To fill our industry’s annual $1 billion funding gap, NPH has strategically pivoted towards generating new funding sources via a number of different state, regional and local initiatives. Read more below on best-practice local solutions to funding the development of affordable homes.
Housing Impact and Commercial Linkage Fees
As people move into new market-rate homes and office buildings, they generate a need for services typically provided by low-wage workers, such as restaurant and retail work. Recognition of this link has led to growing interest in the use of housing impact (HIF) and commercial linkage fees (CLF). These fees are assessed by square foot or by unit on new, market-rate residential development and commercial development as defined in each jurisdiction’s ordinances.
In 2014, NPH worked tirelessly to help pass legislation authorizing impact fees in Daly City, Emeryville and San Jose, with efforts in San Mateo County still underway. In addition to new fees, NPH helped Mountain View and Sunnyvale increase existing fees in 2014. CLICK HERE for a list of jurisdictions in the San Francisco Bay Area that have adopted housing impact and/or commercial linkage fees to fund affordable housing development.
Boomerang funds are new property tax revenues to a city or county’s general fund that came out of the elimination of RDAs. In 2012, NPH, along with our partners in the Housing Advocacy Network (HAN), launched the Boomerang Campaign – so called because these funds were relinquished by the local jurisdictions to the state and then “boomeranged” back to the local jurisdictions. NPH and our partners advocated that these local jurisdictions set aside a portion of these funds for affordable home development. Since then, over $60 million dollars in boomerang funds have been set aside for affordable homes due to successes in San Francisco, Fremont, Alameda County, San Mateo County, Santa Clara County, and recently Mountain View.
NPH will continue to work with our partners to increase the number of Bay Area jurisdictions that implement HIFs, CLFs and commit boomerang funds to increase and preserve affordable homes. For more information on our local funding campaigns please contact Pedro Galvao, at pedro (at) nonprofithousing.org, or at (415) 989-8160.