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HomeMy WebLinkAboutStaff Report 216-09TO: HONORABLE CITY COlTNCIL CITY MANAGER DATE: MAY 11,2009 REPORT TYPE: CONSENT ITEM DEP ARTMENT: PLANNING AND COMMUNITY ENVIRONMENT CMR: 216:09 SUBJECT: Approval of Amendment No. Two to Agreement with the Housing Trust of Santa Clara County to Provide a Contribution in the Amount of $100,000 from the Residential Housing Fund for Fiscal Year 2008- 09 and to Allow for Expenditure of City Contributed Funds for Qualifying Loans and/or Grant for Housing in Palo Alto through FY 2013/14 RECOMMENDATION Staff recommends that Council: 1. Approve Amendment No. Two to Agreement with the Housing Trust of Santa Clara County to Provide a Contribution in the Amount of $1 00,000 from the Residential Housing Fund for Fiscal Year 2008-09 and to Allow for Expenditure of City Contributed Funds for Qualifying Loans and/or grant for Housing in Palo Alto through FY 2013/14; and 2. Authorize the City Manager to execute the Amendment No. Two with the Housing Trust of Santa Clara County. BACKGROUND In 2000, the Housing Trust of Santa Clara County (HTSCC) was created to provide additional financial resources to address the County's affordable housing deficit. The Housing Trust's initial funding endowment of $20 million was met in two years and included contributions from public jurisdictions in the County, major employers and private foundations. On October 23, 2000, the City Council approved a contribution of $500,000 from the City's Residential Housing Fund, with the provision that the City's fund be used exclusively for qualifying affordable housing projects located within the City of Palo Alto. On May 7, 2001, the City entered into an agreement with HTSCC for the $500,000 contribution. On July 12,2004, the City amended the agreement with HTSCC to an additional $100,000 donation from the City for FY04/05 and an CMR: 216:09 lof3 additional $50,000 for FY 05/06. On June 9, 2008, the City Council adopted the budget for FY08/09 which includes an allocation of $1 00,000 from the Residential Housing Fund for a City contribution to HTSCC. DISCUSSION The City's participation in the Housing Trust has increased the available housing funding for Palo Alto projects. Since the execution of the Agreement with the City, the HTSCC has loaned approximately $1.589 million for three Palo Alto projects: $400,000 for the Oak Court Apartments (53 units), leveraging $20.1 million; and $650,000 for the Opportunity Center (89 units), leveraging $20.7 million, and $539,000 for Fabian Way Senior Housing (56 units), leveraging $22 million. The City's adopted FY08/09 budget includes an allocation of $1 00,000 from the Residential Fund to the HTSCC. 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 additional contribution. RESOURCE IMPACT The contribution of $100,000 will reduce the Residential Housing Fund to approximately $527,000 from its available unrestricted current balance of approximately $627,000. POLICY IMPLICATIONS The recommendation furthers Comprehensive Plan policies that support addressing housing needs on a regional basis and working with outside agencies and other jurisdictions to develop and implement housing programs. 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. PREPARED BY: Senior Planner DEPARTMENT HEAD REVIEW: ~ ~ ClTRTIS WILLIAMS Interim Director Planning and Community Environment CITY MANAGER APPROVAL: CMR: 216:09 20f3 ATTACHMENTS Attachment A: Attachment B: Amendment No. Two to the Agreement between the City of Palo Alto and Housing Trust of Santa Clara County, Inc. Agreement between the City of Palo Alto and Housing Trust of Santa Clara County, Inc. COURTESY COPIES Housing Trust of Santa Clara County CMR: 216:09 30f3 ATTACHMENT A AMEfSJDMENT NO. TWO TO THE AGREEMENT NO Cl136231 BETWEEN THE CITY OF PALO ALTO AND HOUSING TRUST OF SANTA CLARA COUNTY, INC., a California Nonprofit Corporation This Amendment No. Two ("Amendment") to the Agreement No. Cl136232 ("Agreement") is entered into by and between the CITY OF PALO ALTO ("CITY"), and HOUSING TRUST OF SANTA CLARA COUNTY, INC., a California Nonprofi t Corporation, ("HTSCC") . RECITALS: WHEREAS, on May 7, 2001, between the parties regarding $500,000 to the