I 2 2 1 =-402 (R- 2 02 6- 534 ) RESOLUTION NUMBER R- 316851 DATE OF FIN AL PASSAGE JU N 3 0 2 0 2 6 A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN DIEGO AUTHORIZING THE MAYOR, OR DESIGNEE, TO ENTER AN AGREEMENT BETWEEN THE CITY OF SAN DIEGO AND THE SAN DIEGO HOUSING COMMISSION TO TRANSFER NEIGHBORHOOD ENHANCEMENT FUND FEES TO THE SAN DIEGO HOUSING COMMISSION TO SUPPORT THE AFFORDABLE HOUSING PRESERVATION FUND AND RELATED ACTIONS. RECITALS The Council ofthe City of San Diego (Council) adopts this Resolution based on the following: A.

The City of San Diego (City) implements the Complete Communities Housing Solutions Program by reviewing development applications, issuing permits, and collecting fees pursuant to the San Diego Municipal Code (SDMC) and any relevant resolutions. B. The City developed the Complete Communities Housing Solutions Regulations to increase affordable and market- rate housing citywide and implement the General Plan City of Villages strategy and the Climate Action Plan (CAP).

The Complete Communities Housing Solutions Regulations is an opt- in, incentive- based program to assist the City in meeting its goals for the affordable housing Regional Housing Needs Allocation and the CAP by incentivizing the construction of affordable and market rate housing in multi- family and mixed use commercial areas served by transit, while investing in neighborhood amenities such as recreational opportunities, linear parks, urban plazas, cultural amenities, and promenades. C.

For a development to be eligible to receive the benefits under the Complete Communities Housing Solutions Regulations, applicants must comply with the regulations set forth in

Chapter 1 4 ,

Article 3, Division 1 0 ofthe SDMC. The regulations, as implemented through San Diego Resolution R- 31 32 82 (Nov. 1 7,2 02 0) and San Diego Resolution R- 31 52 91 - PAGE 1 OF 4-

®2 02 6- 534 ) (Dec. 2 2 ,2 02 3), among other things, include a requirement to pay a Neighborhood Enhancement In Lieu Fee (NEF) of $1 0.36 per square foot of lot area, or $1 2 .68 per square foot of lot area for projects over 95 feet in height, plus automatic annual increases in accordance with SDMC

section 1 4 2 .064 0(b), or construct on- site public amenities in the form of a public space on a premises of at least 2 5,000 square feet. NEFs are paid into an interest- bearing fund established by the City's Chief Financial Officer (CFO). D. Through the implementing resolutions, Resolution R- 31 32 82 and Resolution R.- 31 52 91 , the Council authorized the CFO to expend at least 50 percent ofthe NEF funds received on affordable housing preservation activities. E.

On June 2 3,2 02 5, the Council approved the City's Fiscal Year (FY) 2 02 6 Budget through San Diego Resolution R- 31 62 63 (June 2 3,2 02 5), which included a non- general fund expenditure and resource modification of $5,000,000 from the NEF fund for an affordable housing preservation fund. F.

On September 4 ,2 02 5, the Council's Land Use and Housing Committee (Committee) approved next steps to establish an affordable housing preservation fund, including, among other things, directing the SDHC to establish an affordable preservation fund to enable SDHC, its nonprofit affiliate Housing Development Partners (HDP), or other entity created or sponsored by SDHC or HDP to acquire and preserve both deed- restricted and naturally occurring affordable housing to serve and be affordable to households with a mix of incomes from 30 percent of San Diego's area median income (AMI) to 1 50 percent ofAMI and to place affordable housing covenants on the properties to maintain their affordability in perpetuity.

Pursuant to Council's approval of the City's FY 2 02 6 Budget, the Committee also directed - PAGE 2 OF 4-

®2 02 6- 534 ) SDHC to work with City staff to transfer approximately $5,000,000 from the City's NEF fund to SDHC to administer an affordable housing preservation fund. G. The amount of the NEF funds available to be transferred increased by $3,500,000 due to the collection of additional fees after the adoption of the City's FY 2 02 6 Budget. Presently, there is $8,500,000 in NEF funds available to be transferred to the SDHC for an affordable housing preservation fund. H.

Now, the City desires to enter an Agreement with the SDHC to transfer SDHC $8,500,000 in NEF funds to support SDHC's Affordable Housing Preservation Fund, pursuant to the terms and conditions of the Agreement. I.

On JUN 29 2026, through Housing Authority Resolution HA- 2Q2G , the Housing Authority of the City of San Diego (Housing Authority) authorized the SDHC to establish and administer the Affordable Housing Preservation Fund, and approved an amendment to the SDHC's FY 2 02 6 Budget to authorize SDHC to accept and expend $5,91 3,554 in NEF funds from the City for its Affordable Housing Preservation Fund and future annual transfers ofNEF funds subject to the terms and conditions of the Agreement and annual approval ofthe City's budget. J.

