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HomeMy WebLinkAboutCC Resolution 15438 (Affordable Housing NOFA Recommendations 2025)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