Application submitted by Elk Grove for SB 2 state funds for affordable housing, homeless services

During their regular meeting last night, the Elk Grove City Council, without comment, directed the city manager to apply for permanent local housing allocation funding as provided by State Senate Bill 2.

As part of SB 2, starting in 2019, a $75 fee was attached to most housing transfers. Local governments are eligible to receive 70 percent of the money collected for properties in their jurisdiction.

During her presentation to the city council, Elk Grove housing manager Sarah Bontrager said between 2019 and 2023, the fees are forecast to generate $2.6 million for the city. Bontrager said the money could be used for affordable rental or ownership housing development, permanent supportive housing projects, assistance to people experiencing homelessness or at risk of homelessness, shelters, or down payment assistance.

Bontrager said that based on input from the city's non-profits partners and staff's analysis, it recommends the money be used for gap lending to developers of affordable housing units and a second homeless services navigators. The navigators offer one-on-one assistance to the homeless. 

"The one thing we heard from our non-profits is that we need more qualified and trained people in the community," Bontrager said. "This would allow one of our navigators to serve mostly the encampments and single adults and the second navigator to focus on families and possible seniors."

During her presentation, Bontrager noted the expenditure for the additional navigator is a small portion of the total expected funding. The money must be spent by April 2028.

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