HomeMy WebLinkAboutStaff Report 132-108
TO: HONORABLE CITY COUNCIL
FROM:
DATE:
CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
FEBRUARY 8, 2010 CMR: 132:10
REPORT TYPE: CONSENT ITEM
SUBJECT:
Approval of Amendment No. Three 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 2009-
10 to be Expended Through Fiscal Year 2013-14.
EXECUTIVE SUMMARY
Council approval of the recommended actions will provide an additional $100,000 in financial
contributions to the Housing Trust of Santa Clara County (HTSCC) to support activities and
efforts to increase affordable housing opportunities. The City of Palo Alto has provided a total
of $750,000 in financial contributions since the inception of the HTSCC to increase affordable
housing opportunities in Palo Alto. HTSCC has invested close to $2.34 million in Palo Alto
through its homeless/special needs and multi -family residential loan programs, and first-time
homebuyer assistance program. No General Fund monies are being used for this housing
activity. Only Housing funds collected through developer fees are used to contribute to HTSCC
and are restricted for the development of affordable housing and no other purpose.
RECOMMENDATION
Staff recommends that Council:
1. Approve Amendment No. Three 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 2009/10 to be Expended Through Fiscal Year 2013/14.
2. Authorize the City Manager to execute the Amendment No. Three 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
CMR: 132:10 1 of 3
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. The City provided additional funding in
the amount of $150,000 and $100,000 in 2004 and 2009, respectively. On June 15, 2009, the
City Council adopted the budget for FY09/10 which includes an allocation of $100,000 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 a
number of Palo of Alto projects. Since the execution of the Agreement with the City, the
HTSCC has loaned approximately $2.24 million to non-profit housing developers, leveraging
close to $69 million from other sources for various project in Palo Alto as shown below.
Project Name
Number of
Units
HTSCC
Loan Amount
Leveraged
Amount
Opportunity Center
89
$ 650,000
$ 20,050,000
Oak Court Apartments
53
$ 400,000
$ 19,700,000
Fabian Way Senior Housing
56
$ 689,439
$ 18,110,561
Tree House
35
$ 500,000
$ 11,016,525 *
Total
233
$ 2,239,439
$ 68,877,086
* Estimated amount.
In addition, the HTSCC invested over $100,000 assisting 15 households purchase homes in Palo
Alto through its first-time homebuyer program. Assisted households had an average income of
$58,466, and the average home purchase price was $239,443.
The City's adopted FY09/10 budget includes an allocation of $100,000 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 $1.1
million from its available uncommitted current balance of approximately $1.2 million. No
General Fund monies are being used for this housing activity.
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.
CMR: 132:10 2 of 3
PREPARED BY:
DEPARTMENT HEAD REVIEW:
CITY MANAGER APPROVAL:
ATTACHMENTS
Attachment A:
Attachment B:
P
RON P. BABERA
Senior Planner
CURTIS WILLIAMS, Director
Planning and Community Environment
Amendment No. Three 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: 132:10 3 of 3
ATTACHMENT A
AMENDMENT NO. THREE TO THE AGREEMENT NO C1136231
BETWEEN THE CITY OF PALO ALTO AND
HOUSING TRUST OF SANTA CLARA COUNTY, INC.,
a California Nonprofit Corporation
This Amendment No. Three ("Amendment") to the Agreement No. C1136231
("Agreement") is entered into , by and between the CITY OF
PALO ALTO ("CITY"), and HOUSING TRUST OF SANTA CLARA COUNTY, INC., a
California Nonprofit Corporation, ("HTSCC").
RECITALS:
WHEREAS, on May 7, 2001, the Agreement was entered into between the parties
regarding the City's initial contribution of $500,000 to the Housing Trust Fund Endowment of
Santa Clara County; and
WHEREAS, on July 12, 2004, the Agreement was amended to reflect an increase in the
amount of the City of Palo Alto's contribution HTSCC by an additional $100,000 to be expended
in fiscal year 2004-05 and an additional $50,000 to be expended in fiscal year 2005-06; and
WHEREAS, on April 16, 2007, the City Council approved a time extension allowing for
the expenditure of the City's contribution of $50,000 made in fiscal year 2005-06 through fiscal
year 2009-10; and
WHEREAS, on May 11, 2009, the Agreement was amended to reflect an increase in the
amount of the City of Palo Alto's contribution HTSCC by an additional $100,000 to be expended
through fiscal year 2013-14; and
WHEREAS, pursuant to the provisions of Section 12 of Article III of the Chapter of the
City Palo Alto, the Council on June 15, 2009 did adopt a budget for Fiscal Year 2009-10; and
WHEREAS, the City Council allocated $100,000 in Residential Housing Fund for the
City of Palo Alto's contribution to HTSCC for fiscal year 2009-10
WHEREAS, the parties wish to amend the Agreement;
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:
"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. City agrees to
deposit an additional sum of $100,000 within thirty (30) days after mutual
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100202syn 0120427
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 this
Amendment No. One to the 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 100,000 to
be deposited within thirty (30) days of beginning of fiscal year 2008-09 shall be
expended through fiscal year 2013-14. City agrees to deposit an additional sum
of $100,000 within thirty (30) days after mutual execution of this Amendment No.
Three to the Agreement, which shall be expended through fiscal year 2013-2014,
and according to paragraph 3.2.2 of the Agreement. "
SECTION 2. Except as herein modified, all other provisions of the Agreement,
Including any exhibits and subsequent amendments thereto, shall remain in full force and effect.
IN WITNESS WHEREOF: the parties have by their duly authorized representatives
executed this Amendment on the date first above written.
