CRA staff proposes keeping FY26 housing priorities unchanged; will recommend allocations during budget process

Staff presented an informational briefing on the proposed housing development funding strategy for fiscal year 2025–26 and recommended the board keep the same set of priorities adopted the prior year: (1) deeply affordable housing, (2) family housing with amenities for children, (3) residential wealth building opportunities, (4) expand opportunity (geographic distribution into high‑opportunity areas), and (5) neighborhood commercial and services.

Staff reviewed the city’s housing data dashboard, noting rental construction continues to outpace for‑sale housing and that household incomes and housing prices have increased at different rates. Staff proposed changing the definition of “deeply affordable” from 40% AMI to 30% AMI to align with broader industry practice and to clarify that residential wealth‑building targets may include households up to 120% AMI for owner‑occupied/shared‑equity models.

Staff also proposed continuing the same housing activities for the coming year: the housing development loan program (HDLP), a residential wealth‑building NOFA (pilot continuation), and land acquisition/disposition funds (to support targeted projects). Staff will present projected housing fund balances and a recommended allocation of funds among activities as part of the CRA budget process in May.

Board members generally supported keeping the priorities stable for another year to track results, while asking staff to continue outreach and to explore additional flexibility for projects facing market and cost‑pressure challenges. Staff said the next steps are a resolution to adopt priorities at the next board meeting and then allocation of projected revenues through the budget process.