HomeMy WebLinkAboutCC Resolution 14098 (Purchase BMR Housing Unit 2016 (missing agr))RESOLUTION NO. 14098
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING, AND
ALLOCATING AN AMOUNT NOT TO EXCEED ONE HUNDRED AND FORTY FIVE
THOUSAND DOLLARS ($145,000) OF CITY AFFORDABLE HOUSING IN -LIEU FUNDS
FOR A LOAN TO MARIN HOUSING FOR THE PURCHASE OF A BELOW MARKET RATE
HOUSING UNIT (A.P.N 179-420-07)
WHEREAS, Section 14.16.030 of the Zoning Ordinance of the San Rafael Municipal
Code requires that residential projects include units affordable to low and moderate income
households, and/or that the developer pay in -lieu affordable housing fees; and also imposes a
requirement for payment of in -lieu affordable housing fees on new nonresidential (commercial,
industrial or institutional) development. These in -lieu funds are placed in a separate housing
fund ("the Affordable Housing In -lieu Fund"), to be used for the acquisition, improvement or
construction of housing affordable to very low, low, and moderate income households; and
WHEREAS, the City has contracted with the Housing Authority of the County of Marin
("Marin Housing") to administer the City's Below Market Rate ("BMR") Ownership Housing
Program. The City's agreement with Marin Housing provides that each contract conveying a
BMR unit to a buyer shall include a resale restriction and an option to purchase constituting a
right of first refusal to Marin Housing ("Resale Restriction"); and
WHEREAS, Marin Housing and the owner of the BMR property identified as APN 179-
420-07 entered into an agreement containing the Resale Restriction; and
WHEREAS, Marin Housing desires to exercise its option to purchase the BMR unit at
APN 179-420-07 pursuant to the Resale Restriction, but Marin Housing does not have the
funds necessary to exercise the purchase option; and
WHEREAS, the City of San Rafael desires to provide a loan to Marin Housing to finance
acquisition of such unit by Marin Housing ("the Loan"), until the unit can be resold to a low or
moderate income household, so that the unit might remain in the City's BMR program; and
WHEREAS, the City of San Rafael desires that the unit be affordable to a low income
household and requests that Marin Housing move this unit from a moderate income category
affordable to a household at 120% of Area Median Income, to a lower income category
affordable to a household whose income does not exceed 80% of the Area Median Income; and
WHEREAS, it is proposed that the City fund the Loan with One Hundred and Forty Five
Thousand Dollars ($145,000) from the City's Affordable Housing In -lieu Fund; and
WHEREAS, Marin Housing has provided a proposed Promissory Note for this
transaction, attached hereto as Exhibit A and incorporated herein by reference; and
WHEREAS, the transaction will serve the goals of the City's housing element by
maintaining housing available at affordable cost in the community, thereby decreasing the
market pressure on the supply of affordable housing in the community; and
WHEREAS, the California Environmental Quality Act (Public Resources Code Section
21000 et seg.) ("CEQA") imposes no conditions on the City's consideration and approval of this
Agreement, because the project undertaken pursuant to this Agreement is the rehabilitation of
existing improvements and such projects are exempt from CEQA requirements under the
categorical exemption set forth in 14 CCR Section 15301; and
WHEREAS, by staff report accompanying this Resolution and incorporated herein by
reference, the City Council has been provided with additional information upon which the
findings and actions set forth in this Resolution are based.
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby approves
allocation of One Hundred and Forty Five Thousand Dollars ($145,000) from the City's
Affordable Housing In -lieu Fund monies to fund the Loan to Marin Housing, and authorizes the
City Manager to effectuate a Loan Agreement, in a form approved by the City Attorney, and to
accept the Promissory Note with Marin Housing attached as Exhibit A.
BE IT FURTHER RESOLVED that this Resolution shall take immediate effect upon
adoption.
I, ESTHER BEIRNE, City Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was duly and regularly introduced and adopted at a regular meeting of the City
Council held on the 18'h day of April 2016, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ESTHER BEIRNE, City Clerk
PROMISSORY NOTE
(Pertaining to Marin County Assessor's Parcel No, 179-420-007)
Principal Amount: $145,000. DATE: April 29, 2016
FOR VALUE RECEIVED, the undersigned, THE HOUSING AUTHORITY OF
THE COUNTY OF MARIN (Borrower) promises to pay to the CITY OF SAN
RAFAEL acting as SUCCESSOR HOUSING AGENCY OF THE FORMER SAN
RAFAE L REDEVELOPMENT AGENCY, a California Redevelopment Agency
formed pursuant to the California Community Redevelopment Law (Health & Safety
Code Section 33000, et seq.) (Lender) or to order, the sum of ONE HUNDRED FORTY
FIVE THOUSAND AND NO/100'S DOLLARS ($145,000.00), payable without
interest, as specified below.
Borrower sball make one lump -sum payment, in lawful money of the United States, of
the full principal balance of this Note, excepting only such credits against such balance as
may be approved in writing by Lender, on or before the earlier of the following:
a. April 28, 2017; or -
b. 60 days following the close of escrow on the sale by Borrower to a third party
of the real property located in the City of San Rafael, County of Marin,
identified as Assessor's Parcel No. 179-420-007.
If the Borrower fails to make payment when due or fails to comply with any other term of
this promissory note, the loan will be considered in default,
This Note may be prepaid by the Borrower at any time in whole or in part without
premium or penalty.
The Borrower must promptly inform Lender of any change in name or address.
If the Lender prevails in a lawsuit to collect on this Note, Borrower will pay Lender's
court costs, collection agency costs, and attorney's fees in an amount the court finds to be
reasonable.
By:
Lewis A. Jordan
Executive Director