HomeMy WebLinkAboutRDA Reso 13-2010RESOLUTION NO. 13-2010
REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO,
STATE OF CALIFORNIA
A RESOLUTION AjJTHORIZING THE EXPENDITURE OF UP
TO $300,000 FROM THE LOW- AND MODERATE-INCOME
HOUSING FUND TO PRESERVE THE AFFORDABILITY OF
BELOW MARKET RATE UNITS AT CITY LIGHTS,
ADOPTING FINDINGS IN CONNECTION THEREWITH, AND
APPROVING AN AMENDMENT TO THE AGENCY'S LOW-
AND MODERATE-INCOME HOUSING FUND OPERATING
BUDGET
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 F?1 Camino Corridor Redevelopment Project Area ("Project
Area "); and
WHEREAS, two owners of inclusionary below market rate units ("BMR Units") in the
South City Lights development located outside the Project Area at 2200 Gellert Court desire to
sell their BMR Units; and
WHEREAS, the owners of the BMR Units are having difficulty finding buyers to
purchase the BMR Units at the affordable price because the affordable price is so close to market
rate; and
WHEREAS, if the owners cannot find buyers to purchase the BMR Units at the
affordable price, the BMR Units will be sold at market rate, and the City will lose the
affordability of the units; and
WHEREAS, to preserve the affordability of the two BMR Units and facilitate the sale of
the units to eligible buyers, the Agency and City intend to provide a subsidy to the buyers of the
two BMR Units; and
WHEREAS, the Agency intends to finance its portion of the subsidy with funds from the
Agency's Low- and Moderate-Income Housing Fund ("Low/Mod Housing Fund"); and
WHEREAS, to recoup the Agency's and City's investment and ensure the continued
affordability of the BMR Units, the buyers will be required to execute an agreement with the
Agency and/or City which restricts the affordability of the BMR Units for 55 years and requires
the buyer and subsequent buyers to pay the Agency and/or City a percentage of the appreciation
upon the resale of the unit ("Resale Restriction Agreement"); 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 City Council has adopted a resolution finding that use of Low/Mod
Housing Fund monies to subsidize the purchase of two BMR units in City Lights will be of
benefit to the Project Area by providing affordable housing.
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of South
San Francisco that it hereby:
1. Finds that the expenditure of monies from the Low/Mod Housing Fund to subsidize the
purchase of two BMR Units in South City Lights will benefit the Project Area by providing
affordable housing.
2. Authorizes the expenditure of up to $300,000 from the Low/Mod Housing Fund to
subsidize the purchase of two BMR Units in South City Lights.
3. Approves an amendment to the Agency's Low/Mod Housing Fund operating budget.
4. Authorizes the Executive Director of the Agency (or his designee) to execute Resale
Restriction Agreements with the buyers of the subsidized BMR Units, to eliminate the shared
appreciation requirement from the Resale Restriction Agreements if the Executive Director
determines that such requirement adversely affects the marketability of the BMR Units, to sign
all documents, make all approvals and take all actions necessary or appropriate to carry out and
implement the intent of this Resolution.
* * ~
I hereby certify that the foregoing Resolution was regularly introduced and adopted by
the Redevelopment Agency of the City of South San Francisco at a regular meeting held on the
14th day of July, 2010 by the following vote:
AYES: Boardmembers Pedro Gonzalez, Richard A. Garbarino, and Karyl Matsumoto,
Vice Chair Kevin Mullin
NOES: None
ABSTAIN: Chairman Mark Addie~o
ABSENT
None
.~'~
ATTEST:
Clerk