Title
Adoption of Resolution Clarifying the Definition of Below Market Rate Units in Connection with Proceedings to Alter the Rate and Method of Apportionment of Special Taxes for Community Facilities District No. 17-1 (Alameda Point Public Services District).(Community Development 271)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
The recommended action will clarify the intent of the definition of Below Market Rate Units (BMR Units) in connection with the proceedings to alter the Rate and Method of Apportionment of Special Taxes (RMA) for Community Facilities District (CFD) No. 17-1.
BACKGROUND
On February 2, 2021, the City Council adopted a Resolution of Consideration to Alter the Rate and Method of Apportionment of Special Taxes (RMA) for Community Facilities District No. 17-1 (Exhibit 1) and set a public hearing for February 16, 2021. On February 16, the City Council held a public hearing regarding the proposed alteration and considered the adoption of a Resolution calling for a Special Election regarding alteration of the RMA. At the public hearing the changes to the RMA were discussed, including clarification of definitions and conformity with other existing Alameda CFD. Following the public hearing the City Council adopted the Resolution Calling for a Special Election of the registered voters in the CFD on the proposed alteration of the RMA to be held on April 8, 2021. Final City Council action is scheduled for May 18.
DISCUSSION
Recently, the City of Alameda (City) received correspondence from Eden Housing, Inc., the non-profit developer of the Site A Senior and Family Affordable Apartments at Alameda Point, stating their concern that the changes to a definition of “Below Market Rate Units” or “BMR Units” as reflected in the Amended RMA may be misinterpreted and has requested that the City Council clarify the intent of the definition of BMR Units so that it will continue to apply to units rented to low and very low income despite possible changes in the ownership of the related apartment facility.
Pursuant to Section G. Interpretation of Special Tax Formula of the RMA:
“The City Council may interpret the RMA for purposes of clarifying any ambiguity as it relates to Special Tax rate, the method of apportionment, the allocation of Special Taxes among Assessor’s Parcels, the classification of properties, or any definition applicable to CFD 17-1. Any decision of the City Council shall be final and biding as to all persons.”
It is proposed that the City Council adopt a resolution to clarify any ambiguity in the definition of BMR units in the RMA, which definition currently reads in the proposed amended and restated RMA (attached to this Staff Report) as follows:
“Below Market Rate Units” or “BMR Units” means a Dwelling Unit owned by the city’s Housing Authority or its non-profit developer entity, Resources for Community Development or an entity formed for the purpose of securing low-income housing tax for low income and very low income households as defined by California Health and Safety Code Sections 50079.5 and 50105, or any successor statute thereto.
The proposed resolution adds the below clarification/interpretation, which further clarifies the intent of the above definition:
This definition is intended to include Alameda Point Senior LP, Alameda Point Family LP, and Eden Housing Inc. as entities formed for the purpose of securing low-income housing tax credit financing. The clarification of BMR unit definition shall also apply to a subsequent owner entity so long as an encumbrance on title requires rental of units to person or families meeting the qualifying income standards for low income and very low income households as defined by California Health and Safety Code Sections 50079.5 and 50105. Further, that tenant income standards are to be measured at initial occupancy by tenants of the property.
ALTERNATIVES
• Approve the Resolution clarifying the interpretation of the definition of BMR Units in the Proposed Amendment and Restated Rate and Method of Apportionment of Special Taxes for Community Facilities District No. 17-1.
• Take no action and risk having the Eden Senior or Family BMR units pay into the CFD in the future upon a possible change in ownership of the units yet they are still being rented to low- and very low income tenants.
FINANCIAL IMPACT
There is no financial impact to clarifying the interpretation of the definition of BMR Units, as described above. No changes to the special tax rates are proposed.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The Alameda Municipal Code contains, in Section 3-70, the City of Alameda Special Tax Financing Improvement Code pursuant to which the CFD was formed, and which includes a procedure pursuant to which the alteration of the RMA for the CFD is being conducted.
ENVIRONMENTAL REVIEW
On February 4, 2014, the City certified the Alameda Point Final Environmental Impact Report (Final EIR) in compliance with the California Environmental Quality Act (CEQA). The Final EIR evaluated the environmental impacts of redevelopment and reuse of the lands at Alameda Point consistent with Alameda Point Zoning District, including the adaptive reuse area and with the Alameda Point Waterfront Town Center Plan, which included Site A. The formation of the CFD, and the action to alter the RMA, are consistent with the prior approvals and will not result in any new or substantially more severe environmental impacts than were previously identified in the Final EIR.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Adopt a resolution clarifying the intent of the definition of Below Market Rate Units in Proposed amended and restated Rate and Method of Apportionment of Special Taxes for Community Facilities District No. 17-1.
CITY MANAGER RECOMMENDATION
The City Manager recommends adoption of the proposed Resolution amending and restating the Rate and Method of Apportionment of Special Taxes for Community Facilities District No. 17-1.
Respectfully submitted,
Lisa Maxwell, Interim Community Development Director
By,
Michelle Giles, Base Reuse Manager
Financial Impact section reviewed,
Annie To, Finance Director
Exhibit:
1. Resolution of Consideration