HomeMy WebLinkAboutCED Ending Grant Agreement with Homeward Bound for 830 B Street Affordable Housing____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 06/23/2025
Disposition: Resolution 15430
Agenda Item No: 4.g
Meeting Date: June 23, 2025
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community and Economic Development
Prepared by: Micah Hinkle, Director
Alexis Captanian, Housing Manager
City Manager Approval: __________
TOPIC: ENDING GRANT AGREEMENT WITH HOMEWARD BOUND FOR 830 B STREET
AFFORDABLE HOUSING
SUBJECT: RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AS THE HOUSING
SUCCESSOR TO THE SAN RAFAEL REDEVELOPMENT AGENCY AUTHORIZING
THE CITY MANAGER TO EXECUTE AN AMENDMENT TO TERMINATE THE GRANT
AGREEMENT BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY AND
HOMEWARD BOUND OF MARIN DATED MAY 4, 1998, FOR THE REHABILITATION
OF 29 AFFORDABLE RESIDENTIAL UNITS AT 830 B ST, CONTINGENT UPON A
RETURN OF $16,560 IN GRANT FUNDS TO THE LOW AND MODERATE INCOME
HOUSING FUND
RECOMMENDATION:
Staff recommends that the City Council adopt the above-referenced resolution authorizing the City
Manager to execute an amendment to the grant agreement between the San Rafael Redevelopment
Agency and Homeward Bound of Marin, dated May 4, 1998, (“Grant Agreement”) to terminate the grant
agreement early due to relocation of program residents, contingent upon a return of $16,560 in grant
funds to the low and moderate income housing fund.
BACKGROUND:
Homeward Bound of Marin, a nonprofit organization providing shelter and supportive housing for
unhoused families and adults, has leased the upper floors of the building at 830 B Street since 1987,
providing 29 units of affordable housing.
In 1998, the San Rafael Redevelopment Agency made a grant in the amount of $165,600 from the Low
and Moderate Income Housing Fund to assist Homeward Bound of Marin in rehabilitating the building at
830 B Street with certain life safety system upgrades.
The Grant Agreement established occupancy and affordability restrictions for the units over a 30-year
term, beginning in 1998 and ending in 2028. These affordability restrictions were recorded against the
property. Homeward Bound of Marin operated the program at 830 B Street, consistent with the agreement
for 27 years.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
In Spring 2025, Homeward Bound of Marin vacated the building at 830 B Street, relocating residents of
the program to the new permanent supportive housing at 3301 Kerner Blvd (“Casa Canal”) and the Next
Key Apartments at 1385 N. Hamilton Parkway in Novato. Homeward Bound of Marin has requested to
terminate the agreement at 830 B Street three years before the end of the term.
ANALYSIS:
The grant from the Redevelopment Agency’s Low and Moderate Income Housing Fund was provided to
make upgrades to the property in exchange for a 30-year restriction on occupancy and affordability.
While the City does not typically terminate affordability covenants before the end of their term, staff
recommend granting an early termination in this case given that: 1) The agreement was signed by the
lessee, not the property owner of 830 B Street; 2) Homeward Bound of Marin operated the program at
830 B Street consistent with the agreement for 27 years; 3) Homeward Bound of Marin successfully
relocated the residents of the program at 830 B Street to other supportive housing in Marin.
To terminate the agreement early, a prorated amount of the grant needs to be returned to the Low and
Moderate Income Housing Fund. In 2025, the required refund is sixteen thousand five hundred and sixty
dollars ($16,560). This is equal to $5,520 per year for the remaining three years of the term.
FISCAL IMPACT:
Terminating the agreement early and accepting a prorated refund of the grant based on the three years
remaining in the 30-year term would result in a refund of $16,560 to be deposited in the Low and Moderate
Income Housing Fund (495).
OPTIONS:
The City Council has the following options to consider on this matter:
1.Adopt the resolution (Staff’s recommended action).
2.Adopt resolution with modifications.
3.Direct staff to return with more information.
4.Take no action.
RECOMMENDED ACTION:
Staff recommends that the City Council adopt the above-referenced resolution authorizing the City
Manager to execute an amendment to the grant agreement between the San Rafael Redevelopment
Agency and Homeward Bound of Marin, dated May 4, 1998, (“Grant Agreement”) to terminate the grant
agreement early due to relocation of program residents, contingent upon a return of $16,560 in grant
funds to the low and moderate income housing fund.
