PREPARED BY: MATT RODRIGUEZ DATE OF MEETING: 04/20/26
SUBJECT:
TITLE
CONSIDER ADOPTING A RESOLUTION TO PROCEED WITH AMENDMENT NO. #2 TO THE FY 2025-27 CITY COUNCIL PRIORITY WORKPLAN, UNDER MAJOR POLICY AREA: EXPAND HOUSING OPTIONS, ADD NEW POLICY NO. 312 - ASSESS THE LEGAL FEASIBILITY OF IMPLEMENTING A POLICY FOR NEW OR PROSPECTIVE DEVELOPMENT AGREEMENTS ENTERED INTO BY THE SUCCESSOR AGENCY/HOUSING SUCCESSOR AGENCY TO REQUIRE THE INCLUSION OF A PREFERRED LOCAL RESIDENT PROVISION FOR A PORTION OF NEWLY CONSTRUCTED AFFORDABLE HOUSING UNITS WHEN PRIVATE DEVELOPERS REQUEST FINANCIAL ASSISTANCE FROM THE HOUSING SUCCESSOR AGENCY’S LOW & MODERATE HOUSING ASSET FUND; AND INCLUDE ALIGNMENT WITH EFFORTS TO MONITOR AND PRESERVE THE LONG-TERM AFFORDABILITY OF UNITS SUBJECT TO AFFORDABILITY RESTRICTIONS OR COVENANTS ESTABLISHED BY THE HOUSING SUCCESSOR AGENCY, AS PART OF OVERALL POLICY IMPLEMENTATION
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
FY 2023-25 Council Priority Workplan Compliance Statement
Under Major Policy Goal: Expand Housing Options the City Council would consider adding an amendment to the FY 2025-27 City Council Priority Workplan, effective April 7, 2025.
CEQA Compliance Statement
This proposed action is not a project under CEQA; although, particular projects in the Workplan may be subject to CEQA and require additional review.
BACKGROUND
On March 30, 2026, on motion made by Mayor Pabon-Alvarado, duly seconded, the City Council voted unanimously via minute order to direct the City Manager to schedule for formal consideration of a potential amendment to the FY 2025-27 Council Priority Workplan (Workplan) for Council policy discussion and approval.
Proposed Policy Workplan Amendment #2
The City Council is requested to consider whether to study the legal feasibility of creating a new policy for future Development Agreements involving the Successor Agency or Housing Successor Agency. This potential policy would require private developers who request financial support from the Low & Moderate Income Housing Asset Fund (LMHIF) to set aside a portion of newly built affordable housing units for local residents who may qualify for low-income based on state statute requirements. The goal is to ensure that community members have better access to new affordable housing opportunities created with public resources.
This policy assessment would help the City understand what types of “local preference” rules are allowed under state and federal law. Many housing programs must follow fair housing requirements, so the City must confirm that any preference system is legally compliant and does not create discrimination risks. The study would also explore how other cities have implemented similar policies and what best practices might apply to San Pablo. Moreover, any proposed policy must not limit or restrict developers from seeking funding assistance from State HCD or other housing tax financing programs available for affordable housing development projects.
In addition, the proposed work would include reviewing how the City monitors and protects long-term affordability for units that already have affordability covenants or restrictions. Ensuring that these units remain affordable over time is an important part of the City’s housing strategy, especially as older agreements approach expiration. Strengthening monitoring practices would help preserve the existing affordable housing supply while the City continues to support new development opportunities to meet State required Regional Housing Needs Allocation (RHNA) requirements.
The proposed policy under consideration by the City Council would include the following:
MAJOR POLICY AREA: Expand Housing Options
Proposed Policy No. #312:
Assess the legal feasibility of implementing a new policy for new or prospective development agreements entered into by the Successor Agency/Housing Successor Agency to require the inclusion of a Preferred Local Resident Provision for a portion of a newly constructed affordable housing units when private developers request financial assistance from the Housing Successor Agency’s Low & Moderate Housing Asset Fund (LMHIF); and include alignment with efforts to monitor and preserve the long-term affordability of units subject to affordability restrictions or covenants established by the Housing Successor Agency, as part of overall policy implementation.
City Manager Recommendation
If the Resolution is adopted this evening, this item will be incorporated into the approved Workplan. Policy Amendment #2 authorizes City staff to examine legal requirements, assess policy alternatives, and subsequently present a formal recommendation to the Council. Upon future adoption, the City Council may apply the approved policy as an enforceable provision in future development agreement negotiations. Provided that policy implementation is legally viable, this policy aligns with the City’s overarching policy objectives contained in the City’s Housing Element by promoting housing stability, advancing equity, and ensuring access to long-term, affordable housing opportunities for San Pablo residents.
FISCAL IMPACT
None associated with this report.
ATTACHMENTS
Att A - Resolution