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HomeMy WebLinkAboutTC Res 1994-09-07 (2) ,~ RESOLUTION NO. 3052 ... A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON CERTIFYING A NEGATIVE DECLARATION AND AMENDING THE HOUSING ELEMENT OF THE GENERAL PLAN WHEREAS, the Town of Tiburon did most recently adopt a Housing Element of its General Plan on April 17, 1991; and WHEREAS, recent changes to State statutes require an amendment to the Housing Element to address "assisted housing developments" which are at risk of . losing their assisted status; and WHEREAS, the Town has prepared an amendment to the Housing Element in response to the statutory requirement, and has prepared an Initial Study and Negative Declaration for said amendment; and WHEREAS, the review and comment period for the Draft Negative Declaration was held from July 13, 1994 to August 2, 1994, and no comments relating to environmental issues were received; and ,. WHEREAS, the Planning Commission, pursuant to the Government Code, held a duly noticed and advertised public hearing on August 10, 1994 to receive public input and comments on the proposed Housing Element amendment and on the Draft Negative Declaration for the project, and has recommended adoption of the amendment in Resolution No. 94-22; and WHEREAS, the Town Council held a duly noticed public hearing on September 7, 1994 to receive public input and comments on the proposed Housing Element amendment and on the Draft Negative Declaration for the project; and WHEREAS, the Town Council finds that there will be no significant effects on the environment resulting from the amendment, as demonstrated in the Initial Study for the project, and that all provisions of the California Environmental Quality Act have been followed; and WHEREAS, the Town Council finds that the amendment to the Housing Element is consistent with the remainder of that Element and with the Town's other adopted General Plan Elements. ~ NOW, THEREFORE, the Town Council of the Town of Tiburon resolves as follows: 1 ,--. 1. The Town Council hereby certifies the Negative Declaration for the project and directs that a Notice of Determination be filed with the County Clerk within five (5) working days. ~ 2. The Town Council hereby adopts the amendments to the Housing Element as shown on Exhibit 1, attached hereto and made a part of this Resolution. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Tiburon held on September 7, 1994, by the following vote: AYES: COUNCILMEMBERS: Ginalski, Thayer, Thompson, Wolf, Nygren NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ~ ATTEST: OR CLERK ~ 2 L r " . ( C' Tiburon General Plan H-5: To make available sufficient funds for providing needed services and facilities for housing. B-6: ~o activate a Housing Committee appointed by.. the Town Council, as needed. The Committee shall have the responsibility of assisting in the implementation of the Housing Element as directed by the Planning Commission or by the Town Council through the Planning Commission. . '," ". :c B-7 : While pursuing housing solutions wi thin the Town, encourage the exploration of mechanisms for seeking regional housing solutions and opportunities, such as the creation of a regional housing committee comprised of representatives from Tiburon and other cities and u~incorporated areas within Southern Marin County. ~~.;~ i-..n ,.~ . ,.. " .~.. - :f';"",~ "';.,:r-~ .:- ~. Protecting and Conserving Existing Housing ,-;., . '''')''-:' B-8: To' pursue funding for conservation and rehabilitation of existing housing to preserve neighborhood character and to retain the supply of low and moderate income units. B-9: To prohibit conversion of existing multiple family rental units to market rate condominium units unless the Town's rental vacancy rate is above 4-1/2 percent, except for limited equity cooperatives and other innovative housing proposals which are affordable to low and moderate income households. H-10: To maintain the Town's existing stock of ~wer cost units. The 102 unit subsidized Hilarita apartment development should be preserved as lower cost housing. See Appendix E for a detailed description of the Hilarita Preservation Proqram. B-11: To promote the retention of rental units and encourage rental subsidy programs which can be applied to existing housing. H-12: To protect residents and maintain the housing stock by enforcing the housing code for all types of residential units. H-13: To promote energy conservation programs which provide assistance for energy conservation improvements. H-14: To encourage preservation of existing homes in "Old" Tiburon, and to approve new development in this area consistent with the historic quality of the area. H-15: To protect and preserve housing units by granting density bonuses which allow the re-establishment of developments containing affordable housing units when such developments are damaged or destroyed by fire, earthquake, or similar disaster. \gp\housamen.doc Housing Element EXIDBIT NO. 3 , . c r " APPENDIX E PRESERVATION PROGRAM FOR THE HILARITA PROJECT DESCRIPTION - Inventorv Discussion Chapter 1451, Statutes of 1989, amended Section 65583 of the Government Code to require analysis and program efforts for preserving assisted housing development. The only applicable housing development in the Town is the Hilarita. Pursuant to these requirements, the Town has developed the following analysis and program efforts targeted at preserving the Hilarita. Hilarita Historv The source of the following description of the history of the Hilarita is the Hilarita Handbook, January 1993. The Hilarita Apartments were built in 1974. Prior to that time, the Hilarita site had been used as a temporary housing project for Navy personnel in World War II, administered by the Housing Authority of Marin County. A non-profit housing organization, the Ecumenical Association for Housing (EAH) was founded in San Rafael to provide housing for low and moderate income families. In 1970 negotiations were begun by a local non- profit organization to acquire the Hilarita property and to obtain a Federal Department of Housing and Urban Development (HUD) loan for the purpose of building a housing development for low and moderate income families. The local non-profit organization consisted of the Tiburon Ecumenical Association (TEA) sponsored by three churches on the Tiburon