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HomeMy WebLinkAboutReso 88-20 Authorizing the City to Become an Additional Member of the California Community Housing Agency (CALCHA)Reso No. 88-20, Item 4.5, Adopted 09/01/2020 Page 1 of 2 RESOLUTION NO. 88 - 20 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN * * * * * * * * AUTHORIZING THE CITY TO BECOME AN ADDITIONAL MEMBER OF THE CALIFORNIA COMMUNITY HOUSING AGENCY (“CALCHA”); SUPPORTING CALCHA’S ISSUANCE OF TAX-EXEMPT BONDS FOR THE PRODUCTION, PRESERVATION AND PROTECTION OF ESSENTIAL MIDDLE-INCOME RENTAL HOUSING; AND AUTHORIZING THE CITY MANAGER TO ENTER INTO PURCHASE OPTION AGREEMENTS WITH CALCHA FOR ESSENTIAL MIDDLE-INCOME RENTAL HOUSING CREATED WITHIN CITY LIMITS WHEREAS, one of the primary goals of the City of Dublin is to meet the growing housing needs of its residents by actively supporting the production, preservation and protection of market-rate and affordable rental housing for all; and WHEREAS, no existing federal, state, or local subsidies, programs, or motivations currently exist to meaningfully address the growing shortfall of protected middle-income rental housing; and WHEREAS, CalCHA is a Joint Powers Authority created specifically to produce, preserve and protect quality affordable rental housing made available to California’s essential middle-income workforce; and WHEREAS, CalCHA intends to acquire existing rental properties within City limits and restrict future occupancy to middle-income households earning no more than 120% of area median income; and WHEREAS, CalCHA will avoid the displacement of existing residents, implement regulatory agreements restricting the incomes and rents of future residents, and impose caps on the annual rent increases of qualified middle-income households; and WHEREAS, CalCHA will finance its acquisitions through the issuance of tax-exempt bonds, and in order for CalCHA to issue tax-exempt bonds in Dublin, the City must be an Additional Member of CalCHA; and WHEREAS, the City proposes to become an Additional Member of CalCHA pursuan t to Section 12 of the Joint Exercise of Powers Agreement Relating to the California Community Housing Agency; and WHEREAS, subsequent to becoming an Additional Member of CalCHA, any existing rental housing within City limits which CalCHA intends to acquire and finance with tax -exempt bonds must receive support and approval from the City; and WHEREAS, the City proposes to support and approve CalCHA’s issuance of tax-exempt bonds for the acquisition of existing rental properties as a means towards the preservation and protection of essential middle-income rental housing within City limits; and Reso No. 88-20, Item 4.5, Adopted 09/01/2020 Page 2 of 2 WHEREAS, CalCHA’s issuance of tax-exempt bonds will provide public benefit through the production, preservation and protection of below -market-rate rental housing, as well as the granting of all surplus project revenues to the City; and WHEREAS, pursuant to one or more purchase option agreements (the “Purchase Option Agreements”), between CalCHA and the City, CalCHA will grant the City the option, but never the obligation, to purchase each essential middle-income rental housing property commencing on the date fifteen (15) years after CalCHA’s acquisition of such property; and WHEREAS, the Purchase Option Agreements will additionally provide the City with all surplus project revenues from each essential middle-income rental housing property; and WHEREAS, the City will maintain the option to exercise such Purchase Option Agreements for a period of fourteen (14) years following the commencement dates of the option periods under the Purchase Option Agreements for each essential middle-income rental housing property. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin hereby authorizes the City to become an Additional Member of CalCHA and authorizes the City Manager to execute the Joint Exercise of Powers Agreement Relating to the California Community Housing Agency, subject to approval as to form by the City Attorney. BE IT FURTHER RESOLVED that the City Council of the City of Dublin hereby supports and approves CalCHA’s issuance of tax-exempt bonds as a means towards the production, preservation and protection of essential middle -income rental housing within City limits. BE IT FURTHER RESOLVED that the City Council of the City of Dublin hereby authorizes the City Manager to enter into Purchase Option Agreements with CalCHA, consistent with this Resolution and its basic purpose, subject to the conditions outlined in Exhibit A to this Resolution and approval as to form by the City Attorney. PASSED, APPROVED AND ADOPTED this 1st day of September 2020, by the following vote: AYES: Councilmembers Goel, Hernandez, Josey, Kumagai and Mayor Haubert NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk EXHIBIT A TO CITY COUNCIL RESOLUTION NO. 88 - 20 The following conditions shall be met when entering into a Purchase Option Agreement with CalCHA: 1. The City Manager shall be authorized to enter into Purchase Option Agreements on behalf of the City during the next five years from the date of this Resolution for no more than four properties totaling no more than 1,000 units of middle -income rental housing. 2. The City Manager shall evaluate the location of properties to ensure that they are geographically separate from one another and dispersed throughout the City. 3. Each Purchase Option Agreement shall contain provisions allowing the City to exercise due diligence and inspection rights for City acquisition of the property, giving the City input on property management issues, and protecting the City from liability arising from the property. 4. Regulatory agreements for the properties shall establish tenant rent and income limits at levels reasonably acceptable to the City and shall permit existing tenants to remain in the property upon acquisition by CalCHA. 5. The City Manager shall notify the City Council upon entering into a Purchase Option Agreement. 6. CalCHA shall provide annual reports to the City regarding the status of i ts acquisition, financing and operation of the properties. 7. The City Council shall revisit these conditions prior to September 1, 2025.