1 To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
Date: November 4, 2024
Supplemental Memo regarding:
Adoption of Resolution Authorizing the City Manager to Execute a Public Housing Cooperation Agreement with the Housing Authority of the City of Alameda, for a Term of 36 Months and up to 24 Months of Extensions for a Total Potential Term of 60 Months, for Independence Plaza Operations at No Cost to the City of Alameda, and to Administratively Extend the Term of the Agreement as Needed; and to Allow the Housing Authority to Secure Replacement Funding for Operations.
SUPPLEMENTAL INFORMATION
This memo is being provided to supplement the staff report already published for the November 6, 2024 City Council meeting.
As described in the staff report, the Alameda Housing Authority (AHA) is seeking a Public Housing Cooperation Agreement (Agreement) with the City of Alameda (City) for Independence Plaza.
This Agreement is a requirement of the U.S. Department of Housing and Urban Development (HUD) for participation in its Faircloth to Rental Assistance Demonstration (RAD) program. AHA staff identified the Faircloth to RAD program as a replacement funding source for the Successor Agency to the Community Improvement Commission (SACIC) funds it currently receives and expire January 1, 2027.
The Agreement included with the staff report has a provision for the Agreement term of thirty -six months and up to two extension s of twelve months each. However, the AHA legal counsel met with HUD and the HUD staff will not acc ept this provision as written and will only accept its standard language that states the Agreement will remain in effect until the Project (Independence Plaza) ceases to be Public Housing. This is a very specific definition of Public Housing based on the HUD funding source which is Faircloth (also known as Section 9 funds). AHA will then convert these funds to Project Based Vouchers (known as Section 8 funds) and at that time, Independence Plaza will continue to be affordable housing managed by AHA but will no longer be defined as Public Housing, funded by Section 9 funds. That is when the Cooperation Agreement will terminate. The Agreement is no cost to the City and in basic terms, simply requires the City to provide the same level of public services to Independence Plaza residents as it does for all residents.
Respectfully submitted,
Amy Wooldridge, Assistant City Manager
Exhibit:
1. Public Housing Cooperation Agreement – Clean Version
2. Public Housing Cooperation Agreement – Revised Version with Redlined Changes
1 3935574.8 046335 AGMT
COOPERATION AGREEMENT
(Independence Plaza)
THIS AGREEMENT entered into this ____ day of ________, 2024 (“Effective Date”) by and between the Housing Authority of the City of Alameda, a Public Body, Corporate and Politic, ( the “Local Authority”) and the City of Alameda, a Municipal Corporation, (the “Municipality”) (collectively, the “Parties”):
In consideration of the mutual covenants set forth herein, the Parties agree as follows:
1. As used in this Agreement:
(a) The term “Project” shall mean Independence Plaza, as further described in Section 2, developed as public housing and benefitting from financial assistance of the United States of America acting through the Department of Housing and Urban Development (herein called the “Government”).
(b) The term “Taxing Body” shall mean the State or any political subdivision or taxing unit thereof in which the Project is situated and which would have authority to assess or levy real or personal property taxes or to certify such taxes to a taxing body or public officer to be levied for its use and benefit with respect to a project if it were not exempt from taxation.
2. The Local Authority shall endeavor (a) to secure a contract or contracts with the Government for annual contributions covering the Project which is comprised of up to approximately one hundred twenty (120) units of public housing located at 703 Atlantic Avenue, Alameda, CA 94501, also known as “Independence Plaza,” with a local admissions preference for elderly families subject to applicable Government approval, and (b) to develop and administer the Project which is located within the corporate limits of the Municipality as herein specified. The Project and the surrounding area are fully developed and no additional development of the Project is contemplated at this time. The obligations of the parties hereto shall apply to the Project.
3. Under the constitution and statutes of the State of California, the Project is exempt from all real and personal property taxes and special assessments levied or imposed by any Taxing Body, with respect to the Project, so long as either (i) the Project is owned by a public body or governmental agency and is used for public housing purposes, or (ii) any contract between the Local Authority and the Government for annual contributions in connection with the Project remains in force and effect, whichever period is the longest. During any time period covered by the preceding sentence, the Municipality agrees that it will not levy or impose any real or personal property taxes or special assessments upon the Project or upon the Local Authority with respect thereto
4. During the period that either (i) the Project is owned by a public body or governmental agency and is used for public housing purposes or (ii) any contract between the Local Authority and the Government for annual contributions, or both, in connection w ith the Project remains in force and effect, whichever period is the longest, the Municipality without cost or charge to the Local Authority or the tenants of the Project shall:
2 3935574.8 046335 AGMT
(a) Furnish or cause to be furnished to the Local Authority and the tenants of the Project public services and facilities of the same character and to the same extent as are furnished from time to time without cost or charge to other dwellings and -inhabitants in the Municipality; and
(b) Cooperate with the Local Authority by such other lawful action or ways as the Municipality and the Local Authority may find necessary in connection with the development and administration of the Project.
5. No Cooperation Agreement heretofore entered into between the Municipality and the Local Authority shall be construed to apply to the Project.
6. No member of the governing body of the Municipality or any other public official of the Municipality who exercises any responsibilities or functions with respect to the Project during their tenure or for one year thereafter shall have any interest, direct or indirect, in the Project or any property included or planned to be included in the project, or any contracts in connection with the Project or property. If any such governing body member or such other public official of the Municipality involuntarily acquires or had acquired prior to the beginning of the member or official’s tenure any such interest, the member or official shall immediately disclose such interest to the Local Authority.
7. This Agreement shall remain in effect until the Project ceases to be public housing, and shall terminate once the Project has been disposed of, converted to units assisted under Section 8 of the United States Housing Act of 1937 or otherwise ceases to be public housing and the Government has been notified.
