DATE: December 6, 2022
TO: Mayor and City Council
FROM: City Attorney
SUBJECT Adopt a Resolution Rescinding a Portion of the Previously Adopted Resolution 20-065, Regarding Approval of a Financing Model that Supports the Development of Middle-Income Affordable Housing and Authorization of the City Manager to Execute Purchase Option Agreements with the California Community Housing Agency
RECOMMENDATION
That Council adopts a resolution (Attachment II) rescinding a portion of Resolution 20-065 adopted May 26, 2020 regarding approval of a financing model that supports development of middle-income affordable housing and authorization of the City Manager to execute purchase option agreements with the California Community Housing Agency (CalCHA).
SUMMARY
On May 26, 2020, City of Hayward adopted Resolution 20-065 that approved a financing model to fund the acquisition and/or development of affordable housing for middle income households. Staff is now recommending an amendment to the previously adopted resolution by rescinding some of the language in the final paragraph.
BACKGROUND
On May 26, 2020, the City of Hayward adopted Resolution 20-065 that approved a financing model to fund the acquisition and/or development of affordable housing for middle income households. The Resolution included an authorization for the City to become a member of CalCHA, expressed support for CalCHA's issuance of tax-exempt bonds related to middle-income rental housing, and authorized the City Manager to execute a limited number of purchase option agreements with CalCHA within a 5-year period.
As a result of a prior work session on this matter, which occurred on February 25, 2020, and based on Council discussion, public comment, and community sentiment, Resolution 20-065 included language prohibiting FPI Property Management (“FPI”) from managing properties included in the project.
DISCUSSION
Resolution 20-065 stated, in part:
BE IT FURTHER RESOLVED that prior to entering into a Purchase Option Agreement, the City Manager will ensure that the Regulatory Agreement for each property contains language allowing over -income tenants to remain housed at the property and prohibits FPI Property Management from managing the properties included in the project.
The prohibition of FPI from managing project properties is unnecessary as the City is able to make decisions regarding proposed projects, including decisions based on proposed property management companies, prior to signing the Purchase Option Agreement. Based on the foregoing, staff recommends minor amendments to Resolution 20-065 as set forth in the attached resolution.
FISCAL IMPACT
There are no fiscal impacts to the City associated with this action.
STRATEGIC ROADMAP
This agenda item supports the Strategic Priority of Preserve, Protect, & Produce Housing. Specifically, this item relates to the implementation of the following project(s):
Project 4, Part 4.a: Explore moderate-income financing model.
NEXT STEPS
If Council adopts the amended resolution (Attachment II), staff will continue working with existing and future users of this model pursuant to previously negotiated Purchase Option Agreements.
Prepared by: Vadim Sidelnikov, Deputy City Attorney
Recommended by: Michael S. Lawson, City Attorney
Christina Morales, Housing Manager
Approved by:
_________________________________
Kelly McAdoo, City Manager
https://hayward.legistar.com/LegislationDetail.aspx?ID=4544076&GUID=17EB8C13-9BB8-46C9-BF97-00B8B200E44B https://hayward.legistar.com/LegislationDetail.aspx?ID=4340247&GUID=D32E99E0-08C8-4913-A32E-CB20520875F6