HomeMy WebLinkAboutCC Resolution 12766 (Reduce Resale of Affordable Housing Unit)CITY COUNCIL OF THE CITY OF SAN RAFAEL
RESOLUTION NO. 12766
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
AUTHORIZING REDEVELOPMENT AGENCY FUNDING OF UP TO $25,000 TO
REDUCE THE RESALE PRICE OF AN AFFORDABLE HOUSING UNIT IN THE
CAPRI DEVELOPMENT (APN 155-376-25) AND MAKING FINDINGS AND
APPROVALS PURSUANT TO THE CALIFORNIA REDEVELOPMENT LAW IN
CONNECTION WITH THE UTILIZATION OF AGENCY LOW AND MODERATE
INCOME HOUSING FUNDS OUTSIDE THE CENTRAL SAN RAFAEL
REDEVELOPMENT PROJECT AREA
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, The City of San Rafael General Plan Policy H-19 requires a portion of the
units in residential projects include units affordable to low and moderate income households; and
WHEREAS, the City of San Rafael and Mc Innis Housing Partners initially entered into
an Agreement to Provide Below Market Rate Housing ("BMR") and the Marin County Housing
Authority ("Marin Housing") agreed to administer the BMR units in the Capri development; and
WHEREAS, the Below Market Rate Housing Agreement provides that each contract
conveying a Below Market Rate unit to a buyer include a resale restriction and an option to
purchase constituting a right of first refusal to Marin Housing or its designee ("Resale
Restriction"); and
WHEREAS, Marin Housing has recommended; and Agency staff concurs, to
permanently reduce the sales price of this Below Market Rate moderate income unit (APN 155-
376-25) in order to make the unit affordable to lower income households; and
WI IEREAS, the Agency approved an expenditure of $25, 000 to provide a
permanent subsidy to reduce the sales price from the Agency's Low and Moderate Income
Housing Fund (the "Housing Fund"); and
WHEREAS, Health and Safety Code Section 33334.2(g) authorizes expenditure of
Housing Fund monies outside the Project Area upon a finding by the Agency and the City
Council that such use will be of benefit to the Project Area; and
WHEREAS, the transaction will benefit the Project Area and serve major Redevelopment Plan
goals and objectives 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
the Project Area; and
WHEREAS, The California Environmental Quality Act (Public Resources Code Sections
21000 et SeMc .) ("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, based on information and analysis set forth in the
above Recitals and contained in the Staff Report accompanying this Resolution, the City Council
hereby finds and determines pursuant to Health and Safety Code Section 33334.2(g) that the use
of moneys from the Housing Fund to assist the Development will be of benefit to the Project
Area and the program of redevelopment pursuant to the Redevelopment Plan.
BE IT FURTHER RESOLVED that the City Council hereby approves allocation of
Twenty Five Thousand Dollars ($25,000) of Housing Fund monies for the permanent subsidy.
BE IT FURTHER RESOLVED that this Resolution shall take immediate effect upon
adoption.
I, Esther C. 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 15th day of June 2009, by the following vote, to wit:
AYES: COUNCILMEMBERS: Brockbank, Connolly, Miller & Vice -Mayor Heller
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Mayor Boro
C-
............... ... .......... .......................................... .... .
ESTHER C. BEIRNE, City Clerk
CITY OF AGENDA ITEM NO.: 13
SAN RAFAEL MEETING DATE: June 15, 2009
REPORT TO MAYOR AND CITY COUNCIL
SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL AUTHORIZING REDEVELOPMENT AGENCY FUNDING OF UP TO
$25,000 TO REDUCE THE RESALE PRICE OF AN AFFORDABLE HOUSING UNIT
IN THE CAPRI DEVELOPMENT (APN 155-376-25) AND MAKING FINDINGS AND
APPROVALS PURSUANT TO THE CALIFORNIA REDEVELOPMENT LAW IN
CONNECTION WITH THE UTILIZATION OF AGENCY LOW AND MODERATE
INCOME HOUSING FUNDS OUTSIDE THE CENTRAL SAN RAFAEL
REDEVELOPMENT PROJECT AREA
SUBMITTED BY: O APPROVED BY: I 1
Nancy Mackle, Economic Development Director Ken Nordlioff, Executive Director
RECOMMENDATION: Staff recommends that the City Council adopt the attached resolution
approving a $25,000 expenditure from Redevelopment Agency low and moderate income housing
fund to reduce the sale price of a Below Market Rate housing unit outside the Redevelopment Area.
BACKGROUND: The California Redevelopment Law, Health and Safety Code Section 33334.2
(g), requires that the City Council make findings and approve the Agency's use of low and moderate
income housing funds when the funds will be used on projects located outside of the Central San
Rafael Redevelopment Project Area.
ANALYSIS: The Redevelopment Agency approved a $25,000 permanent subsidy to reduce the
sales price of this unit at Capri, which is outside of the Redevelopment Project Area. The unit is
currently priced to be affordable to moderate income purchasers and the subsidy will make the unit
affordable to low income households. The current resale price, without the subsidy, is higher than
most of the units in the BMR program. The price reduction will bring the pricing in line with
similar BMR units.
FISCAL IMPACT: No fiscal impact to the City, the $25,000 subsidy will be funded by the
Redevelopment Agency's Low and Moderate Income Housing Fund.
ACTION REQUIRED: Adopt the attached resolution.
FOR CITY CLERK ONLY
File No.: A) — � � �+�- —► c�3.
City Council Meeting:
Disposition: P - LU-7rOA) #