HomeMy WebLinkAboutCED Affordable Housing NOFA Recommendations 2025______________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 06/23/2025
Disposition: Resolution 15438 (As amended to increase MCFA funding to $250k)
Agenda Item No: 6.d
Meeting Date: June 23, 2025
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community & Economic Development
Prepared by: Micah Hinkle, Director
Alexis Captanian, Housing Manager
City Manager Approval: ______________
TOPIC: AFFORDABLE HOUSING FUNDING RECOMMENDATION
SUBJECT: RESOLUTION AUTHORIZING THE APPROPRIATION OF $503,000 FROM THE
AFFORDABLE HOUSING IN-LIEU FEE FUND (FUND #243), INCLUDING $3,000 IN
ADMINISTRATIVE COSTS, FOR FUNDING FOR THREE ONE 100 PERCENT
AFFORDABLE HOUSING PROJECTS IN FULFILLMENT OF THE AFFORDABLE
HOUSING TRUST FUND 2025 NOTICE OF FUNDING AVAILABILITY, AND
AUTHORIZING THE CITY MANAGER TO EXECUTE FUNDING AGREEMENTS WITH
ABODE HOUSING DEVELOPMENT IN AN AMOUNT NOT TO EXCEED $200,000,
MARIN FOSTER CARE ASSOCIATION IN AN AMOUNT NOT TO EXCEED $150,000
AND EAH HOUSING IN AN AMOUNT NOT TO EXCEED $150,000 AND ALL
DOCUMENTS INCIDENTAL TO THE FUNDING AGREEMENTS
RECOMMENDATION:
Staff recommends that the City Council adopt a resolution authorizing:
1.The appropriation of $503,000 from the Affordable Housing In-Lieu Fee Fund (Fund #243),
including $3,000 in administrative costs, for three 100 percent affordable housing projects in
fulfillment of the Affordable Housing Trust Fund 2025 Notice of Funding Availability; and
2.The City Manager to execute all documents incidental to the funding.
EXECUTIVE SUMMARY:
On January 22, 2025, the County of Marin issued a Notice of Funding Availability (NOFA), including five
hundred thousand dollars ($500,000) available through the City of San Rafael (City) Affordable Housing
Trust Fund for the preservation or development of affordable housing. The application period ended on
February 19, 2025. The City received three funding requests, all of which met the NOFA requirements
to be considered for funding. A panel of City staff reviewed the three NOFA responses using the
evaluation criteria established in Section 5 of City Council Resolution No. 14760, Guidelines for the
Administration of the Affordable Housing Trust Fund (the Trust Fund Guidelines). City staff presented
preliminary recommendations for funding to the City Council Housing and Homelessness subcommittee
on April 1, 2025, comprised of Mayor Kate Colin and Councilmember Rachel Kertz; in turn, the
subcommittee provided feedback to staff on the preliminary recommendations. This staff report contains
the staff’s final NOFA funding recommendation, which incorporates the feedback received from the City
Council subcommittee.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
BACKGROUND:
The City is committed to creating and preserving affordable housing for the San Rafael community. To
further this commitment, the City maintains an Affordable Housing Trust Fund to support the efforts of
affordable housing developers and owners. Two types of fees are deposited into the fund:
1)Affordable Housing In-Lieu Fee: Developers who are creating market-rate housing can pay an in-
lieu fee rather than providing below-market-rate units within their residential project to satisfy their
affordable housing obligation.
2)Commercial Linkage Fee: Developers of certain commercial projects must pay a commercial
linkage fee to offset the additional need for affordable housing that the new commercial use is
anticipated to create.
As of April 30, 2025, the Affordable Housing Trust Fund (243) had an unencumbered balance of
$796,890. Notably, staff does not anticipate substantial payments to the fund in the coming years since
many of the major residential projects in the City’s development pipeline plan to use the State Density
Bonus Law and meet the City’s affordable housing obligation by providing affordable units onsite rather
than paying the in-lieu fee.
In January 2025, the City issued a Notice of Funding Availability (NOFA) for $500,000, reserving some
funds to pay for the administration of the Below Market Rate (BMR) Rental and Ownership Programs.
