Submitted by: Croslin
Submitting Department: Finance
Agenda Section: Discussion
Item Title:
title
FY23 Budget Amendment: Special Revenues Budget and Transfer of Funds from the Sale of City Property
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Suggested Action:
recommendation
For Discussion Only.
I move that the Mayor and Council amend the FY23 Special Revenues Fund Budget and approve the creation of the Hyattsville Affordable Housing Fund to include a transfer of $1,000,000, from General Fund Cash Reserves received from the sale of City property to cover anticipated expenditures associated with the creation of the Affordable Housing Fund to further affordable housing activities.
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Summary Background:
Hyattsville’s Housing Action Plan was adopted in April 2021 and serves as the city’s guiding strategic plan for housing in the City of Hyattsville over the next 10 years. It highlights the housing needs affecting Hyattsville’s residents and outlines how the City of Hyattsville will create new and expanded local housing tools to help ensure Hyattsville residents can live in the city at all stages of life. The purpose of the Plan was to build greater awareness of housing needs among residents living in Hyattsville and equip the city-elected leaders, municipal staff, community members, and partners-with the tools to address these needs now and in the future.
The Plan, included the City Council’s adoption of four (4) priority housing tools:
(1) Establish a dedicated local source of funding;
(2) Use public land to support local development goals;
(3) Create rent regulations;
(4) Expand tenant protections.
The intent of this Agenda item is to provide a seed local funding source for housing projects and programs to address housing needs and support housing policy implementation. Having a local dedicated source of funding will enable the City of Hyattsville to offer financing (such as gap financing) for housing development in the city limits or funding for local housing initiatives that support residents. To create this funding, the City of Hyattsville will need to identify a potential source of revenue (developer fees; real estate fees; and property taxes are common ones elsewhere) and develop and adopt local legislation to guide its use.
In 2022, the City of Hyattsville sold the Jefferson Street Parking Lot to Urban Investment Partners (UIP) for $1,300,000. The proceeds from the sale are maintained in the City’s ‘General Fund Cash Reserves’.
Next Steps:
The City Council will be required to establish an Affordable Housing Fund through an uncodified ordinance and determine eligibility of projects and programs that can be funded.
Fiscal Impact:
The motion would authorize the City Treasurer to transfer funds from the General Fund Cash Reserves to a FY2023 Special Revenue Fund.
City Administrator Comments:
The dedication of funds and establishment of a funding source is consistent with one (1) of the recommended affordable housing tools outlined in the City’s Affordable Housing Strategy. The action will require the Council to proceed with additional actions including, but not limited defining eligible categories of activities that may be funded out of the ‘Affordable Housing Fund’ as well as a mechanism for replenishing funding.
Community Engagement:
The establishment of an Affordable Housing Fund was one of four priority tools adopted by the City Council as part of the City’s Affordable Housing Strategy.
Strategic Goals:
Goal 2 - Ensure the Long-Term Economic Viability of the City
Legal Review Required?
Pending