9 - Housing Trust,~pwN of MEETING DATE: 6/21/10
ITEM NO.
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REDEVELOPMENT AGENCY AGENDA REPORT
DATE: June 15, 2010
TO: CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY
FROM: GREG CARSON, EXECUTIVE DIRECTOR ,~~~~G9~~``~
SUBJECT: CONSIDER ADOPTING A RESOLUTION AUTHORIZING THE
EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT BETWEEN THE
REDEVELOPMENT AGENCY AND THE HOUSING TRUST OF .SANTA
CLARA COUNTY PROVIDING CONTRIBUTIONS TO THE HOUSING
TRUST OF SANTA CLARA COUNTY
RECOMMENDATION:
1. Adopt the attached resolution (Attaclunent 1):
2. Authorizing the Executive Director to execute an agreement between the Redevelopment
Agency (RDA) and the Housing Trust of Santa Clara County (HTSCC) (Attachment 2), and
authorizing affordable housing contributions of $150.,000 for two .years ($300,000 total
contribution) to the HTSCC to leverage funding for developers of affordable housing
projects and to fund the First Time Home Buyer's Program within Los Gatos.
BACKGROUND:
The Housing Trust of Santa Clara County is apublic/private partnership dedicated to building and
sustaining a revolving loan fund and grant malting program that will complement and leverage other
housing resources throughout Silicon Valley. Major community, business and goverrnnent leaders
have joined together to address the gap between rapid new job creation and affordable, available
housing within Santa Clara County.
The Housing Trust Fund serves three purposes on an equal basis:
• Low interest down payment/closing costs for first time home buyers
• Gap financing for affordable rental housing projects
• Funds to assist the homeless in attaining stable housing
PREPARED BY: ~~~WENDIE ROONEY,
REDEVELOPMENT DEPUTY DIRECTOR
Reviewed by: i°'~_Deputy Director
~Comrnunity Development
Counsel Secretary ~c=_Finance
Revised: 6/15/10 3:09 PM
Reformatted: 5/30/02
PAGE 2
CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY
SUBJECT: CONSIDER ADOPTING A RESOLUTION AUTHORIZING THE EXECUTIVE
DIRECTOR TO EXECUTE AN AGREEMENT BETWEEN TIDE RDA AND TIDE
HTSCC
Jurze I5, 2010
DISCUSSION:
A draft agreement has been prepared, authorizing affordable housing contributions of $150,000 per
year for two years ($300;000 total contribution) to the HTSCC (Attachment 2). The new Agreement
(Attachment 2) requires that the HTSCC refund, to the Agency, any portion of the Agency's Housing
Funds that have not been committed or expended by the date that istwenty-four (24) months after the
date of the Agency's agreement with HTSCC.
HTSCC has been very successful in its efforts to provide affordable housing. in Santa Clara County.
Over 2000 families have been provided with quality affordable housing. The previous and proposed
Agency contributions to the HTSCC will Ue spent to increase the supply of affordable housing and
home ownership opportunities in the Town of Los Gatos.
Furthermore, the Redevelopment. Agency has adequate funds in its Housing Set-Aside rand for the
requested contributions. The Agency has adequate funds to undertake otlier affordable housing
projects that have been discussed by the Agency Board.
CONCLUSION:
Staff recommends that the Agency Board adopt the attached resolution (Attaclunent 1) authorizing
the Executive Director to execute an Agreement with the HTSCC.
ENVIRONMENTAL ASSESSMENT:
Is not a project defined under CEQA, and no further action is required.
FISCAL IMPACT:
The Redevelopment Agency has an estimated fund balance of $5.2M in the Affordable Housing
Fund as of June 30, 2010. The $150,000 funding for FY.2009/l 0 will come from the fund balance in
Fund 931. The FY 2010/11' contribution of $150,000 will not impact the Redevelopment Agency's
ability to undertake other affordable housing proj ects that leave been discussed by the Agency Board.
