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HomeMy WebLinkAboutED Notice of Affordability RestrictionsDepartment: Economic Development Agenda Item No: 3 c. Meeting Date: January 7, 2013 Prepared by: Stephanie Lovette, Manager �'City Manager Approval: SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING MARIN HOUSING TO EXECUTE NOTICE OF AFFORDABILITY RESTRICTIONS ON AFFORDABLE OWNERSHIP UNITS IN THE BELOW MARKET RATE PROGRAM RECOMMENDATION: Adopt Resolution authorizing Marin Housing to execute a Notice of Affordability Restriction on all units in the affordable ownership housing program. BACKGROUND: Pursuant to AB 987, effective January 1, 2008, all redevelopment agencies were required post information on properties that received affordable housing funds on the internet. The required information was contained in a Notice of Affordability Restriction. The City of San Rafael contracts with Marin Housing to manage the City's affordable ownership housing program. The Marin Housing contract was funded by redevelopment agency affordable housing funds; therefore, the City of San Rafael took the position that all of the affordable ownership units in the program received some redevelopment housing funds and directed Marin Housing to file a Notice of Affordability Restriction on all affordable ownership units. A new notice is filed each time Marin Housing resells an affordable unit to another income - qualified buyer. The notices are prepared and filed by Marin Housing and signed by the City Manager. This has proven to be inefficient and time consuming. Therefore, Marin Housing is requesting permission from all jurisdictions to prepare, sign, and file the notice. FISCAL IMPACT: None. OPTIONS: 1) Adopt the Resolution authorizing Marin Housing to prepare, sign and file the Notice. 2) Direct staff to make changes to the Resolution 3) Refuse to adopt the Resolution. ACTION REQUIRED: Adopt Resolution. ATTACHMENTS: Draft NOTICE OF AFFORDABILITY RESTRICTION FOR CITY CLERK ONLY File No.: " £ e Council Meeting: i Disposition: 4,t' RESOLUTION NO. 13480 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING MARIN HOUSING TO EXECUTE NOTICE OF AFFORDABILITY RESTRICTIONS ON AFFORDABLE OWNERSHIP UNITS IN THE BELOW MARKET RATE PROGRAM WHEREAS, the City of San Rafael General Plan Policy H-19 provides for on site units affordable to very low, low and moderate income households in new residential projects; and WHEREAS, such units provided by developers to comply with the General Plan are known as Below Market Rate Housing ("BMR") units, and each buyer of a BMR unit executes enforceable resale restrictions so the units remain affordable over time; and WHEREAS, the City Council (the "City Council") of the City of San Rafael (the "City") has adopted and amended, from time to time, the Redevelopment Plan (the "Redevelopment Plan") for the Central San Rafael Redevelopment Project Area (the "Project Area"); and WHEREAS, the Redevelopment Agency of the City of San Rafael (the "Agency") is responsible for administering the Redevelopment Plan to cause redevelopment of the Project Area, including the provision of housing available at affordable housing cost to low and moderate income households; and WHEREAS, effective January 1, 2008, redevelopment agencies were to prepare and post a NOTICE OF AFFORDABILITY RESTRICTIONS on properties that received affordable housing funds on the internet pursuant to AB 987. City staff was directed to file a NOTICE OF AFFORDABILITY RESTRICTIONS in the format prescribed by AB 987, on all properties in the City's affordable ownership program; and WHEREAS, the California State Legislature enacted Assembly Bill x1 26 ("Dissolution Act") to dissolve redevelopment agencies formed under the Community Redevelopment Law (Health and Safety Code Section 33000 q sea.); and' WHEREAS, on December 29, 2011, the California Supreme Court delivered its decision in the California Redevelopment Association v. Matosantos case, finding the Dissolution Act largely constitutional, with the result that all California redevelopment agencies, including the Redevelopment Agency of the City of San Rafael ("Redevelopment Agency"), would be dissolved on February 1, 2012; and WHEREAS, on January 3, 2012 and pursuant to Health and Safety Code Section 34173, the City Council of the City of the City of San Rafael ("City Council") declared that the City of San Rafael, a municipal corporation ("City"), would act as successor agency (the "Successor Agency") for the dissolved Redevelopment Agency effective February 1, 2012, and WHEREAS, on February 1, 2012, the Redevelopment Agency was dissolved pursuant to Health and Safety Code Section 34172; and WHEREAS, on July 27, 2012, the Governor signed AB 1484, the Redevelopment Dissolution/Unwind Trailer Bill as part of the 2012-13 budget package. AB 1484 significantly modified and provided some minor