HomeMy WebLinkAboutReso 65-2017 (17-570) SANS City of South San Francisco
o tv o P.O. Box 711 (City Hall,
o 7 ° r 400 Grand Avenue)
_ South San Francisco, CA
_- - City Council
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Resolution: RES 65-2017
File Number: 17-570 Enactment Number: RES 65-2017
RESOLUTION APPROVING THE REAPPLICATION OF
REDEVELOPMENT AGENCY (RDA) DOWN PAYMENT
ASSISTANCE SUBSIDIES TO BE APPLIED TOWARDS ALL BELOW
MARKET RATE (BMR) PROPERTIES RESOLD; AND
AUTHORIZING THE CITY MANAGER TO APPROVE THE
ROLLOVER OF A $100,000 SUBSIDY RELATED TO THE RESALE
OF A BMR UNIT AT 2200 GELLERT BOULEVARD, UNIT #6103
AND EXECUTE DOCUMENTS ASSOCIATED WITH THE
ROLLOVER.
WHEREAS, City Council and former Redevelopment Agency(RDA)previously approved the use of up
to $300,000 from the former RDA Low and Moderate Income Housing Fund to preserve the affordability
of certain condominium units in the City Lights development; and
WHEREAS, as more particularly described in the staff report accompanying this Resolution, staff has
recommended the rollover of a $100,000 down payment assistance subsidy provided by the RDA,
including proceeds from shared appreciation, to be reapplied towards the resale of the property at 2200
Gellert Boulevard, Unit #6103, for the purpose of maintaining its affordability for eligible families of
various income levels; and
WHEREAS, owners of inclusionary below market rate units ("BMR Units") in the South City Lights
development located outside the Project Area at 2200 Gellert Court, from time to time, desire to sell their
BMR Units; and
WHEREAS,often times 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 City, seeks to provide a subsidy to the buyers of the BMR Units; and
WHEREAS, the City intends to finance its portion of the subsidy with funds from the former RDA's
Low- and Moderate-Income Housing Fund("Low/Mod Housing Fund"); and
WHEREAS,to recoup the City's investment and ensure the continued affordability of the BMR Units,the
buyers will be required to execute an agreement with the City which restricts the affordability of the BMR
Unit for 55 years and requires the buyer and subsequent buyers to pay the
City of South San Francisco Page 1
File Number: 17-570 Enactment Number: RES 65-2017
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 City may use Low/Mod Housing Fund monies
outside of the Project Area provided that the City Council find that the use will be of benefit to the Project
Area; and;
WHEREAS,the City Council desires to permit the reapplication of Redevelopment Agency(RDA)Down
Payment Assistance subsidies to be applied towards all Below Market Rate (BMR) properties resold in
order to assist in preserving affordability of below-market rate(BMR)units throughout the City.
NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of South San Francisco hereby:
Finds that the expenditure of monies to subsidize the purchase of two BMR Units in South City Lights
will benefit the City and Project Area by providing affordable housing.
Approves the reapplication of former Redevelopment Agency down payment assistance subsidies
towards all Below Market Rate (BMR) properties resold within the City, in a manner consistent with the
prior program guidelines.
Authorizes the City Manager or his designee to approve the rollover of a$100,000 subsidy provided to
the owner of the below market rate unit at 2200 Gellert Boulevard,Unit#6103, for purposes of providing
downpayment assistance for the prospective eligible purchaser of 2200 Gellert Boulevard,Unit#6103.
Authorizes the City Manager or his designee to execute any necessary documents and make all
approvals and take all actions necessary or appropriate to carry out the intent of this Resolution,including
without limitation, those Loan Documents to which the City is a party in form approved by the City
Attorney.
At a meeting of the Special City Council on 6/27/2017,a motion was made by Mark Addiego, seconded by
Liza Normandy, that this Resolution be approved. The motion passed.
Yes: 5 Matsumoto, Normandy,Addiego, Gupta, and Garbarino
Attest by
Gabriel Ro guez
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