ATTACHMENTS:
1.Resolution
2.Draft First Amendment
RESOLUTION NO. 15430
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AS THE HOUSING
SUCCESSOR TO THE SAN RAFAEL REDEVELOPMENT AGENCY AUTHORIZING
THE CITY MANAGER TO EXECUTE AN AMENDMENT TO TERMINATE THE GRANT
AGREEMENT BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY AND
HOMEWARD BOUND OF MARIN DATED MAY 4, 1998, FOR THE REHABILITATION
OF 29 AFFORDABLE RESIDENTIAL UNITS AT 830 B ST, CONTINGENT UPON A
RETURN OF $16,560 IN GRANT FUNDS TO THE LOW AND MODERATE INCOME
HOUSING FUND
WHEREAS, the San Rafael Redevelopment Agency (the “Agency”) set objectives
for affordable housing in accordance with the Amended and Restated Redevelopment
Plan (the “Agency Plan”) for the Central San Rafael Redevelopment Project Area; and
WHEREAS, to serve the objectives of the Agency Plan, the Agency assisted in the
rehabilitation of housing for low and lower income households; and
WHEREAS, the Agency established a Low and Moderate Income Housing Fund
(the “Fund”) pursuant to Health and Safety Code Section 33334.3; and
WHEREAS, Homeward Bound of Marin, a non-profit organization, leased twenty-
nine (29) residential units located at 830 B Street and within the area governed by the
Agency Plan, providing housing affordable to low and lower income households; and
WHEREAS, in 1998, the Agency made a grant in the amount of one hundred sixty
five thousand, six hundred dollars ($165,600) (the “Grant”) from the Fund to assist
Homeward Bound of Marin in rehabilitating the building located at 830 B Street with
certain life safety system upgrades (“Project”) pursuant to an agreement between the
Agency and Homeward Bound of Marin dated May 4, 1998 (“Grant Agreement”); and
WHEREAS, pursuant to San Rafael Redevelopment Agency Board Resolution No.
98-16, the Grant Agreement set forth occupancy and affordability restrictions for a period
of 30 years ending in 2028; and
WHEREAS, Homeward Bound of Marin operated the Project consistent with the
Grant Agreement for 27 years; and
WHEREAS, in early 2025, Homeward Bound of Marin vacated the building at 830
B Street, relocating residents of the program to the new permanent supportive housing at
3301 Kerner Blvd (“Casa Canal”) and the Next Key Apartments at 1385 N. Hamilton
Parkway in Novato; and
WHEREAS, Homeward Bound of Marin has requested to terminate the Grant
Agreement at 830 B Street three years before the end of the term; and
WHEREAS, the prorated grant amount for the remaining three years of the term is
equal to sixteen thousand, five hundred and sixty dollars ($16,560), or five thousand, five
hundred and twenty dollars ($5,520) per year; and
WHEREAS, pursuant to state law, the Agency was dissolved and pursuant to
Resolution No. 13279 the City of San Rafael elected to retain the authority to perform the
Agency’s housing functions.
NOW, THEREFORE BE IT RESOLVED, that the City Council hereby authorizes
the City Manager to execute an amendment to the Grant Agreement to terminate the
Grant Agreement, subject to a return of $16,560 in grant funds to the Low and Moderate
Income Housing Fund.
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 special meeting of the City
Council of the City of San Rafael, held on Monday, the 23rd day of June 2025, by the
following vote, to wit:
AYES: Councilmembers: Bushey, Hill, Kertz & Mayor Kate
NOES: Councilmembers: None
ABSENT: Councilmembers: Llorens Gulati
____________________
Lindsay Lara, City Clerk
1
FIRST AMENDMENT TO THE GRANT AGREEMENT BY AND BETWEEN THE SAN RAFAEL
REDEVELOPMENT AGENCY AND HOMEWARD BOUND OF MARIN DATED MAY 4, 1998
This First Amendment to the Grant Agreement by and Between the San Rafael
Redevelopment Agency (“Agency”) and Homeward Bound of Marin by and between the City
of San Rafael as the Housing Successor to the San Rafael Redevelopment Agency (“City”)
and Homeward Bound of Marin (“Grantee”), is made and entered into as of _____________
(“Effective Date”).
Recitals
WHEREAS, in 1998, the Agency made a grant in the amount of one hundred sixty five
thousand, six hundred dollars ($165,600) (the “Grant”) from the Fund to assist Homeward
Bound of Marin in rehabilitating the building located at 830 B Street with certain life safety
system upgrades (“Project”) pursuant to an agreement between the Agency and Grantee
dated May 4, 1998 (“Grant Agreement”); and
WHEREAS, Grantee, a non-profit organization, leased twenty-nine (29) residential units
located at 830 B Street, providing housing affordable to low and lower income households;
and
WHEREAS, pursuant to Agency Board Resolution No. 98-16, the Grant Agreement set forth
occupancy and affordability restrictions for a period of 30 years ending in 2028; and
WHEREAS, Grantee operated the Project consistent with the Grant Agreement for 27 years;
and
WHEREAS, in early 2025, Grantee vacated the building at 830 B Street, relocating residents
of the program to the new permanent supportive housing at 3301 Kerner Blvd and the Next
Key Apartments at 1385 N. Hamilton Parkway in Novato; and
WHEREAS, Grantee has requested to terminate the Grant Agreement at 830 B Street three
years before the end of the term; and
WHEREAS, the prorated grant amount for the remaining three years of the term is equal to
sixteen thousand, five hundred and sixty dollars ($16,560), or five thousand, five hundred
and twenty dollars ($5,520) per year; and
WHEREAS, pursuant to state law, the Agency was dissolved and pursuant to Resolution No.
