HomeMy WebLinkAboutCD Affordable Housing Trust Fund Allocations____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 11/02/2020
Disposition: Resolution 14869
Agenda Item No: 5.d
Meeting Date: November 2, 2020
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community Development
Prepared by: Paul Jensen (EG)
Community Development Director
City Manager Approval: ______________
TOPIC: AFFORDABLE HOUSING TRUST FUND ALLOCATION
SUBJECT: RESOLUTION APPROVING A HOUSING TRUST FUND GRANT TO THE COUNTY OF
MARIN FOR THE AFFORDABLE HOUSING DEVELOPMENT AT 3301 KERNER
BOULEVARD IN AN AMOUNT NOT TO EXCEED $1,540,000, AND AUTHORIZING THE
CITY MANAGER TO EXECUTE GRANT DOCUMENTS AND RELATED DOCUMENTS
RECOMMENDATION:
Adopt a Resolution of the San Rafael City Council approving a housing trust grant to the County of Marin
for the affordable housing development at 3301 Kerner Boulevard in an amount not to exceed
$1,540,000, and authorizing the City Manager to execute grant documents and all related documents
that may be required by other sources of financing for the project.
BACKGROUND:
The City’s Affordable Housing Trust Fund, or Housing Trust Fund, was created to increase the stock of
permanently affordable housing units in the city of San Rafael. The Housing Trust Fund provides a local
funding source for financial and technical assistance to help affordable housing developers produce and
preserve affordable housing.
On January 21, 2020, the City Council adopted Resolution 14760 establishing Guidelines for the
Administration of the Affordable Housing Trust Fund. These Guidelines lay out the administrative policies
and procedures for the use of the Affordable Housing In-Lieu Fee Fund as San Rafael’s primary Housing
Trust Fund.
Section 4 of the Guidelines for the Administration of the Affordable Housing Trust Fund allows eligible
projects seeking Program funding for an eligible activity to submit a Program Application through a
“Rolling Application Process”. The rolling application process is intended to provide City funding for
eligible projects that need a funding decision quickly or before a NOFA process can be conducted.
Applications submitted under this process are reviewed by staff, then a funding recommendation
scheduled for City Council consideration at a regularly scheduled meeting. Often, projects requiring this
expedited decision are acquisitions of market rate properties that require immediate action but can be
deed restricted as affordable housing once acquired.
Project Homekey
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
The California Department of Housing and Community Development issued approximately $600 million
of Homekey Program competitive grant funding. Building on the Project Roomkey initiative, which
provided funds to lease motel rooms to house people experiencing homelessness, Homekey is a
statewide effort to rapidly expand housing for persons who are currently experiencing or at -risk of
homelessness, and who are impacted by COVID-19. Homekey is an opportunity for local public agencies
to purchase motels and a broad range of other housing types in order to increase their community's
capacity to respond to homelessness and the current COVID-19 pandemic. While Homekey builds off of
Project Roomkey, applications are not limited to Project Roomkey sites.
Of the $600 million in Homekey funding, $550 million is derived from the state's direct allocation of the
federal Coronavirus Relief Fund (CRF funds must be expended by December 30, 2020) and $50 million
is state General Funds (must be expended by June 30, 2022).
Because of the timing requirements of the federal funding, the State has provided Counties across
California with a very limited amount of time to apply and close on proposed properties, which has also
resulted in limited time for public engagement and community outreach. Homekey funds can be used for
acquisition, rehabilitation, conversion of nonresidential to residential, master leasing of properties, and
purchase of affordability covenants and restrictions for units.
As discussed at the September 21, 2020 City Council Meeting, the City, County of Marin, and a group
called Opening Doors Marin are pursuing housing acquisition opportunities through the State’s “Project
Homekey” initiative. One of these opportunities would be to acquire the office building at 3301 Kerner,
which has been previously approved by the San Rafael Planning Commission to operate as interim
housing by Homeward Bound of Marin while Homeward Bound redevelops the Mill Street Center to
include an additional 32 units of permanent supportive housing (PSH). When Homeward Bound is able
to relocate back to Mill Street, which is expected to be within 12-18 months, 3301 Kerner is planned to
be converted to 44 PSH units.
