HomeMy WebLinkAboutCC Resolution 12418 (Purchase BMR)RESOLUTION NO. 12418
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
APPROVING A LOAN TO MARIN HOUSING IN AN AMOUNT NOT TO EXCEED
THREE HUNDRED AND FIFTY THOUSAND DOLLARS ($350,000) FOR THE
PURCHASE OF A BELOW MARKET RATE UNIT 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 179-471-51)
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 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 Signature Properties 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,
WIIEREAS, 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 ("Resale Restriction"); and
W1 IEREAS, Marin Housing desires to exercise its option to purchase a Below Market
Rate unit pursuant to the Resale Restriction, but Marin Housing does not have the funds
necessary to exercise the purchase option; and
WHEREAS, the Agency desires to provide a loan to Marin Housing (the "Agency
Loan") to finance acquisition of such unit by Marin Housing, so that the unit might remain in the
City's BMR program; and,
WHEREAS, it is proposed that the Agency fund the Agency Loan with Three Hundred
and Fifty Thousand Dollars ($350,000) from the Agency's Low and Moderate Income Housing
Fund (the "Housing Fund"); and
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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
WI JEREAS, 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 sec .) ("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 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 monies 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 Three
Hundred and Fifty Thousand Dollars ($350,000) of Housing Fund monies to fund the Agency
Loan.
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 22nd day of January 2008, by the following vote, to wit:
AYES: Brockbank, Connolly, Heller, Miller & Mayor Boro
None
None
COUNCILMEMBERS:
NOES:
COUNCILMEMBERS:
ABSENT:
COUNCILMEMBERS:
Esther C. Beirne, City Clerk
CITY OF AGENDA ITEM NO.: 7
SAN RAFAEL MEETING DATE: January 22, 2008
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL APPROVING THE EXECUTION OF A LOAN TO MARIN HOUSING IN
AN AMOUNT NOT TO EXCEED THREE HUNDRED AND FIFTY THOUSAND
DOLLARS ($350,000) FOR THE PURCHASE OF A BELOW MARKET RATE
HOUSING UNIT 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 179-471-51)
. ..... . APPROVED
SUBMITTED BY: B
Nancy Mackle, Economic Development Director Ken N�kof rEx e 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: This is an existing affordable unit that may be purchased by Marin Housing pursuant
to the Resale Restriction on the unit. The unit will be resold to a qualified purchaser and the ftinds
returned to the Agency's low and moderate income housing fund. A City Council resolution is
required by the Health and Safety Code to implement the Agency's loan.
FISCAL IMPACT: No fiscal impact to the City, the $350,000 loan will be funded by the
Redevelopment Agency's Low and Moderate Income Housing Fund.
ACTION REQUIRED: Adopt the attached resolution.
FOR CITY CLERK ONLY
File No.:
City Council Meeting:
Disposition: Pt—:snt-u,i it--nt` 4 i �LL4,1 q