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Home My WebLink AboutCC Resolution 13121 (Housing Authority Funding Agr.)RESOLUTION NO. 13121 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING ENTERING INTO A FUNDING AGREEMENT WITH THE HOUSING AUTHORITY OF MARIN, PURSUANT TO THE AFFORDABLE HOUSING GRANT BETWEEN THE CITY OF SAN RAFAEL AND THE SAN RAFAEL REDEVELOPMENT AGENCY, FOR ADMINISTRATION AND ENFORCEMENT OF THE CITY'S BELOW MARKET RATE OWNERSHIP PROGRAM BETWEEN 2011-12 AND 2024-25; MAKING FINDINGS AND APPROVALS PURSUANT TO THE CALIFORNIA REDEVELOPMENT LAW IN CONNECTION WITH THE UTILIZATION OF AGENCY LOW AND MODERATE INCOME HOUSING FUNDS OUTSIDE THE CENTRAL SAN RAFAEL REDEVELOPMENT PROJECT AREA WHEREAS, the City Council of the City of San Rafael (the "City") has adopted the Redevelopment Plan (the "Redevelopment Plan") for the Central San Rafael Redevelopment Project Area (the "Project Area"); and WHEREAS, the San Rafael Redevelopment Agency (the "Agency") is engaged in various activities in its efforts to provide affordable housing and to remove the blighting conditions that still remain in the Project Area pursuant to the Agency's Implementation Plan; and WHEREAS, the Agency has set objectives for affordable housing in accordance with the Amended and Restated Redevelopment Plan (the "Agency Plan") for the Central San Rafael Redevelopment Project Area; and WHEREAS, in order to serve the objectives of the Agency Plan, the Agency desires to assist low and moderate income persons to achieve homeownership; and WHEREAS, the Agency has established a Low and Moderate Income Housing Fund (the "Fund") pursuant to Health and Safety Code Section 33334.3; and WHEREAS, On February 22, 2011 the Agency approved entering into an Affordable Housing Grant and Cooperation Agreement with the City of San Rafael; and WHEREAS, San Rafael Municipal Code Section 14.16.030 requires the majority of new housing developments in the City to provide housing affordable to low and moderate income households on site and for those units to remain affordable over time; and WHEREAS, there are presently 115 affordable ownership units in the City of San Rafael with long term resale restrictions; and WHEREAS, the Housing Authority of the County of Marin, (the "Authority") is a public corporation authorized to provide decent, safe and sanitary housing for low and moderate income households; and WHEREAS, the Authority has expertise in providing management and oversight of the Below Market Rate Homeownership Program (the "BMR Ownership Program") and has administered the BMR Ownership Program for the City of San Rafael, the County of Marin and the majority of cities in the County for many years; and WHEREAS, there are no other means of financing the management and oversight of the BMR ownership Program; no general funds are available for this project at this time; or contemplated to be available for this project in the foreseeable future; and WHEREAS, the City, pursuant to the Agency and City Cooperation Agreement, desires to enter into a funding agreement (the "Agreement") with the Authority to provide ongoing funding for administration of the BMR Ownership Program; and WHEREAS, the BMR Ownership Program meets the Agency's goals of providing housing opportunities to low and moderate -income persons; all of the units have affordability restrictions of a minimum of forty-five years meeting the requirement of Health and Safety Code Section 33334.3. NOW, THEREFORE BE IT RESOLVED by the City of San Rafael as follows: Section 1. All the Recitals above are true and correct and incorporated herein. Section 2. In compliance with Section 33334.2(g) of the Law, the City Council hereby finds that: assistance to the affordable housing projects described in the Agreement and located outside the Project Area will be of benefit to the Redevelopment Plan, serve major Redevelopment Plan goals and objectives 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 the Project Area. This finding is further based on the facts and analysis in the staff report incorporated in this Resolution. Section 3. The City Council hereby approves an expenditure of One Hundred Thousand dollars ($100,000) annually with a 2% annual increase projected through 2025, for a total $1,629,342.00 from the Fund for an agreement between the City and the Authority to administer the BMR Ownership Program between Fiscal Year 2010-11 and Fiscal Year 2024-25. Section 4. The City Council hereby approves the Funding Agreement between the City and the Authority and authorizes the Interim City Manager to enter into and execute the Agreement on behalf of the City in substantially the form on file with the City Clerk, with such revisions as are reasonably determined necessary by the City signatory, such determination to be conclusively deemed to have been made by the execution of the Agreement by the City signatory. The Interim City Manager is authorized to implement the Agreement and take all further actions and execute all other documents, which are necessary or appropriate to carry out the Agreement. 