HomeMy WebLinkAboutRDA Reso 05-2009RESOLUTION NO. OS-2009
REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO,
STATE OF CALIFORNIA
A RESOLU i ION AUTHORIZING THE EXPENDITURE OF UP
TO $300,000 FROM THE LOW- AND MODERATE-INCOME
HOUSING FUND TO SUBSIDIZE THE PURCHASE OF UP TO
SIX 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 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 sell 70
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 ("Low/Mod Housing Fund");
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 buyer and subsequent buyers to
pay the Agency a small percentage of the appreciation upon the sale of the unit ("Shared
Appreciation 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 findinj that use of Low/Mod
Housing Fund monies to subsidize the purchase of up to six 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 up to six BMR Units in City Lights will benefit the Project
Area by providing affordable housing.
2. Authorizes the expenditure of up to $300,000 to subsidize the purchase of up to
six BMR Units.
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
Shared Appreciation Agreements with the buyers of the subsidized BMR Units, to sign
all documents, to 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 special meeting held on the
11th day of March, 2009 by the following vote:
AYES: Boardmembers Pedro Gonzalez, Richard A. Garbarino, and Kevin Mullin,
Vice Chair Mark Addiego and Chair Karyl Matsumoto
NOES: None
ABSTAIN: None
ABSENT: None
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ATTEST: - . _-
,.%° ~ City Cler