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9 - Housing Trust,~pwN of MEETING DATE: 6/21/10 ITEM NO. ~~;, ~~ f~ ~~ , !ps °G~A:~pS 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 N:\DEV\CNCLRPTS\2010\RDA Housing Trust Report.doc TxIS PAGE INTENTIONALLY LEFT BLANK 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 N:\DEV\I2ESOS\RDA-HTSCC 6-7-to.doc THIS PAGE INTENTIONALLY LEFT BLANI~ 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 N:\DEV\Agreements\Housing Trust 6-14-10.doc Page 6 of 6