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I i i Appendix G. Local Residency Requirement There are several legally permissible ways to give preference to area residents. First Distinction: Current County Resident-- A county funded program for rental or for-sale housing can give preference to County Residents. Example: Kauai County resident requirement for affordable for-sale homes(both leasehold and fee simple)since updating the affordable housing ordinance in 2007. Kauai County Ordinance No.860: "Qualified resident" means a person who: (a) Is a citizen of the United States or a resident alien; (b) Is at least eighteen (18)years of age; (c) Is a full-time resident of Kaua'i County;and (d)Shall physically reside in the workforce housing unit purchased or rented. Other examples: San Francisco,San Diego, New York, DC,all have requirements that homes be prioritized to people currently living in the counties. In fact, most counties have current resident requirements for their affordable housing programs. Second Distinction: Preference by Local Area--ie by Councilmember district or within half mile or other radius of a new project. Examples: San Francisco and New York City San Francisco and New York City have very well established below-market for-sale programs and they both have preferences for residents in the local area where housing is developed.San Francisco started their inclusionary zoning program in 1992 and it has undergone four policy revisions. The New York program started in the 1980's and has a community preference policy. Legal Concerns: Fair Housing Act. Some concerns have been raised about if local area preferences would violate the Fair Housing Act(FHA).The San Francisco Mayor's Office of Housing and Community Development(MOHCD)said FHA concerns can be addressed by showing that a preference for nearby residents will not result in unfairly excluding minority groups from certain neighborhoods. FHA concerns can be addressed by showing that a preference fornearby residents will not result in "disparate impact". For example a recent 2020 letter from MOHCD Director Eric Shaw,explains how this analysis showed no negative impact by the Neighborhood Resident Housing Preference (NHRP): "We conducted a disparate impact analysis utilizing application data from lease- ups that occurred in 2019 for the two sites that received permission from HCD to apply NRHP, Eddy and Taylor and 455 Fell.The analysis shows no disparate impact when the NRHP is applied to 25%of the open lottery units." San Francisco Local Area Preference: Up to 40%of housing units can go towards local area residents. San Francisco, California,Administrative Code Chapter 47; "Preference in City Affordable Housing Programs": Sec. 47.2 Definitions: 145