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101-Staff Report.pdf
COMMUNITY DEVELOPMENT DEPARTMENT CITY HALL 1010300TORRE AVENUE • CUPERTINO, CA 95014-3255 TELEPHONE: (408)777-3308www.cupertino.org CITYCOUNCIL/REDEVELOPMENTAGENCYSTAFFREPORT Meeting:February 15, 2011 Subject AgreementbetweentheHousing Trust ofSantaClaraCounty(Trust),theCityofCupertino RedevelopmentAgency(RDA)andtheCityofCupertino(City)forthe useof housingfunds. RecommendedAction Action ofCity ofCupertinoRDA: 1.AdopttheDraftResolution a.ApprovinganAgreement betweentheRDAandtheHousingTrust ofSantaClara Countytoallocate $1,000,000fromRDAHousing set-asidefunds. b.DirectingtheCity Managerto negotiateandexecutetheagreement betweenthe Housing Trust ofSantaClaraCountyandtheCityofCupertinoandtheCity of CupertinoRDA. 2.IncreaseRDAHousingset-asidefundexpenditure budgetby $1,000,000. Action ofCity ofCupertino: 1.AdopttheDraftResolution a.ApprovinganAgreement betweentheCityandtheHousing Trust ofSantaClara Countyallocating $1,000,000. b.DirectingtheCity Managerto negotiateandexecutetheagreement betweenthe theHousingTrust ofSantaClaraandtheCity ofCupertinoandtheCity of CupertinoRDA. Description Discussan opportunitytofundtheHousingTrust ofSantaClaraCountyout oftheRDA HousingSet-Aside. Discussion Pursuanttoa settlementagreement betweentheCity ofCupertinoandBayAreaLegalAid (BALA), 25% oftheCityofCupertino’sRDAtaxincrementmust be set-asideforaffordable housing. Thereiscurrently $1,005,000 inthe housing set-asidefundavailableforaffordable housing. To date,theRDA has notallocatedanyfundingforaffordablehousing projects. TheHousingTrust ofSantaClaraCountyhasrequestedfundingfromtheCityofCupertino RDAto serveCupertinoresidents. MoneythatisinvestedintheHousingTrustis highly leveraged.Overthe pasttenyears,theCity ofCupertino hasgrantedtheTrust $350,000 which the Trust hasreinvestedinCupertinobymorethan double.Since 2001, the Trust hasinvested $38millionandleveraged over $1 billioninCounty ofSantaClara housing projectsand programs.Belowarealist ofjust some ofthe programsthattheHousing Trust offersto Cupertinoresidentsandnon-profit developers: ·DeveloperLoans(i.e.,SeniorHousingSolutions,HabitatforHumanity,Maitri,etc.) ·First TimeHomebuyerPrograms – including down paymentassistance,equity share, or closingcostloans;and ·HomelessPrevention –assistancetothelocal homeless populationthroughagencies suchas WestValleyCommunityServices. Staff believesthatinvestingthe $1,000,000 withtheHousingTrust ofSantaClaraCountywould not only beamulti-yearinvestmentthatwould benefitCupertinoresidentsinthe provision of affordable housingthroughouttheCityofCupertino butwouldalsoleverageadditionalfunds thatcould be spentinthecommunity. Findings Inorderto utilizeRDAfunds outside oftheVallco projectareatheCityandtheRDAmustmake findingsintheresolutions detailingwhyitisa hardshipto provideaffordable housinginsidethe projectarea.InthecaseoftheVallcoProjectArea,therearelimitedresidential sites on whichto provideaffordable housing. Thereare onlytwoexisting vacantparcelsintheredevelopment area.One ofthem doesnot have housingallowedasa use undertheGeneralPlanandwasa subject ofareferendumthat hasreversedCityCouncilapproval ofa housing project. The other currently servesasparkingfortheexistingVallco Mall.Forthesereasons,itmakes senseto providetheaffordable housing outsidethe projectareawithintheCity,where sufficient residentiallyzonedlandexistsandisinrelativelyclose proximitytotheredevelopmentarea. FiscalImpact TheRDAcurrently has$1,890,000inreserves,with $1,005,000 inthe housing set-asidefund and $885,000 inredevelopment projectareafunds. The $1,000,000 wouldcomefromthe housing set-asidefund. _____________________________________ Preparedby:VeraGil,SeniorPlanner Reviewedby:AartiShrivastava,Director ofCommunityDevelopment;CarolKorade,City Attorney;DavidWoo,Finance Manager,KellyKline, EconomicDevelopment& Redevelopment Manager ApprovedforSubmissionby:DavidW.Knapp,CityManager Attachments: AttachmentA:Draftagreement betweentheHousing Trust ofSantaClaraCountyandthe CityofCupertinoandtheCityofCupertinoRedevelopmentAgency AttachmentB:DraftRDAResolutionapprovingtheAffordableHousingAgreement AttachmentC:DraftCityCouncilResolutionapprovingtheAffordableHousingAgreement