These new permanent units would be eligible towards meeting the City’s Regional Housing Need
Allocation (RHNA). Units will be allocated through Marin’s Coordinated Entry, which has adopted its
prioritization criteria to include COVID-19 vulnerabilities, aligned with Project Homekey criteria.
This acquisition would enable Marin to accelerate and expand several strategic initiatives in the County,
such as Housing First, while also protecting those persons experiencing homelessness who are COVID-
19 vulnerable.
In addition to 3301 Kerner, the County of Marin is also pursuing Project Homekey acquisitions at
America’s Best Value Inn in Corte Madera (19 units) and Inn Marin in Novato (70 units).
ANALYSIS:
As stated in Section 4 of the City’s Guidelines for the Administration of the Affordable Housing Trust
Fund, eligible projects seeking Program funding for an eligible activity may submit a Program Application
through a “Rolling Application Process.” Funding for the 3301 Kerner project has been considered under
this process. This project has an expected development cost of approximately $23,400,000. The County
has received an award of approximately $5,940,000 in Project Homekey funds contingent on matching
City funds of $1,540,000. The remaining gap would be filled through tax credits and other funding
sources. Awarded funds must be used to provide housing for individuals and families experiencing
homelessness or at risk of experiencing homelessness and who are impacted by the COVID-19
pandemic.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
While separate from the recent NOFA process, Staff recommends allocating up to $1,540,000 in housing
trust funding for a grant for the 3301 Kerner project. All funds would be used for acquisition of the property
and the City’s funds would therefore go to the creation of new affordable housing units. Funding for
services would come from other funding sources.
Due to the accelerated timeline required by HCD for expending Project Homekey funds, Housing Trust
Fund monies would be transferred directly to an escrow account for project acquisition. The Marin County
Board of Supervisors is expected to consider final approval of all Project Homekey funded projects on
November 17, 2020, with an anticipated closing of all property acquisitions no later than December 2,
2020.
COMMUNITY OUTREACH:
The majority of community outreach for the Project Homekey efforts have been conducted by County
staff. These have included presentations to the Marin County Board of Supervisors on August 11, October
20, and October 27, 2020.
In addition to these presentations, County staff have conducted two public meetings focusing on the
Corte Madera and Novato Project Homekey funded projects. County staff is willing to conduct a public
meeting focused on this project, if desired. They have established a website which will include
Frequently Asked Questions and other outreach materials on the proposed projects, the address is
https://www.marincounty.org/homekey.
Also, the City did a news e-blast through the Homeless Initiatives Newsletter with information about 3301
Kerner and provided the information on the City’s website.
FISCAL IMPACT:
Currently, the City’s Affordable Housing Trust Fund (Fund #243) balance is $3,573,960. On October 5th,
2020, City Council approved $1,550,000 in Trust Fund allocations reducing the available Trust Fund
balance of $2,023,960, once appropriated. Approval of this resolution would further reduce this balance
to $483,960. The Trust Fund will be replenished by March 31, 2021 when the City receives the final
installment, $1,843,200, of the BMR Buyout Agreement for Loch Lomond Marina.
Housing Trust Funds would be provided to the County of Marin as a grant. Funds are not recommended
to be provided as a loans due to the limited revenue generated through permanent supportive housing
projects.
OPTIONS:
The City Council has the following options to consider on this matter:
1. Adopt resolution
2. Adopt resolution with modifications
3. Direct staff to return with more information
4. Take no action
RECOMMENDED ACTION:
Adopt A Resolution Approving a Housing Trust Grant to the County of Marin for the Affordable Housing
Development at 3301 Kerner Boulevard in an Amount Not to Exceed $1,540,000, and Authorizing the
City Manager to Execute Grant Documents and All Related Documents That May Be Required by Other
Sources of Financing.