APPROVED AS TO FORM: CITY OF PALO ALTO
Assistant City Attorney City Manager
APPROVED:
Director of Administrative
Services
Director of Planning and
Community Environment
HOUSING TRUST OF SANTA CLARA
COUNTY, INC., a California
nonprofit corporation
By:
Name: v -en 44,4 re-
TItle: 8naii-d' Pre s. lent
By:
Insurance Review Name: N11v1 G
Title: �,r. r�wTJ vt . 7
2
Taxpayer I.D. 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.)
100202 syn Ot20427
ATTACHMENT B
AGREEMENT C (! //3 / 2 /
BETWEEN �7
CITY'OF PALO ALTO
AND
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
f~�,�7 , 2001, by and between THE CITY OF PALO ALTO (City)
and HwSING TRUST OF SANTA CLARA .COUNTY, INC. .("HTSCC"), a
California nonprofit corporation.
RECITALS
A. The Housing Trust of Santa Clara County, Inc. Endowment
Fund ("Endowment Fund"), 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's Housing Reserve Guidelines 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 City and the HTSCC regarding the use of
the City'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 information
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
nonprofit corporation, 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 deposit
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 directly 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.
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010427 syn 0090828
3.2.2 The project 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
providingfinancial 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 substantially rehabilitated.
housing that is 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 households, as the case may
be, for the longest feasible time, but not less than thirty (30)
years for rental units. The HTSCC shall require the recording
in the office of the County Recorderof covenants or
restrictions implementing this Section 3.2.5 for each parcel or
unit of real 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 There 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
enjoyment of any such project, or any part thereof, nor shall
any recipient of the City's Residential Housing In -Lieu Funds,
or any person claiming under or through such person, establish
or permit any such practice or practices of discrimination or
segregation with reference to the selection, location, number
use or occupancy of tenants, lessees, subtenants, sublessees, or
vendees of any such project.
3
010427 syn 0090828
3.2.7 The restrictions of this Section 3.2
shall apply to the initial use of the City's Residential In -Lieu
Housing 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 City's
Residential Housing In -Lieu Funds are disbursed or contractually
committed to be disbursed in accordance with 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 of 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, investment °of the funds contributed 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 maintain, it
accordance with generally accepted accounting principles, a
complete record of all financial transactions related to the
Endowment Fund.
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
Housing 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
project(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
charge against the Endowment Fund reasonable bank fees.
One -Twelfth (1/12) of the annual fees will be deducted 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 respective parties addressed as follows:
City:
HTSCC:
City Manager
City of 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 with all applicable laws,
ordinances, codes and regulations of the federal, state and
local governments.
5
010427 syn 0090828
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 broughtby
either party to. this Agreement, the parties agree that
venue shall be exclusively vested in the state courts of
the County of Santa Clara, or where otherwise appropriate,.
exclusively in the United States District Court, Northern
District of California, San Jose, California.
B. .The headings of the sections and subsections of this
Agreement are inserted for convenience only. They do not
constitutea part of this agreement and shall not be used
in its construction.
C. The waiver by anyparty 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.
1//
//
//
//
//
//
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.
CITY OF PALO ALT
Frank nest
City Manager
APPROVED AS TO FORM:
Lea.
Seni Asst. City Attorney
APPROVED -
Director of P1 g and
Community Envi nment
a.�
Director of administrative
Services
HOUSING TRUST OF SANTA CLARA
COUNTY, INC.
By:
ris Block
Executive Director
By: z ;�
Name: .stEal*
Title: <1/R P-6P
•
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).
7
010427 syn 0090828
CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code 1189)
STATE OF tiAttrtjaiU! pi-
COUNTY OF .3 41,1774
) ss .
On MAY '1 , 2001, before me, the undersigned, a
Notary Public in and for said County and State, personally
appeared fyffRASTO P
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 within instrument and acknowledged to me that
he/ste/th y. executed the same in his/lyr/thOir authorized
capacity(i60), and that by his/hek/thin signature ()0 on the
instrument the person(Y), or the entity upon behalf of which the
person(1D acted, executed the instrument.
WITNESS my hand and official seal.
AL11111111
A EQ C L1a
i 1?D057
commmo
i�r t •county
[-
MyCrOnw1,e ies Jon 16,2004 f
Si. -a ure of NotarVJPublic
010427syn,0090828
8
Signer's Name:
❑ Individual
Corporate Officer — Title(s):
Partner — 0 Limited 0 General
O Attorney in Fact
O Trustee
❑ Guardian or Conservator
O Other:
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
State of California
County of
sA'1
On MAY /i oL,OO/
Date
personally appeared
, before me,
50 .7"
ROMEO C. LUZ
Commission # 1250057
Notary roc - California
Santo Clan County —
Place Notary Seal Above
LO -W1 LIZ, Al CITh1 i1 PW&jL,
Name and Ttlle of Officer (e.g-, "Jane Doe, Notary Public')
Z# Name(s)
D personally known to me
proved to me on the basis of satisfactory
/evidence
to be the person whose name(X) is/
subscribed to the with' instrument and
acknowledged to me tha 0/they executed
the same in his/h r/txeir authorized
capacity(i1 S), and that by his/h1Kr/th
signature( on the instrument the personA, or
the entity upon behalf of which the person)
acted, executed the instrument.
WITNE�S my hand and official s
OPTIONAL
Signature of N.
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.
Description of Attached
Title or Type of Document:
Document Date:
NAY 7,doa�
Signer(s) Other Than Named Above:
Number of Pages:
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�s
Signer Is Representing:
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