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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.