13279 the City elected to retain the authority to perform the Agency’s housing functions;
and
Docusign Envelope ID: 26BD2A37-1566-4960-A677-CAEC2336DE23
July 8, 2025
L8.0017.A1
2
WHEREAS, the City and the Grantee hereby desire to terminate the Grant Agreement as
follows:
Amendment to the Agreement
The Parties to this Amendment hereby agree to terminate the Grant Agreement subject to
the following terms and conditions:
1. Repayment of Pro-Rated Grant Amount. Within 3 business days of the Effective
Date, Grantee shall pay to the City of San Rafael the amount of $16,560 (sixteen
thousand, five hundred, sixty dollars) (“Payment”). Payment shall be made via
check made out to the City of San Rafael and delivered to the City’s Housing
Manager or her designee, unless the City’s Housing Manager agrees in writing for the
Payment to be made in another form.
2. Termination of the Grant Agreement. Upon the City’s receipt of the full amount of
the Payment, the Grant Agreement shall be deemed terminated upon mutual
agreement without any further action necessary, except for those provisions of the
Grant Agreement that are specified to survive termination of the Grant Agreement.
The Parties agree to take further actions as may be necessary or incidental to
effectuating the intent of this First Amendment.
3. Counterparts; Multiple Originals. This First Amendment may be executed in
counterparts. This First Amendment may be executed in multiple originals, each of
which is deemed to be an original.
Signatures to follow on the next page
Docusign Envelope ID: 26BD2A37-1566-4960-A677-CAEC2336DE23
3
IN WITNESS WHEREOF, the parties have executed this Amendment as of the day, month
and year first above written as the Effective Date.
CITY OF SAN RAFAEL:
_________________________________
CRISTINE ALILOVICH, CITY MANAGER
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
_________________________________
BY: ANDREA VISVESHWARA,
CHIEF ASSISTANT CITY ATTORNEY
ATTEST:
CITY CLERK
_________________________________
LINDSAY LARA, CITY CLERK
GRANTEE:
__________________________________
BY: ____________________________
NAME: ____________________________
TITLE: ____________________________
[IF GRANTEE IS A CORPORATION, ADD
SIGNATURE OF SECOND CORPORATE
OFFICER]
__________________________________
BY: ____________________________
NAME: ____________________________
TITLE: ____________________________
Carrie Sager (Jul 1, 2025 13:28 PDT)
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Docusign Envelope ID: 26BD2A37-1566-4960-A677-CAEC2336DE23
FIRST AMENDMENT to Grant Agreement
between SR RDA and Homeward Bound Of
Marin dated 05.04.1998
Final Audit Report 2025-07-08
Created:2025-07-01
By:Alexis Captanian (alexis.captanian@cityofsanrafael.org)
Status:Signed
Transaction ID:CBJCHBCAABAArz7pngRW996xK7kO-WfJD9MCTgSOmmU3
"FIRST AMENDMENT to Grant Agreement between SR RDA an
d Homeward Bound Of Marin dated 05.04.1998" History
Document created by Alexis Captanian (alexis.captanian@cityofsanrafael.org)
2025-07-01 - 8:18:57 PM GMT
Document emailed to Paul Fordham (pfordham@hbofm.org) for signature
2025-07-01 - 8:19:01 PM GMT
Document emailed to Carrie Sager (csager@hbofm.org) for signature
2025-07-01 - 8:19:01 PM GMT
Email viewed by Paul Fordham (pfordham@hbofm.org)
2025-07-01 - 8:19:56 PM GMT
Email viewed by Carrie Sager (csager@hbofm.org)
2025-07-01 - 8:27:30 PM GMT
Document e-signed by Carrie Sager (csager@hbofm.org)
Signature Date: 2025-07-01 - 8:28:13 PM GMT - Time Source: server
Email viewed by Paul Fordham (pfordham@hbofm.org)
2025-07-08 - 10:53:52 PM GMT
Document e-signed by Paul Fordham (pfordham@hbofm.org)
Signature Date: 2025-07-08 - 10:54:11 PM GMT - Time Source: server
Agreement completed.