These programs monitor rental and ownership units with affordability restrictions to ensure that tenants
and homeowners are income-qualified and that rents and home prices match the affordability restriction
in place. The current cost of annual BMR program administration is approximately $120,000. Given the
number of multifamily housing projects in the development pipeline in San Rafael, the BMR portfolio
may increase in the coming years, which would increase the cost of administration. If, at some point,
the fees deposited in the Affordable Housing In-Lieu Fee Fund are insufficient to support the costs of
BMR program administration, the program may require support from another source, such as the
General Fund.
Furthermore, while the NOFA announced the availability of $500,000, the City is not required to
appropriate all funds through the process. Dollars not appropriated through the 2025 NOFA could be
made available for emerging projects through a future NOFA or the City’s rolling application process
for acquisitions, or they could be reserved for ongoing expenses such as BMR program administration.
2025 Notice of Funding Availability – Affordable Housing
On January 22, 2025, the County of Marin issued a Notice of Funding Availability, including five hundred
thousand dollars ($500,000) available through the City’s Affordable Housing Trust Fund for the
preservation or development of affordable housing. The application deadline for this NOFA was
February 19, 2025.
Considerations for Funding
In 2020, the City Council established the following evaluation criteria under Section 5 of Resolution No.
14760:
•Community Benefit. The project provides a tangible and cost-effective benefit to the
community as well as the intended beneficiaries.
•Development Team’s Capacity. The Development Team has the capacity, skills, experience,
and resources to achieve the proposed activity.
•Management Team’s Capacity. The applicant organization is financially healthy and has the
capacity, skills, experience, and resources to achieve the proposed activity, including a
successful record of long-term management of affordable housing.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
•Readiness to Proceed. The applicant can complete the project and expend funds in a timely
manner. The project demonstrates readiness, including but not limited to site control or ability
to achieve site control and substantial other financial resources committed and/or actively
pending.
•Leverage and Collaboration. The project leverages other financing and in-kind contributions
in addition to City investment.
•Per Unit Subsidy. The financing plan includes reasonable per-unit City subsidy coupled with
other funding sources based on the target population, project type, and cost-effectiveness. The
per-unit subsidy is justifiable in comparison with current and past City-assisted housing
projects.
The NOFA included the following additional considerations for awarding funding:
•Proximity to Transit: The project is located within a quarter mile of transit.
•Family Housing: The project provides units for larger families.
•Deep Affordability: The project serves very low- and/or extremely-low- income households.
•Supportive Housing: The project includes 20 percent or more permanent supportive housing.
•Contribution to Housing Supply: The project contributes to the City’s goals for new housing
development and the Regional Housing Needs Allocation (RHNA).
In addition, the City’s 2023-2031 Housing Element established the following four goals:
1.End and prevent homelessness in San Rafael.
2.Combat housing discrimination, eliminate racial bias, and undo historic patterns of segregation.
3.Ensure housing habitability and maintenance.
4.Meet housing needs through a variety of housing choices and affordability levels throughout the
City.
ANALYSIS:
The City received three responses to the NOFA totaling nine hundred and fifty thousand dollars
($950,000). Altogether, the three projects would result in the new construction or rehabilitation and
preservation of 90 deed-restricted affordable housing units. Staff has summarized the three funding
requests received in Table 1 below.
Table 1: Summary of Funding Requests – 2025 Affordable Housing NOFA
Address Project Type Units Applicant Estimated
Project Cost
2025 NOFA
Request
519 4th St New Construction
(Predevelopment) 56 Abode $54,048,539
($3,231,096) $200,000
455 Canal St Rehabilitation 28 EAH $1,958,649 $500,000
158-166A Park St Acquisition 6 Marin Foster Care $2,165,000 $250,000
Totals 90 $950,000
In March 2025, the Community and Economic Development (CED) Department assembled a panel of
City staff to evaluate the responses using the criteria listed in Section 5 of City Council Resolution No.
14760, Guidelines for the Administration of the Affordable Housing Trust Fund. The panel included the
Assistant Director of CED, the Housing Manager, the Planning Manager, and a Senior Management
Analyst in the City Manager’s Office. Additionally, the City’s Finance Director reviewed the applicants’
organizational financial statements and provided analysis to the panel. The panel met on March 3 to
evaluate each response, form a preliminary recommendation, and identify needs for additional
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
information. City staff then reached out to applicants in the month of March to gather additional
information and hold follow-up meetings as needed. Staff presented the preliminary evaluation and
recommendation to the City Council Subcommittee on Housing & Homelessness, which consists of the
Mayor and Councilmember Kertz, on April 1, 2025. The subcommittee asked questions and provided
comments to staff, including recommendations to increase the award for the Park Street acquisition.
