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HomeMy WebLinkAbout1996-11-04 Ordinance 4386. • ORDINANCE NO. 4386 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1996-97 TO PROVIDE AN ADDITIONAL APPROPRIATION FOR PRESERVATION OF A BELOW MARKET RATE UNIT AT 922 BAUTISTA COURT WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 24, 1996 did adopt a budget for fiscal year 1996-97; and WHEREAS, the BMR unit at 922 Bautista Court has been over -financed by the owner and is in danger of foreclosure; and WHEREAS, in order to retain the unit in the BMR program, the City must expend $130,000 to acquire and repair such unit, and then sell the unit with BMR deed restrictions; and WHEREAS, the City will recoup this cost through sale of the uni and WHEREAS, this funding will come from the Residential Housing -In - Lieu Fund, which will require a loan of $100,000 from the Commercial Housing -In -Lieu Fund to be repaid in full at a later date plus $30,000 from the Housing -In -Lieu Residential Reserve; and WHEREAS, City Council authorization is needed to amend the 1996-97 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 Hundred Thousand Dollars ($100,000) is hereby transferred from the Commercial Housing -In -Lieu Fund Reserve to the Residential Housing -In -Lieu Fund, a receivable is established in the Commercial Housing -In -Lieu Fund, and a loan payable is established in the Residential Housing -In -Lieu Fund. This transaction will decrease the Commercial Housing -In -Lieu Reserve and correspondingly increase the Reserve for Notes Receivable for said fund. SECTION 2. This transaction will reduce the Housing -In -Lieu Commercial Fund reserve from $396,102 to $296,102. ,SECTION 3. The sum of One Hundred Thirty Thousand Dollars ($130,000) is hereby appropriated to nonsalary expenses in the Housing - In -Lieu Residential Fund, of which no more than $10,000 is authorized to be spent on repair and maintenance, and the remainder is authorized APPROVED: Depu y City Administrative Department anager, Services • -1444,446-e S,Jvutig_ Director of Planning and Community Environment to be spent as needed to acquire the property. The Residential Housing -In -Lieu reserve is reduced by $30,000. ,SECTION 4. This transaction will reduce the Housing -In -Lieu Residential Fund reserve from $30,813 to $813. SECTION 5. As specified in Section 2.28.080(a) o Municipal Code, a two-thirds vote of the City Council adopt this ordinance. the Palo Alto s required to SE TION 6. The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. SECTION 7. As provided in Section 2.04.350 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. TN RODUCED AND PASSED: November 4, 1996 AYES: ANDERSEN, HUBER, KNISS, MCCOWN, ROSZNRAUM, SCHNEIDER, SIMITIAN, WHEELER NOES: ABSTENTIONS ABSENT: FAZZINO ATTEST: C' v erk APPROVED AS TO FORM: 11111-1A...0-4,", nior Asst. City Attorney OR�D4P .10E A� TIS CERMED HE AN OF Tit: CITY OF PALO ALTO ANO T}tERr=rp. iER POST D IN CHAtS11 =_ r: ^ DN DAYS PASSAGE) "1 certityter declare) under penalty al perjury that the foregoing is true coeroct."