The Office ofthe City Attorney prepared this Resolution based on the information provided by City staff, including information provided by affected third parties and verified by City staff, with the understanding that this information is complete and accurate. ACTION ITEMS

Be it resolved by the Council ofthe City of San Diego: 1 . The Mayor, or designee, is authorized to enter an Agreement between the City of San Diego (City) and the San Diego Housing Commission (SDHC) to transfer City - PAGE 3 OF 4-

R- 2 02 6- 534 ) Neighborhood Enhancement Fund fees to SDHC to support SDHC's Affordable Housing Preservation Fund. 2 . The ChiefFinancial Officer, or designee, is authorized to appropriate and expend an amount not to exceed $8,500,000 from Fund 4 0087, Neighborhood Enhancement Fund, for the transfer to the SDHC to support the SDHC's Affordable Housing Preservation Fund. APPROVED: HEATHER FERBERT, City Attorney By Justin R. Bargar Deputy City Attorney JRB:cw June 2 5,2 02 6 Or.

Dept: Planning Department CC No. 103997531 Doc No.: 4465328 I certify that the Council of the City of San Diego adopted this Resolution at a meeting held on JU N 2 9 2 DIANA J.S. FUENTES City Clerk B y 7 . d» 7. Deputy City Clerk Approved: 4 (date) O D D G L O ayor Vetoed: (date) TODD GLORIA, Mayor - PAGE 4 OF 4-

The City of San Diego COMPTROLLER'S CERTIFICATE CERTIFICATE OF UNALLOTTED BALANCE CC 103997531 ORIGINAn NG DEPI. NO.: 1619 1 HEREBY CERTIFY that the money required for the allotment of funds for the purpose set forth in the foregoing resolution is available in the Treasury, or is anticipated to come into the Treasury, and is otherwise unallotted. Amount: $8,500,000.00 Purpose: To reserve funds in the amount of $8,500,000.00 within fund 4 00877, the City's Neighborhood Enhancement Fund, for the transfer to San Diego Housing Commission (SDHC) to support the Affordable Housing Preservation Fund.

See JE 103997531 for the fund block. Date: June 2 3,2 02 6 B y: M arilyn N guyen 7 >u4 /6 C O M PTR OL L E R ' E PA R TM *hIT ACCOUNTING DAT, Doc.

Funded Business Fund Center or Cost Internal Order or 1 ternProgramFundGrant NumberGÆ AccountFunctional AreaArea Center WBS ElementOriginal Amount i 1 NON- PROGRAM 400877 N OT_LEVANT- GRAN T 330081 OTHR- 00000000- NS 1619 1619000011 NON- PROGRAM $8,500,000.00 TOTAL AMOUNT $8,500,000.00 F U N D O V E R R ID El CERTIFICATION OF UNENCUMBERED BALANCE 1 HEREBY CERTIFY that the indebtedness and obligation to be incurred by the contract or agreement authorized by the hereto attached resolution, can be incurred without the violation of any of the provisions of the Charter of the City of San Diego; and I do hereby further certify, in conformity with the requirements of the Charter of the City of San Diego, that sufficient moneys have been appropriated for the purpose of said contract, that sufficient moneys to meet the obligations of said contract are actually in the Treasury, or are anticipated to come into the Treasury, to the credit of the appropriation from which the same are to be drawn, and that the said money now actually in the Treasury, together with the moneys anticipated to come into the Treasury, to the credit of said appropriation, are otherwise unencumbered.

Not to Exceed: Vendor: Purpose: Date: By: COMPTROLLER'S DEPARTMENT ACCOUNTING DAT.\ Doc. Funded Business Fund Center or Cost Internal Order or ItemProgramFundGrant NumberG/ L AccountFunctional AreaArea Center WBS ElementOriginal Amount TOTAL AMOUNT CC- 361 (REV 7- 09) F U N D O V E R R ID E l CC 103997531

40 Passed by the Council of The City of San Diego on,lune 2 9,2 02 6. by the following vote: CouncilmembersYeas Nays Not Present Recused Joe LaCava Jennifer Campbell Stephen Whitburn Henry L. Foster 1 1 1 Marni von Wilpert Kent Lee Raul A. Campillo Vivian Moreno Sean Elo- Rivera JU N 3 0 2 0 2 6 Date of final passage (Please note: When a resolution is approved by the Mayor, the date of final passage is the date the approved resolution was returned to the Office of the City Clerk.) AUTHENTICATED BY: TODD GLORIA Mayor of The City of San Diego, California. DIANA I.S. FUENTES . ù- (Seá

l) rn:·. City Clerk of The City of San Diego, California. By , Deputy Office of the City Clerk, San Diego, California Resolution Number R- 316851 1 ,0 1