HomeMy WebLinkAboutCC Resolution 11935 (Purchase BMR)CITY COUNCIL OF THE CITY OF SAN RAFAEL
RESOLUTION NO. 11935
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
APPROVING A LOAN TO MARIN HOUSING IN AN AMOUNT NOT TO EXCEED
TWO HUNDRED AND FIFTY THOUSAND DOLLARS ($250,000) 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. (184-250-19)
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 San Rafael Redevelopment Agency (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 Dividend Development Company initially
entered into an Agreement to Provide Below Market Rate Housing ("BMR") and the Marin
County HousingAuthority ("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 ("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 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 Two Hundred and
Fifty Thousand Dollars ($250,000) from the Agency's Low and Moderate Income Housing Fund
(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 se .) ("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 Two
Hundred and Fifty Thousand Dollars ($250,000) of Housing Fund monies to fund the Agency
Loan.
BE IT FURTHER RESOLVED that this Resolution shall take immediate effect upon
adoption.
I, JEANNE M. LEONCINI, 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 3rd day of April 2006, by the following vote, to wit:
AYES:
COUNCILMEMBERS:
Cohen, Heller, Miller, Phillips and Mayor Boro
NOES:
COUNCILMEMBERS:
None
ABSENT:
COUNCILMEMBERS:
None
ABSTAIN:
COUNCILMEMBERS:
None
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