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HomeMy WebLinkAboutCC Resolution 12002 (Central SR Redevelopment Proj. Area)CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLUTION NO. 12002 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING A ONE HUNDRED THOUSAND DOLLARS LOAN BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN RAFAEL TO MERCY HOUSING CALIFORNIA AND MAKING FINDINGS AND APPROVALS PURSUANT TO THE CALIFORNIA REDEVELOPMENT LAW IN CONNECTION WITH THE UTLIZATION OF AGENCY LOW AND MODERATE INCOME HOUSING FUNDS OUTSIDE THE CENTRAL SAN RAFAEL REDEVELOPMENT PROJECT AREA (Martinelli House 1327 Lincoln Avenue) 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 WF IEREAS, 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, Mercy Housing California, a California nonprofit public benefit corporation (the "Developer") desires to acquire and rehabilitate certain real property located outside the Project Area at 1327 Lincoln Avenue (the "Property"). The Property is improved with a sixty six (66) unit residential building which the Developer intends to rehabilitate and continue to rent 64 of the units at affordable housing cost to very low and low income persons (the "Development") and to operate the other two units as a building office and a managers unit; and WHEREAS, the Agency desires to provide a zero interest residential receipts loan to the Developer (the "Agency Loan ") to finance the rehabilitation of the Property by the Developer; and WHEREAS, it is proposed that the Agency fund the Agency Loan with One Hundred Thousand Dollars ($100,000) 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 �'U 0'V WHEREAS, the Development 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, by enhancing the economic viability of business within the Project Area by providing housing near the Project Area for people who will patronize businesses in the Project Area, and by alleviating blight in an area in close proximity to 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 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 funds 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 One Hundred Thousand Dollars ($100,000) of Housing Fund monies to fund the Agency Loan. BE IT FURTHER RESOLVED that this Resolution shall take immediate effect upon adoption. I, JEANNE N1. 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 17th day of July, 2006, by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ABSTAIN: COUNCILMEMBERS: None JEANYE M. LEONCINI, City Clerk CITY OF SAN RAFAEL AGENDA ITEM NO.: 16. _. . MEETING DATE: July 17, 2006 REPORT TO MAYOR AND CITY COUNCIL SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING A ONE HUNDRED THOUSAND DOLLAR GRANT ($100,000) BY THE SAN RAFAEL REDEVELOPMENT AGENCY TO MERCY HOUSING CALIFORNIA AND MAKING FINDINGS AND APPROVALS PURSUANT TO THE CALIFORNIA REDEVELOPMENT LAW IN CONNECTION WITH THE UTILIZATIONOFAGENCY LOW AND MODERATE INCOME HOUSING FUNDS OUTSIDE THE CENTRAL SAN RAFAEL REDEVELOPMENT PROJECT AREA (MARTINELLI HOUSE, 1327 Lincoln Avenue) SUBMITTED BY: 4/X (—'/, N -Cw�LtIC APPROVED BY: --� Nancy Mackle, Econom[c Development Director Ken Nordhoff, Interim Executive Director RECOMMENDATION: Staff recommends that the City Council adopt the attached resolution approving a grant of $100,000 by the Redevelopment Agency to Mercy Housing California to assist with the cost of installing fire sprinklers at Martinelli House. BACKGROUND: Martinelli House is located outside of the Redevelopment Project Area at 1327 Lincoln Avenue. The project was built in 1973 and contains 64 affordable units for seniors, a building office and a manager's unit. The project was developed by and is owned by Marin Housing Corporation, a non-profit affiliate of Mercy Housing California (the "Original Developer"). The project is required to remain affordable to very low-income tenants (30% of County median income) until 2014, when the restrictions of the original Housing and Urban Development Department ("HUD") Section 236 financing agreement will expire. The Original Developer is now proposing to sell the project to a partnership (the "New Developer") of which the Original Developer or a related Mercy Housing entity will be the managing general partner. A combination of tax-exempt bond proceeds and low-income housing tax credits will be used to acquire and rehabilitate the project. The tax credit agreement will extend the affordability restrictions on 64 units until 2061, an additional 55 years. FOR CITY CLERK ONLY File No.: City Council Meeting: '7 11-710 t - Disposition: ��j�pT � F��SO{ UTION N0.12002—RESOLUTION APPROVING A ONE HUNDRED Tf�OUSNO DDLLi1R LOAN BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN RAFAEL TO MERCY HOUSING CALIFORNIA 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 (Martinelli House, 1327 Lincoln Avenue) Page 2 The New Developer expected to spend approximately $3,000,000 to rehabilitate the project. After inspecting the building, the Fire Marshall determined that a full fire sprinkler system must be installed. The cost of the fire sprinkler system will reduce the funds available for project rehabilitation and may jeopardize the project transfer and the corresponding extension of the affordability restrictions. The California Redevelopment Law, Health and Safety Code Section 33334.2 (g), requires the City Council make findings and approve the Agency's use of low and moderate income housing funds on projects that are located outside of the Central San Rafael Redevelopment Project Area. ANALYSIS: The City Council resolution is required by the Health and Safety Code to implement the Agency's grant to Mercy Housing California for the acquisition by a new limited partnership affiliated with Mercy Housing and the rehabilitation of 1327 Lincoln Avenue. The grant will be used to fund a portion of the fire sprinkler installation. FISCAL IMPACT: None to the City, the $100,000 grant will be funded by the Redevelopment Agency's Low and Moderate Income Housing Fund. ACTION REQUIRED: Adopt the attached resolution.