HomeMy WebLinkAboutCC Resolution 11197 (Establish Housing Assistance for Department Directors)RESOLUTION No. 11197
RESOLUTION OF THE CITY OF SAN RAFAEL
ESTABLISHING HOUSING ASSISTANCE
FOR DEPARTMENT DIRECTORS
WHEREAS, median prices of Bay Area homes have escalated in the last
decade; and
WHEREAS, it has become increasingly common for local governments to offer
housing assistance for key managers; and
WHEREAS, San Rafael's department directors' salaries are competitive, yet
housing prices can prove prohibitive to top candidates from out of the area; and
WHEREAS, the City has provided housing assistance in the past to the City
Manager and the Police Chief, and
WHEREAS, a number of department directors will be of retirement age in the
next several years, and it is important to be able to recruit the best possible candidates
to fill these positions; and
WHEREAS, the Assistant City Manager, Police Chief, Fire Chief, Community
Development Director, and Public Works Director serve as section chiefs in the
Emergency Operations Center (EOC) in time of emergency, and
WHEREAS, it is a public benefit that these directors live within the City of San
Rafael in time of emergency.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of San
Rafael authorizes the City Manager to negotiate and administer limited housing
assistance for key department directors, including Assistant City Manager, Police Chief,
Fire Chief, Community Development Director, and Public Works Director. Housing
Assistance shall be provided in the form of loans as second mortgages for the purchase
of owner -occupied homes in the City of San Rafael, with terms set forth as follows:
ORIGINAL A,�
The terms of the loan would include, but not be limited to the following:
• Loan amount would not exceed 20% of the gross sales price of the home.
• A variable interest rate would be set at I% above the current rate of return
in the Local Agency Investment Fund (LAIF), and would be adjusted
annually.
• The loan would be repayable, in interest only, in monthly installments to
City or its designee.
• The borrower would name the City of San Rafael as beneficiary on term
life insurance equal to the amount of the loan.
• A preliminary title report acceptable to the City Attorney must be provided,
as well as evidence of insurance covering liability, fire, and other perils, at
the close of escrow.
• The loan would become due and payable;
-within 90 days of separation from City service regardless of cause
-within 90 days of demand by the City, regardless of cause
-within 90 days of relocation of principalfamily residence
-immediately upon divorce or marriage
-immediately in case of alienation of title to the property securing
the loan
-upon the occurrence of any other event or circumstance
negotiated between the applicant and the City of San Rafael
• The term of the loan would be for five (5) years, balance to be paid in full.
• Borrower may, at any time, pay all or a portion of the principal amount of
the loan without pre -payment penalty.
• The loan would be non -transferable and non -assumable.
1, JEANNE M. LEONCINI, 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 of said City held on Monday, the fourth day of November,
2002 by the following vote, to wit:
AYES: COUNCILMEMBERS: Heller, Miller and Vice -Mayor Cohen
NOES: COUNCILMEMBERS: None
ABSENT. • COUNCILMEMBERS: Phillips and Mayor Boro
Je n M. Leoncini, City Clerk