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Home My WebLink AboutED Purchase BMR Housing Unit (Missing agr.)CITY OF Agenda Item No: 3_e Meeting Date: March 7, 2016 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Economic Development Prepared by: Stephanie Lovette, Economic Development Manager City Manager Approval. P�_ TOPIC: APPROVING AGREEMENTS FOR TWO AFFORDABLE UNITS LOCATED WITHIN THE DEVELOPMENT AT 1200 IRWIN STREET/524 MISSION STREET SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE CITY MANAGER TO SIGN A BELOW MARKET RATE OWNERSHIP HOUSING AGREEMENT AND A BELOW MARKET RATE RENTAL HOUSING AGREEMENT FOR 1200 IRWIN STREET/524 MISSION STREET RECOMMENDATION: Adopt Resolution authorizing the City Manager to execute rental and ownership Below Market Rate Housing Agreements for the property at 1200 Irwin Street/524 Mission Street. BACKGROUND: Chapter 14.16.030 of the City of San Rafael Zoning Ordinance requires that all new development contribute to the City's affordable housing stock. San Rafael General Plan Policy H-21 requires that any units created pursuant to the City affordable housing requirements must remain affordable for a minimum of 55 years. The affordable housing requirement applies to both rental and ownership developments. Economic Development staff manages the Below Market Rate ("BMR") housing program for rental units and contracts with the Marin Housing Authority for the management of the ownership BMR housing program. In 2007, the property located at 1200 Irwin Street/524 Mission Street received approval of a tentative parcel map for fifteen units, including two BMR units. The base density for the site is thirteen units and the project received a density bonus of two units and parking concessions pursuant to San Rafael Municipal Code Section 14.16.030 and California Government Code Section 65915. The density bonus was allowed in exchange for providing two affordable units on site. ANALYSIS: A tentative map was approved for the subdivision of the property into condominiums. The affordable housing requirement was for two (2) three-bedroom units. The FOR CITY CLERK ONLY File No.: 229 Council Meeting: 03/07/2016 Disposition: Resolution 14074 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paye: 2 property developer, 524 Mission Street, LLC, intends initially to rent all the units for a period of time, and to sell them eventually. The City's Code has different levels of affordability for rental and ownership units. The project approval required that where the units are rented, one of the BMR rental units must be affordable to very low-income households earning no more than 50% of the County median income, and the other affordable unit must be affordable to low-income households earning no more than 60% of the County median income. Where the units are to be sold, the BMR ownership units must be affordable to low-income households earning no more than 65% of the County median income. Because of the difference in the required levels of affordability and other issues, the developer will enter into both a BMR Rental Housing Agreement with the City of San Rafael and a BMR Ownership Housing Agreement with the City of San Rafael and the Marin Housing Authority. The two agreements will be prepared in a form approved by the City Attorney. If the units were on the rental market today, the projected rent level for the very low-income three-bedroom unit would be $1,271 per month, and the projected rent level for the low-income three-bedroom unit would be $1,474 per month. If sold on today's market, the projected sales price for each unit would be $221,300. The actual rent levels and sales prices will be set based on the County median income at the time the units are available for rent or sale. FISCAL IMPACT: There is no cost to the City for the BMR units, with the exception of the staff time for program administration. OPTIONS: Approve the attached Resolution authorizing the City Manager to execute a BMR Agreement for ownership units among the Developer, the City of San Rafael and Marin Housing, and a BMR Agreement for rental units between the Developer and the City of San Rafael, each in a form to be approved by the City Attorney. Direct staff to modify the attached Resolution. Do not adopt the attached Resolution. ACTION REQUIRED: Adopt the Resolution. ATTACHMENTS: Resolution RESOLUTION NO. 14074 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE CITY MANAGER TO SIGN A BELOW MARKET RATE OWNERSHIP HOUSING AGREEMENT AND A BELOW MARKET RATE RENTAL HOUSING AGREEMENT FOR 1200 IRWIN STREET/524 MISSION AVENUE WHEREAS, on July 16, 2007, by Resolution 12315, the San Rafael Planning Commission approved a Tentative Map (TS06-01) for a 15 -unit housing development located at 1200 Irwin Street/524 Mission Avenue (APN 014-013-05) (the "Property"); and WHEREAS, the base density for the Property is thirteen units and the project received a density bonus of two units and parking concessions pursuant to San Rafael Municipal Code 14.16.030 and California Government Code Section 65915 in exchange for providing two affordable three-bedroom units on the site; and WHEREAS, the City and 524 Mission Street, LLC, the Property developer ("Developer"), desire to enter into appropriate Below Market Rate ("BMR") Housing Agreements and establish the affordability levels for the two units; and WHEREAS, the Developer desires initially to rent all of the units on the Property and to sell all of the units at a later date; and WHEREAS, to ensure the Property complies with the required affordability standards while units are rented, the Developer must enter into a BMR Rental Agreement with the City of San Rafael, to be recorded on the Property, providing that one of the two affordable rental units must be affordable to very low-income households at 50% of County median income, and the second affordable unit must be affordable to low-income households at 60% of County median income; and WHEREAS, to ensure the Property complies with the required affordability standards when units are sold, the Developer must enter into a BMR Ownership Agreement with the City of San Rafael and the Marin Housing Authority, to be recorded on the Property, providing that the two affordable units when sold must be priced to be affordable to low income households at 65% of County median income; NOW THEREFORE BE IT RESOLVED that the City Manager is authorized to execute and have recorded, on behalf of the City of San Rafael, a Below Market Rate Rental Housing Agreement for the Property located at 1200 Irwin Street/524 Mission Avenue in San Rafael in a form to be approved by the City Attorney; BE IT FURTHER RESOLVED that the City Manager is authorized to execute and have recorded, on behalf of the City of San Rafael, a Below Market Rate Ownership Housing Agreement for the Property located at 1200 Irwin Street/524 Mission Avenue in San Rafael in a form to be approved by the City Attorney. 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 seventh day of March 2016, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ESTHER C. BEIRNE, City Clerk ROUTING SLIP / APPROVAL FORM INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval by the City Council. Save staff report (including this cover sheet) along with all related attachments in the Team Drive (T:) --> CITY COUNCIL AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT - AGENDA TOPIC] Agenda Item # Date of Meeting: 3/7/2016 From: Stephanie Lovette Department: Economic Development Date: 2/18/2016 Topic: Approving an agreement for two affordable units located within the development at 1200 Irwin -524 Mission Streets. Subject: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE CITY MANAGER TO SIGN AN AMENDMENT TO THE BELOW MARKET RATE OWNERSHIP HOUSING AGREEMENT AND A BELOW MARKET RATE RENTAL HOUSING AGREEMENT FOR 1200 IRWIN STREET (524 MISSION) Type: ® Resolution ❑ Ordinance ❑ Professional Services Agreement ® Other: Staff Report APPROVALS ® Finance Director Remarks: approved by Finance - 2/19 ® City Attorney Remarks: LG -Approved 2/23/16, with changes. ® Author, review and accept City Attorney / Finance changes Remarks: Accepted all changes. ® City Manager Remarks: FOR CITY CLERK ONLY File No.: Council Meeting: Disposition: