HomeMy WebLinkAboutCED Authorize Affordable Housing Trust Fund Award to Include Renovation of Units in an Additional Building at Marin Villa Estates____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: April 15, 2024
Disposition: Resolution 15284
Agenda Item No: 7.a
Meeting Date: April 15, 2024
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community & Economic Development
Prepared by: Micah Hinkle, Director
Alexis Captanian, Housing Manager
Mel Burnette, Homelessness & Housing Analyst
City Manager Approval: ______________
TOPIC: AUTHORIZE AFFORDABLE HOUSING TRUST FUND AWARD TO INCLUDE
RENOVATION OF UNITS IN AN ADDITIONAL BUILDING AT MARIN VILLA
ESTATES
SUBJECT: RESOLUTION AMENDING RESOLUTION 15244 AUTHORIZING THE USE OF
AFFORDABLE HOUSING TRUST FUNDS FOR RENOVATION OF UNITS IN AN
ADDITIONAL BUILDING AT MARIN VILLA ESTATES
RECOMMENDATION:
Adopt the resolution amending Resolution 15244 to authorize the use of $200,000 in funds from the
Affordable Housing In-Lieu Fee Fund (Fund 243) for the renovation of three units at 153 Novato Street
in Marin Villa Estates.
BACKGROUND:
Canal Alliance owns twelve affordable rental units in three buildings at Marin Villa Estates, including
153, 161, and 165 Novato Street, in the Canal neighborhood of San Rafael. These units have not been
updated in over 20 years.
In 2023, Canal Alliance responded to a Notice of Funding Availability (NOFA) for the City’s Affordable
Housing Trust Fund, requesting $400,000 for the renovation of four existing units at 161 and 165
Novato Street. The City Council authorized a $200,000 grant from the Housing In-Lieu Fee Fund (Fund
243)for the proposed renovation project. The award constituted half of the funding amount requested.
The original City Council authorization included 161 and 165 Novato Street only. Canal Alliance now
requests to use the previously awarded NOFA funding to renovate three units within their third building
at Marin Villa Estates, located at 153 Novato Street, instead of using the funds to renovate the units at
161 and 165 Novato Street as originally planned. No additional funding is requested.
ANALYSIS:
Canal Alliance requests to use previously awarded NOFA funds to renovate units in an additional
building at Marin Villa Estates located at 153 Novato Street. Currently, the City award authorizes use of
funds for renovation at 161 and 165 Novato Street only. The units at 153 Novato Street are equally in
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
need of renovation and are deed-restricted for households earning very low (<50% of Area Median
Income (AMI) or low (<60% of AMI) incomes.
Canal Alliance has added asbestos testing and removal to the scope of their renovations. The scope
still includes bathroom and kitchen remodel, new flooring, painting the entire units, and temporary
relocation of tenant households. Canal Alliance’s request is not asking for additional dollars, but
proposes to renovate three units instead of four, factoring in an increase in per-unit expenditures due to
increases in material and labor costs, including the application of prevailing wage requirements that
apply through multiple funding sources, as well as the addition of asbestos inspection and abatement.
The proposed use of funds would help preserve affordable housing and meet the evaluation criteria
provided in the NOFA and in Section 5 of City Council Resolution No. 14760, Guidelines for the
Administration of the Affordable Housing Trust Fund. The project continues to align with the City’s
Housing Element goals to ensure housing habitability and maintenance and foster a range of housing
choices throughout the City.
FISCAL IMPACT:
No additional funding is requested. In July 2023, the City Council authorized a grant award of $200,000
from the Affordable Housing In-Lieu Fee Fund for renovation of units at Marin Villa Estates. Authorizing
the application of funds to the renovation of an additional building on the property will maintain this
same fiscal impact to the Affordable Housing In-Lieu Fee Fund, Fund 243.
OPTIONS:
The City Council has the following options to consider on this matter:
1.Staff’s recommended action, which is to adopt the resolution.
2. Adopt a modified resolution.
3.Direct staff to provide additional information.
4.Take no action.
RECOMMENDED ACTION:
Adopt the resolution.
ATTACHMENTS:
1.Resolution
Page 1 of 2
RESOLUTION NO. 15284
RESOLUTION AMENDING RESOLUTION 15244 AUTHORIZING THE USE OF AFFORDABLE
HOUSING TRUST FUNDS FOR RENOVATION OF UNITS IN AN ADDITIONAL BUILDING AT
MARIN VILLA ESTATES
WHEREAS, on January 21, 2020, the City Council adopted Resolution No. 14760, establishing
Guidelines for the Administration of the Affordable Housing Trust Fund; and
WHEREAS, on April 10, 2023, the City issued a Notice of Funding Availability (NOFA) for funding
from the Housing In-Lieu Fee Fund to support affordable housing, with an application deadline of May
15, 2023 by 5:00pm; and
WHEREAS, the City received three responses to the NOFA, including a $400,000 funding
request from Canal Alliance for the renovation of four units at 161 and 165 Novato St at Marin Villa
Estates; and
WHEREAS, on July 17, 2023, the City Council adopted Resolution 15244, authorizing a
$200,000 grant from the Housing In-Lieu Fee Fund (#243) for the Canal Alliance for renovation of four
units at 161 and 165 Novato Street at Marin Villa Estates; and
WHEREAS, Canal Alliance owns 12 units in Marin Villa Estates at 153, 161, and 165 Novato
Street; and
WHEREAS, all 12 units have not been updated in over 20 years and are in need of renovation;
and
WHEREAS, Canal Alliance proposes to use the previously awarded NOFA funding to renovate
three units within the organization’s third building at Marin Villa Estates, located at 153 Novato Street; and
WHEREAS, Canal Alliance proposes to add asbestos testing and removal to the renovation
activities, which are otherwise unchanged from the original NOFA application; and
WHEREAS, Canal Alliance is not requesting additional dollars, but proposes to renovate three
units instead of four, factoring in an increase in per-unit expenditures due to increases in material and
labor costs, as well as the addition of asbestos inspection and abatement; and
WHEREAS, the funding request continues to meet the evaluation criteria listed in Section 5 of
the Guidelines for the Administration of the Affordable Housing Trust Fund for use of the funds.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael
hereby amends the entirety of Paragraph i of Resolution 15244, Section 1 as follows:
i. $200,000 grant from the Housing In-Lieu Fee Fund (#243) for the Canal Alliance for
renovation of at least three units within the Marin Villa Estates property on Novato Street.
The project will continue to be restricted at 50% and 60% of Marin County Area Median
Income set by the United States Department of Housing and Urban Development (HUD
AMI) as published by the Marin Housing Authority.
Resolution 15244 remains otherwise unchanged.
Page 2 of 2
I, LINDSAY LARA, 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 15th day of April 2024, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
LINDSAY LARA, City Clerk