Following the Subcommittee Meeting on April 1, one of the applicants contacted City staff to ask if they
could submit a revised proposal for consideration. All applicants were then invited to submit updated
materials for City consideration by April 25.1 In response, the City received a revised proposal from
EAH Housing and no additional materials from the other two applicants. The review panel met again
on April 30 to consider the updated materials and developed the updated funding recommendation
described in the following section.
Updated Funding Recommendation
Table 2 outlines staff’s updated funding recommendation for the 2025 Affordable Housing NOFA.
Table 2: Recommended Funding – 2025 Affordable Housing Trust Fund
Address Request Sponsor Total Cost 2025
Request Recommendation
Per Unit
City
Subsidy
519 4th St Predev. Abode $54,048,539 $200,000 $200,000 $3,571
455 Canal St Rehab. EAH $1,958,649 $500,000 $150,000 $5,357
158-166A
Park St Acquisition
Marin
Foster
Care
$2,165,000 $250,000 $150,000 $25,000
$500,000
Staff has summarized each project and the justification for each funding award in the section below.
519 4th Street – Abode Housing Development
Staff recommends awarding $200,000 for predevelopment activities supporting the construction of 100
percent affordable housing at 519 4th Street. The proposed project will provide units for very low- and
extremely-low- income individuals, including formerly homeless individuals, and add much-needed
units to the City’s housing supply. The proposed project includes onsite supportive services, including
mental healthcare, job assistance, and substance abuse treatment.
The project developer, Abode Housing Development (Abode), has entered into a twelve-month
Exclusive Negotiating Agreement (ENA) with the City to develop affordable housing on this City-owned
property. The proposed project includes 56 apartments (53 one-bedrooms, 3 two-bedrooms) for
individuals and families earning 20 to 60 percent of Area Median Income (AMI), with 50 percent of units
designated for formerly homeless individuals. Abode is seeking Project Design resources to complete
the Planning application and entitlement process.
1 The NOFA published in January 2025 allows the City “to suspend, amend or modify the provisions of this NOFA,
to extend the submission deadline, reject all proposals, to negotiate modifications of proposals, or to award less
than the full amount of funding available.”
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5
Abode anticipates a budget of $600,000 to complete planning entitlement and an additional $2,834,000
to develop construction documents and secure permanent financing. Securing predevelopment funding
is often a challenge, but this funding supports critically important site assessment and feasibility
activities that enable a project to move forward. Staff recommends making City funding contingent on
Abode securing the remainder of the $600,000 needed to complete planning entitlement. Additionally,
under the existing ENA, the City has a right to all reports, designs, and other materials generated during
the project’s predevelopment phase if, for some reason, Abode was unable or unwilling to complete the
project. Under this scenario, these materials will accelerate the construction of the project by other
developers who can build upon the predevelopment work completed by Abode. Accordingly, by
providing Abode with predevelopment funding through this NOFA, the City will advance the construction
of affordable housing at 519 4th Street, even if Abode does not construct the development.
Project Evaluation Criteria:
Community Benefit – New construction of 56 units serving low-, very low-, and extremely-low-
income households, including 50 percent for formerly homeless individuals.
Development Team Capacity – The project team is experienced, with successful completion
of affordable, permanent supportive housing sites, new construction, and rehabilitation
projects.
Management Team Capacity – Deep organizational experience with constructing and
operating 100 percent affordable developments that include 50 percent of units serving formerly
homeless individuals.
Readiness to Proceed – 12-month Exclusive Negotiating Agreement (ENA) on the property;
term sheet is under development. The recommended award requires Abode and the City to
achieve the Preliminary Stage Feasibility Confirmation milestone as outlined in the ENA.
Leverage and Collaboration – See Table 3 for a list of funding sources.