Housing Trust County; and Agreement was entered into City's initial contribution of Fund Endowment of Santa WHEREAS, on July 12, 2004, the Agreement was amended to reflect an increase in amount of the Ci ty of Palo Al to 's contribution HTSCC by an additional $100,000 to be expended fiscal year 2004-05 and an additional $50,000 to be expended in fiscal year 2005-06; and WHEREAS, on April 16, 2007, time extension allowing for the contribution of $50,000 made in fiscal year 2009-10; and the Ci ty Counci I approved a expenditure of the City's fiscal year 2005-06 through WHEREAS, pursuant to the prOV1Slons of Section 12 of Article III of the of the City Palo Alto, the Council on June 9, 2008 did adopt a budget for Fiscal Year 2008/09; and WHEREAS, the City Council allocated $100,000 in Residential Housing Fund for Ci ty of Palo Al to's contribution to HTSCC for fiscal year 2008-09; and WHEREAS, expendi ture of 2008-09 through 090414 syn 0120343 the parties wish to the City's contribution scal year 2013-14. 1 extend the time for $100,000 made for in NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 2 of the Agreement, entitled "Deposit of City's Residential Housing In-Lieu Funds into Endowment Fund" is hereby amended to read as follows: IICity agrees to depos the sum of $500,000 into the Endowment Fund within 30 days after the mutual execution and delivery of this Agreement. City agrees to deposit an additional sum of $100,000 within thirty (30) days after mutual execution of this Amendment No. One to the Agreement and, subject to appropriation by the City Council, and to deposit the sum of $50,000 by no later than thirty (30) days of the beginning of fiscal year 2005 06. The parties agree that the sum of $100,000 deposited within thirty (30) days after execution of Amendment No. One to Agreement shall be expended in fiscal year 2004 05 and the $50,000 to be deposited within thirty (30) days of the beginning of fiscal year 2005-06 shall be expended through fiscal year 2009-10, and the 00,000 to be deposited wi thirty (30) days of beginning of fiscal year 2008 09 shall be expended through fiscal year 2013-14 according to paragraph 3.2.2 of the Agreement. " SECTION 2. Except as herein modified, all other provisions of Agreement, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. II II II II II II II 2 090414 syn 0120343 IN WITNESS WHEREOF: authorized representatives first above written. the parties executed this have by their duly Amendment on the date APPROVED AS TO FORM: Assistant City Attorney APPROVED: Director of Administrative Services Interim Director of Planning and Community Environment Insurance 090414 syn 0120343 3 CITY OF PALO ALTO Assistant City Manager HOUSING TRUST OF SANTA CLARA COUNTY, INC., a California Nonprofit Corporation By: Name: Title: By: Name: Title: Taxpayer Identi cation No. 77-0545135 (Compliance with Corp_ Code & 313 is required if the entity on whose behalf this contract is signed is a corporation. In the alternative, a certified corporate, resolution attesting to the signatory authority of the individual signing in their respective capacities is acceptable.) AGREEMENT BETWEEN CITY OF PALO ALTO AND ATIACHMENT B HOUSING TRUST OF SANTA CLARA COUNTY, INC. REGARDING A CONTRIBUTION TO THE SANTA CLARA COUNTY HOUSING TRUST FUND ENDOWMENT THIS AGREEMENT is made and entered into as of ~ 1 ' 2001, by and between THE CITY OF PALO ALTO (City) and HObSING TRUST OF SANTA CLARA COUNTY, INC .(" HTSCC") I a California nonprofit corporation. RECITALS A. The Housing Trust of Santa Clara County, In~. Endowment Fund (" Endowment Fund") I an investment pool fund in which private corporations and public agencies participate, has been created by the HTSCC for the purpose of establishing a revolving loan fund and grant-making program to address the issue of affordable, available housing in Santa Clara County. B. On January 22, 2001 the City Council of the City of Palo Alto adopted Budget Amendment Ordinance No. 4677 . The Budget Amendment Ordinance provides for the transfer of Five Hundred Thousand Dollars ($500,000) in Residential Housing In-Lieu Funds to the Endowment Fund. C. The City'~ Housing Reserve G~idelines require that the funds be used to provide assistance