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 Monday, March 21, 2011, by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Brockbank, Connolly, Heller, Levine & Mayor Boro None None --f -9� -_ , J&? i 111��l Esther C. Beirrie, City Clerk CITY OF SAN RAFAEL AGENDA ITEM NO.: 8 MEETING DATE: March 21, 2011 REPORT TO MAYOR AND CITY COUNCIL SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING ENTERING INTO A FUNDING AGREEMENT WITH THE HOUSING AUTHORITY OF MARIN, PURSUANT TO THE AFFORDABLE HOUSING GRANT BETWEEN THE CITY OF SAN RAFAEL AND THE SAN RAFAEL REDEVELOPMENT AGENCY, FOR ADMINISTRATION AND ENFORCEMENT OF THE CITY'S BELOW MARKET RATE OWNERSHIP PROGRAM BETWEEN 2011-12 AND 2024-25; MAKING FINDINGS AND APPROVALS PURSUANT TO THE CALIFORNIA REDEVELOPMENT LAW IN CONNECTION WITH THE UTILIZATION OF AGENCY LOW AND MODERATE INCOME HOUSING FUNDS OUTSIDE THE CENTRAL SAN RAFAEL REDEVELOPMENT PROJECT AREA � Q, d SUBMITTED BY: 1 `�'�— APPROVED BY: Nancy Mackle, Economic Develo ent Director Jim Schutz, InterimkitManager RECOMMENDATION: Staff recommends that the City Council adopt the attached resolution approving a Funding Agreement with the Housing Authority of the County of Marin for the administration and enforcement of the affordable ownership housing program and to expend affordable housing funds within the Redevelopment Project Area and within the City of San Rafael. BACKGROUND: The Redevelopment Agency has entered into an Affordable Housing Grant and Cooperation Agreement with the City of San Rafael. This agreement provides funding for the City to undertake affordable housing activities consistent with the Agency's Redevelopment Plan and Implementation Plan. Pursuant to this cooperation agreement , the City of San Rafael desires to enter into a Funding Agreement ("Funding Agreement") with the Housing Authority of the County of Marin (the "Authority") to continue administration of the City's affordable ownership housing program. California Redevelopment Law, Health and Safety Code Section 33334.2 (g), requires that the City Council make findings and approve the use of Agency affordable housing funds when the funds will be used on projects located outside of the Central San Rafael Redevelopment Project Area. FOR CITY CLERK ONLY File No.: 9-2-1 �- (_ ''1.1Rfi ,1) I �3 -4 / (;PCA) 1°0 City Council Meeting: 31.21 Izo it Disposition: P�Lo-(10,0 +�_ 13121 Page 2 ANALYSIS: San Rafael Municipal Code Section 14.16.030 requires the majority of new housing developments in the City to provide housing affordable to low and moderate -income households on site and for those units to remain affordable over time. There are presently 115 affordable ownership units in the City of San Rafael with long-term resale restrictions. The Authority has managed the City's affordable ownership housing program for many years with funding provided from the San Rafael Redevelopment Agency Affordable Housing Fund. City staff is recommending that the Authority continue to manage the program and the City of San Rafael continue to fund this program, from affordable housing funds received by the Redevelopment Agency, as the City has no other available funding for this program. The proposed Funding Agreement would allocate $100,000 annually, increased by two percent per year, for the administration of the program from Fiscal Year 2011-12 to Fiscal Year 2024-25. The Funding Agreement would constitute a debt of the Agency and would continue until the Agency bonds are paid off, provided the Agency continues to receive affordable housing funds. FISCAL IMPACT: The Funding Agreement provides for an annual payment of $100,000 to be increased at 2% per year. The total cost would be $1,629,342.00 between Fiscal Year 2011-12 and Fiscal Year 2024-25. ACTION REQUIRED: Adopt the attached resolution. ATTACHMENTS: Attachment A Funding Agreement