Reso No.
RESOLUTION NO._____
A RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND
AUTHORIZING A LOAN FROM THE CITY GENERAL FUND TO THE CITY
AFFORDABLE HOUSING FUND TO PROVIDE OPERATING AND CAPITAL
SUBSIDIES FOR A HOMEKEY PROGRAM PROJECT
WHEREAS, the Department of Housing and Community Development (“HCD”) has issued a Notice of Funding Availability for the Homekey Program (“Homekey”) pursuant to Health and Safety Code section 50675 et seq.; and
WHEREAS, the City Council has previously authorized the submittal of a joint application for Homekey funds together 425 Civic Center LP, a California limited partnership affiliated with Novin Development Corporation (“Developer”)_to support the development of a permanent supportive housing project at 425 24th Street consisting of 48 units for people experiencing homelessness or at-risk of homelessness and one manager’s unit (the “Project”); and
WHEREAS, the City Council previously authorized the execution of an HCD Standard Agreement and related documents if Homekey funds are awarded for the Project; and
WHEREAS, contingent upon an award of Homekey funds for the Project, the City Council previously authorized the provision of funding in an amount up to $___________, which may include capital funding in the amount of $____________, a waiver of transfer taxes in the amount of $_________, and an operating subsidy for the Project in the amount of up to $___________ to fund two (2) on-site social services providers for a period of _____(__) years if Homekey funds are awarded for the Project; and
WHEREAS, the provision of an operating subsidy and a capital subsidy for the Project are allowable uses of inclusionary housing and affordable housing linkage fees collected by the City and deposited into City’s Affordable Housing Fund established pursuant to Richmond Municipal Code Section 15.04.603.130 (the “Affordable Housing Fund”); and
WHEREAS, at present the Affordable Housing Fund lacks sufficient resources to provide the subsidies needed for the Project.
NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE
RICHMOND CITY COUNCIL, COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA, THAT:
1. If Homekey funds are awarded for the Project, the City general fund (“General Fund”) will provide an interfund loan in the amount of up to [ ] (the “Loan”) to the Affordable Housing Fund in order to make funds available to finance operating and capital subsidies for the Project.
Reso No.
2. As the Affordable Housing Fund receives deposits of inclusionary housing and affordable housing linkage fees, the Loan will be repaid via interfund transfers from the Affordable Housing Fund to the General Fund until the Loan is paid in full and the General Fund is restored.
3. If Homekey funds are awarded for the Project, the City will provide an operating subsidy and a capital subsidy in the aggregate amount of up to [Three Million, Six Hundred Thousand ($3,600,000)] using proceeds of the Loan.
4. If Homekey funds are awarded for the Project, the City will waive transfer taxes associated with the Developer’s acquisition of the Project from the existing owner in the amount of $_____________.
5. The City Manager is hereby authorized and directed to take all such actions and to execute, acknowledge, deliver, and record such instruments, including without limitation, a Grant Agreement, a Regulatory Agreement, and an Implementation and Indemnity Agreement as the City Manager may deem necessary or appropriate in order to carry out and perform the purposes and intent of this Resolution.
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I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond at a meeting thereof held on ______, 2023, by the following vote:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
Chairperson
[SEAL]
ATTEST:
Secretary
Approved as to form:
Reso No.
City Attorney