2025-07-08 - 10:54:11 PM GMT
Docusign Envelope ID: 26BD2A37-1566-4960-A677-CAEC2336DE23
RESOLUTION NO. 15430
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AS THE HOUSING
SUCCESSOR TO THE SAN RAFAEL REDEVELOPMENT AGENCY AUTHORIZING
THE CITY MANAGER TO EXECUTE AN AMENDMENT TO TERMINATE THE GRANT
AGREEMENT BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY AND
HOMEWARD BOUND OF MARIN DATED MAY 4, 1998, FOR THE REHABILITATION
OF 29 AFFORDABLE RESIDENTIAL UNITS AT 830 B ST, CONTINGENT UPON A
RETURN OF $16,560 IN GRANT FUNDS TO THE LOW AND MODERATE INCOME
HOUSING FUND
WHEREAS, the San Rafael Redevelopment Agency (the “Agency”) set objectives
for affordable housing in accordance with the Amended and Restated Redevelopment
Plan (the “Agency Plan”) for the Central San Rafael Redevelopment Project Area; and
WHEREAS, to serve the objectives of the Agency Plan, the Agency assisted in the
rehabilitation of housing for low and lower income households; and
WHEREAS, the Agency established a Low and Moderate Income Housing Fund
the “Fund”) pursuant to Health and Safety Code Section 33334.3; and
WHEREAS, Homeward Bound of Marin, a non-profit organization, leased twenty-
nine (29) residential units located at 830 B Street and within the area governed by the
Agency Plan, providing housing affordable to low and lower income households; and
WHEREAS, in 1998, the Agency made a grant in the amount of one hundred sixty
five thousand, six hundred dollars ($165,600) (the “Grant”) from the Fund to assist
Homeward Bound of Marin in rehabilitating the building located at 830 B Street with
certain life safety system upgrades (“Project”) pursuant to an agreement between the
Agency and Homeward Bound of Marin dated May 4, 1998 (“Grant Agreement”); and
WHEREAS, pursuant to San Rafael Redevelopment Agency Board Resolution No.
98-16, the Grant Agreement set forth occupancy and affordability restrictions for a period
of 30 years ending in 2028; and
WHEREAS, Homeward Bound of Marin operated the Project consistent with the
Grant Agreement for 27 years; and
WHEREAS, in early 2025, Homeward Bound of Marin vacated the building at 830
B Street, relocating residents of the program to the new permanent supportive housing at
Docusign Envelope ID: 26BD2A37-1566-4960-A677-CAEC2336DE23
3301 Kerner Blvd (“Casa Canal”) and the Next Key Apartments at 1385 N. Hamilton
Parkway in Novato; and
WHEREAS, Homeward Bound of Marin has requested to terminate the Grant
Agreement at 830 B Street three years before the end of the term; and
WHEREAS, the prorated grant amount for the remaining three years of the term is
equal to sixteen thousand, five hundred and sixty dollars ($16,560), or five thousand, five
hundred and twenty dollars ($5,520) per year; and
WHEREAS, pursuant to state law, the Agency was dissolved and pursuant to
Resolution No. 13279 the City of San Rafael elected to retain the authority to perform the
Agency’s housing functions.
NOW, THEREFORE BE IT RESOLVED, that the City Council hereby authorizes
the City Manager to execute an amendment to the Grant Agreement to terminate the
Grant Agreement, subject to a return of $16,560 in grant funds to the Low and Moderate
Income Housing Fund.
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 special meeting of the City
Council of the City of San Rafael, held on Monday, the 23rd day of June 2025, by the
following vote, to wit:
AYES: Councilmembers: Bushey, Hill, Kertz & Mayor Kate
NOES: Councilmembers: None
ABSENT: Councilmembers: Llorens Gulati
Lindsay Lara, City Clerk
Docusign Envelope ID: 26BD2A37-1566-4960-A677-CAEC2336DE23
Certificate Of Completion
Envelope Id: 26BD2A37-1566-4960-A677-CAEC2336DE23 Status: Completed
Subject: DocuSign: 1st Amendment - Grant Agreement with Homeward Bound of Marin dated May 4, 1998
Source Envelope:
Document Pages: 6 Signatures: 3 Envelope Originator:
Certificate Pages: 2 Initials: 0 Nataly Torres
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111 Morphew St
San Rafael, CA 94901
NatalyT@cityofsanrafael.org
IP Address: 199.88.113.8
Record Tracking
Status: Original
7/8/2025 4:21:48 PM
Holder: Nataly Torres
NatalyT@cityofsanrafael.org
Location: DocuSign
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Andrea Visveshwara
andreav@cityofsanrafael.org
Chief Assistant City Attorney
City of San Rafael
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Cristine Alilovich
cristinea@cityofsanrafael.org
City Manager
City of San Rafael
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Lindsay Lara
lindsayl@cityofsanrafael.org
City Clerk
City of San Rafael
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Alexis Captanian
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