Table 3 519 4th St Predevelopment Funding Sources
Funding Source Status Amount
Pre-Entitlement
ABAG Priority Sites Technical Assistance Application Pending $200,000
Marin County Permanent Local Housing Allocation /
Housing Trust Fund
Application Pending* $300,000
San Rafael Affordable Housing Trust Fund Grant Under Consideration $200,000
Abode Housing Expended $100,000
Post-Entitlement
Community Development Financial Institution Loan Anticipated $2,834,000
*The State requires site control as a condition of Permanent Local Housing Allocation (PLHA)
funding, and the current SuperNOFA provides County Housing Trust Fund dollars exclusively
for PLHA matches, so Abode is not anticipating an award. That said, County staff have indicated
that they would welcome an application for this project through the County’s rolling application
process for Fiscal Year 2025-26 and/or for a matching PLHA/Housing Trust Fund request once
the applicant obtains site control.
Reasonable Per Unit Subsidy – The recommended award amount provides $3,571 per unit
for predevelopment activities supporting 56 units of new construction.
Alignment with Housing Element Goals – The project will support efforts to end and prevent
homelessness in San Rafael, meet housing needs through a range of housing choices and
affordability levels throughout the City, and add 56 below-market-rate units that count toward
the City's Regional Housing Needs Allocation.
Additional Considerations – The project is located within a quarter mile of transit, serves very
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6
low- and/or extremely-low- income households, and includes 20 percent or more permanent
supportive housing.
455 Canal Street – EAH Housing
Staff recommends awarding $150,000 for the rehabilitation of Riviera Apartments at 455 Canal Street,
an existing 28-unit complex built in the 1970s.
Initially, staff did not recommend funding for the rehabilitation at 455 Canal St because the estimated
construction cost exceeded 50 percent of the property’s overall market value, which, due to the
property’s location in the Canal floodplain area, would trigger multiple requirements, including raising
the elevation of the first-floor residential units. These requirements uncovered during the review
process significantly impacted the initial project scope and increased the cost of the rehabilitation.
On April 25, EAH Housing submitted a reduced scope of work that addressed immediate seismic,
electrical safety, and waterproofing needs at the property. Instead of the original $16.2 million
renovation project utilizing Low Income Housing Tax Credits, EAH will pursue a limited renovation
scope of $2 million that no longer triggers the elevation of the first-floor residential units, which rendered
the initial project infeasible. This strategy allows the applicant to analyze additional pathways for the
property’s other needs while not deferring the most needed repairs. As a result, the revised proposal
resolves the issue of readiness that caused staff not to recommend the original project for funding.
Project Evaluation Criteria:
Community Benefit – It preserves and improves affordable housing units serving low-income
families and individuals.
Development Team Capacity – EAH Housing has extensive experience with the successful
completion of affordable, permanent supportive housing sites, new construction, and
rehabilitation projects.
Management Team Capacity – EAH Housing has deep organizational experience with
constructing and operating 100 percent affordable developments.
Readiness to Proceed – EAH Housing owns the property and has several secured and
pending funding sources, as outlined in Table 4 below. At the recommended award level, the
applicant will need to identify additional sources to close a funding gap of $350,000 or move
forward with a further reduced scope of work.
Leverage and Collaboration – See Table 4 for a list of funding sources.
The applicant timed the project to coincide with federal funding, which has only become
available in the Canal area in the last few years. For more than a decade, HUD discouraged
awarding federal funds in the Canal neighborhood based on analysis showing a concentration
of affordable housing in the area. This resulted in limited resources to help maintain the existing
affordable assets.
Table 4 455 Canal St Rehabilitation Funding Sources
Funding Source Status Amount
2024 Marin County HOME Investment Partnerships
Program Award
Awarded* $700,000
2025 Marin County HOME Investment Partnerships
Program Award
Application Pending $708,000
San Rafael Affordable Housing Trust Fund Loan Under Consideration $150,000
EAH Existing Reserves Committed $50,000
*The applicant’s request to revise the original scope of work is currently under review.
Reasonable per Unit Subsidy – The recommended award amount provides $5,357 per unit
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7
for the rehabilitation of 28 very low-income units.
Alignment with Housing Element Goals – The project supports housing habitability and
maintenance for affordable units.
Additional Considerations: The project is located within a quarter mile of transit, provides
units for larger families, and serves very low- and/or extremely-low- income households.
