HomeMy WebLinkAboutCC Resolution 11680 (Purchase BMR)RESOLUTION NO. 11680
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
ACCEPTING MARIN HOUSING AUTHORITY'S ASSIGNMENT OF OPTION TO
PURCHASE A BELOW MARKET RATE UNIT AND AUTHORIZING THE
ECONOMIC DEVELOPMENT DIRECTOR TO EXERCISE THE OPTION TO
PURCHASE (Northview Subdivision)
WHEREAS, the City of San Rafael, in conformance with General Plan housing policies,
entered into an Agreement with Masma Construction Inc., developer of the Northview
subdivision, to provide 10% of the units developed as Below Market Rate housing ("BMR");
and
WHEREAS, the City also entered into an agreement with the Marin County Housing
Authority ("Authority") to administer the BMR units at Northview; and
WHEREAS, the BMR housing agreement provides that each contract conveying a BMR
unit include a resale restriction and an option to purchase constituting a right of first refusal to
the Authority ("Option"); and
WHEREAS, the owner of a BMR unit in the Northview subdivision has over -
encumbered the unit thereby triggering an "Option Event", thereby requiring the Authority to
exercise the Option to purchase within sixty (60) days or else lose the BMR unit from the BMR
program; and
WHEREAS, prior to the expiration of the sixty-day period, the Authority's Board is not
scheduled to meet and therefore cannot exercise the Option; accordingly, the Authority desires to
assign the Option to the City so that the City can exercise the Option in a timely manner; and
WHEREAS, the City and the owner are attempting to resolve the matter so that the owner
again becomes compliant with the BMR program regulations and so that the City may retain the
unit in the BMR program but the sixty-day period will expire before an agreement can be
reached; and
WHEREAS, this action is exempt form the California Environmental Quality Act because
there is no evidence that this action will have a significant impact on the environment;
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hereby:
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Rafael
1. Accepts and assumes from the Marin Housing Authority the Option to purchase a
certain BMR unit in the Northview subdivision.
2. Authorizes the Economic Development Director to execute the Option to Purchase a
certain BMR unit in the Northview subdivision.
3. Directs staff to negotiate an agreement with the owner of the BMR unit in the
Northview subdivision that will bring the owner back into compliance with the BMR
program regulations and, if negotiations fail, to return to the Council with a report and
recommendations for action.
I, JEANNE M. LEONCINI, City Clerk for the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the San
Rafael City Council held on the 6t' day of December, 2004, by the following vote, to wit:
AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
JEANNE M. LEONCI I, City Clerk