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HomeMy WebLinkAboutResolutions 85-389 N.C.S. 12/16/1985~` . i_~ - Resolution No. 85-389 ~. C. ~. of the City of Petalurna, California APPROVING':AND DIRECTING PUBLICATION OF A HOUSING POLICIES REPORT WHEREAS, Section 103A{~) (5} of the Internal Revenue Code of 1954, as amended, as implemented by temporary regulations of the Department of the Treasury, Section fia.103A-2(1) requires the applicable elected representative of an issuer of qualified mortgage subsidy bonds to publish, following a public hearing, a housing policy report; and, WHEREAS, this Council is the applicable elected representative of the City of Petaluma which Gity proposes to issue in 1986 qualified mortgage subsidy bonds; WHEREAS, this Couricil has received a elraft housing policy report dated June 30 , 1985 , a copy of which is on file in the Of fice of the City Clerk., and has reviewed each and every part .thereof and this Council has conducted a duTy noticed public hearing; and, WHEREAS, it is in the public interest and for the public benefit that ~ . • i said housing policy report be approved and published'; NOW, THEREFORE, it is hereby ORDERED and DETERMINED as f ollow s : - 1. The City Manager of the City is hereby •authorized and directed to prepare a summary of the comments made at the aforesaid public hearing and to include said surnmary as a part of the Policy Report Under Sect'ion 1Q3A. • 2. The report of the City of Petaluma entitled, "Policy Report Under Section 103A," and dated March 8, 1985, is hereby approved with the inclusion of said summary of comments. 3. The Mayor of the City, as a member of th'is Council, is hereby authorized and directed to execute said report on behalf of this Gouncil as the duly elected representat'ive of the City. 4. This Couneil does hereby publish the Report by authorizing and directing the City Clerk, and the Cify Clerk is hereby so ~ Reso. 85-389 NCS 1 of 2 authorized and directed, to make said Report available in the Office of the City Clerk for distribution to the public. 5. The City Clerk of the City is hereby authorized and directed to file the Report with the Internal Revenue Service at the Internal Revenue Service Center, Philadelphia, Pennsylvania 19255. Under the power and authority conferred upon this Council'by the Charter of said City. housing P~1~~/~~y the foregoing Resolution was introduced arid adopted by the roved as to Council of the City of Petaluma at a(Regular) (~~j~~~~~C meeting on the ..16th ............. day of ... December ..., 19.85.., by the .. .. . .........................•---- following vote: ..• •-- -•• -••---••••--••--•--•••-- ity Attorney AYES: Cavanagh, Davis, Woolsey, Tencer, Vice 1Vlayor Balshaw, Mayor Mattei NOES: None ABSENT: Bond / ........ .y ........ .... ......... ............ ...... ...•...-••••••--••--••••--•----••--•• •-•----•-•••-••-•-••-•--... ._...----- ATTEST: •••-••--•--• ..............•-•• --•--.._..-•••--••-------• Cit Clerk Mayor Gbuncil File .................................•- Form CA 2 7/81 ~. No.....85.-~89. _NCS 2 of 2 POLICY REPORT UNDER SECTION 103A CITY OF PETALUMA COUNTY OF SONOMA, CALIFORNIA EID Number: 94-6000392 AS OF: JUNE 30, 1985 PREPARED : DECEMBER 1985 POLICY REPORT UNDER SECTION 103A PART A: STATEMENT OF POLICIES AND GOALS REGARDING HOUSING DEVELOPMENT AND LOW INCOME HOUSING ASSISTANCE 1. Statement as to Housin~ Policies and Goals In preparing the Housing Element to its General Plan (a requirement of California State law) , the City of Petaluma analyzed its need for new housing units to serve its growing population. It found that in the 5 year period from 1980 to 1985, the total number of new households expected to reside in the City is 2,486. Deducting the units built in the period 1980 to 1985 results in the need to construct 300 units to serve this population. Twenty-eight percent of these units are needed to house low-moderate income households (according to California State law, households earning less than 120$ of the median income -- in 1985, less than $39,326). According to the Housing Element, the vacancy rate for single-family housing in Petaluma is .90. Particularly in demand are new homes, since their selling prices are often less than those of existing home (both the local Multiple Listing Service and the IRS Safe Harbor Limits document this) . One reason for the price difference is that many local builders have responded to the need for affordable housing and are building a product targeted toward the first-time buyer earning between $32,000 and $39,000. To encourage the building of units needed to house the projected population, the City has, at this time, targeted its mortgage revenue bond program to the acquisition of new residences, rather than existing or rehabilitation. It did this by accepting applications from local developers only for new construction projects. No proceeds are allocated to lenders to finance mortgages on existing homes. The City's housing policies are related to its development and