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RESOLUTION NO. ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY
ESTABLISHING THE CITY OF FOSTER CITY LOCAL HOUSING TRUST FUND
DESIGNATING COMMERCIAL LINKAGE FEES AND BELOW MARKET RATE
HOUSING IN-LIEU FEES AS DEDICATED FUNDING SOURCES FOR THE LOCAL
HOUSING TRUST FUND AND FINDING THE PROJECT EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINE SECTION 15378
CITY OF FOSTER CITY
WHEREAS, there exists within the City of Foster City (City) a shortage of decent, safe, and affordable housing such that it is adverse to the health, well-being, and prosperity of the City’s residents as documented in the City’s 2023-2031 Housing Element Update; and
WHEREAS, the City adopted the Foster City 2023-2031 Housing Element Update on May 22, 2023; and
WHEREAS, the 2023-2031 Housing Element Update includes H-A-5-b Local, State and Federal Funding for Affordable Housing to provide the necessary legal framework to be able to accept grants and donations to the City Affordable Housing Fund as a qualified trust fund; and
WHEREAS, the establishment of the City Local Housing Trust Fund (LHTF) would create an opportunity to address the need for decent, safe, and affordable housing within the City through community supported, housing-related programs and activities, including but not limited to programs included in the 2023-2031 Housing Element Update; and WHEREAS, pursuant to Housing Program H-A-5-b, the City wishes to establish a LHTF to be eligible to receive funding from other local, state or federal funding sources that could be used to provide funding for affordable housing; and WHEREAS, the City’s Commercial Linkage Fees and Below Market Rate Housing In-Lieu Fees were created to specifically fund the development and preservation of affordable housing; and
WHEREAS, the City will act as the settlor and manifests an intention to create a trust; and
WHEREAS, the Commercial Linkage Fees and Below Market Rate Housing In- Lieu Fees, which are ongoing revenues as defined by HCD’s LHTF Final 2020 Guidelines, can be the trust property, and can be used as dedicated sources for matching funds of any LHTF grant; and
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WHEREAS, the LHTF trust will be used for eligible uses of funds as stated in Section 105 of HCD’s LHTF Guidelines as may be amended from time to time; and WHEREAS the City will act as the trustee of the City of Foster City LHTF; and WHEREAS the beneficiaries of the City LHTF will be at the discretion of the trustee and based on eligible uses of funds as stated in Section 105 of HCD’s LHTF 2020 Guidelines as may be amended from time to time, and is attached hereto as Exhibit A; and
WHEREAS, the City Council can allocate funding in the LHTF Trust to be used as eligible funds for grant matching; and
WHEREAS, the proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378, in that establishing a LHTF does not meet CEQA’s definition of a “project,” because the action does not have the potential for resulting in either a direct physical change to the environment or a reasonably foreseeable indirect physical change in the environment.
NOW, THEREFORE, the City Council of the City of Foster City hereby resolves as follows:
1. Findings. The above recitals are declared to be true and correct and are incorporated into this resolution as findings of the City Council.
2. CEQA Analysis. The proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15378, in that establishing a LHTF does not meet CEQA’s definition of a “project,” because the action does not have the potential for resulting in either a direct physical change to the environment or a reasonably foreseeable indirect physical change in the environment.
3. Local Housing Trust Fund. City staff are authorized to create a City Fund to be designated as the City of Foster City Local Housing Trust Fund (LHTF).
Proceeds in this fund shall be used to address the need for decent, safe, and affordable housing within the City.
4. Program Guidelines. The revenue held within the LHTF shall be expended. according to adopted Program Guidelines, as detailed in Attachment A.
Program Guidelines may be updated by the Community Development Director or their designee as necessary to address changing local housing needs of Multiple Program Guidelines may be adopted to direct expenditures according to the parameters of funding sources. Development of Program Guidelines shall occur through an accessible, community-supported process.
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5. Management. The Community Development Director or their designee shall serve as the Administrator of the LHTF. The responsibilities of the Administrator shall include each of the following:
a. Maintaining all records related to the LHTF.
b. Assisting prospective applicants/recipients requesting LHTF support. c. Coordinating formal agreements with recipients of LHTF d. Monitoring the use of LHTF funds, including oversight to Fund distributions and recipient agreements.
e. Facilitating community input for the development of new or updated Program Guidelines.
f. Providing an Annual Report to the City Council on LHTF activities.
6. Funding. The LHTF shall be funded upon City Council authorization from Fund 137 Commercial Linkage Fees and revenues from Below Market Rate Housing In-Lieu Fees. The LHTF remains eligible to receive allocations from additional sources as they become available.
7. Annual Report. The Planning Manager or their designee shall prepare and submit an annual report to the Council on the activities undertaken with funds from the LHTF in the previous calendar year. The Report shall be publicly accessible.
8. Compliance with Probate Code: Finds that the City of Foster City LHTF was created in compliance with Sections 15200 et. seq. of the California Probate Code as:
a. The City of Foster City will act as the settlor and manifests an intention to create a trust.
b. The City’s Commercial Linkage Fee Funds and Below Market Rate Housing In-Lieu Fee Funds will be the trust property and shall be used as dedicated sources for matching funds of any LHTF grant. c. The LHTF trust will be used for eligible uses of funds as stated in Section 105 of HCD’s LHTF Guidelines as may be amended from time to time.
d. The City of Foster City will act as the trustee of the City of Foster City LHTF.
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e. The beneficiaries of the City of Foster City LHTF will be at the discretion of the trustee and based on eligible uses of funds as stated in Section 105 of HCD’s LHTF 2020 Guidelines as may be amended from time to time, and is attached hereto as Exhibit A.
PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 20th day of February 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
PATRICK SULLIVAN, MAYOR
ATTEST:
PRISCILLA SCHAUS, CITY CLERK