HomeMy WebLinkAboutReso - CC - 152-2019RESOLUTION NO. 152-2019
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME AUTHORIZING
THE CITY TO BECOME A NON -CHARTER ADDITIONAL MEMBER OF THE CALIFORNIA
COMMUNITY HOUSING AGENCY ("CALCHA"); SUPPORTING CALCHA'S ISSUANCE OF
TAX-EXEMPT BONDS FOR THE PRODUCTION, PRESERVATION, AND PROTECTION OF
MIDDLE INCOME RENTAL HOUSING; AND AUTHORIZING THE CITY MANAGER TO
ENTER INTO PURCHASE OPTION AGREEMENTS WITH CALCHA FOR ESSENTIAL
MIDDLE -INCOME RENTAL HOUSING CREATED WITHIN CITY LIMITS
WHEREAS, one of the primary goals of the City of Burlingame is to meet the growing
housing needs of its residents by actively supporting the production, preservation, and
protection of market -rate and affordable rental housing for all; and
WHEREAS, no existing Federal or State subsidies currently exist to meaningfully
address the growing shortfall of protected middle -income rental housing; and
WHEREAS, CaICHA is a Joint Powers Authority created to produce, preserve, and
protect quality affordable rental housing made available to California's essential middle -
income workforce; and
WHEREAS, CaICHA intends to acquire existing rental properties within City limits and
restrict future occupancy to middle -income households earning no more than 120% of area
median income; and
WHEREAS, CaICHA will finance its acquisitions through the issuance of tax-exempt
bonds, and in order for CalCHA to issue tax-exempt bonds in the City, Burlingame must be a
non -charter Additional Member of CaICHA; and
WHEREAS, the City proposes to become a non -charter Additional Member of CaICHA
pursuant to Section 12 of the Joint Exercise of Powers Agreement Relating to the California
Community Housing Agency; and
WHEREAS, subsequent to becoming a non -charter Additional Member of CaICHA,
any existing rental housing within City limits which CaICHA intends to acquire and finance
with tax-exempt bonds must receive support and approval from the City; and
WHEREAS, the City proposes to support and approve CalCHA'S issuance of tax-
exempt bonds for the acquisition of existing rental properties as a means towards the
preservation and protection of essential middle -income rental housing within City limits; and
WHEREAS, CalCHA'S issuance of tax-exempt bonds will provide public benefit
through the production, preservation, and protection of below -market -rate rental housing, as
well as the granting of all surplus project revenues to the City; and
WHEREAS, pursuant to one or more purchase option agreements (the "Purchase
Option Agreements"), between CaICHA and the City, CaICHA will grant the City the option,
RESOLUTION NO. 152-2019
but never the obligation, to purchase each essential middle -income rental housing property
commencing on the date fifteen (15) years after CalCHA'S acquisition of such property; and
WHEREAS, the City will maintain the option to exercise such Purchase Option
Agreements for a period of fourteen (14) years following the commencement dates of the
Purchase Option Agreements for each essential middle -income rental housing property; and
WHEREAS, the City Council desires to authorize the City Manager to enter into
Purchase Option Agreements with CaICHA for all CalCHA-financed middle -income rental
housing created within the City limits.
NOW, THEREFORE, BE IT RESOLVED AND ORDERED:
SECTION 1. The City Council authorizes the City to become a non -charter Additional
Member of CaICHA and authorizes the City Manager to execute the Joint Exercise of Powers
Agreement Relating to the California Community Housing Agency, subject to approval as to
form by the City Attorney.
SECTION 2. The City Council supports and approves CalCHA's issuance of tax-
exempt bonds as a means towards the production, preservation, and protection of essential
middle -income rental housing within City limits. tga4 eoKsic(fcA *014 V11`
SECTION 3. The City Council authorizes the City Manager to enter into Purchase
Option Agreements with CaICHA for all CalCHA-financed middle -income rental housing
created within City limits, subject to approval as to form by the City Attorney.
SECTION 4. The authority granted by the City Council pursuant to this resolution is
specifically conditioned upon the City and CaICHA entering into an indemnification agreement
in which CaICHA agrees to indemnify and defend the City against liabilities and litigation
related to participation in CaICHA and all related agreements. The terms of the
indemnification agreement shall be to the satisfaction of the City Manager and the City
Attorney.
SECTION 5. The City Manager is authorized to execute and deliver any documents
and to perform all acts consistent with the intent of this resolution, including making any
revisions, corrections, or alterations to documents referred to herein to correct minor errors
or to comply with the requirements of law, as long such actions do not increase the City's
obligations.
Qw4w,6
Donna Colson, Mayor
E
RESOLUTION NO.152
I, Meaghan Hassel -Shearer, City Clerk of the City of Burlingame, certify that the
foregoing resolution was introduced at a regular meeting of the City Council, held on the 2"d
day of December, 2019, and as adopted thereafter on the 4`h day of December, 2019 by the
following vote:
AYES: COUNCILMEMBERS: BEACH, BROWNRIGG, COLSON, ORTIZ
NAYES: COUNCILMEMBERS: KEIGHRAN
ABSENT: COUNCILMEMBERS: NONE
Meaghan Hdssel-Sher6fer, City Clerk
3