HomeMy WebLinkAboutCD Opportunity Zone Renter Relocation Assistance Report PPTOpportunity Zone Renter Relocation
Assistance Informational Report
San Rafael City Council
November 2, 2020
Opportunity Zone-Background
Created as part of US Investing Opportunities Act in
2017
Provides Tax Incentives for investing capital gains
through an “Opportunity Fund”
The longer an investor keeps their money in the
Opportunity Fund investment, the larger the tax
break they will receive.
No provisions in legislation for “un-designating” a
qualified OZ.
San Rafael Opportunity Zone-Census Tract 1122.01
San Rafael City Council
November 2, 2020
October 5, 2020-Study Session
Staff provided overview of the Opportunity Zone, current rental market conditions,
and potential changes to renter relocation assistance payments.
Staff directed to prioritize work on potential renter relocation assistance for renters
with the Opportunity Zone. Next steps include staff returning with an Information
Report.
San Rafael City Council
November 2, 2020
Opportunity Zone-Impacted Properties
San Rafael City Council
November 2, 2020
Properties Units
Average Units/
Property
Single Family Homes 35 35 1
Condominiums 10 254 25
Apartment Buildings 82 1,387*17
Non-Residential 13 --
Total 140 1,676
*139 Units have deed restricted below market rate protections
Current Renter Relocation Assistance Requirements
(Citywide)
San Rafael City Council
November 2, 2020
Applies only to No-Fault Evictions:
•Owner Move-In
•Substantial Rehabilitation
•Demolition
Household must be Low-Income
Payment equal to two times the “leased” rent
Proposed Changes to Renter Relocation Assistance
(OZ only)
San Rafael City Council
November 2, 2020
Studio 1-Bedroom 2-Bedroom 3-Bedroom 4-Bedroom
Base Relocation Payment (All Renters)*
First Month Rent (2020 Fair Market Rent)2,197$ 2,720$ 3,339$ 4,365$ 4,657$
Security Deposit (2x Fair Market Rent)4,394$ 5,440$ 6,678$ 8,730$ 9,314$
Estimated Moving Expenses 500$ 500$ 750$ 1,000$ 1,500$
Minimum Total Renter Relocation Payment 7,091$ 8,660$ 10,767$ 14,095$ 15,471$
Supplemental Relocation Payments (paid in addition to Base Relocation Payments)
Temporary Housing
$150 per diem, prorated by night until 1st of next month -$ -$ -$ -$ -$
Household Charecteristics
Provided if household meets one of the below criteria:2,197$ 2,720$ 3,339$ 4,365$ 4,657$
1) Household with children
2) Household with individual 65 years or older
3) Household with individuals with disability
Estimated Total Renter Relocation Payment 9,288$ 11,380$ 14,106$ 18,460$ 20,128$
Studio 1-Bedroom 2-Bedroom 3-Bedroom 4-Bedroom
Administrative Fee
1-10 Units- 10%709$ 866$ 1,077$ 1,410$ 1,547$
11-20 Units- 15%1,064$ 1,299$ 1,615$ 2,114$ 2,321$
21+ Units- 20%1,418$ 1,732$ 2,153$ 2,819$ 3,094$
Payments to Renters (per unit)
Payments to City of San Rafael (per unit)**
* Base Relocation will be calculated using the higher amount between current Fair Market Rent or Leased Rent.
**Note: Current payment to the City of San Rafael are based on base payment amount for illustration. Actual payments to the City of San Rafael
would be based on actual Renter Relocation Payment.
Key Changes:
•Applies to OZ only
•No Income restrictions
•Payments based on the higher
between the leased rent versus the
HUD Fair Market Rent
•Increased Base Relocation Payments
•Includes Temporary Housing per diem
and One (1) Supplemental Relocation
Payment for a qualified household
•Administrative Fee to cover
implementation costs provide by 3rd
party
Options
1)Accept Report
2)Direct staff to return with more information
3)Take no action
San Rafael City Council
November 2, 2020
Thank You!
San Rafael City Council
November 2, 2020