Features

MISLEADING CONCLUSIONS 

Editors, Daily Planet: 

Your recent article about the role of the Association of Bay Area Governments (ABAG) in the financing of Panoramic Interest’s mixed-income project in Berkeley (“Affordable Housing Program Funds High-Priced Apartments,” Daily Planet, Feb. 13-16) makes misleading conclusions about the nature of that agency and the goals of these projects. To set the record straight: 

1) The bond funding programs you allude to are administered by the State of California as part of a statewide competition, and are deliberately earmarked for projects that provide low-income housing mixed in with market rate units —a socially desirable goal advocated by many planners, politicians, and agencies, including HUD. The bond monies are raised privately and repaid entirely with private funds. If our projects had not qualified for these bonds, the funds would have gone to other mixed-income projects in other parts of the state, to Berkeley’s loss.  

2) ABAG’s role as a project sponsor furthers its mission to provide affordable housing, and has resulted in the construction in Berkeley of 90 units of low income housing—a number that I believe is greater than all of the units developed and managed by Berkeley’s Housing Department during the past decade. No city housing trust funds were needed to build these bond financed units, nor are any city funds used to maintain or manage them.  

3) Berkeley’s experience with 100 percent low-income projects has been mixed, and led to accusations that such developments amount to “ghetto-ization” of low income people. In contrast, the inclusion of low-income residents in market rate projects furthers the goal of diversity, and generally makes for a living environment preferred by residents and neighbors alike. 

The general benefits to the city of the additional 425 units of new housing are also there for people to judge.  

Patrick Kennedy 

• 

MISCONCEPTIONS 

Editors, Daily Planet: 

J. Douglas Allen-Taylor’s recent article on the Association of Bay Area Governments (ABAG) and affordable housing financing leaves the reader with misconceptions. Financing and bond issuances are complex subjects and unfortunately Mr. Allen-Taylor misunderstood the full range of ABAG’s affordable housing program under ABAG’s Finance Authority for Nonprofit Corporations.  

We are proud of our innovative program that helps create critically needed housing at all income levels through tax exempt bond financing. This financing supports the acquisition, construction, and rehabilitation of multifamily and senior housing and is available for nonprofit housing developers, partnerships, and others with public benefit goals. It helps provide low cost financing for smaller urban projects and is an efficient competitive lending vehicle for larger developments.  

Contrary to Mr. Allen-Taylor’s statements, ABAG’s Finance Authority regularly monitors borrowers, and enforces strict compliance with Federal and State regulations for tax-exempt bond financed multifamily housing projects. There are no exemptions to these requirements as stated in the article 

Nonprofit housing developers quoted in the article reflect the difficulties of financing such valuable projects. To help meet the critical shortage of housing, especially affordable housing, we encourage nonprofit groups to take advantage of this tax-exempt debt financing opportunity.  

Scott Haggerty, ABAG President 

Alameda County Supervisor