A FY 2069/10 budget adjustment in the amount of $150,000 was approved by Council on February
16, 2010 as part of the Mid-Year Budget Performance and Status Report. The contribution. of
$150,000 for FY 2010/11 is part of the FY 2010/11 Adopted Budget.
PAGE 3
CHAIR AND MEMBERS OF THE REDEVELOPMENT AGENCY
SUBJECT: CONSIDER ADOPTING A RESOLUTION AUTHORIZING THE EXECUTIVE
DIRECTOR TO EXECUTE AN AGREEMENT BETWEEN THE RDA AND THE
HTSCC
June 1 S, 2010
Attachments:
1. Draft Resolution Authorizing the Executive Director to Execute an Agreement Between the
RDA and the HTSCC (three pages)
2. Draft agreement between the Redevelopment Agency and the Housing Trust of Santa Clara
County (six pages)
Distribution:
Carl Guardino, Silicon Valley Leadership Group, 224 Airport Parlcway, #620, San Jose, CA 95110
Kevin Zwiclc, Housing Trust of Santa Clara County, 1786 Technology Drive, San Jose, CA 95110
Jessica Garcia-Kohl; Housing Trust of .Santa Clara County, 1786 Technology Drive, San Jose, CA
95110
WRR:LI:ct
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RESOLUTION
RESOLUTION OF THE REDEVELOPMENT AGENCY
OF THE TOWN OF LOS GATOS
AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT
BETWEEN THE REDEVELOPMENT AGENCY
AND THE HOUSING TRUST OF SANTA CLARA COUNTY
FOR AN AFFORDABLE HOUSING CONTRIBUTION
WHEREAS, the Town of Los Gatos Town Council agreed to make a contribution to the
Housing Trust of Santa Clara County (HTSCC) for affordable housing on February 16, 2010 when
the Town Council adopted the mid-term 2009/10 Budget adjustments; and
WHEREAS, the provisions of the Redevelopment Law applicable to the establishment and
use of proceeds from the Housing Fund (Health and Safety Code Sections 33334.2 and 33334.3)
expressly contemplate and permit the use of proceeds from the Housing Fund outside the
Redevelopment Proj ect Area (Project Area) upon findings bythe Town and the Agency that such use
will be of benefit to the Project Area; and
WHEREAS, the provision of affordable housing within the Town of Los Gatos by the
HTSCC will benefit the Project Area and serve major Implementation Plan goals and objectives by
increasing the amount of housing available at affordable costs in the community; and
WHEREAS, the General Plan Housing Element includes policies and implementing
strategies supporting this action; and
WHEREAS, this action is also supported by the Redevelopment Agency Five Year
Implementation Plan FY2009/10 through FY2013/14 (Implementation Plan); and
WHEREAS, there is a need for affordable housing in the -Town and within the Central
Los Gatos Redevelopment Area; and
WHEREAS, the monies will be used to fund affordable housing projects within the
Town; and
Attacl~ament 1
WHEREAS, by the staff report accompanying this Resolution and incorporated into this
Resolution by the reference, the Agency has. been provided with additional information upon
which the findings and actions set forth in this Resolution are based; and
NOW, THEREFORE, BE IT RESOLVED THAT the Agency Board hereby finds and
determines that the above Recitals are true and correct and serve as the basis, in part, for the
findings and actions of the Agency set forth below.
BE IT FURTHER RESOLVED that,. based on information and analysis set forth in the
above Recitals and contained in the Staff Report, the Agency hereby finds and determines that
pursuant to Health and Safely Code Section 33334.2(g) that the use of moneys from the Housing
Fund to finance the acquisition, construction and operation of affordable rental or ownership
housing and loans to assist home ownership will be of benefit to the Project Area and the
program of redevelopment pursuant to the Implementation Plan.
BE IT FURTHER RESOLVED that the Agency hereby authorizes the Executive
Director to execute an Agreement between the Redevelopment Agency and the HTSCC (Draft
attached hereto as Exhibit A) to authorize affordable housing contributions in the amount of
$150,000 for two {2) consecutive years ($300,000 total contribution) from the Agency's Low and
Moderate Income Housing Fund.