ATTACHMENTS:
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
1) Resolution of the San Rafael City Council Approving a Housing Trust Grant to the County of
Marin For the Affordable Housing Development at 3301 Kerner Boulevard in an Amount Not to
Exceed $1,540,000, and Authorizing the City Manager to Execute Grant Documents and All
Related Documents That May Be Required by Other Sources of Financing for the Project
Page 1 of 2
RESOLUTION NO. 14869
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL APPROVING A HOUSING TRUST FUND
GRANT TO THE COUNTY OF MARIN FOR THE AFFORDABLE HOUSING DEVELOPMENT AT
3301 KERNER BOULEVARD IN AN AMOUNT NOT TO EXCEED $1,540,000, AND AUTHORIZING
THE CITY MANAGER TO EXECUTE GRANT DOCUMENTS AND ALL RELATED DOCUMENTS
THAT MAY BE REQUIRED BY OTHER SOURCES OF FINANCING FOR THE PROJECT
WHEREAS, on January 21, 2020, the City Council adopted Resolution No. 14760, establishing
Guidelines for the Administration of the Affordable Housing Trust Fund; and
WHEREAS, on July 16, 2020 the California Department of Housing and Community
Development released a Notice of Funding Availability (NOFA) for $600 million in Project Homekey
funding to local public entities, including cities, counties, or other local public entities within California to
purchase and rehabilitate housing, including hotels, motels, vacant apartment buildings, and other
buildings and convert them into interim or permanent, long-term housing; and
WHEREAS, on August 11, 2020, the County of Marin Board of Supervisors adopted Resolution
No. 2020-86 endorsing and authorizing application for the Project Homekey program, including an
application for funding for the affordable housing development at 3301 Kerner Boulevard in San Rafael
(“3301 Kerner”); and
WHEREAS, the City received an application from the County of Marin seeking $1,540,000 in
funding for 3301 Kerner as part of the Project Homekey program; and
WHEREAS, Section 4 of the City’s Guidelines for the Administration of the Affordable Housing
Trust Fund allows eligible projects seeking Program funding for an eligible activity to submit a Program
Application through a “Rolling Application Process”; and
WHEREAS, City staff reviewed the 3301 Kerner project application using the evaluation criteria
listed in Section 5 of the Guidelines for the Administration of the Affordable Housing Trust Fund; and
WHEREAS, based upon this evaluation criteria, staff recommended the 3301 Kerner project for
funding as a grant in an amount up to $1,540,000 as result of the project’s ability to leverage Project
Homekey funding to provide new housing for very low and extremely low-income households and
substantial supportive services; and
WHEREAS, the purchase of the property is contingent on receiving State of California
Department of Housing and Community Development Homekey Grant funds; and
WHEREAS, a purchase of an ownership interest in real property funded pursuant to Health
and Safety Code Section 50675.1.1 as this project is, shall be statutorily exempt from the California
Environmental Quality Act pursuant to Health and Safety Code Section 50675.1.2; and
WHEREAS, the City has sufficient funds in the Affordable Housing Trust Fund #243 to be
appropriated for FY20/21 to support this grant;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael hereby
approves a housing trust fund grant to the County of Marin for the affordable housing development at
3301 Kerner Boulevard in an amount not to exceed $1,540,000, and authorizes the City Manager to
Page 2 of 2
execute grant documents and all related documents that may be required in connection with other
sources of financing for the project, 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 regular meeting of the City Council of said City held on
Monday, the 2nd day of November 2020, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: Colin
ABSENT: COUNCILMEMBERS: None
______________________________
LINDSAY LARA, City Clerk
11/2/2020 Mail - Lindsay Lara - Outlook
https://outlook.office365.com/mail/inbox/id/AAMkAGE4NDc2ZDVlLWQxMTYtNDBiOC04NTI0LTRjYTQzNTJlMTJkMQBGAAAAAAAyY1qsYIBjQ6ajfUy…1/1
Agenda Item 5D: Suppor ting the Allocation of Housing Trust Funds to Purchase 3301
Kerner
Ethan Strull <ethan@sfhac.org>
Mon 11/2/2020 5:26 PM
To: Lindsay Lara <Lindsay.Lara@cityofsanrafael.org>
Dear Mayor Phillips and Councilmembers,
My name is Ethan Strull. I grew up in the Los Ranchitos neighborhood and work with the Bay Area
Housing Advocacy Coalition to make Marin a more equitable place through housing in our county. I am
writing to support the allocation of Housing Trust funds towards the purchase of 3301 Kerner Boulevard
for interim housing and then permanent supportive housing. The purchase of this currently vacant
commercial property will provide immediate aid to those who need it most during the COVID-19
pandemic while providing infrastructure for long term solutions to homelessness in Marin.