158 – 166A Park Street – Marin Foster Care
Staff recommends awarding $150,000 to support the acquisition of six units at 158 – 166A Park Street.
The project helps address housing instability for transition-age youth (TAY) and expands deed-
restricted affordable housing options in the City.
Marin Foster Care acquired and closed on the property on January 30, 2025, and is seeking funds to
help repay a $700,000 bridge loan. Marin Foster Care acquired the six one-bedroom units to provide
low-income rental housing for TAY individuals transitioning out of the Marin County foster care system.
In addition to housing, TAY tenants will receive case management services through Alternate Family
Services (AFS).
At the time of acquisition, five of the six units were occupied by existing tenant households with
moderate incomes ranging from 80 to 100 percent of the Area Median Income (AMI). Since then, one
TAY client has moved into the vacant unit, and two additional units are expected to become available
by the end of the calendar year. This will allow two more TAY clients to secure housing at the property,
bringing the total number of TAY clients served to three by year-end, representing 50 percent of the
Park Street units. Existing tenants will not be displaced; instead, TAY clients will be housed gradually
as units become available. As a result, the full implementation of this project to serve TAY clients will
be phased in gradually.
On February 25, 2025, the Marin County Board of Supervisors approved a $300,000 award from their
Housing Trust Fund through its rolling application process. This award originally restricted unit rents at
30 percent of AMI but is now being adjusted to 70 percent of AMI to ensure project viability. This change
will require the project to return to the Board of Supervisors for further approval. The County’s award
remains contingent on a funding commitment from the City of San Rafael.
In allocating the limited funding available, staff recommends a substantially higher subsidy per unit for
this acquisition compared to the other two projects, given the special population served. Additionally,
increasing the award amount aligns with additional information provided by the applicant and feedback
provided by the Housing and Homelessness Subcommittee on April 1.
Staff’s funding recommendation is less than the full amount requested by Marin Foster Care because
of the merits of the other two projects that applied, both of which also serve very low-income
households. Additionally, staff developed its recommendation with the understanding that the existing
over-income tenants have a right to remain in their units, and there is no guarantee as to when the units
will turn over. From that perspective, the recommended award results in a current subsidy level of
$50,000 per unit for three units that will house the intended beneficiaries by the end of 2025.
Project Evaluation Criteria:
Community Benefit – The project provides designated affordable housing units for Transition
Aged Youth transitioning out of the Marin County foster care system and converts six market-
rate units to deed-restricted affordable housing.
Development Team Capacity – Marin Foster Care has limited experience in acquisition and
residential property ownership. This is the applicant’s second residential acquisition, having
acquired a 10-unit property in Novato in 2023 for the same purpose.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8
Management Team Capacity – The applicant is a small organization with a limited operating
budget and net income. The property will be managed by Prandi Property Management, a local
property management company with extensive experience.
Readiness to Proceed – The applicant closed on the property acquisition on January 30, 2025.
Leverage and Collaboration– See Table 5 for a list of funding sources.
Table 5 158-166A Park St Acquisition Funding Sources
Funding Source Status Amount
Private Donor Loan at 0% Committed $1,000,000
Marin Community Foundation Loan at 4% Pending $300,000
Marin County Housing Trust Fund Awarded (contingent on
City funding)
$300,000
San Rafael Affordable Housing Trust Fund Grant Under Consideration $150,000
Marin Foster Care Association Savings Committed $250,000
Private Donations Committed $65,000
Reasonable Per Unit Subsidy – $25,000/unit for six (6) units of deed-restricted affordable
housing.
Alignment with Housing Element Goals – This project will support efforts to prevent
homelessness in San Rafael and meet housing needs through a range of housing choices and
affordability levels throughout the City.
Additional Considerations: The project serves very low- and/or extremely-low-income
households. While the pending City/County awards are for 70 percent AMI level affordability
restriction, most TAY clients served will be extremely-low- and/or very low- income and
supported through a rental subsidy.
COMMUNITY OUTREACH:
The NOFA was announced on the County of Marin’s website, and City staff provided notice via email
to local and regional affordable housing owners and developers. The announcement was also
distributed to over 4,000 contacts via Marin County’s listserv for federal grants and housing updates.
