HomeMy WebLinkAboutCD Opportunity Zone Renter Protections PPTOpportunity Zone Renter Relocation
Assistance Proposed Ordinance
San Rafael City Council
March 1, 2021
Opportunity Zone-Background
Created as part of US Investing Opportunities Act in 2017
Provides Tax Incentives for investing capital gains through
an “Opportunity Fund”
The longer an investor keeps their money in the
Opportunity Fund investment, the larger the tax break
they will receive.
No provisions in legislation for “un-designating” a
qualified OZ.
San Rafael Opportunity Zone-Census Tract 1122.01
San Rafael City Council
March 1, 2021
Background
October 5, 2020-Staff provided overview of the Opportunity Zone, current rental market
conditions, and potential changes to renter relocation assistance payments. Staff directed
to prioritize work on potential renter relocation assistance for renters with the
Opportunity Zone.
November 2, 2020-Staff presented informational report recommending draft
amendments expanding renter relocation to the Opportunity Zone. Staff directed to
prepare recommended amendments for City Council consideration.
November 17, 2020-Staff presented informational report with recommended draft
amendments to Planning Commission.
San Rafael City Council
March 1, 2021
Opportunity Zone Best Practices
Best Practices intended to help identify OZ projects,and incentivize City development goals:
Prospectus Development
Streamlined Approvals
Fee Waivers/Cash Incentives
Issue RFQ for precise development in OZ
Expand Renter Protections
Increased Code Enforcement
San Rafael City Council
March 1, 2021
Opportunity Zone-Impacted Properties
San Rafael City Council
March 1, 2021
Properties Units
Average Units/
Property
Single Family Homes 35 35 1
Condominiums 10 254 25
Apartment Buildings 82 1,387*17
Non-Residential 13 --
Total 140 1,676
*139 Units have deed restricted below market rate protections
Current Renter Relocation Assistance
Requirements (Citywide)
San Rafael City Council
March 1, 2021
SRMC Title 14
Applies only to No-Fault Evictions:
•Owner Move-In
•Substantial Rehabilitation
•Demolition
Household must be Low-Income
Payment equal to two times the “leased” rent
SRMC Amendments to Renter Relocation
Assistance
San Rafael City Council
March 1, 2021
SRMC Chapter 10.111
•Applies to OZ only
•No Income restrictions
•Payments based on the higher between
the leased rent versus the HUD Fair
Market Rent
•Increased Base Relocation Payments
•Includes Temporary Housing per diem and
One (1) Supplemental Relocation Payment
for a qualified household
•Administrative Fee to cover
implementation costs provide by 3rd party.
Amount to be set by Resolution.
Studio 1-Bedroom 2-Bedroom 3-Bedroom 4-Bedroom
Base Relocation Payment (All Renters)*
First Month Rent (2021 Fair Market Rent)2,350$ 2,923$ 3,553$ 4,567$ 4,970$
Security Deposit (2x Fair Market Rent)4,700$ 5,846$ 7,106$ 9,134$ 9,940$
Estimated Moving Expenses 500$ 500$ 750$ 1,000$ 1,500$
Minimum Total Renter Relocation Payment 7,550$ 9,269$ 11,409$ 14,701$ 16,410$
Supplemental Relocation Payments (paid in addition to Base Relocation Payments)
Temporary Housing
$150 per diem, prorated by night until 1st of next month -$ -$ -$ -$ -$
Household Charecteristics
Provided if household meets one of the below criteria:2,350$ 2,923$ 3,553$ 4,567$ 4,970$
1) Household with children
2) Household with individual 65 years or older
3) Household with individuals with disability
Estimated Maximum Renter Relocation Payment 9,900$ 12,192$ 14,962$ 19,268$ 21,380$
Studio 1-Bedroom 2-Bedroom 3-Bedroom 4-Bedroom
Administrative Fee
1-10 Units- 10%755$ 927$ 1,141$ 1,470$ 1,641$
11-20 Units- 15%1,133$ 1,390$ 1,711$ 2,205$ 2,462$
21+ Units- 20%1,510$ 1,854$ 2,282$ 2,940$ 3,282$
Payments to Renters (per unit)
Payments to City of San Rafael (per unit)**
* Base Relocation will be calculated using the higher amount between current Fair Market Rent or Leased Rent.
**Note: Current payment to the City of San Rafael are based on base payment amount for illustration. Actual payments to the City of San Rafael
would be based on actual Renter Relocation Payment.
Implementation of Amendments
San Rafael City Council
March 1, 2021
Mirrors citywide renter relocation procedural process
Property Owner must:
•Provide tenant Notice of Relocation Assistance at least 60 days before end of tenancy;
•Submit Certification of Relocation Assistance and Administrative Fee to City within 10 days of
noticing tenant;
•Remit relocation assistance payment to tenant at least 30 days before end of tenancy;
•Verification of Payment required before any City permits can be issued.
Tenant required to submit evidence for supplemental payment within 21 days of receiving
the Notice of Relocation Assistance.
Options
1)Pass the ordinance to print.
2)Act on the ordinance with modifications.
3)Direct staff to return with more information.
4)Take no action.
San Rafael City Council
March 1, 2021
Thank You!
San Rafael City Council
March 1, 2021
