____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: _______________________
Disposition: ___________________________
Agenda Item No: 4.g
Meeting Date: June 23, 2025
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community and Economic Development
Prepared by: Micah Hinkle, Director
Alexis Captanian, Housing Manager
City Manager Approval: __________
TOPIC: ENDING GRANT AGREEMENT WITH HOMEWARD BOUND FOR 830 B STREET
AFFORDABLE HOUSING
SUBJECT: RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AS THE HOUSING
SUCCESSOR TO THE SAN RAFAEL REDEVELOPMENT AGENCY AUTHORIZING
THE CITY MANAGER TO EXECUTE AN AMENDMENT TO TERMINATE THE GRANT
AGREEMENT BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY AND HOMEWARD BOUND OF MARIN DATED MAY 4, 1998, FOR THE REHABILITATION OF 29 AFFORDABLE RESIDENTIAL UNITS AT 830 B ST, CONTINGENT UPON A RETURN OF $16,560 IN GRANT FUNDS TO THE LOW AND MODERATE INCOME
HOUSING FUND
RECOMMENDATION:
Staff recommends that the City Council adopt the above-referenced resolution authorizing the City Manager to execute an amendment to the grant agreement between the San Rafael Redevelopment Agency and Homeward Bound of Marin, dated May 4, 1998, (“Grant Agreement”) to terminate the grant agreement early due to relocation of program residents, contingent upon a return of $16,560 in grant funds to the low and moderate income housing fund.
BACKGROUND:
Homeward Bound of Marin, a nonprofit organization providing shelter and supportive housing for unhoused families and adults, has leased the upper floors of the building at 830 B Street since 1987, providing 29 units of affordable housing.
In 1998, the San Rafael Redevelopment Agency made a grant in the amount of $165,600 from the Low and Moderate Income Housing Fund to assist Homeward Bound of Marin in rehabilitating the building at 830 B Street with certain life safety system upgrades.
The Grant Agreement established occupancy and affordability restrictions for the units over a 30-year term, beginning in 1998 and ending in 2028. These affordability restrictions were recorded against the property. Homeward Bound of Marin operated the program at 830 B Street, consistent with the agreement for 27 years.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
In Spring 2025, Homeward Bound of Marin vacated the building at 830 B Street, relocating residents of the program to the new permanent supportive housing at 3301 Kerner Blvd (“Casa Canal”) and the Next Key Apartments at 1385 N. Hamilton Parkway in Novato. Homeward Bound of Marin has requested to terminate the agreement at 830 B Street three years before the end of the term.
ANALYSIS:
The grant from the Redevelopment Agency’s Low and Moderate Income Housing Fund was provided to make upgrades to the property in exchange for a 30-year restriction on occupancy and affordability.
While the City does not typically terminate affordability covenants before the end of their term, staff recommend granting an early termination in this case given that: 1) The agreement was signed by the lessee, not the property owner of 830 B Street; 2) Homeward Bound of Marin operated the program at 830 B Street consistent with the agreement for 27 years; 3) Homeward Bound of Marin successfully relocated the residents of the program at 830 B Street to other supportive housing in Marin.
To terminate the agreement early, a prorated amount of the grant needs to be returned to the Low and Moderate Income Housing Fund. In 2025, the required refund is sixteen thousand five hundred and sixty dollars ($16,560). This is equal to $5,520 per year for the remaining three years of the term.
FISCAL IMPACT:
Terminating the agreement early and accepting a prorated refund of the grant based on the three years remaining in the 30-year term would result in a refund of $16,560 to be deposited in the Low and Moderate Income Housing Fund (495).
OPTIONS:
The City Council has the following options to consider on this matter:
1. Adopt the resolution (Staff’s recommended action).
2. Adopt resolution with modifications.
3. Direct staff to return with more information.
4. Take no action.
RECOMMENDED ACTION:
Staff recommends that the City Council adopt the above-referenced resolution authorizing the City Manager to execute an amendment to the grant agreement between the San Rafael Redevelopment Agency and Homeward Bound of Marin, dated May 4, 1998, (“Grant Agreement”) to terminate the grant agreement early due to relocation of program residents, contingent upon a return of $16,560 in grant funds to the low and moderate income housing fund.
ATTACHMENTS:
1. Resolution
2. Draft First Amendment
RESOLUTION NO. _______
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL AS THE HOUSING
SUCCESSOR TO THE SAN RAFAEL REDEVELOPMENT AGENCY AUTHORIZING
THE CITY MANAGER TO EXECUTE AN AMENDMENT TO TERMINATE THE GRANT
AGREEMENT BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY AND HOMEWARD BOUND OF MARIN DATED MAY 4, 1998, FOR THE REHABILITATION OF 29 AFFORDABLE RESIDENTIAL UNITS AT 830 B ST, CONTINGENT UPON A RETURN OF $16,560 IN GRANT FUNDS TO THE LOW AND MODERATE INCOME
HOUSING FUND
WHEREAS, the San Rafael Redevelopment Agency (the “Agency”) set objectives for affordable housing in accordance with the Amended and Restated Redevelopment Plan (the “Agency Plan”) for the Central San Rafael Redevelopment Project Area; and WHEREAS, to serve the objectives of the Agency Plan, the Agency assisted in the rehabilitation of housing for low and lower income households; and WHEREAS, the Agency established a Low and Moderate Income Housing Fund (the “Fund”) pursuant to Health and Safety Code Section 33334.3; and WHEREAS, Homeward Bound of Marin, a non-profit organization, leased twentynine (29) residential units located at 830 B Street and within the area governed by the Agency Plan, providing housing affordable to low and lower income households; and WHEREAS, in 1998, the Agency made a grant in the amount of one hundred sixty five thousand, six hundred dollars ($165,600) (the “Grant”) from the Fund to assist Homeward Bound of Marin in rehabilitating the building located at 830 B Street with certain life safety system upgrades (“Project”) pursuant to an agreement between the Agency and Homeward Bound of Marin dated May 4, 1998 (“Grant Agreement”); and WHEREAS, pursuant to San Rafael Redevelopment Agency Board Resolution No. 98-16, the Grant Agreement set forth occupancy and affordability restrictions for a period of 30 years ending in 2028; and
WHEREAS, Homeward Bound of Marin operated the Project consistent with the Grant Agreement for 27 years; and
WHEREAS, in early 2025, Homeward Bound of Marin vacated the building at 830 B Street, relocating residents of the program to the new permanent supportive housing at 3301 Kerner Blvd (“Casa Canal”) and the Next Key Apartments at 1385 N. Hamilton Parkway in Novato; and
WHEREAS, Homeward Bound of Marin has requested to terminate the Grant Agreement at 830 B Street three years before the end of the term; and WHEREAS, the prorated grant amount for the remaining three years of the term is equal to sixteen thousand, five hundred and sixty dollars ($16,560), or five thousand, five hundred and twenty dollars ($5,520) per year; and
WHEREAS, pursuant to state law, the Agency was dissolved and pursuant to Resolution No. 13279 the City of San Rafael elected to retain the authority to perform the Agency’s housing functions.
