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HomeMy WebLinkAboutCC Resolution 12412 (Purchase BMR)RESOLUTION NO. 12412 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING A LOAN TO MARIN HOUSING IN AN AMOUNT NOT TO EXCEED THREE HUNDRED AND FIFTY THOUSAND DOLLARS ($350,000) FOR THE PURCHASE OF A BELOW MARKET RATE UNIT 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. (A.P.N 179-471-25) 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 Signature Properties 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 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 ("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 Agency desires to provide a loan to Marin Housing (the "Agency Loan") to finance acquisition of such unit by Marin Housing, so that the unit might remain in the City's BMR program; and, WHEREAS, it is proposed that the Agency fund the Agency Loan with Three Hundred and Fifty Thousand Dollars ($350,000) 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 seg.) ("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 monies 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 Three Hundred and Fifty Thousand Dollars ($350,000) of Housing Fund monies to fund the Agency Loan. 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 17th day of December 2007, by the following vote, to wit: AYES: COUNCILMEMBERS: Brockbank, Connolly, Heller, Miller & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None Esther C. Beirne, City Clerk CITY OF AGENDA ITEM NO.: 11 SAN RAFAEL MEETING DATE: December 17, 2007 REPORT TO MAYOR AND CITY COUNCIL SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING THE EXECUTION OF A LOAN TO MARIN HOUSING IN AN AMOUNT NOT TO EXCEED THREE HUNDRED AND FIFTY THOUSAND DOLLARS ($350,000) FOR THE PURCHASE OF A BELOW MARKT RATE HOUSING UNIT 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. (APN 179-471-25) SUBMITTED BY: APPROVED BY: Nancy Mackle, Economia Development Director Ken Nordhoff, Executive Director RECOMMENDATION: Staff recommends that the City Council adopt the attached resolution approving a loan by the Redevelopment Agency to Marin Housing for the purchase of a Below Market Rate housing unit located outside the Redevelopment Project 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: This is an existing affordable unit that may be purchased by Marin Housing pursuant to the Resale Restriction on the unit. The unit will be resold to a qualified purchaser and the funds returned to the Agency's low and moderate income housing fund. A City Council resolution is required by the Health and Safety Code to implement the Agency's loan. FISCAL IMPACT: No fiscal impact to the City, the $350,000 loan 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.: ��)-9 (pppr) Q -1-43y R -1C City Council Meeting: ;'Ll 1*46 - Disposition: QE'r=oL-u (oN 1* la4ly