HomeMy WebLinkAboutReso 67-2010RESOLUTION NO. 67-2010
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING THE EXPENDITURE OF
EXCESS PROCEEDS FROM THE SALE OF BELOW MARKET
RATE (BMR) UNITS AT SOUTH CITY LIGHTS TO
PRESERVE THE AFFORDABILITY OF TWO BMR UNITS,
ADOPTING FINDANGS REQUIRED BY HEALTH AND
SAFETY CODE SECTION 33334.2 IN CONNECTION WITH
THE EXPENDITURE OF FUNDS FROM THE
REDEVELOPMENT AGENCY'S LOW- AND MODERATE-
INCOME HOUSING FUND, AND APPROVING AN
AMENDMENT TO FUND 81-00000-1134.
WHEREAS, two owners of inclusionary below market rate units ("BMR Units") in the
South City Lights development located outside the El Camino Corridor Redevelopment Project
Area ("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 U-nits at the
affordable price, the BMR Units will be sold at market rate, the City will only recoup the
difference between the affordable price and the market price ("Excess Proceeds"), 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 BMR 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, the City intends to finance its portion of the subsidy with Excess Proceeds it
received from the sale of two other :BMR Units in South City Lights at market rate; and
WHEREAS, to recoup the City's and Agency's investment and ensure the continued
affordability of the BMR Units, th_e buyers will be required to execute an agreement with the
City and/or Agency which restricts the affordability of the unit for 55 years and requires the
buyers and subsequent buyers to pay the City and/or Agency 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 use of Low/Mod Housing Fund monies to subsidize the purchase of two
BMR Units in South City Lights 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:
1. Finds that the expenditure of monies from the Low/Mod Housing Fund to subsidize the
purchase of the two BMR Units in South City Lights will benefit the Project Area by providing
affordable housing.
2. Authorizes the expenditure of Excess Proceeds in an amount of up to $ 52,218 to
subsidize the purchase of two BMR Units in South City Lights.
3. Approves an amendment to Fund 81-00000-11334.
4. Authorizes the City Manager (or his designee) to execute Resale Restriction Agreements
with the buyers of the BMR Units., to eliminate the shared appreciation requirement from the
Resale Restriction Agreements if the City Manager determines that such requirement adversely
affects the marketability of the BM:R 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 City Council of the City of South San Francisco at a regular meeting held on the 14th day of
July, 2010 by the following vote:
AYES: Councilmembers Pedro Gonzalez, Richard A. Garbarino, and Karyl Matsumoto,
Vice Mayor Kevin Mullin and Moor Mark Addie~o
NOES: None
ABSTAIN: None
ABSENT:
ATTEST: ~' ~'" , ;.,.. -~
::
'°~. Cit~'~Clerk
~_._._