HomeMy WebLinkAboutCC Resolution 13509 (BMR)RESOLUTION NO. 13509
RESOLUTION APPROVING AN AGREEMENT WITH MARIN HOUSING FOR THE
ADMINISTRATION OF THE BELOW MARKET RATE HOMEOWNERSHIP PROGRAM
FOR A FIVE YEAR PERIOD IN THE AMOUNT OF $80,000
WHEREAS, the City of San Rafael General Plan Policy H-19 provides for on site units
affordable to very low, low and moderate income households in new residential projects; and
WHEREAS, such units provided by developers to comply with the General Plan are
known as Below Market Rate Housing ("BMR") units, and each buyer of a BMR unit executes
enforceable resale restrictions so the units remain affordable over time; and
WHEREAS, for many years the City of San Rafael has hired the Housing Authority of the
County of Marin ("Marin Housing") to administer the City's BMR Ownership Housing Program
("the Program"), and to enforce the resale restrictions on BMR units in the Program; and
WHEREAS, the City of San Rafael authorized the use of Redevelopment Agency Low
and Moderate Income housing funds to fund the contract with Marin Housing to manage the
BMR Ownership Program; and
WHEREAS, on February 1, 2012, the Redevelopment Agency was dissolved pursuant to
Health and Safety Code Section 34172; and
WHEREAS, the City as Housing Successor now holds the former Redevelopment
Agency's housing funds; and
WHEREAS, the City and Marin Housing wish to formalize their agreement as to the
services to be provided by Marin Housing for comprehensive administration and management of
the Program for Fiscal Years 2012-13 to 2017-18;
WHEREAS, the contract may be terminated by either party upon a ninety day notice; and
WHEREAS, the annual cost for administering the program will be $68,655. It is
estimated that additional funds will be required to pay for legal fees in connection with the
enforcement of BMR unit resale restrictions; and
WHEREAS, it is proposed that the Marin Housing contract for annual administration and
estimated legal fees be funded with Eighty Thousand Dollars ($80,000) from the City's Low and
Moderate Income Housing Fund (the "Housing Fund"); and
WHEREAS, by staff report accompanying this Resolution and incorporated into this
Resolution by this reference (the "Staff Report"), 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 finds and
determines that the above recitals are true and correct and have served as the basis, in part, for the
findings and actions of the City Council set forth below.
BE IT FURTHER RESOLVED that the City Council hereby approves allocation of
Eighty Thousand Dollars ($80,000) of City Housing Fund monies to fund an agreement between
the City and Marin Housing for management and enforcement of the Program for Fiscal Year
2013-14.
BE IT FURTHER RESOLVED that the City Council hereby authorizes the City Manager
to execute an agreement with Marin Housing for Fiscal Years 2012-13 to 2017-18, for
comprehensive services to manage the Program and provide enforcement services with a ninety
day termination notice, in an amount of Eighty Thousand Dollars ($80,000) for Fiscal Year 2013-
14, in a form to be approved by the City Attorney.
BE IT FURTHER RESOLVED that this Resolution shall take immediate effect upon
adoption.
I, ESTHER C. 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 eighteenth day of March 2013, by the following vote, to wit:
AYES:
COUNCILMEMBERS:
Colin, Connolly, Heller, McCullough & Mayor Phillips
NOES:
COUNCILMEMBERS:
None
ABSENT:
COUNCILMEMBERS:
None
'02s� e . ge4 r.".
ESTHER C. BEIRNE , City Clerk
CITY OF
SAN RAFAE L
AGENDA ITEM NO.: 3.e
MEETING DATE: March 18, 2013
REPORT TO MAYOR AND CITY COUNCIL
SUBJECT: RESOLUTION APPROVING AN AGREEMENT WITH MARIN
HOUSING FOR THE ADMINISTRATION OF THE BELOW MARKET RATE
HOMEOWNERSHIP PROGRAM FOR A FIVE YEAR PERIOD IN THE AMOUNT
OF $80,000
SUBMITTED BY:G-i APPROVED BY-,
Stephanie Lovette, Economic Development Manager Nancy Mackie, City Manager
RECOMMENDATION: Staff recommends that the City Council adopt the attached resolution
approving an expenditure of Housing Successor affordable housing funds to Marin Housing for
the administration and enforcement of the City's Below Market Rate Housing Ownership
Program, and authorizing the City Manager to enter into an agreement with Marin Housing for
such services.
BACKGROUND: The Housing Authority of the County of Marin ("Marin Housing") has been
administering the City's Below Market Rate Housing Ownership ("BMR") Program ("the
Program") since its inception in 1986. Marin Housing also administers the affordable ownership
program for the cities of Corte Madera, Larkspur, Tiburon, Mill Valley and for the county of
Marin.
The program costs are allocated between the participating jurisdictions. San Rafael has '379'0 of
the BMR inventory and pays 37% of the costs, the County of Marin has 29% of the units, Corte
Madera has 10%, Larkspur, Tiburon and Mill Valley have 8% each, and San Anselmo has I% of
the units. Each jurisdiction pays for legal costs of associated enforcement actions in its own
jurisdiction.
FOR CITY CLERK ONLY
File No.: ;2 - -/- R - 173 X 4' / oz
City Council Meeting: 3(/ 3
Disposition: P554 LU%/ 0,v 13 09
Page 2
ANALYSIS: The City has traditionally fielded the Ownership BMR program from the San
Rafael Redevelopment Agency's affordable housing fund. The Redevelopment Agency has now
dissolved pursuant to state law, and the City has agreed to be the legal successor to its rights and
obligations. The City is the "Housing Successor" to the Redevelopment Agency's housing
obligations, but the Housing Successor is not a separate entity from the City. (This is in contrast
to the City as "Successor Agency" for the non -housing obligations of the Redevelopment
Agency, which the law has recognized to be a distinct legal entity from the City of San Rafael.)
AB 1484, the redevelopment shutdown legislation, included a process to reallocate non -obligated
redevelopment agency fiends to the local taxing agencies. San Rafael has completed this process
for the housing fiends and was required to pay $1,136,751 to the other taxing agencies. As one of
the local taxing entities, the City of San Rafael was allocated $247,654 of the $1.1 Million
housing payment, and that money has been deposited into the City's low and moderate income
housing find. That fiend now has about $92,000 remaining after paying existing expenses and
obligations. Staff is proposing that $80,000 be allocated to the Marin Housing contract to
manage the affordable ownership program. The actual annual cost will be $68,655. The
remaining funds will be held by the City as Housing Successor to fund potential legal costs
associated with the program.
The proposed contract is for five years and contains a ninety -day termination clause. Staff is
recommending approving the five-year contract and one year of funding at this time. Future
allocations for the contract will be handled through the annual budget process.
The City of San Rafael as Housing Successor is allowed to maintain all finds from affordable
housing activities. The City will receive annual lease payments from Centertown and Lone
Patin, as well as the net proceeds from the sale of any affordable ownership units. These finds
can be used to fund the program in future years.
FISCAL IMPACT: The annual program administration fee will be $68,655. Staff has included
an additional $11,345 for potential legal fees. The City low and moderate income housing fund
balance is approximately $92,000.
OPTIONS:
1) Adopt the Resolution allocating $80,000 of City low and moderate income housing funds to
the management of the Ownership BMR program and authorizing the City Manager to enter
into a Five Year Agreement with Marin Housing, with a ninety -date termination clause, in a
form to be approved by the City Attorney.
2) Request changes to the resolution and proposed contract.
3) Reject the Resolution.
ACTION REQUIRED: Adopt the attached resolution.
ATTACHMENTS:
1. Resolution
2. Draft Agreement