BE IT FURTHER RESOLVED that the Agency authorized a budget adjustment for the
FY2009/10 budget in the amount of $150,000 from the fund balance in Program 9301 for the
first of two (2) installments to the HTSCC for their Phase III Campaign.
NOW, THEREFORE, BE IT RESOLVED, AND IT IS HEREBY RESOLVED, by the
Redevelopment Agency of the Town of Los Gatos, County of Santa Clara, State of California, that
the Redevelopment Agency authorizes the executive to execute an Agreement between the
Redevelopment Agency and the Housing Trust of Santa Clara County (attached hereto as Exhibit A)
for an affordable housing contribution.
PASSED AND ADOPTED at a regular meeting of the Town of Los Gatos Redevelopment
Agency held on the day of , 2010, by the following vote.:
REDEVELOPMENT AGENCY MEMBERS:
AYES:
NAYS:
AB SBNT:
ABSTAIN:
SIGNED: /s/Diane McNutt
CHAIR OF THE REDEVELOPMENT AGENCY
TOWN OF LOS GATOS, CALIFORNIA
ATTEST:
/s/ Jackie Rose
SECRETARY OF THE REDEVELOPMENT AGENCY
TOWN OF LOS GATOS, CALIFORNIA
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AGREEMENT BETWEEN
THE REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS
AND
THE HOUSING TRUST OF SANTA CLARA COUNTY
REGARDING A ~CONTRIBUT`ION TO THE
HOUSING TRUST FUND OF SANTA CLARA COUNTY
THIS AGREEMENT is made and entered into as of , 2010, by and between
THE REDEVELOPMENT AGENCY OF THE TOWN OF LOS GATOS ("Agency") and
HOUSING TRUST OF SANTA CLARA COUNTY ("Trust"), a California corporation.
RECITALS
A. The Housing Trust. is an investment pool fund in which private corporations and public
agencies participate. It has been created by the Trust for the purpose of establishing a
revolving loan fund and grant-making program to address the issue of affordable, available
housing in Santa Clara County.
B. Pursuant to the Coirununity Redevelopment Law of the State of California, Section 33.000 et
seq. of the California Health and Safety Code (the "Redevelopment Law"), the Town
Council of the Town of Los Gatos has approved and adopted the Redevelopment Plan for the
Central Los Gatos Redevelopment Project ("Redevelopment Project").
C. Pursuant to the Redevelopment Law, not less than 20% of the tax increment revenues
allocated to the Agency that are derived from the Redevelopment Proj ect must be set aside in
the Agency's Low and Moderate Income Housing Fund (the Agency's Housing Funds), to be
used to increase, improve or preserve affordable housing for persons and families of low and
moderate income in the Town of .Los Gatos.
D. The Agency desires to .increase, improve or preserve affordable housing-for persons and
families of low and moderate income in the Town of Los Gatos, by participating in the Trust,
as specified in this agreement.
E. The purpose of this Agreement is to set forth the mutual agreement of the Agency and the
Trust regarding the use of the Agency's Housing Funds for the Phase IV Campaign.
In view of the above, the parties agree as follows:
SECTION 1 AUTHORITY AND STATUS OF TRUST
Trust represents and warrants that the information contained in this Agreement is true and accurate to
the best of its knowledge, and that it is a duly organized, validly, existing nonprofit corporation in
Page 1 of 6
Attachment 2
good standing under the laws of its place of incorporation; that its signatory to this Agreement is
authorized by resolution, bylaws or constitution of the non-profit corporation, currently, in full force
and effect, to execute this Agreement on Trust's behalf.
SECTION 2 DEPOSIT OF AGENCY'S FUNDS INTO HOUSING TRUST OF SANTA CLARA
COUNTY FOR THE PHASE N CAMPAIGN FUND
Agency agrees to deposit the sum of $300,000 into the Trust for the Phase IV Campaign as follows:
$150.,000 on March, 2010 and $150,000 in July, 2010.