in expanding, preserving, or improving the supply of low and moderate housing in the City as defined in the City's Comprehensive Plan. D. The City desires to increase, improve, or preserve affordable housing for persons and families of low and moderate income in the City of Palo Alto, by participating in the Endowment Fund as specified in this Agreement. E. The purpose of this Agreement is to set forth the mutual agreement of the Ci ty and the HTSCC regarding the use of the Ci ty' s Residential Housing In-Lieu Funds through the 1 010427 syn 0090828 Endowment Fund. In view of the above, the parties agree as follows: SECTION 1. AUTHORITY AND STATUS OF HTSCC HTSCC . represents and warrants that the informat·ion contained in this Agreement is true and accurate to the best of its knowledge, and that it is a duly organized, validly existing nonprofit corporation in good .standing under the laws of its place of incorporation; that its signatory to this Agreement is authorized by resolution, bylaws, or constitution of the nonprofi t corpora tion, currently, in .. full force and effect ,to execute this Agreement on HTSCC's behalf. SECTION 2. DEPOSIT OF CITY'S RESIDENTIAL HOUSING IN-LIEU FUNDS INTO ENDOWMENT FUND City agrees to deposit the sum of $500, 000 into the Endowment Fund within 30 days after the mutual execution and delivery of this Agreement. SECTION 3. USE OF CITY'S RESIDENTIAL· HOUSING IN- LIEU FUNDS 3.1 HTSCC agrees that no fees will be charged to City's Residential Housing In-Lieu Mitigation Funds on depos in the Endowment Fund for administrative or overhead costs, including but not limited to fundraising expenses. The sole administrative expenses which may be charged to City's Residential Housing In-Lieu Funds on deposit in the Endowment Fund shall be as set forth in Section 6. 3.2 The Community Foundation Silicon Valley shall serve as the Endowment Fund's fiscal agent, and the City's funds shall be paid directty to· them. All disbursements of the City's Residential Housing In-Lieu Funds from the Endowment Fund shall be in the form of loans secured by a deed of trust recorded against the property. The HTSCC shall consult, in advance, with the City Manager of Palo Alto, prior to making any loans. The initial disbursement of the funds shall be used only for one or more projects that meet all of the following criteria: 3.2.1 The project must provide rental housing or housing for the homeless. A project to provide home ownership assistance is not eligible. 2 010427 syn 0090828 3.2 .2 The proj ect must increase, improve or preserve affordable housing, or housing for the homeless, in the 'City, of Palo Alto. 3.2.3 Such housing must be affordable to persons and families of low or very low income households as those terms are defined by the Department of Housing and Urban Development as pertains to the San Jose Metropolitan Statistical Area. 3.2.4 The HTSCC shall use the City's Residential Housing In-Lieu Funds to increase, improve or preserve affordable housing for homeless individuals and families and/or affordable rental housing for persons and ,families of low or very low income households, by methods of providing financial assistance that include, but are not limited to, the methods set forth in California Health and Safety Code Section 33334.2 (e), excluding subsections' (4) and (8). 3.2.5 Any new or substantia11y rehabilitated housing that developed, financed or assisted, in'whole or in part, with the City's Residential Housing In Lieu Funds shall remain available at affordable housing costs to persons and families 'of' low or very low income hous~holds, as ihe case may be, for the longest feasible time, but not less than thirty (3D) years for rental units. The HTSCC shall require the recording in the o'ffice of the County Recorder' of covenants or restrictions implementing this Section 3.2.5 for each parcel or unit of property subject to this Section 3.2.5, which covenants or restrictions shall run with the land and shall be enforceable against the original owner and successors in interest, by the City or the HTSCC. 