clarifications regarding the treatment of affordable housing assets under the Dissolution Act; and WHEREAS, the housing provisions of AB 1484 are contained in Health and Safety Code Section 34176. Pursuant to AB 1484, the City as Successor Agency, submitted a list of all affordable housing assets on August 1, 2012 to the Department of Finance. The housing asset form contained a listing of all properties with recorded affordable covenants, including all affordable ownership units provided pursuant to General Plan Policy H-19, all housing loans made by the Agency and all properties owned by the Successor Housing Agency with affordable housing covenants. The list was approved by the CA Department of Finance on August 27, 2012; and WHEREAS, for many years the City of San Rafael has contracted with the Housing Authority of the County of Marin ("Marin Housing") to administer the City's BMR Ownership Housing Program ("the Program"), and to enforce the resale restrictions on BMR units in the Program; and WHEREAS, the City of San Rafael desires to have Marin Housing file a NOTICE OF AFFORDABILITY RESTRICTION, in the format prescribed by AB 987, upon resale of any affordable ownership unit and for all new units entering the program. I NOW, THEREFORE, BE IT RESOLVED that Marin Housing is authorized to prepare and file NOTICE OF AFFORDABILITY RESTRICTIONS, upon resale of any affordable ownership unit and for all new units entering the City's affordable ownership housing program. BE IT FURTHER RESOLVED that this Resolution shall take immediate effect upon adoption. I, ESTHER C. BEIRNE, 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 seventh day of January 2013, by the following vote, to wit: AYES: COUNCILMEMBERS: Connolly, Heller, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ABSTAIN: COUNCILMEMBERS: Colin _ � f • —, ESTHER C. BEIRNE, City Clerk RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Housing Authority of the County of Marin - Below Market Rate Program 4020 Civic Center Drive San Rafael, CA 94903 APN: I NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY (Owner -Occupied Home) NOTICE IS HEREBY GIVEN, that the CITY OF SAN RAFAEL, (the "City") in order to carry out certain obligations under the City's Affordable Housing Program, the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et seq.) and the Central Redevelopment Agency, has required (Name of Buyer(s)) (the "Owner") to enter into certain affordability covenants and restrictions entitled Affordable Housing Covenants, Resale Restrictions and Option to Purchase Agreement (the "Restrictions"), with reference to certain real property (the "Property"), located at (Street Address), San Rafael, CA, Marin County, Assessor's Parcel No. , and further described in Exhibit "A" incorporated herein by reference. The affordability covenants and restrictions in the Restrictions include without limitation and as further described in the Restrictions: 1. This is an Owner -Occupied unit. No portion of the unit can be rented. 2. There are restrictions to the resale of the unit including a restricted resale price. 3. There are refinancing restrictions. 1/2/13 This Notice of Affordability Restrictions on Transfer of Property (the "Notice") is being recorded for the purpose of notice only, and it in no way modifies the provisions of the Restrictions. In the event of any conflict between the Notice and the Restrictions, the terms of the Restriction shall prevail. The Restrictions were previously recorded on (Restriction recordation date) as Document No. (Recordation Number) and shall remain in effect in perpetuity. A Disclosure, Acknowledgement and Assumption Agreement (the "Assumption Agreement") has been recorded concurrently herewith by the Owner assuming the obligations of the Restrictions. The Restrictions shall remain in effect commencing immediately. This Notice is being recorded and filed by the City in compliance with Health and Safety Code Sections 3334.3 and/or Section 33413, as amended effective this date, and shall be indexed against the Agency and the Owner. IN WITNESS WHEREOF, the parties have executed this Notice of Affordability Restrictions on Transfer of Property on or as the date first written above. CITY: OWNER(S): Ron Millard, Chief Financial Officer HOUSING AUTHORITY OF THE COUNTY OF MARIN -2- 1/2/13 CITY OF SAN RAFAEL INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. Successor Agency/ SRCC AGENDA ITEM NO. DEPARTMENT Em Stephanie Lovette Economic Development DATE OF MEETING: 1/7/2013 TITLE OF DOCUMENT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING MARIN HOUSING TO EXECUTE NOTICE OF AFFORDABILITY RESTRICTIONS ON AFFORDABLE OWNERSHIP UNITS IN THE BELOW MARKET RATE PROGRAM All"N bep-artrT*nt Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY AGENDA ITEM: City Manager (signature) REMARKS: APPROVED AS TO FORM: City Attorney (signature)