Peninsula: the Community Congregational Church, st. Stephen I s Episcopal Church and the Westminister Presbyterian Church. Three representatives from each church form the Board of Trustees of TEA, plus one member at large, one representative from the Residents Association of the Hilarita and one appointee from the Town of Tiburon. Following a two year delay due to a lawsuit, construction of the Hilarita was begun. By that time, building costs had increased and additional financing had to be arranged. This was accomplished by forming a limited Dividend Partnership with a group of investors called Argonaut Capital Corporation and TEA. TEA became a Managing General Partner of the Hilarita. The project was completed in June 1974. The Hilarita consists of 102 apartments on five levels. There are 28 one bedroom units, 34 two bedroom units, 28 three bedroom units and 12 four bedroom units. The Hilarita is 100% occupied and a waiting list is maintained. There is a playground for toddlers on the first level. A bike path leads from the complex to McKegny Green, a large grassy playing field nearby. r I r lr Demoqraohics As of January 1993, there were 195 people residing in the Hilarita; 127 adults and 68 children under 18 years in age. Twenty-three residents are over 62 years in ages and 8 residents are disabled. Residents are culturally diverse. Rents Rental rates are based on the annual income of the residents. In order to qualify for residency in the Hilarita, a family must be paying at least 30% of the combined annual income for rent. Basic monthly rents in January 1993 were as follows: One bedroom Two Bedroom Three Bedroom Four Bedroom $402.00/mo $474.00/mo $550.00/mo $639.00/mo Forty-nine units were paying under the section 8 rental program (HUD subsidized). Twenty-two units were paying basic rents as illustrated above. Thirty units were paying market rent. Risk of Conversion Owners of the Hilarita have indicated a commitment to preserving the Hilarita by filing the first of the required Notices of Intent to sell (NOI 's) . It is unlikely that the project would be converted to market rate housing given the interest and commitment of owners to assist and participate in the preservation of the project. Analvsis of Resources for Preservation of the Hilarita In this case, the affected parties including the owners and tenants of the Hilarita are involved in developing a program for the preservation of the Hilarita. Because the preservation process is so far advanced, a detailed analysis comparing replacement to preservation is considered unnecessary. status of the Hilarita The Hilarita is owned by a limited partnership of which Tiburon Ecumenical Association (TEA) is the managing general partner. The partnership was formed in 1974 when the property was developed. Under Federal Law, the property can be sold by the partnership when it has been in existence for 20 years. Since 1990, TEA and The Hilarita Residents Association (HRA) have been actively working together to assure the preservation of the Hilarita as affordable housing. Each organization has formed preservation sub-committees and begun the process of determining how purchase and management can go forward with involvement by the residents. I"" ~ r ~ 1. The following steps toward preservation are complete: Establishment of the Joint Task Force comprised of TEA and HRA representatives; 2. The Creation of a new separate nonprofit corporation (TEA - The Hilarita), a Community Based Organization (CBO) with a Board comprised of both residents of the Hilarita as well as members appointed by TEA. The new CBO would submit the purchase offer, obtain predevelopment and permanent financing, submit the Plan of Action and conduct other activities toward acquisition of the Hilarita. 3. On October 21, 1993 the owners of The Hilarita undertook the first formal step toward preservation by filing the First Notice of Intent (NOI) to sell the Hilarita. Both TEA and the Hilarita Residents Association (HRA) notified the residents of this step. TEA, as managing general partner for the owners, also has entered into an essentially "fair market value" agreement for an appraisal of the property. HUD would also select an appraiser. Once the two appraisals are reconciled, and rehabilitation costs established, a Second NOI would be filed. This NOI would be binding on the sellers. If a majority of the residents endorse the CBO (TEA - The Hilarita), it can make an offer to purchase at once. Funding for the purchase would consist of TEA equity in the property, together with HUD financing of additional monies required under the HUD section 241, Supplemental Loan Insurance - Multifamily Rental Housing. This HUD program supplements existing insured mortgages and does not require refinancing the existing mortgage. The supplemental loan for a project with a HUD-held mortgage may not exceed 90 percent of the estimated value of the improvements, additions, or equipment. Prepurchase funding covering such activities as appraisals, inspections, professional fees, financing fees, and administrative expenses will be provided by a combination of HUD technical Assistance Grants, Community Block Grant Development funds, and Town of Tiburon funds which have been reserved for the preservation of affordable housing within the Tiburon community. 4. The actual cost of acquiring the Hilarita would be determined following the completion of appraisals, which were recently completed. Next steps Appraisal stage: An appraisal has just been completed for the Hilarita. However, it is not yet available for public review. Negotiations over the loan commitment and funding c will occur once an appraisal has been agreed upon. site Control: This step involves the endorsement by tenants of the buy-out process and defining the future purchase and ownership structure. Development of Plan of Action: This step involves the development of a specific plan of action for the transition of the property ownership and property management. Implementation and Closing: This final step involves the completion of the loan package and closing of escrow. In addition, tenant education would be completed consisting of the following issues, among others: roles and responsibilities of ownership, introduction to asset management, and other final closing steps. The process is expected to be completed in October 1995. r ,