SECTION 3 USE OF AGENCY'S HOUSING FUNDS BY TRUST
3.1 The Trust agrees that no fees wial be charged to Agency's Housing Fund's on deposit in the
Trust for administrative or overhead costs, including but not limited to fundraising expenses.
The. sole administrative expenses which maybe charged to Agency's Housing Funds on
deposit in the Trust shall be as set forth in section 6.
3,2 The Trust shall serve as the fiscal agent. Subject to this Section 3.2, the Agency's Housing
Funds .may be disbursed either as loan or grant funds. The initial disbursement of the
Agency's Housing Funds fiom the Trust shall be used exclusively for one or more projects
that meet all of the following criteria:
3.2.1 Any such project must increase, improve, or preserve affordable housing in the
Los Gatos Redevelopment Project Area.
3.2.2 Such Housing must be affordable to persons and families of low or,rnoderate
income, or very low income, or very low income households, as those teens are
defined in Sections 50052.5, 50053, 50079.5, SOD93 and 50105 ofthe California
Health and Safety Code Sections, as applicable.
.3.2.3 The Trust shall use the Agency's Housing Funds to increase,. improve or preserve
affordable housing for homeless individuals and families, affordable rental
housing and/or provide first-time home buyers assistance programs for persons
and families of low and moderate income or very low income Households, by
methods of providing financial assistance that include, but are not limited to, the
methods. set forth in California Health and Safety Code Section 33334.2 (e).
3.2.4 Notwithstanding the foregoing, the Trust may use the Agency's Housing Funds
to provide afirst-tune home buyers assistance programs for first-time home
buyers. to purchase any home, which may be resold at market rate.
Page 2 of 6
3.2.5 Any new or substantially rehabilitated housing that is developed, financed or
assisted, in whole or in part, with the Agency's Funds shall remain available at
affordable housing costs to persons and families of low or moderate income, or
very love income households, as the case may be, for the longest feasible time,
but not less than (a) .fifty (50) years for rental units, or (b) thirty (30) years for
owner-occupied units, subject to California Health and Safety Code Section
33334.3(f)(1). The Trust shall require the recording in the office of the County
.Recorder of covenants or restrictions implementing this Section 3.2.4 for each
parcel or unit of real properly subject to this Section 3..2.4, which covenants or
restrictions shall run with the. land and shall be enforceable, against the original
owner and successor in interest, by the Agency or the Trust.
3.2.6 There shall be no discrimination against or segregation of any person, or group of
persons, on account of race, color, religion, national origin, ancestry, sex, or
.marital status in the sale, lease, sublease, transfer, use, occupancy, tenure, or
enjoyment of any such project, or any partthereof, nor shall any recipient of the
Agency's Housing Funds, or any person claiming under or through such practice
or practices of discrimination or segregation with reference to the selection,
location, number use or occupancy of tenants, lessees, subtenants, sub-lessees, or
vendees of any such project.
3.2.7 Subject to California law, the restrictions of this Section 3.2 shall apply only to
the initial use of the Agency's Housing Funds by the Trust. After the .initial use
of the Agency's Housing Funds by the Trust, reinvestment of funds that are
repaid to or otherwise recaptured by the Trust shall not be subj ect to this Section
3.2, but shall otherwise assist affordable housing projects through the Trust's
Articles of Incorporation or Bylaws.
3.2.8 The Trust shall refund to the Agency any portion of the Agency's Housing Funds
t11at have not been disbursed or contractually committed to be disbursed in
accordance with this Section 3,2 by the date that is twenty four (24) months after
the date of this Agreement.
3.3 All disbursements by the Trust shall be made with the advice and suggestion of the Trust
Steering committee which has been formed by the Trust Board of Directors in accordance
with the Trust's. Articles of Incorporation or Bylaws. The Trust shall follow the
recorrunendationsregsrding disbursement rendered by the Trust Program Committee unless
to do so would be a violation of law, this Agreement, or the Trust's Articles of Incorporation
or Bylaws.