City staff presented on the San Rafael Affordable Housing Trust Fund NOFA during a virtual applicant
workshop hosted by Marin County’s Housing & Grants Division on January 29, 2025, to educate
potential applicants. Staff additionally engaged in responding to questions and follow-up conversations
with potential applicants as needed.
FISCAL IMPACT:
The total anticipated cost for the awards plus administrative costs is $503,000. Staff requests an
appropriation of $503,000 from the Affordable Housing Trust Fund (243). Adequate funds are available
to support this request.
Staff's recommendation is to issue the predevelopment award for Abode and the acquisition award for
Marin Foster Care as grants, consistent with prior awards of this size. Staff recommends issuing the
rehabilitation award for EAH Housing as a residual receipts loan, as a grant award would trigger State
requirements that would greatly increase the project cost.
OPTIONS:
The City Council has the following options to consider on this matter:
1.Adopt the resolution.
3.Adopt the Resolution with amendments.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 9
4.Direct staff to provide additional information.
4.Take no action.
RECOMMENDED ACTION:
Staff recommends that the City Council adopt a resolution authorizing:
1. The appropriation of $503,000 from the Affordable Housing In-Lieu Fee Fund (Fund #243),
including $3,000 in administrative costs, for three 100 percent affordable housing projects in
fulfillment of the Affordable Housing Trust Fund 2025 Notice of Funding Availability; and
2.The City Manager to execute all documents incidental to the funding.
ATTACHMENTS:
1. Resolution
2.Public Hearing Notice
Page 1 of 2
RESOLUTION NO. 15438
RESOLUTION AUTHORIZING THE APPROPRIATION OF $603,000 FROM THE AFFORDABLE
HOUSING IN-LIEU FEE FUND (FUND #243), INCLUDING $3,000 IN ADMINISTRATIVE COSTS,
FOR FUNDING FOR THREE ONE HUNDRED PERCENT AFFORDABLE HOUSING PROJECTS IN
FULFILLMENT OF THE AFFORDABLE HOUSING TRUST FUND 2025 NOTICE OF FUNDING
AVAILABILITY, AND AUTHORIZING THE CITY MANAGER TO EXECUTE FUNDING
AGREEMENTS WITH ABODE HOUSING DEVELOPMENT IN AN AMOUNT NOT TO EXCEED
$200,000, MARIN FOSTER CARE ASSOCIATION IN AN AMOUNT NOT TO EXCEED $250,000 AND
EAH HOUSING IN AN AMOUNT NOT TO EXCEED $150,000 AND ALL DOCUMENTS INCIDENTAL
TO THE FUNDING AGREEMENTS
WHEREAS, on January 21, 2020, the City Council of the City of San Rafael (City) adopted
Resolution No. 14760, establishing Guidelines for the Administration of the Affordable Housing Trust
Fund; and
WHEREAS, on January 22, 2025, the City issued a Notice of Funding Availability (NOFA) for
five-hundred thousand dollars ($500,000) of funding from the Housing In-Lieu Fee Fund to support
affordable housing, with an application deadline of February 19, 2025, by 5:00pm; and
WHEREAS, the City received three responses to the NOFA totaling $950,000 in funding
requests; and
WHEREAS, applications were reviewed using the evaluation criteria listed in Section 5 of
Resolution No. 14760; and
WHEREAS, based upon this evaluation criteria and the needs for local support for the
development and preservation of affordable housing, City staff has arrived at a funding recommendation
that is within the amount of funds published in the NOFA; and
WHEREAS, the City has sufficient funds in the Housing In-Lieu Fee Fund #243 to issue the
grants included in the recommendation and the funding recommendation meets the criteria for use of
the funds.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael does
as follows:
Section 1. The City Council authorizes the following affordable housing expenditures from the Housing
In-Lieu Fee Fund (#243):
i.A two-hundred thousand dollar ($200,000) grant for Abode Housing Development (Abode) for
pre-development activities supporting the construction of 100 percent affordable housing at 519
4th Street, provided that the City of San Rafael and Abode achieve the Preliminary Stage
Feasibility Confirmation as outlined in their Exclusive Negotiating Agreement effective
September 23, 2024. The funds will be disbursed upon demonstration by Abode that sufficient
resources have been secured to pursue project entitlement, which Abode has identified as
approximately six-hundred thousand dollars ($600,000) in the predevelopment budget that
Abode has submitted to the City.