3.2.6 shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, religion, national origin, ancestry, gender, marital status, sexual preference, or handicap status in the sale, lease, sublease, transfer, use, occupancy, tenure or enj oyment of any such proj ect, qr any part thereof, nor shall any recipient of the Ci ty' s Resident 1 Housing In-Lieu Funds, or any person claiming under or through such person, establish or permi t any such practice or practices of discrimination or segregation wi th reference to the se ction, location, number use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of any such project. 3 010427 syn 0090828 3.2.7 Th~ restrictions of thi~ Section 3.2 shall apply to the initial use of the City's Residential In-Lieu CHousing Funds by the HTSCC. 3.2.8 The HTSCC shall refund to the City any portion of the City Residential Housing In-Lieu Funds that have not been disbursed or contractually committed to be disbursed in accordance with this Section 3.2 by the date that is thirty-six . (36) months after the date of this Agreement. If the Ci ty' s Residential Housing In-Lieu Funds are disburs~d or contractually commi tted to be disbursed in accordance wi th this Section 3.2 within such 36-month period, the HTSCC shall have no obligation to repay any portion of the City's Residential 'Housing In-Lieu Funds to the City. 3.3 All disbursements by the HTSCC shall be made after'consultation with the City Manager of Palo Alto and with the advice and suggestion of the HTSCC Board o£ Directors which includes two members of the Santa Clara County Board of Supervisors. The HTSCC shall follow the recommendations regarding disbursements rendered by the Endowment Fund Steering Committee unless to do so would be a violation of law, this Agreement, or the HTSCC's Articles of Incorporation or Bylaws. SECTION 4. INVESTMENT OF THE FUND The HTSCC shall hold, manage, invest and reinvest the Endowment Fund in accordance with the "reasonably prudent person standard. Provided, inyestment 'of the funds contribut~d by the City under this Agreement shall be limited to money-market funds of the type described in Government Code Section 53601(k) (2). SECTION 5. FINANCIAL REPORTS 5.1 The HTSCC shall establish and accordance with complete record Endowment Fund. generally accepted accounting of 1 financial transactions maintain, in principles, a related to the 5.2 The HTSCC shall provide City with quarterly reports which shall set forth in detail all financial transactions' related to the Endowment Fund. The HTSCC shall also provide City with a copy of its audited report, prepared by independent certified public accountants annually. 4 010427 syn 0090828 5.3 The HTSCC shall provide City with a written report on the initial expenditure of the City's Residential' Hou~ing In Lieu Funds, including, at a minimum, for each project assisted with City's Residential Housing In-Lieu Funds, the following information: location and description of the assisted proj ect (s); number of units; rent and income restrictions; and term of restrictions. SECTION' 6. ADMINISTRATIVE FEES The HTSCC may charge 'an annual administrative fee equal to one percent (1%). of the fair' market value of the Endowment Fund against the Endowment Fund. The HTSCC may also charg~ against the Endowment Fund reasonable bank fees. One~Twelfth (1/12) of the annual fees will be ded~cted monthly. The HTSCC shall report the fees charged 'against the .Endowment Fund in its quarterly and annual reports. SECTION 7. NOTICES Any communication or notice which either party is required to send to the other or which either party desires to send to the other, shall be in writing and shall be ·either personally delivered or mailed in the United States mail, postage prepaid, to the respecti~e parties addressed as follows: City: HTSCC: City Manager City ot Palo Alto P.O. Box 10250 Palo Alto, CA 94303 Housing Trust of Santa Clara County, Inc. 111 West St. John.Street, Suite 710 San Jose, CA 95113 Either party may change its address by sending notice of the new address to the other party pursuant to this Section. SECTION 8. COMPLIANCE WITH ALL LAWS The HTSCC shall comply ordinances, codes and regulations local governments. 