FY 2006 POLICY PRIORITY PROPOSAL

Policy Priority: Affordable Housing

Purpose: The state increased the recordation tax in FY 2005. The County collects the same tax, indexed to the state rate. As a result, the County will receive additional recordation tax revenue in excess of the amount needed to balance the FY 2005 adopted budget. As directed by the County Board, the total amount of the incremental recordation tax revenue from the higher rate for both FY 2005 and FY 2006 has been proposed for Affordable Housing initiatives. Several critical program priorities have been identified for County Board consideration.

	FY 2005	FY 2006	Total
Recordation Tax	$1,848,150	$2,612,052	$4,460,202

Department of Human Services

Mental Retardation/Developmental Disabilities (MR/DD) Residential Providers $175,000

• This would increase financial support to MR/DD non-profit Residential Providers for current group home residents. These funds will increase the rate for each provider by an average of $8.00/day per resident.

Housing Grants Program $545,147

• Current Housing Grants Program $213,647
  Additional funding would maintain existing level of households served (676), and mitigate the continued reduction of affordable housing for low income elderly, disabled and working families.
  Average grants have increased from $398 to $430 in one year.
• Project-Based Housing Grants $214,500
  Adds 25 units of project-based rental assistance units target to supportive housing.
  Provides the housing subsidy needed to provide permanent community based housing with on-site support services for low-income persons with disabilities.
• Transitional Housing $117,000
  Provides funds for 30 family households that are leaving shelters whose chronic homelessness, mental illness, family violence, debt make it difficult to secure and maintain market housing.

Culpepper Garden $673,000

• One-time grant in FY 2005 of $573,000
  Old Debt $423,000 - to pay off accumulated debt (unpaid County real estate taxes, payments to the employee pension program, inter-company transfers not allowed by HUD, and overdue vendor payments) caused by the need for subsidies for a larger number of low-income residents than was budgeted.
  Fundraising contract of $50,000 for an independent contractor to develop a comprehensive fund raising plan.
  Tenant subsidies of $100,000 for assisted living subsidies for the 8 low-income residents that are not covered by the current County subsidy that provided for 20 residents at $205,000.
• Ongoing support FY 2006 of $100,000
  Tenant subsidies of $100,000 for assisted living subsidies for the 8 low-income residents that are not covered by the current County subsidy that provided for 20 residents at $205,000.

Community Planning Housing and Development

Condo Conversion Staff Person/Tenant Outreach $150,000

• One Housing Specialist would work with developers on the many condo conversion properties in the pipeline. This position would help ensure the retention of affordable housing as these units transition from rental to homeownership. Additional funds would be earmarked for tenant outreach.

Affordable Housing Investment Fund (AHIF) Estimated Balance $2,917,055

• The remaining balance will be used to support the AHIF contingent. There are numerous project possibilities in the pipeline to partner with the AHIF fund. These funds will be used to maximize the Affordable Housing program.

Funding Information