HomeMy WebLinkAboutCC Resolution 12462 (Purchase BMR)RESOLUTION NO. 12462
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 THIRTY THREE THOUSAND DOLLARS ($333,000) FOR
THE PURCHASE OF A BELOW MARKET RATE UNIT, APPROVING A SUBSIDY OF
UP TO $35,000 TO REDUCE THE RESALE PRICE 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 011-310-11)
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 to include units affordable to low and moderate income households;
and
WHEREAS, the City of San Rafael and Muir Terrace Homes of San Rafael, LLC 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,
WI IEREAS, 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
WHEREAS, 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 approved a loan of Three Hundred and Thirty Three
Thousand Dollars ($333,000) from the Agency's Low and Moderate Income Housing Fund (the
"Housing Fund") to finance acquisition of such unit by Marin Housing ( the "Agency Loan") so
that the unit might remain in the City's BMR program by Resolution 2008-08; and,
"WHEREAS, Redevelopment Agency Resolution 2008-08 further approved a subsidy of
up to $35,000 to reduce the sales price of the unit; 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 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 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 Three
Hundred and Thirty Three Thousand Dollars ($333,000) of Housing Fund moneys to fund the
Agency Loan and an additional $35,000 subsidy to reduce the price of the unit.
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 7th day of April 2008, by the following vote, to wit:
AYES:
COUNCILMEMBERS:
Brockbank, Connolly, Heller, Miller & Mayor Boro
NOES:
COUNCILMEMBERS:
None
ABSENT:
COUNCILMEMBERS:
None
Esther C. Beirne, City Clerk
CITY OF
SAN RAFAEL
AGENDA ITEM NO.: 12
MEETING DATE: April 7, 2008
REPORT TO MAYOR AND CITY COUNCIL
SUB JECT: 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 THIRTY THREE THOUSAND DOLLARS
($333,000) FOR THE PURCHASE OF A BELOW MARKET RATE UNIT,
APPROVING A SUBSIDY OF UP TO $35,000 TO REDUCE THE RESALE PRICE
AND MAKING FINDINGS AND APPROVALS PURSUANT TO THE CALIFORNIA
REDEVELOPMENT LAW IN CONNECTION WITH THE UTILIZATION OF
AGENCY LOW AND MODERATE INCOME HOUSING FUNDS O TSIDE THE
CENTRAL SAN RAFAEL REDEVELOPMENT PROJECT AREA ( N011-310-11)
SUBNETTED BY: ��� Yk' `'� APPROVED BY:
Nancy Mackle, Economic Development Director Ken Nordho f, 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 $333,000 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.
This unit is more expensive because the original agreement with the developer allowed the unit to
be priced to be affordable to a household at 100% of County median income. The newer BMR
agreements require the price to be affordable to households at 90% of County median income.
FOR CITY CLERK ONLY
File No.:
City Council Meeting:
Disposition:
Page 2
The Agency also approved a subsidy of up to $35,000 to reduce the resale price. This price
reduction will bring the pricing in line with similar BMR units.
Marin Housing will purchase the unit with the $333,000 loan and resell it to a qualified purchaser
for a sales price of $298,000. Upon the sale, $298,000 will be returned to the Agency's low and
moderate income housing fund. The remaining $35,000 will be used to permanently reduce the unit
sales price.
FISCAL IMPACT: No fiscal impact to the City, the $333,000 loan and the $35,000 subsidy will be
funded by the Redevelopment Agency's Low and Moderate Income Housing Fund.
ACTION REQUIRED: Adopt the attached resolution.