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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