NOW, THEREFORE BE IT RESOLVED, that the City Council hereby authorizes the City Manager to execute an amendment to the Grant Agreement to terminate the Grant Agreement, subject to a return of $16,560 in grant funds to the Low and Moderate Income Housing Fund.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a special meeting of the City Council of the City of San Rafael, held on Monday, the 23rd day of June 2025, by the following vote, to wit:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
____________________
Lindsay Lara, City Clerk
FIRST AMENDMENT TO THE GRANT AGREEMENT BY AND BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY AND HOMEWARD BOUND OF MARIN DATED MAY 4, 1998 This First Amendment to the Grant Agreement by and Between the San Rafael Redevelopment Agency (“Agency”) and Homeward Bound of Marin by and between the City of San Rafael as the Housing Successor to the San Rafael Redevelopment Agency (“City”) and Homeward Bound of Marin (“Grantee”), is made and entered into as of _____________(“EƯective Date”).
Recitals
WHEREAS, in 1998, the Agency made a grant in the amount of one hundred sixty five thousand, six hundred dollars ($165,600) (the “Grant”) from the Fund to assist Homeward Bound of Marin in rehabilitating the building located at 830 B Street with certain life safety system upgrades (“Project”) pursuant to an agreement between the Agency and Grantee dated May 4, 1998 (“Grant Agreement”); and
WHEREAS, Grantee, a non-profit organization, leased twenty nine (29) residential units located at 830 B Street, providing housing aƯordable to low and lower income households; and
WHEREAS, pursuant to Agency Board Resolution No. 98-16, the Grant Agreement set forth occupancy and aƯordability restrictions for a period of 30 years ending in 2028; and WHEREAS, Grantee operated the Project consistent with the Grant Agreement for 27 years; and
WHEREAS, in early 2025, Grantee vacated the building at 830 B Street, relocating residents of the program to the new permanent supportive housing at 3301 Kerner Blvd and the Next Key Apartments at 1385 N. Hamilton Parkway in Novato; and WHEREAS, Grantee has requested to terminate the Grant Agreement at 830 B Street three years before the end of the term; and
WHEREAS, the prorated grant amount for the remaining three years of the term is equal to sixteen thousand, five hundred and sixty dollars ($16,560), or five thousand, five hundred and twenty dollars ($5,520) per year; and .
WHEREAS, pursuant to state law, the Agency was dissolved and pursuant to Resolution No. 13279 the City elected to retain the authority to perform the Agency’s housing functions; and
WHEREAS, the City and the Grantee hereby desire to terminate the Grant Agreement as follows:
Amendment to the Agreement
The Parties to this Amendment hereby agree to terminate the Grant Agreement subject to the following terms and conditions:
1. Repayment of Pro-Rated Grant Amount. Within 3 business days of the EƯective Date, Grantee shall pay to the City of San Rafael the amount of $16,560 (sixteen thousand, five hundred, sixty dollars) (“Payment”). Payment shall be made via check made out to the City of San Rafael and delivered to the City’s Housing Manager or her designee, unless the City’s Housing Manager agrees in writing for the Payment to be made in another form.
2. Termination of the Grant Agreement. Upon the City’s receipt of the full amount of the Payment, the Grant Agreement shall be deemed terminated upon mutual agreement without any further action necessary, except for those provisions of the Grant Agreement that are specified to survive termination of the Grant Agreement.
The Parties agree to take further actions as may be necessary or incidental to eƯectuating the intent of this First Amendment.
3. Counterparts; Multiple Originals. This First Amendment may be executed in counterparts. This First Amendment may be executed in multiple originals, each of which is deemed to be an original.
Signatures to follow on the next page
IN WITNESS WHEREOF, the parties have executed this Amendment as of the day, month and year first above written as the EƯective Date.
CITY OF SAN RAFAEL:
_________________________________
CRISTINE ALILOVICH, CITY MANAGER
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
_________________________________
BY: ANDREA VISVESHWARA,
CHIEF ASSISTANT CITY ATTORNEY
ATTEST:
CITY CLERK
_________________________________
LINDSAY LARA, CITY CLERK
GRANTEE:
__________________________________
BY: ____________________________
NAME: ____________________________
TITLE: ____________________________
[IF GRANTEE IS A CORPORATION, ADD
SIGNATURE OF SECOND CORPORATE
OFFICER]
__________________________________
BY: ____________________________
NAME: ____________________________
TITLE: ____________________________