HomeMy WebLinkAboutCC Resolution 12734 (BMR RA Purshase)CITY COUNCIL OF THE CITY OF SAN RAFAEL
RESOLUTION NO. 12734
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
APPROVING THE REDEVELOPMENT AGENCY PURCHASE OF A BELOW
MARKET RATE UNIT FOR $244,000, APPROVING UP TO $31,000 FOR COSTS
ASSOCIATED WITH THE RESALE AND 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 (APN 155-376-24)
WHEREAS, the City Council (the "City Council") of the City of San Rafael (the "City")
has adopted and amended, from time to time, the Redevelopment Plan (the "Redevelopment
Plan") for the Central San Rafael Redevelopment Project Area (the "Project Area"); and
WHEREAS, the Redevelopment Agency of the City of San Rafael (the "Agency") is
responsible for administering the Redevelopment Plan to cause redevelopment of the Project
Area, including the provision of housing available at affordable housing cost to low and
moderate income households; and
WHEREAS, The City of San Rafael General Plan Policy H-19 requires that a portion of
the units in residential projects include units affordable to low and moderate income households;
and
WHEREAS, the City of San Rafael and Mc Innis Housing Partners initially entered into
an Agreement to Provide Below Market Rate Housing ("BMR") and the Marin County Housing
Authority ("Marin Housing") agreed to administer the BMR units in the development; and,
WHEREAS, the Below Market Rate Housing Agreement provides that each contract
conveying a Below Market Rate unit to a buyer include a resale restriction and an option to
purchase constituting a right of first refusal to Marin Housing or its designee ("Resale
Restriction"); and
WHEREAS, Marin Housing has exercised its option to purchase a Below Market Rate
unit pursuant to the Resale Restriction, and desires to assign the option to the San Rafael
Redevelopment Agency; and
WHEREAS, the Agency approved an expenditure of $244,000 to purchase the
unit from the Agency's Low and Moderate Income Housing Fund (the "Housing Fund") to
finance acquisition of such unit so that the unit might remain in the City's BMR program; and,
WHEREAS, Redevelopment Agency fiirther approved a subsidy of up to $31,000 to
reduce the sales price of the unit and for costs associated with reselling the unit to a qualified
buyer to be paid from the Housing Fund; and
WHEREAS, Health and Safety Code Section 33334.2(g) authorizes expenditure of
Housing Fund monies outside the Project Area upon a finding by the Agency and the City
Council that such use will be of benefit to the Project Area; and
WHEREAS, the transaction will benefit the Project Area and 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; and
WHEREAS, The California Environmental Quality Act (Public Resources Code Sections
21000 et seq.) ("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
WIIEREAS, 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, based on information and analysis set forth in the
above Recitals and contained in the Staff Report accompanying this Resolution, the City Council
hereby finds and determines pursuant to Health and Safety Code Section 33334.2(g) that the use
of moneys from the Housing Fund to assist the Development will be of benefit to the Project
Area and the program of redevelopment pursuant to the Redevelopment Plan.
BE IT FURTHER RESOLVED that the City Council hereby approves allocation of Two
Hundred and Forty Four Thousand Dollars ($244,000) of Housing Fund monies to fund the
Agency Loan and an additional $31,000 subsidy.
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 4th day of May 2009, by the following vote, to wit:
AYES: COUNCILMEMBERS: Brockbank, Connolly, Heller, Miler & Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ESTHER C. BEIRNE, City Clerk
CITY OF AGENDA ITEM NO.: 12
SAN RAFAEL MEETING DATE: May 4, 2009
REPORT TO MAYOR AND CITY COUNCIL
SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL APPROVING THE REDEVELOPMENT AGENCY PURCHASE OF A
BELOW MARKET RATE UNIT FOR $244,000, APPROVING UP TO $31,000 FOR
COSTS ASSOCIATED WITH THE RESALE AND 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 (APN 155-376-24)
1
SUBMITTED BY:)&V— ,6 - APPROVED BY:
Nancy Mackle, Econo 'c Development Director Ken Nordhoff, Executive Director
RECOMMENDATION: Staff recommends that the City Council adopt the attached resolution
approving a loan by the Redevelopment Agency to Marin Housing for the purchase of a Below
Market Rate housing unit located outside the Redevelopment Project Area.
BACKGROUND: The California Redevelopment Law, Health and Safety Code Section 33334.2
(g), requires that the City Council make findings and approve the Agency's use of low and moderate
income housing funds when the funds will be used on projects located outside of the Central San
Rafael Redevelopment Project Area.
ANALYSIS: The Redevelopment Agency approved a $244,000 loan to Marin Housing for the
purchase of this unit, which is located outside of the Redevelopment Project Area. Normally, Marin
Housing would assign the right to purchase to another qualified buyer and not directly purchase the
unit. However, this unit is higher priced than most of the units in the BMR program and has been
difficult to sell.
The Agency also approved a subsidy of up to $31,000 to reduce the resale price. This price
reduction will bring the pricing in line with similar BMR units.
FOR CITY CLERK ONLY
File No.:
City Council Meeting:
Disposition:
Page 2
The San Rafael Redevelopment Agency will purchase the unit and Marin Housing will resell the
unit to a qualified purchaser. Upon the sale, $244,000 will be returned to the Agency's low and
moderate income housing fund. Up to $31,000 will be used to permanently reduce the unit sales
price.
FISCAL IMPACT: No fiscal impact to the City, the $244,000 loan and the $31,000 subsidy will be
funded by the Redevelopment Agency's Low and Moderate Income Housing Fund.
ACTION REQUIRED: Adopt the attached resolution.