HomeMy WebLinkAboutStaff Report 189-07TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PLANNING
& COMMUNITY ENVIRONMENT
DATE:APRIL 16, 2007 CMR: 189:07
SUBJECT: AMENDMENT TO AGREEMENT BETWEEN THE CITY OF
PALO ALTO AND THE HOUSING TRUST OF SANTA
CLARA EXTENDING TIME FOR EXPENDITURE OF FUNDS
RECOMMENDATION
Staff recommends that Council:
1.Approve a time extension to Amendment No. One of the Agreement with
the Housing Trust of Santa Clara County allowing for expenditure of City
contributed funds through FY 2009/10; and,
2.Authorize the City Manager to amend the existing Agreement with the
Housing Trust to allow the time extension and to make minor amendments
to the Agreement as necessary over time.
BACKGROUND
The Housing Trust of Santa Clara County (HTSCC) was created in 2000 to
provide additional financial resources to address the County’s affordable housing
deficit. The City Council approved an initial contribution of $500,000 to the
HTSCC Fund Endowment on October 23, 2000 from the City’s Residential
Housing In-Lieu Fund, with the provision that the City’s funds be used exclusively
for qualifying affordable housing projects located within the City of Palo Alto.
The funds were part of the $1.05 million the HTSCC loaned to the Oak Court and
Opportunity Center projects. On July 12, 2004, the City Council amended the
original agreement and pledged an additional contribution of $150,000 to the
HTSCC to be dispersed over a two year period, $100,000 to be expended in
2004/2005 and $50,000 in 2005/2006.
CMR 189:07 Page 1
DISCUSSION
The HTSCC staff contacted the City in March requesting a time extension for
expenditure of the $50,000 in funds contributed in 2005 and scheduled for
disbursement by FY2005/06. The HTSCC staff explained that these funds have
been committed to the Fabian Way Senior project that will be developed by
Bridge Housing and anticipated to be expended in 2008 as part of a larger
$650,000 loan to Bridge Housing. An extension to 2009/2010 should allow
sufficient time for the development to be completed and the funds disbursed.
Since the City has already entered into an agreement with the HTSCC and the
terms for the use of the funds are unchanged, the existing agreement needs only to
be amended to reflect the time extension. Staff is recommending that the Council
approve the time extension to FY 2009/2010 for expenditure of the funds and to
grant authority to the City Manager to amend the agreement with the HTSCC. In
addition, staff is recommending that the Council authorize the City Manager to
make subsequent minor amendments to the agreement if needed over time since
the City anticipates contributing to future HTSCCC campaigns.
RESOURCE IMPACT
There are no resource impacts from the agreement modifications.
POLICY IMPLICATIONS
The recommendation is consistent with Palo Alto Comprehensive Plan policies
that encourage housing opportunities and housing diversity. The time extension
will allow expenditure of funds to an affordable housing project that furthers
Comprehensive Plan policies.
ENVIRONMENTAL REVIEW
This action is not considered a project subject to the California Environmental
Quality Act since it would not cause a physical change in the environment.
ATTACHMENTS
Attachment A:Amendment to Agreement between the Housing Trust and the
City of Palo Alto
Attachment B:Letter from Housing Trust of Santa Clara dated February 8,
2007
CMR 189:07 Page 2
PREPARED BY:
JULIE CAPORGNO
Chief Planning and Transportation Official
DEPARTMENT HEAD:
STEVE EMSLIE
Director of Planning and Community Environment
CITY MANAGER APPROVAL:
EMILY HARRISON
Assistant City Manager
CMR 189:07 Page 3