HomeMy WebLinkAboutResolution 2020-101 N.C.S. 06/15/2020Resolution No. 2020-101 N.C.S.
of the City of Petaluma, California
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA
APPROVING AN APPLICATION TO THE CALIFORNIA DEPARTMENT
OF HOUSING AND COMMUNITY DEVELOPMENT FOR USE OF HOME
PROGRAM INCOME FUNDS UNDER THE HOME INVESTMENT
PARTNERSHIPS PROGRAM, AND APPROVING HOME FUNDS, CITY
HOUSING IN -LIEU FUNDS, AND A FEE WAIVER OF CITY TRAFFIC
IMPACT FEES FOR THE MIDPENINSULA AFFORDABLE RENTAL
HOUSING PROJECT AT 414 PETALUMA BOULEVARD NORTH, AND
DIRECTING THE CITY MANAGER TO SUBMIT A LETTER OF SUPPORT
ON BEHALF OF THE PROJECT TO THE STATE TREASURER REGARDING
ALLOCATION OF LOW-INCOME HOUSING TAX CREDITS TO PROJECT
WHEREAS, The California Department of Housing and Community Development (the
"Department") is authorized to allocate HOME Investment Partnerships Program ("HOME")
funds made available from the U.S. Department of Housing and Urban Development ("HUD"):
and
WHEREAS, HOME funds are to be used for the purposes set forth in Title II of the
Cranston -Gonzalez National Affordable Housing Act of 1990, in federal implementing regulations
set forth in Title 24 of the Code of Federal Regulations, part 92, and in Title 25 of the California
Code of Regulations commencing with section 8200; and
WHEREAS, The City of Petaluma (City) has administered federal HOME funds allocated
by the Department for over twenty years: and
WHEREAS, The City has utilized the HOME funds to provide funding for low and very -
low income households to purchase and rehabilitate ownership and rental housing; and
WHEREAS, The City has retained the revenue from the repayments of HOME grants and
loans from such home -owners rental property owners in the City established and administered the
local HOME Program Income fund; and
WHEREAS, The City desires to allocate $900,000 of those funds to Midpeninsula
Housing (the Developer), a local affordable housing development non-profit organization, for the
development of an affordable rental housing development (the Project) at 414 Petaluma Boulevard
North, Petaluma; and
Resolution No. 2020-101 N.C.S. Page 1
WHEREAS, Pursuant to direction by the Department the City desires to submit an
application to the Department for the intended use of $900,000 of the City's HOME Program
Income funds for the development of the Developer's affordable rental housing development at
414 Petaluma Boulevard Not Petaluma; and
WHEREAS, The Developer has requested the City to allocate and reserve $1,100,000
from the City's Housing In -Lieu funds as additional financial support for the construction of the
proposed low and very low-income affordable housing project at 414 Petaluma Boulevard North;
and
WHEREAS, the City intends to further financially support of the critically needed low -
and very low-income with a waiver of traffic impact fees in the estimated amount of $243,608,
subject to final city approval; and
WHEREAS, Midpeninsula Housing or an affiliate of, will serve as the general partner
for the project located at 414 South Petaluma Boulevard North, ("Developer") that intends to
develop the parcel and provide 42 units in total of which are planned 20 one -bedroom units, 11
two-bedroom units, and 11 three-bedroom units. Affordability ranges from 30% to 60% of Area
Median Income (AMI), with the average affordability of the project being 49% AMI
WHEREAS, in connection with the refinancing of the Project, the term of affordability
will be extended for a term of 55 years commencing upon completion of the development; and
WHEREAS, the Developer intends to submit on July 1, 2020 an application to the state
Treasurer to secure an allocation of Low -Income Tax Credits (LIHTC) as critical financing of
the Project; and
WHEREAS, the Developer has requested from the City a letter signed by the City
Manager that provides information regarding the City's financial support of the Project for the
Low -Income Housing Tax Credits.
hereby:
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Petaluma
1. Finds that the City's state HOME Program Income $900,000 of funds are necessary
to make the Project financially feasible and affordable to low and very low-income
income households in the City.
2. Approves the City allocation and reservation the City Housing In -Lieu Funds in the
amount of $1,100,000 for the development of the Project at 414 Petaluma Boulevard.
3. Approves a waiver of city transportation impact fees in the estimated amount of
$243,608 (subject to final Planning approval).
Resolution No. 2020-101 N.C.S. Page 2
4. Authorizes and directs the City Manager and her designees to execute all documents,
prepare a letter of support that indicates the city's financial commitment of the
Project and to take all actions reasonably necessary to implement this Resolution and
the applications for HOME Program Income funds; allocations of Low Income
Housing Tax Credits, waiver of impact fees and all transactions described herein
related to the City of Petaluma funds.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a Regular meeting on the 15`h day of June form:
2020, by the following vote: 0
City Attorney
AYES: Vice Mayor Fischer; Kearney; King; McDonnell; Miller
NOES: Healy
ABSENT: None
ABSTAIN: Mayor Barrett
v r
ATTEST: "LA11
City Clerk t Vice Mayo'
Resolution No. 2020-101 N.C.S. Page 3