5 010427 syn 0090828 with all applicable laws, of the federal, state and SECTION 9. MISCELLANEOUS PROVISIONS A. The parties agree that this Agreement shall be governed and construed in accordance with the laws of. the State of California. In the event that suit shall be brought' by either party to, this Agreement, the parties agree that venue shall be exclusively vested in the state courts of th~ County of Santa Clara, or where otherwise appropriate, exclusi vely in the United States District Court; Northern District of California, San Jose, California.' B. ~he headings of the sections and subsections of this Agreement are inserted for convenience only. They do not constitute a part of this agreement and shall not be used in its construction. c. The waiver by any, party to this Agreement of a breach of any provision of this Agreement shall not be deemed ,a continuing waiver or a waiver of any subsequent breach of that or any other provision of this Agreement. D. Any and all ,exhibits, which are referred to in this Agreement, ,are incorporated herein by reference and are deemed a part of this Agreement. This Agreement may only be amended by formal written agreement executed by both parties. E. If a court of competent jurisdiction adjudges any provision of this' Agreement as void or unenforceable, the remaining provisions shall not be affected hereby and shall remain in full force and effect; provided that construction of the agreement without, the invalid or unenforceable provision does not deprive the parties of the benefit of their bargain. III II II II II II 6 010427 syn 0090828 Where this agreement refers to City and no Officer of the 'City is named, ·the City Manager. shall have the authority to act on the City's behalf. Frank nest City Manager Services 010427 syn 0090828 7 HOUSING TRUST OF SANTA CLARA COUNTY, INC. BY:~~ rlS Block Executive Director By: f-, ~ Name: {[. ~tM~ Title: 1'Ufo~Ul~ Taxpayer Identification No. 77-0545135 (Compliance with Corp. Code § 313 is required if the entity on whose behalf this contract is signed is a corporation. In the alternative, a certified corporate resolution attesting to the signatory authority of the individuals signing in their respective capacities is acceptable). CERTIFICATE OF ACKNOWLEDGMENT (Civil Code 1189) STATE OF e,AUfOWl er COUNTY OF ~~ ~ SSe On ~~Y ~ , 2001, before me, the undersigned, a Notary Public in and for said County and State, personally appeared fAtRASJV PIft5R. I3UJU· personally known to me or proved to me on the basis of satisfactory evidence to be· the person ('() whose name (~) is/aXe subscribed to "the wi thin instrument and acknowledged to me that he/~e/th~y executed the same in his/hir/t~ir authorized capacity (i~), and that by his/h«/t~ir signature (~ on the trument the person r{.), or the entity upon "behalf of which the person(¥) acted, executed the instrument. 010427 syn 0090828 WITNESS my hand and official seal . ., lB3! C. LUI L I. 1 7 ,.1ID57 I Si III n n. .c.rror.lIa ~ ---County -_CU.i' .... Jan 16,2004 ~ 8 CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT . ~ ..... -'0(: ..... ,.. .... .... -.. .-.... '" .....-. 'i) ~' I State of California } _()--'-A-'--._'..rf ____ --"'-'~~"'-'--___ ss. County of ...,:) f'J' 'I\. ~ " " Place Notary Seal Above o personally known to me ~ proved to me on the basis of satisfactory (evidence to be the person~ whosename(~ is/~ subscribed to the Wi~th' 'nstrument and acknowledged to me tha ~/~y executed the same in his/ti r/t~ir authorized capacity(~), and that by his/h~/th~ signature(~ on the instrument the person~, or the entity upon behalf of which the person))(,) acted, executed the instrument. ---------------------OPTIONAL--------------------- Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. ____ ~~~~~~~------____ --____ NumberofPages: __ --~~------ Capacity(ies) Claimed by Signer Signer's Name: eo fiE£;[ ..s!le1?l1t:tJ2 C Individual ~ Corporate Officer --Title(s): 1Jt1;1tSUWP b' Partner -D Limited 0 General o Attorney in Fact o Trustee o Guardian or Conservator o Other: ______ ---'--___________________ _ RIGHT THUMBPRINT OF SIGNER Top of thumb here Signer Is Representing: ______________________________________ '--____ --' , ........ --' -=:::::;. ii.;;iiJ ,=,,_, )1 )J lJ © 1999 Natlonal Notary Association' 9350 De Solo Ave,. P.O, Box 2402' Chatsworth, CA 91313·2402' www,nBtionalnolary.org Prod. No, 5907 Reorder: Call TolI·Free 1·aoo-a71H3827