 10 stakeholder meetings, and posted the draft framework on the Department’s website in order to afford accessibility for all groups involved and collect meaningful input from the community while engaging them in the decision-making process. Based on the community feedback received, staff has developed a draft framework for the Risk Mitigation Policy which balances the interests of all stakeholders. After receiving final feedback from the Comprehensive Plan Committee, the final Risk Mitigation Policy is to be considered for approval by the full City Council in early March.
ISSUE:
After receiving additional public feedback as recommended by the Comprehensive Plan Committee on December 12, 2018 and January 16, 2019, staff has updated the policy to address additional comments.
The Risk Mitigation Policy recommends two main areas of assistance: relocation assistance and emergency assistance.
Relocation assistance will be used to provide financial assistance and housing counseling services to individuals and families impacted by a notice to vacate caused by redevelopment, rehabilitation, or a code enforcement action against the owner of the multifamily development or mobile home park in which they reside. This policy also seeks to provide relocation assistance to individuals and families impacted by significant increase in rental housing costs of the multifamily development or mobile home park in which they reside, that may make the home unaffordable. Residents who make up to 100% of the Area Median Income (AMI) as defined by HUD are eligible for assistance.
Emergency assistance will be used to provide emergency assistance and housing counseling services to mitigate the potential compounding effects of financial emergencies on households. Emergency assistance is provided to help stabilize renter and homeowner households by providing short term emergency financial assistance to residents experiencing eligible financial hardships. This program is designed for households experiencing emergency situations affecting their ability to pay rent-related expenses and utilities. This fund will provide one-time emergency financial assistance payments
NHSD is also planning to partner with the private sector and service providers to pilot a rental incentive fund that will be used to remove barriers for residents to find safe and affordable housing. Partners include the South Alamo Regional Alliance for the Homeless, which has already received match funding from USAA, and could include the San Antonio Apartment Association and the San Antonio Housing Authority. This pilot will collect data on the success of the program and how it can be expanded in the future.
NHSD staff will also be coordinating with other City Departments including Center City Development Office and Economic Development to include language in their incentive policies making projects that will cause direct displacement ineligible for funding. This language is currently included in the Council-approved Center City Housing Incentive Program (CCHIP) and Urban Renewal Plan that guides the Housing Bond.
Staff is briefing CPC before the policy is to be considered for approval by the full City Council in early March.
FISCAL IMPACT:
The Risk Mitigation Policy will utilize the $1 million Risk Mitigation Fund that was approved in the FY 2019 Budget.
RECOMMENDATION:
Staff recommends that the Comprehensive Plan Committee forward the Risk Mitigation Policy to the full City Council for consideration of approval.