San Rafael, like other cities and towns in Marin, has worked hard to support its unhoused community
members. When I was in high school, a representative from the Downtown Streets Team talked to my
class about homelessness in San Rafael and how their organization works to empower unhoused
individuals. To me, their efforts represented how communities should treat struggling community
members: with dignity and a focus on empowering, long-term solutions.
By accepting state funding with the city’s match, San Rafael has the opportunity to expand and deepen
its care for unhoused community members. Residents have shown widespread support for this project,
exemplifying our continued leadership to build more equitable communities in our own backyards.
I appreciate your proactive efforts to collaborate with other groups to do the right thing.
Thank you,
Ethan Strull
The Street Chaplaincy
1510 5th Ave, San Rafael, CA 94901
415-685-5058
www.streetchaplaincy.org
November 2, 2020
San Rafael City Council
1400 5th Ave., Rm 209
San Rafael, CA 94901
Dear Mayor Phillips and Councilmembers,
The Street Chaplaincy and its governing board have been serving the unsheltered
population in San Rafael since 1992. Along with providing spiritual care and
connecting Marin’s homeless with support services, we are tireless advocates for
affordable housing and any efforts that will provide shelter for the most vulnerable
in our midst.
We are currently working with San Rafael’s Director of Homeless Planning and
Outreach, Andrew Henning to increase affordable housing stock and options for
people who are without shelter by exploring partnerships with local congregations.
We strongly support the purchase at 3301 Kerner Boulevard in San Rafael and the
allocation of Housing Trust funds for a matching grant for this purpose.
This past Friday our Street Chaplain, Rev. Marty Tracy and I helped move one of
our more vulnerable community members into 3301 Kerner. The person we moved
is a senior with health issues who has been sleeping outside San Rafael City hall for
the past several years. The property at 3301 Kerner, along with the services being
provided will make a great difference in the quality of her life and many others.
We ask that you please work with the County and Opening Doors to make this site
a permanent fixture of our commitment to help end homelessness in Marin.
Sincerely,
Nick Morris
Executive Director
11/2/2020 Mail - Lindsay Lara - Outlook
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Agenda Item 5D: Suppor ting the Allocation of Housing Trust Funds to Purchase 3301
Kerner
Ethan Strull <ethan@sfhac.org>
Mon 11/2/2020 5:26 PM
To: Lindsay Lara <Lindsay.Lara@cityofsanrafael.org>
Dear Mayor Phillips and Councilmembers,
My name is Ethan Strull. I grew up in the Los Ranchitos neighborhood and work with the Bay Area
Housing Advocacy Coalition to make Marin a more equitable place through housing in our county. I am
writing to support the allocation of Housing Trust funds towards the purchase of 3301 Kerner Boulevard
for interim housing and then permanent supportive housing. The purchase of this currently vacant
commercial property will provide immediate aid to those who need it most during the COVID-19
pandemic while providing infrastructure for long term solutions to homelessness in Marin.
San Rafael, like other cities and towns in Marin, has worked hard to support its unhoused community
members. When I was in high school, a representative from the Downtown Streets Team talked to my
class about homelessness in San Rafael and how their organization works to empower unhoused
individuals. To me, their efforts represented how communities should treat struggling community
members: with dignity and a focus on empowering, long-term solutions.
By accepting state funding with the city’s match, San Rafael has the opportunity to expand and deepen
its care for unhoused community members. Residents have shown widespread support for this project,
exemplifying our continued leadership to build more equitable communities in our own backyards.
I appreciate your proactive efforts to collaborate with other groups to do the right thing.
Thank you,
Ethan Strull
The Street Chaplaincy
1510 5th Ave, San Rafael, CA 94901
415-685-5058
www.streetchaplaincy.org
November 2, 2020
San Rafael City Council
1400 5th Ave., Rm 209
San Rafael, CA 94901
Dear Mayor Phillips and Councilmembers,
The Street Chaplaincy and its governing board have been serving the unsheltered
population in San Rafael since 1992. Along with providing spiritual care and
connecting Marin’s homeless with support services, we are tireless advocates for
affordable housing and any efforts that will provide shelter for the most vulnerable
in our midst.
