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HomeMy WebLinkAboutCD Request for Modification of Affordable Housing Requirements PPTRequest for Modification of Affordable Housing Requirement: Merrydale Townhomes San Rafael City Council July 19, 2021 Background Ordinance 1990 & Resolution 1489 •Enacted March 1, 2021 •Lowered the affordable housing requirements citywide for new residential development projects. •Provided developers several options for meeting new requirements, including payment of In-Lieu Fee paid to the Affordable Housing Trust Fund. •Allowed projects with City approval, but not having yet started construction, the ability to apply for a modification of their approval to be consistent with new requirements. •Purpose: To incentivize construction—not just approval—of housing units. •Modifications also help offset economic effects of COVID-19 pandemic. San Rafael City Council July 19, 2021 Modification Request: Merrydale Townhomes April 1, 2021: Campus Properties, LLC submitted request for modification of affordable housing requirement for Merrydale Townhomes (350 Merrydale/ 3833 Redwood Highway) Currently Approved Project: 45 “For-Sale” Townhomes, 9 units designated below-market rate (BMR) Requested BMR Modification: 2 “For-Sale” BMR Townhomes & In-Lieu Fee payment of $859,922.50 •Primary Requirement: 5% of Base Units = 2.25 units or 2 For-Sale Units and in-lieu fee of $85,992.25 •Secondary Requirement: In-Lieu Fee of $773,930.25 (equal to 5% of base units or 2.25 units) Request for Modification is compliant with SRMC Section 14.16.030 (Affordable Housing Requirement) and recommends approval. San Rafael City Council July 19, 2021 Use of Funds In-Lieu Fees would be deposited to the Affordable Housing Trust Fund which is dedicated to expanding the supply of affordable housing for lower and moderate-income households through a variety of activities including new construction and the acquisition of existing housing. Trust Fund funded activities allow the City to operate to achieve three main goals:1.Increase the supply of long-term affordable housing;2.Preserve the physical and financial viability of the affordable housing;3.Act quickly on affordable housing opportunities in the pipeline by leveraging in-lieu payments collected to create additional affordable housing. Funds associated with this Request for Modification could potentially fill the estimated “affordability gap” on up to 19 permanent affordable housing units, based upon the Marin’s historical average gap. San Rafael City Council July 19, 2021 Fiscal Impact Requested modification would allow developer to pay an in-lieu fee of $859,622.50 to the Affordable Housing Trust Fund increasing the balance from $3,602,309.38 to $4,461,931.88. Per SRMC section 14.16.030, BMR units must be provided at the same time as market rate units, and the in-lieu fee must be paid prior to the issuance of a building permit. San Rafael City Council July 19, 2021 City Council Options 1.Adopt the resolution approving the modification request. (Recommended Action)2.Direct staff to return with more information.3.Take no action San Rafael City Council July 19, 2021 Thank You! San Rafael City Council July 19, 2021