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Council directs rewrite of city policy for scoring 9% low‑income housing tax credit applications
Summary
Council approved a staff directive to rewrite how the city scores competitive 9% LIHTC applications, adding a geographic index and minimum point thresholds and asking staff to return with a recommended policy informed by the regional housing plan.
The City Council on Feb. 4 directed the city manager to rewrite the city’s policy for evaluating 9% low‑income housing tax credit (LIHTC) applications, adding a geographic index for location‑based scoring, minimum point thresholds tied to letters of support and a mechanism to designate a single preferred location in a year.
Why it mattered: The 9% federal tax‑credit program is a major source of financing for new affordable apartments. The council said the city’s current “bubble” approach — small zones around transit and priority areas — does not reflect current growth patterns and can miss areas of need.
What council approved: Representative Canales’ motion (amended on council direction) requires staff to propose a final scoring policy informed by the city’s regional housing plan and return with a recommendation for approval within 240 days. The directive specifically asks staff to consider: a geographic index that scores locations by proximity to jobs, transit and services; minimum point thresholds before the city issues letters of support or no‑objection; and an optional annual approach in which the city designates one location as the focus for that funding cycle.
Staff and council remarks: Canales and other councilmembers said the change will make the city’s recommendations more transparent and strategic. Staff asked for extra time to align the rewrite with the ongoing regional housing plan; council accepted the amended 240‑day timeline.
Votes and next steps: The motion — as amended to require the rewrite to be informed by the regional housing plan and returned within 240 days — passed unanimously. Staff will begin the rewrite process and bring a policy recommendation and updated scoring rubric back to council before the next LIHTC cycle.