We are currently working with San Rafael’s Director of Homeless Planning and
Outreach, Andrew Henning to increase affordable housing stock and options for
people who are without shelter by exploring partnerships with local congregations.
We strongly support the purchase at 3301 Kerner Boulevard in San Rafael and the
allocation of Housing Trust funds for a matching grant for this purpose.
This past Friday our Street Chaplain, Rev. Marty Tracy and I helped move one of
our more vulnerable community members into 3301 Kerner. The person we moved
is a senior with health issues who has been sleeping outside San Rafael City hall for
the past several years. The property at 3301 Kerner, along with the services being
provided will make a great difference in the quality of her life and many others.
We ask that you please work with the County and Opening Doors to make this site
a permanent fixture of our commitment to help end homelessness in Marin.
Sincerely,
Nick Morris
Executive Director
11/2/2020 Mail - Lindsay Lara - Outlook
https://outlook.office365.com/mail/inbox/id/AAMkAGE4NDc2ZDVlLWQxMTYtNDBiOC04NTI0LTRjYTQzNTJlMTJkMQBGAAAAAAAyY1qsYIBjQ6ajfUy…1/1
Agenda Item 5D: Supporting the Allocation of Housing Trust Funds to Purchase 3301
Kerner
Ethan Strull <>
Mon 11/2/2020 5:26 PM
To: Lindsay Lara <Lindsay.Lara@cityofsanrafael.org>
Dear Mayor Phillips and Councilmembers,
My name is Ethan Strull. I grew up in the Los Ranchitos neighborhood and work with the Bay Area
Housing Advocacy Coalition to make Marin a more equitable place through housing in our county. I am
writing to support the allocation of Housing Trust funds towards the purchase of 3301 Kerner Boulevard
for interim housing and then permanent supportive housing. The purchase of this currently vacant
commercial property will provide immediate aid to those who need it most during the COVID-19
pandemic while providing infrastructure for long term solutions to homelessness in Marin.
San Rafael, like other cities and towns in Marin, has worked hard to support its unhoused community
members. When I was in high school, a representative from the Downtown Streets Team talked to my
class about homelessness in San Rafael and how their organization works to empower unhoused
individuals. To me, their efforts represented how communities should treat struggling community
members: with dignity and a focus on empowering, long-term solutions.
By accepting state funding with the city’s match, San Rafael has the opportunity to expand and deepen
its care for unhoused community members. Residents have shown widespread support for this project,
exemplifying our continued leadership to build more equitable communities in our own backyards.
I appreciate your proactive efforts to collaborate with other groups to do the right thing.
Thank you,
Ethan Strull
The Street Chaplaincy
1510 5th Ave, San Rafael, CA 94901
415-685-5058
www.streetchaplaincy.org
November 2, 2020
San Rafael City Council
1400 5th Ave., Rm 209
San Rafael, CA 94901
Dear Mayor Phillips and Councilmembers,
The Street Chaplaincy and its governing board have been serving the unsheltered
population in San Rafael since 1992. Along with providing spiritual care and
connecting Marin’s homeless with support services, we are tireless advocates for
affordable housing and any efforts that will provide shelter for the most vulnerable
in our midst.
We are currently working with San Rafael’s Director of Homeless Planning and
Outreach, Andrew Henning to increase affordable housing stock and options for
people who are without shelter by exploring partnerships with local congregations.
We strongly support the purchase at 3301 Kerner Boulevard in San Rafael and the
allocation of Housing Trust funds for a matching grant for this purpose.
This past Friday our Street Chaplain, Rev. Marty Tracy and I helped move one of
our more vulnerable community members into 3301 Kerner. The person we moved
is a senior with health issues who has been sleeping outside San Rafael City hall for
the past several years. The property at 3301 Kerner, along with the services being
provided will make a great difference in the quality of her life and many others.
We ask that you please work with the County and Opening Doors to make this site
a permanent fixture of our commitment to help end homelessness in Marin.
Sincerely,
Nick Morris
Executive Director