HomeMy WebLinkAbout1998-05-18 Ordinance 4503ORDINANCE NO.
4503
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 1997-98 TO
PROVIDE AN ADDITIONAL APPROPRIATION FOR THE PALO ALTO
HOUSING CORPORATION TO FULLY FUND THE CITY'S SHARE OF
$2,354,500 FOR THE ACQUISITION AND REHABILITATION OF THE
SHERIDAN APARTMENTS PROJECT
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on June
23, 1997 did adopt a budget for fiscal year 1997-98; and
WHEREAS, the preservation of existing, very low-income rental
housing units is a goal of the City; and
WHEREAS, the Palo Alto Housing Corporation (PAHC) has entered
into a purchase agreement to acquire and rehabilitate the Sheridan
Apartments with the intention of preserving them as housing units
affordable to very low-income households; and
WHEREAS, PAHC plans to apply for low income housing tax credits
from the state and Federal governments to help finance the
acquisition and rehabilitation of the Sheridan Apartments, and
applications for such credits require a demonstration of the full
commitment of all local funding; and
WHEREAS, the City of Palo Alto has already budgeted $145,500
for this project; and
WHEREAS, PAHC is requesting an additional $2,354,500 in funding
from the City of Palo Alto which, in combination with the previous
budget commitment, will total $2,500,000, the total funding from the
City for this project; and
WHEREAS, the City Council desires to make such additional
funding available to PAHC for this purpose; and
WHEREAS, funding is available for this purpose in the Community
Development Block Grant (CDBG) New Housing Development Fund
($1,014,749), the Residential Housing In -Lieu Fund ($825,801), and
the General Fund as an advance which will be reimbursed by 1998-99
CDBG Funds ($513,950); and
WHEREAS, City Council authorization is needed to amend the
1997-98 budget as hereinafter set forth.
NOW, THEREFORE, the Council of the City of Palo Alto does
ORDAIN as follows:
SECTION 1. The sum of One Million Fourteen Thousand Seven
Hundred and Forty -Nine Dollars ($1,014,749) is hereby transferred
from the New Housing Development Fund to the Sheridan Acquisition
Project in the Community Development Block Grant Fund.
SECTION 2. This transaction will have no affect on reserves.
SECTION 3. The sum of Five Hundred Thirteen Thousand Nine
Hundred and Fifty Dollars ($513,950) is hereby transferred from the
General Fund to the Community Development Block Grant Fund (CDBG),
Sheridan Acquisition Project, as an advance (long-term loan) pending
receipt of 1998-99 CDBG Funds. The Budget Stabilization Reserve is
correspondingly reduced.
SECTION 4. This transaction will reduce the Budget
Stabilization Reserve from $16,655,991 to $16,042,041.
SECTION 5. The sum of Six Hundred Ninety -Three Thousand Six
Hundred and Seventy Dollars ($693,670) is hereby transferred from
the Residential Housing In -Lieu Fund to the Sheridan Acquisition
Project, and the Residential Housing In -Lieu Fund is correspondingly
reduced.
SECTION 6. This transaction will reduce the Residential
Housing In -Lieu Fund Reserves from $693,670 to $0.
SECTION 7. The sum of one Hundred Thirty -Two Thousand One
Hundred Thirty -One Dollars ($132,131) is hereby transferred from the
designated Palo Commons Funds in the Residential Housing In -Lieu
Fund to the Sheridan Acquisition Project, and the Palo Alto Commons
Funds are correspondingly reduced.
SECTION 8. This transaction will reduce the reserve of the
designated Palo Alto Commons fund balance in the Residential Housing
In -Lieu Fund from $259,370 to $127,239.
SECTION 9. As specified in Section 2.28.080(a) of the Palo
Alto Municipal Code, a two-thirds vote of the City Council is
required to adopt this ordinance.
SECTION 10. The Council of the City of Palo Alto hereby finds
that this project is exempt from the provisions of the California
Environmental Quality Act and, therefore, no environmental impact
assessment is necessary.
SECTION 11. As provided in Section 2.04.350 of the Palo Alto
Municipal Code, this ordinance shall become effective upon adoption.
INTRODUCED AND PASSED: May 18, 1998
AYES: EAKINS, FAZZINO, HUBER, KNISS, MOSSAR, OJAKIAN, ROSENBAUM, SCHNEIDER,
WHEELER
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
APPROVED AS TO FORM:
Senior Asst. City Attorney
APPROVED:
Director
Servic
Administrative
Interim Dir c or of Planning
and Communit Environment
THIS DOCUMENT IS CERTIFIED TO n AN
ORDINANCE DULY PASSED F3Y THE COUNCIL
OF THE CITY OF PAW AL1 O AND
TH€ R A FL R POST FfC: '"'OUPJC1I..
CHAMBERS ON v8 (liVITHIN 15
DAY: CF ITS PASSAGE)
"I certify (or decicre) under penalty
of perjury that the foregoing is true
end correct"
Ogg 98 Alb al2 Pe c t�
Date & Place Signature •