Mayor Sends $100 Million Affordable Funding Trust To City Council
SACRAMENTO (CBS13) - Sacramento Mayor Darrell Steinberg, responding to Sacramento's housing shortage, has asked the City Council on Tuesday to vote to create a $100 million affordable housing trust fund.
Dubbed the Sacramento Affordable Housing Trust Fund, it would be funded by new city bonds backed by future revenues from Measure U, future state allocations for affordable housing, and money raised from public, private and non-profit partners, according to the mayor's office. It would lend or grant money to both rental and for-purchase affordable housing projects to fill financing gaps and speed up construction.
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"This trust fund will get more affordable units built in our city while spurring construction of quality housing that can be erected quickly and for less subsidy than traditional units," Mayor Steinberg said in a statement on Monday. "Increasing our supply of affordable housing is crucial to preventing more people from becoming homeless and housing the thousands of people currently living on our streets."
Forty percent of the trust funds would go to housing residents classified as extremely low income, meaning that they make no more than 30 percent of the area median income, currently $25,750 or less for a family of four.
The proposal would earmark 30 percent of the money in the trust fund for housing projects requiring a subsidy up to $100,000 a unit, which Steinberg would spur building efficient units.
Between Oct. 31, 2013 and Dec. 31, 2018, the city issued building permits for just two units of extremely low-income housing. During that same period, they issued 208 permits for units aimed at very low-income tenants, 427 for low-income tenants, and 7,984 units for tenants with moderate or higher incomes.
