Foster City partners with Mullin on affordable housing legislation

Foster City in February announced it would work with Mullin on Assembly Bill 1029, which addresses affordable housing units being converted to market rate by allowing local governments access to state funds to assist with acquisition or subsidies to maintain affordability at below-market rates. Foster City will provide committee testimony, engage with state and regional stakeholders and build a coalition of support throughout the 2021 legislative session. A date has not been established for AB 1029’s first committee hearing, according to Mullin’s office. Foster City officials first approached Mullin about state legislative action after they recognized an opportunity to engage.

“We just want to spark the conversation with our elected at the state level,” Gehani said.

Foster City faces a loss of existing affordable housing units previously developed with long-term affordability covenants funded by the now eliminated state Redevelopment Agency, Community Development Director Marlene Subhashini said by email. Many cities no longer have access to significant funding and ongoing affordable housing resources despite programs and committed funding to assist tenants. Subhashini said the bill would ensure the city’s efforts to preserve existing affordable housing units will be prioritized for state funding.

Mullin said in an email statement that the expiration of affordable housing units is a phenomenon happening in Foster City and cities up and down the state.

“Prior to 2011, California redevelopment agencies were the largest source of funding to build affordable housing in the state of California. Prior to the demise of redevelopment, affordable housing units were required to remain so for 30 to 50 years,” Mullin said. “Over time, those affordability requirements expire and are eligible to become market rate.”

In recent years, the state has primarily focused on increasing home production without placing an equal emphasis on affordable housing preservation. Cities are being charged with increasing their housing supply while struggling to preserve their existing affordable housing stock. Many affordable housing units are being converted to market rate units throughout the state. Over the next decade, expiring subsidies supporting 117,714 affordable housing units across the state will expire.

If the state provides housing funds to Foster City through the bill, the city will use the funds to preserve the expiring affordable housing units at Foster’s Landing Apartment Complex, Subhashini said. Around 74 residents at Foster’s Landing will see their below-market-rate housing units expire over the next three years after apartment ownership decided to change to market-rate rents. The change to market rate will increase rent and likely forcing longtime residents to move, something the city wants to avoid in the future. The city has tried to assist those residents facing a rent increase through a financial assistance relocation program and outreach to state and federal representatives. Foster City has been looking to secure a major source of funding to preserve the units.

There are currently 485 affordable housing units in Foster City, with an additional 14 units underway. Foster City has an inclusionary requirement of 20%, which means 20% of the units in residential projects are required to be affordable. Most cities have an inclusionary requirement of 15%.

“The city looks forward to working closely with Assemblymember Mullin, the members of the California state Legislature and the Newsom administration to advance a measure that brings balance to the affordable housing conversation,” said Foster City Manager Peter Pirnejad.

curtis@smdailyjournal.com

(650) 344-5200 ext. 102