low-income housing assistance policies . The City's General Plan is based on a concept of balanced residential development in all sectors of the community where adequate City facilities and services are available or will be provided. Low-income housing is also focused in the developed areas where services such as transportation and medical facilities are readily available. The City's emphasis on financing new construction with its mortgage bond authority is also more likely to result in assisting low-moderate income buyers since, as was mentioned, many of the new housing developments offer lower house prices than existing homes. -~ -1- 2. Statement as to Development Policies and Goals There are no targeted areas as described in the law in the City of Petaluma and no specific areas have been targeted for bond proceeds . All bond monies are generally targeted, however, to those areas in which the General Plan calls for development. The construction of new housing in these areas is consistent with the General Plan. As indicated in the "housing policies" section, no redevelopment of existing housing is planned; instead, the focus is on the construction of new housing to provide for the projected population, encourage in-fill development, and provide a greater opportunity to assist low-moderate income households in attaining homeownership . 3. Statement as to Low-Income Housing Assistance Policies and Goals No bond proceeds are targeted to low-income households, i.e. , those earning less than 50 0 of the median ($14,150) . For these households to be able to buy a house, the house price would have to be $38,000. It is impossible to build a new home in California today for such a price, where lots alone often cost this much. (The Safe Harbor Limits published by the Internal Revenue Service for Sonoma County are $107,360 for new housing and $109,230 for existing). To promote the development of housing for low-income families, the City has established a multi-family bond program which finances rental housing construction. Twenty-percent of the units in each development must be rented to lower-income households at rents set at 80$ of inedian income. Bond proceeds will, however, be targeted to buyers earning 120 0 of median income . The City encourages local builders with homes selling in the lower ranges to participate in its bond program. The City required all interested builders to complete questionnaires and applications which describe the units they would like to finance and the income group on which they will focus. In addition, preference is given to builders building units of two or more bedrooms so as to encourage the development of housing for families. The City's low income housing policies are related to the housing and development policies described previously in this report by virtue of the focus on modestly priced units. PART B: ASSESSMENT OF COMPLIANCE 1. Assessment of Compliance with Prior Report The City has complied with its general policy that the mortgage revenue bond program be used to increase the supply of owner occupied housing which is affordable to moderate income families. -2- e 2. Assessment of Compliance with Intent of Congress The City recognizes the intent of Congress that bond proceeds will be used to assist lower income households in attaining homeownership before those of higher income. The City, through a participating agreement with Sonoma County, sold bonds in May, 1983. For the current reporting period county-wide, 16 homes (360) were sold to those earning less than $26,218; 21 homes (470) were sold to those earning between $26,218 and $32,772; and 8 homes (17 0) were sold to households earning between $32, 773 and $39,326. The County-wide goal has been exceeded; the goal of thirty percent to targeted households earning less than 100$ of the median income, since a total of 83 o of the buyers have incomes less than 100$ of the median income. In addition, the average house price in this program was $69,695, well below the IRS Safe Harbor Limit of $107,360. In May, 1984, the City participated in a Joint Powers Authority and another single-family bond issue was sold. For the Joint Powers Authority during this reporting period, 26 (48$) were sold to those earning less than $26,218 (less than 80$ of the median income); 24 (45 0) were sold to those earning between $26, 218 and $32, 772 (80-100 0 of the median income); and 4 homes (70) were sold to those earning between $32, 773 and $39, 326 (100-120 0 of the median income) . The pro~ress on this bond issue shows that 93 0 of the total buyers earned less than the median income. The average house price in the 1984 program was $96,318. This is reflective of the City's policy of encouraging the production of modestly priced homes affordable to moderate income buyers in its mortgage bond programs. SUMMARY OF COMMENTS There were no public comments at the pu 'c hearing held December 16, 1985. . . FRED V . ATTEI, MAYOR ATTEST ATRICIA E. BERNARD, CITY CLERK . y , . . ~ fin3-Housing Assistance _3_ " ; ~