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HomeMy WebLinkAboutResolution 2021-119 N.C.S. 7/12/2021 Resolution No. 2021-119 N.C.S. Page 1 Resolution No. 2021-119 N.C.S. of the City of Petaluma, California RESOLUTION APPROVING ALLOCATION OF HOUSING IN-LIEU AND COMMERCIAL DEVELOPMENT HOUSING LINKAGE FUNDS TO THE DANCO GROUP FOR THE MERIDIAN AT CORONA STATION AFFORDABLE HOUSING PROJECT LOCATED AT 890 NORTH MCDOWELL BOULEVARD AND AUTHORIZING THE CITY MANAGER TO SIGN DOCUMENTS FOR THE FINANCING OF THE PROJECT WHEREAS, on November 5, 2020 Danco Group submitted an application for the Meridian at Corona Station Affordable Housing Project on the property located at 890 North McDowell Boulevard; and WHEREAS, the Meridian at Corona Station Affordable Housing Project is a 131 multi-family residential project that is proposed as fully affordable to very-low and extremely-low income households and including 33 supportive housing units; and WHEREAS, Danco Group requested review of the Meridian at Corona Station Affordable Housing Project under AB 2162; and WHEREAS, addressing homelessness is urgent, as communities across the state face public health emergencies and evidence shows supportive housing – an affordable rental with intensive services promoting housing stability – works to reduce chronic homelessness; and WHEREAS, the City of Petaluma supports the production of housing for its lower income and vulnerable populations; and WHEREAS, the Petaluma General Plan 2025 includes policies to provide essential housing to all Petalumans and including Policy 6.1 to support efforts to prevent homelessness, Policy 6.2 to support efforts to provide housing and support services for the homeless, Policy 6.3 to support efforts to provide transitional and supportive housing to those moving from homelessness to independent living, Policy 6.6 to promote the construction of rental units for larger families, and Policy 9.1 to promote the integration of affordable and special needs housing projects on existing neighborhoods; and WHEREAS, on December 7, 2020, in accordance with Government Code Section 6651(d), the Petaluma City Council adopted Resolution No. 2020-179 N.C.S. establishing a policy to authorize an increase in the allowable units in a by right supportive housing development as prescribed by state Assembly Bill 2162 from 50 units or fewer to up to 131 units for the Meridian at Corona Station Affordable Housing Project; and WHEREAS, on June 8, 2021 Danco Group, in partnership with the City of Petaluma and Sonoma Marin Area Rail Transit (SMART), submitted a funding application through the California Affordable Housing and Sustainable Communities Program; and WHEREAS, as part of an overall funding strategy to facilitate the Meridian at Corona Station, Danco Group requested allocation of $2,000,000 in local funding for the project; and WHEREAS, the requested local funding will provide additional financial support for the affordable housing project which proposes 131 units affordable to very-low and extremely-low income households and including 33 supportive housing units; and DocuSign Envelope ID: E78CD1D8-8E49-4053-AC91-F0C806FEC9D9 Resolution No. 2021-119 N.C.S. Page 2 WHEREAS, the City’s Housing In-Lieu Fund is a component of the City’s inclusionary housing program and specifically targeted to assist in the provision of low and very low-income housing opportunities in Petaluma; and WHEREAS, the City’s Commercial Development Housing Linkage Fund is collected from non-residential development recognizing the demand that new commercial development creates for housing in a given jurisdiction and is to be used to implement the adopted housing element with broad discretion to use the funds for “direct expenditures for the development of affordable housing”; and WHEREAS, based on available fund balances and to meet the requested local funding commitment, the City is to allocate and reserve $1,500,000 from the City’s Housing In-Lieu fund and $500,000 from the Commercial Development Housing Linkage fund to provide financial support for land acquisition and construction costs for the Meridian at Corona Station project; and WHEREAS, Danco Group will serve as the general partner for the Meridian at Corona Station Project that intends to develop the parcel and provide 131 units with a affordability ranges from 20% to 50% of Area Median Income (AMI) and including at least 33 supportive housing units; and WHEREAS, the Meridian at Corona Station Project is not subject to the requirements of the California Environmental Quality Act (CEQA) in accordance with Government Code Section 65651, subdivision (b), paragraph (2) as a qualifying supportive housing projects under AB 2162; and WHEREAS, The action of allocation of local funding does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, and because the action constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma as follows: 1. The above recitals are hereby declared to be true and correct and are incorporated into this resolution as findings of the City Council. 2. The Project is the Meridian at Corona Station Project is not subject to the requirements of the California Environmental Quality Act (CEQA) in accordance with Government Code Section 65651, subdivision (b), paragraph (2) as a qualifying supportive housing projects under AB 2162. 3. The action of allocation of local funding does not meet CEQA's definition of a “project,” because the action does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, and because the action constitutes organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. 4. Approves the allocation and reservation of $1,500,000 of the City Housing In-Lieu Funds for the Meridian at Corona Station Project. 5. Approves the allocation and reservation of $500,000 of the City Commercial Development Housing Linkage Funds for the Meridian at Corona Station Project. 6. The City Manager is hereby authorized and directed to execute any and all documents necessary to affect the purposes of this resolution. DocuSign Envelope ID: E78CD1D8-8E49-4053-AC91-F0C806FEC9D9 Resolution No. 2021-119 N.C.S. Page 3 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 Council of the City of Petaluma at a Regular meeting on the 12th day of July 2021, by the following vote: Approved as to form: __________________________ City Attorney AYES: Mayor Barrett; Fischer; Healy; McDonnell; Pocekay NOES: None ABSENT: King ABSTAIN: None RECUSED: Vice Mayor Barnacle ATTEST: ______________________________________________ City Clerk ______________________________________________ Mayor DocuSign Envelope ID: E78CD1D8-8E49-4053-AC91-F0C806FEC9D9