REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Ursula Luna-Reynosa, Director of Community Development
PREPARED BY: Charles Kovac, Housing Manager
Subject:
title
Middle-Income Housing Program Update
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Statement of Issue:
On July 20, 2021, the City Council adopted Resolution No. 2021-43 and Resolution No. 2021-44, approving and authorizing the City Manager to enter into Public Benefit Agreements and execute the Middle-Income Housing Program (the "Program") and associated agreements with California Municipal Finance Authority (CMFA) and project sponsor, Catalyst, for the acquisition and conversion of two market-rate apartments (Elan and Breakwater Apartments) for middle-income housing. Since the City Council approval in July 2021, Catalyst has been actively proceeding with conversion of the Elan and Breakwater properties to middle-income housing.
On May 16, 2023, Councilmember McKeon brought forward an "H" item related to the Middle-Income Housing Program and requested a presentation to update the City Council on the status of the Program. Specifically, Councilmember McKeon requested that the Community Development Department, CMFA, and Catalyst provide a comprehensive report related to fiscal impacts and requested answers to other questions (see Attachment 2).
Financial Impact:
Not applicable. As requested by the City Council, financial impact information of the Middle-Income Housing Program approved on July 20, 2021 is described in this report.
Recommended Action:
recommendation
Receive and file.
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Alternative Action(s):
None.
Analysis:
A. BACKGROUND
As described in the July 21, 2021 staff report (Attachment 1), middle-income housing is designed for persons earning between 80 percent and 120 percent of area median income (AMI). This segment is considered the "missing middle" between lower income (=80% AMI) affordable housing and market-rate (>120% A...
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