8. During the term of this Agreement, so long as any contract between the Local Authority and the Government for annual contributions in connection with the Project remains in force and effect, this Agreement shall not be abrogated, changed, or modified without the consent of the Government.
IN WITNESS WHEREOF, the parties have each caused this Agreement to be duly executed on its behalf as of the Effective Date.
ALAMEDA HOUSING AUTHORITY CITY OF ALAMEDA
A Public Body, corporate and politic A municipal corporation
Vanessa Cooper Jennifer Ott
Executive Director City Manager
3 3935574.8 046335 AGMT
RECOMMENDED FOR APPROVAL
Amy Wooldridge
Assistant City Manager
APPROVED AS TO FORM:
City Attorney
Len Aslanian
Assistant City Attorney
1 3935574.7 046335 AGMT3935574.8 046335 AGMT
COOPERATION AGREEMENT
(Independence Plaza)
THIS AGREEMENT entered into this ____ day of ________, 2024 (“Effective Date”) by and between the Housing Authority of the City of Alameda, a Public Body, Corporate and Politic, ( the “Local Authority”) and the City of Alameda, a Municipal Corporation, (the “Municipality”) (collectively, the “Parties”):
In consideration of the mutual covenants set forth herein, the Parties agree as follows:
1. As used in this Agreement:
(a) The term “Project” shall mean Independence Plaza, as further described in Section 2, developed as public housing and benefitting from financial assistance of the United States of America acting through the Department of Housing and Urban Development (herein called the “Government”).
(b) The term “Taxing Body” shall mean the State or any political subdivision or taxing unit thereof in which the Project is situated and which would have authority to assess or levy real or personal property taxes or to certify such taxes to a taxing body or public officer to be levied for its use and benefit with respect to a project if it were not exempt from taxation.
2. The Local Authority shall endeavor (a) to secure a contract or contracts with the Government for annual contributions covering the Project which is comprised of up to approximately one hundred twenty (120) units of public housing located at 703 Atlantic Avenue, Alameda, CA 94501, also known as “Independence Plaza,” with a local admissions preference for elderly families subject to applicable Government approval, and (b) to develop and administer the Project which is located within the corporate limits of the Municipality as herein specified. The Project and the surrounding area are fully developed and no additional development of the Project is contemplated at this time. The obligations of the parties hereto shall apply to the Project.
3. Under the constitution and statutes of the State of California, the Project is exempt from all real and personal property taxes and special assessments levied or imposed by any Taxing Body, with respect to the Project, so long as either (i) the Project is owned by a public body or governmental agency and is used for public housing purposes, or (ii) any contract between the Local Authority and the Government for annual contributions in connection with the Project remains in force and effect, whichever period is the longest. During any time period covered by the preceding sentence, the Municipality agrees that it will not levy or impose any real or personal property taxes or special assessments upon the Project or upon the Local Authority with respect thereto
4. During the period that either (i) the Project is owned by a public body or governmental agency and is used for public housing purposes or (ii) any contract between the Local Authority and the Government for annual contributions, or both, in connection w ith the Project remains in force and effect, whichever period is the longest, the Municipality without cost or charge to the Local Authority or the tenants of the Project shall:
2 3935574.7 046335 AGMT3935574.8 046335 AGMT
(a) Furnish or cause to be furnished to the Local Authority and the tenants of the Project public services and facilities of the same character and to the same extent as are furnished from time to time without cost or charge to other dwellings and -inhabitants in the Municipality; and
(b) Cooperate with the Local Authority by such other lawful action or ways as the Municipality and the Local Authority may find necessary in connection with the development and administration of the Project.
5. No Cooperation Agreement heretofore entered into between the Municipality and the Local Authority shall be construed to apply to the Project.
6. No member of the governing body of the Municipality or any other public official of the Municipality who exercises any responsibilities or functions with respect to the Project during their tenure or for one year thereafter shall have any interest, direct or indirect, in the Project or any property included or planned to be included in the project, or any contracts in connection with the Project or property. If any such governing body member or such other public official of the Municipality involuntarily acquires or had acquired prior to the beginning of the member or official’s tenure any such interest, the member or official shall immediately disclose such interest to the Local Authority.
7. The initial term of this This Agreement shall commence on the Effective Date entered aboveremain in effect until the Project ceases to be public housing , and shall terminate thirty-six months thereafter. However, the term of the Agreement may be extended two (2) times for up to twelve (12) months each time upon the mutual written agreement of the Parties.
Additionally, the Parties may early terminate this Agreement prior to ex piration of the initial or extended term via written and mutual acknowledgement and agreement to such early termination executed by both Parties.once the Project has been disposed of, converted to units assisted under Section 8 of the United States Housing Act of 1937 or otherwise ceases to be public housing and the Government has been notified.
8. During the term of this Agreement, so long as any contract between the Local Authority and the Government for annual contributions in connection with the Project remains in force and effect, this Agreement shall not be abrogated, changed, or modified without the consent of the Government.
IN WITNESS WHEREOF, the parties have each caused this Agreement to be duly executed on its behalf as of the Effective Date.
ALAMEDA HOUSING AUTHORITY CITY OF ALAMEDA
aA Public Body, corporate and politic aA municipal corporation
Vanessa Cooper Jennifer Ott
3 3935574.7 046335 AGMT3935574.8 046335 AGMT
Executive Director City Manager
RECOMMENDED FOR APPROVAL
Amy Wooldridge
Assistant City Manager
APPROVED AS TO FORM:
City Attorney
Len Aslanian
Assistant City Attorney