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HomeMy WebLinkAboutCC Resolution 13804 (Purchase BMR)CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLUTION NO. 13804 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING THE ALLOCATION OF AN AMOUNT NOT TO EXCEED ONE HUNDRED AND FIFTY THOUSAND DOLLARS ($150,000) FOR THE PURCHASE OF A BELOW MARKET RATE HOUSING UNIT WITH CITY IN LIEU HOUSING FUNDS (A.P.N 179410-19) WHEREAS, Section 14.16.030 of the Zoning Ordinance of the San Rafael Municipal Code requires a portion of the units in residential projects include units affordable to low and moderate income households; and WHEREAS, Section 14.16.030 of the Zoning Ordinance of the San Rafael Municipal Code also imposes affordable housing requirements on new nonresidential (e.g., commercial, industrial, etc.) development. These funds are placed in a separate housing in -lieu fee account to be used for the acquisition, improvement or construction of housing affordable to very Iow, low - and moderate -income households; and WHEREAS, Marin Housing and the owner of the property identified as APN 179-410-19 entered into a resale restriction and an option to purchase constituting a right of first refusal to Marin Housing ("Resale Restriction"); and WHEREAS, Marin Housing desires to exercise its option to purchase a Below Market Rate unit pursuant to the Resale Restriction, but Marin Housing does not have the funds necessary to exercise the purchase option; and WHEREAS, the City of San Rafael desires to provide a loan to Marin Housing to finance acquisition of such unit by Marin Housing, until the unit can be resold to a low or moderate income household, so that the unit might remain in the City's BMR program; and, WHEREAS, it is proposed that the City fund the Loan with One Hundred and Fifty Thousand Dollars ($150,000) from the City's in -lieu affordable housing fund (the "City Affordable Housing Fund"); and WHEREAS, the transaction will serve the goals of the City's housing element by maintaining housing available at affordable cost in the community, thereby decreasing the market pressure on the supply of affordable housing in the community; and WHEREAS, The California Environmental Quality Act (Public Resources Code Sections 2I000 et sec .) ("CEQA") imposes no conditions on the City's consideration and approval of this Agreement, because the project undertaken pursuant to this Agreement is the rehabilitation of existing improvements and such projects are exempt from CEQA requirements under the categorical exemption set forth in 14 CCR Section 15301; and WHEREAS, by staff report accompanying this Resolution and incorporated into this Resolution by this reference (the "Staff Report"), the City Council has been provided with additional information upon which the findings and actions set forth in this Resolution are based. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby finds and determines that the above recitals are true and correct and have served as the basis, in part, for the findings and actions of the City Council set forth below. BE IT FURTHER RESOLVED that the City Council hereby approves allocation of One Hundred and Fifty Thousand Dollars ($150,000) from the City's Affordable Housing Fund monies to fund the Loan and authorize the City Manager to effectuate the Loan Agreement with Marin Housing. BE IT FURTHER RESOLVED that this Resolution shall take immediate effect upon adoption. I, ESTHER BEIRNE, City 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 held on the 15 1h day of September 2014, by the following vote, to wit: AYES: Colin, Connolly, McCullough & Mayor Phillips None Bushey COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Esther Beirne, City Clerk CITY OF SAN RAFAEL AGENDA ITEM NO.: MEETING DATE: September I5, 2014 REPORT TO MAYOR AND CITY COUNCIL RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING THE ALLOCATION OF AN AMOUNT NOT TO EXCEED ONE HUNDRED AND FIFTY THOUSAND DOLLARS ($150,000) FOR THE PURCHASE OF A BELOW MARKET RATE HOUSING UNIT WITH CITY IN LIEU HOUSING FUNDS (A.P.N 179-410-19) SUBMITTED BYAPPROVED BY- QUV u� Stephanie Lovette, Econo is Development Manager Nancy Nfackle, City Manager RECOMMENDATION: Staff recommends that the City Council approve an allocation from the City's affordable housing in lieu fund in an amount not to exceed $150,000 to provide a loan to Marin Housing for the purchase and eventual resale of a Below Market Rate housing unit and authorize the City Manager to effectuate the Loan Agreement. BACKGROUND: The City has contracted with the Marin County Housing Authority ('`Marin Housing") to administer the Below Market Rate ("BMR") Housing program for ownership units. The City's BMR Agreement provides that each contract conveying a BMR unit to a buyer include a resale restriction and an option to purchase constituting a right of first refusal to Marin Housing ("Resale Restriction"). In most cases Marin Housing qualifies a buyer to purchase the unit and the unit is transferred directly from the seller to the qualified buyer and Marin Housing does not provide any funding. Occasionally, a BMR unit must be purchased by a public agency to assure the unit remains in the BMR program. In these situations, San Rafael can utilize the City's in lieu affordable housing fund (the "City Affordable Housing Fund") for acquisition loans to Marin Housing or to directly purchase the BMR unit. ANALYSIS: The contract between the BMR owner and Marin Housing requires the owner to occupy the unit. Marin Housing received information from the homeowners association that this owner is no longer living in the unit and there were some delinquencies in the homeowner's dues. The lender also indicated there were some issues with the loan payment. Marin Housing was able to negotiate a settlement agreement with the owner and lender to acquire the unit. FOR CITY CLERK ONLY File No.: :DL-:Lq City Council Meeting: 4i ,ory Disposition: e 1-0-7"7,j 1344 JL ....................................