SECTION 4 INVESTMENT OF THE FUND
The Trust shall hold, manage, invest and reinvest the Trust in accordance with the "reasonably
prudent person" standard.
Page 3 of 6
SECTION 5 FINANCIAL REPORTS
5.1 The Trust shall establish and maintain, in accordance with .generally accepted accounting
principles, a complete record of all financial transactions related to the Trust's firnds.
5.2 The Trust shall provide Agency with quarterly reports which shall set forth in detail all
financial transactions related to the Trust's funds. The Trust shall also provide Agency with
a copy of its audited report, prepared by independent certified public accountants.
5.3 The Trust shall provide Agency with a written report on the initial expenditure of the
Agency's Housing Funds, including,. at a minimum, for each project assisted with Agency's
FIousing Fund assisted proj ect(s); number of units; rent or sale price income restrictions; and
terms of restrictions.
SECTION 6. ADMINISTRATIVE FEES
The Trust may charge an annual administrative fee equal to one percent (1 %) of the Agency's Funds
contributed to the Trust in any fiscal year. The Trust shall report the fees charged against the Trust
in its quarterly and annual reports.
SECTION 7 NOTICES
Any communication or notice which either party is required to send to the other or which either party
desires to sexed to the other, shall be in writing and shall be either personally delivered or mailed. in
the United States mail, postage prepaid, to fhe respective parties addressed as follows:
Agency; Redevelopment Agency
Town of Los Gatos
PO Box 949
Los Gatos, CA 95031
Trust; Housing Trust of Santa Clara County
95 S. Market St., Suite 550
San Jose, CA 95112
Either party may change its address by sending notice of the new address to the other party pursuant
to this section.
SECTION 8. COMPLIANCE WITH ALL LAWS
The Trust. shall comply with all applicable laws, ordinances, codes and regulations of the federal,
state and local governments.
Page 4 of 6
SECTION 9. MISCELLANEOUS PROVISIONS
A. The parties agree that this Agreement shall be governed and construed in accordance with the
laws of the State of California. In the event that suit shall be bought by either parry to this
- Agreement, the parties agree that venue shall be exclusively vested in the state courts of the
County of Santa Clara, or where otherwise appropriate, exclusively in the United States
District Court, Northern District of California, San Jose, California.
B. The headings of the sections and subsections of this Agreement are inserted for convenience
only. They do not constitute a part of this Agreement and shall not be used in its
construction.
C. The waiver by any party to this .Agreement of a breach'of any provisions of this Agreement
shall notbe deemed a continuing waiver or a waiver of any subsequent breach of that or any
other provisions of this Agreement.
D. Any and all exhibits which are referred to in this Agreement are incorporated herein by
reference and are deemed a part of this Agreement. This Agreement inay only be amended
by formal written agreement executed by both parties.
E. If a court of competent jurisdiction adjudges any provisions of this Agreement as void or
unenforceable, the remaining provisions shall not be affected hereby and shall remain in full
force and effect; provided that construction of the agreement without the invalid or
unenforceable provisions does not deprive the parties of the benefit of their bargain.
F. The Trust shall provide an accounting of how it intends to provide matching funds for .all
costs incurred pursuant to Section 3.2 of this Agreement. In addition, Trust shall provide an
accounting of how it intends to leverage on a 10:1 basis (ten times the Agency contribution)
the funds provided by the Agency pursuant to Section 3.2 of this Agreement.
Page 5 of b
Where this agreement refers to Agency and no Officer of the Agency is named, the Agency
Executive Director shall have the authority to act on the Agency's behalf.
THE REDEVELOPMENT AGENCY OF HOUSING TRUST OF SANTA CLARA
THE TOWN OF LOS GATOS COUNTY
Greg Larson
Executive Director
Kevin Zwiclc
Executive Director
APPROVED AS TO FORM & LEGALITY
Michael Martello
Interim Agency Attorney
ATTEST;
Jackie Rose
Clerk Administrator
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