Page 2 of 2
ii. A two-hundred and fifty thousand dollar ($250,000) grant for Marin Foster Care Association for
the acquisition of six units at 158-166A Park Street to serve transition-age youth (TAY)
individuals transitioning out of the Marin foster care system. The project is to be restricted for 55
years at 70 percent 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.
At the time of adopting this resolution, the project has existing tenant households that are at or
above 70 percent of Marin County AMI. Upon vacancy, units shall be income restricted to
individuals and households earning at or below 70 percent AMI.
iii. A one-hundred and fifty thousand dollar ($150,000) loan for EAH Housing for the rehabilitation
of 28 units at Riviera Apartments, 455 Canal Street. The project is to be restricted for 55 years
at 50 percent 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.
Section 2. For the EAH Housing project, the City Council authorizes the funding to be issued in the
form of a residual receipts loan at a simple interest rate of three percent (3%, simple) during
predevelopment, and construction or rehabilitation. The loan principal may be used to cover the City’s
legal costs associated with processing all documents incident to the agreement. The predevelopment
and construction phases may last up to 24 months and can be extended with prior authorization in
writing from the City. When rehabilitation is completed the interest rate for loans shall convert to simple
three percent (3.0%, simple). Interest accrued during the pre-development and construction phases
shall be rolled into the principal loan balance at conversion to permanent financing. The conversion
date for acquisition/rehabilitation projects is the date when all completed rehabilitation work has been
approved by the City. The affordability term shall last for 55 years following the date of conversion. If
excess funds remain at project completion those funds shall be used to pay down the City loan. The
City may waive its right upon request from the sponsor to use the funds to pay down other debt in the
project.
Section 3. The City Council authorizes the City Manager to execute all documents and agreements
incidental to the affordable housing fund expenditures authorized in this Resolution, in a form to be
approved by the City Attorney.
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 said City 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
CITY OF SAN RAFAEL
NOTICE OF PUBLIC HEARING BEFORE THE SAN RAFAEL CITY COUNCIL
You are invited to attend the City Council hearing on a resolution authorizing the appropriation and expenditure
of funding from the Affordable Housing Trust Fund for three affordable housing projects in fulfillment of the
2025 Notice of Funding Availability.
DATE/TIME: Monday June 23, 2025, at 6:00 P.M.
LOCATION: City Council Chambers, City Hall, 1400 Fifth Avenue, San Rafael, CA 94901
PURPOSE:
To receive public comments and to consider adoption of a proposed resolution authorizing the appropriation
of funds from the Affordable Housing Trust Fund for three one hundred percent affordable housing projects
in fulfillment of the Affordable Housing Trust Fund 2025 Notice Of funding Availability, and authorizing the
City Manager to execute funding agreements with Abode Housing in an amount not to exceed $200,000,
Marin Foster Care Association in an amount not to exceed $150,000 and EAH housing in an amount not to
exceed $150,000 and all documents incidental to the funding agreements.
WHAT WILL HAPPEN:
Staff will provide a presentation, members of the public can provide comments/questions, and the City Council
will consider all public testimony, deliberate, and determine how to proceed with the recommendation provided
by staff.
IF YOU CANNOT ATTEND:
You may submit comments regarding the proposed item by 4:00 p.m. the day of the hearing to Lindsay Lara,
City Clerk, City of San Rafael, 1400 Fifth Avenue, San Rafael, CA 94901, or by email to
city.clerk@cityofsanrafael.org. You can also hand deliver a letter prior to the public hearing. The City Clerk’s
office will forward your comments to the City Council and publish correspondence received to the agenda
online. Comments received after 4:00 p.m. will be forwarded to the City Council and posted online the following
day.
FOR MORE INFORMATION:
For additional information regarding the above, you can contact Alexis Captanian, Housing Manager for the
City of San Rafael at 415-458-2392 or alexis.captanian@cityofsanrafael.org. You can also view the staff report
after 4:00 p.m. on the Friday before the meeting at https://www.cityofsanrafael.org/city-council-meetings/
/s/ Lindsay Lara
Lindsay Lara
City Clerk
City of San Rafael
To be published in the Marin IJ on: Friday, June 20, 2025