HomeMy WebLinkAboutReso 24-2009RESOLUTION NO. 24-2009
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION ADOPTING FINDINGS REQUIRED BY
HEALTH AND SAFETY CODE SECTION 33334.2 IN
CONNECTION WITH THE EXPENDITURE OF UP TO
$300,000 FROM THE REDEVELOPMENT AGENCY'S LOW-
AND MODERATE-INCOME HOUSING FUND TO SUBSIDIZE
THE PURCHASE OF BELOW MARKET RATE UNITS AT
CITY LIGHTS
WHEREAS, the Redevelopment Agency of the City of South San Francisco ("Agency")
is a redevelopment agency existing pursuant to the Community Redevelopment Law, California
Health and Safety Code Section 33000, et seq. (the "CRL"), and pursuant to the authority
granted thereunder, has the responsibility to carry out the Redevelopment Plan
("Redevelopment Plan") for the El Camino Corridor Redevelopment Project Area ("Project
Area "); and
WHEREAS, on January 9, 2002, the City Council adopted ordinance 1306-2002
approving a Development Agreement for the Marbella Housing Development ("City Lights");
and
WHEREAS, pursuant to the Development Agreement, the developer is required to se1170
below market rate units ("BMR Units") to families of low- and moderate-incomes; provided
however, any BMR Units that are not under a sales contract within 6 months of the City's
issuance of a certificate of occupancy for the unit are released from the requirements of the
Development Agreement, and the developer may sell such units at market rate; and
WHEREAS, due to the recession, layoffs and declining home prices, the City has had
difficulty selling the last ten BMR units in City Lights; and
WHEREAS, these ten BMR units will be released from the terms of the Development
Agreement and sold at market rate if they are not sold soon; and
WHEREAS, to facilitate the sale of six of the remaining BMR units to eligible buyers,
the Agency plans to provide a $50,000 subsidy to the buyer of each of the six units from the
Agency's Low- and Moderate-Income Housing Fund ("LowiMod Housing Fund"); and
WHEREAS, to recoup the Agency's investment and ensure the continued affordability of
the six BMR units, the buyers will be required to execute an agreement with the Agency which
restricts the affordability of the unit for 45 years and requires the buyers and subsequent buyers
to pay the Agency a small percentage of the appreciation upon the sale of the unit; and
WHEREAS, pursuant to Section 33334.2 of the CRL, the Agency may use Low/Mod
Housing Fund monies outside of the Project Area provided that the Agency Board and the City
Council find that the use will be of benefit to the Project Area; and
WHEREAS, the use of Low/Mod Housing Fund monies to subsidize the purchase of up
to six BMR Units will be of benefit to the Project Area because it will provide affordable
housing.
NOW, THEREFORE, BE IT RESOLVED by the City of South San Francisco that it hereby
finds that the expenditure of monies from the Agency's Low/Mod Housing Fund to subsidize the
purchase of up to six BMR Units in City Lights will benefit the Project Area by providing
affordable housing.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by
the City Council of the City of South San Francisco at a regular meeting held on the 11th day of
March, 2009 by the following vote:
AYES: Councilmembers Pedro Gonzalez, Richard A. Garbarino, and Kevin Mullin,
Vice Mayor Mark Addiego and Mayor Karyl Matsumoto
NOES: None
ABSTAIN: None
ABSENT: None
ATTEST: l
ity Clerk