AgdaPkt 2019-05-06 Joint SA PFA - Laserfiche WebLink

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6.B. - Page 2 of 12 units for extremely low, very low and low income households, improved the condition of affordable housing, and prevented displacement of 55 existing Redwood City households. ANALYSIS After the execution of the loan documents in February 2018, MP Mosaic Garden Associates, L.P., requested the agreement be amended to make two minor modifications including: • Modify the definition of "Project Completion" from the date of issuance of the Promissory Note to the Certificate of Occupancy. • Modify the definitions and references to rent limits to be consistent with the City's new affordable housing ordinance. The definition of "Project Completion" in the Declaration of Affordability Covenants referred to the issuance of the Promissory Note. The reference was an error and "Project Completion" should have been defined as the issuance of the Certificate of Occupancy. On June 25, 2018, the City adopted a new Zoning Ordinance Article 29 (Requirements for Affordable Housing), incorporating City Code Chapter 18, Article XVII (Affordable Housing Impact Fee) into Article 29 and repealing and replacing Zoning Ordinance Section 32.19 (Affordable Housing Density Bonuses). Zoning Ordinance Article Section 29.2 (Definitions), subsection (C) (Affordable Rent) was amended to define "Affordable Rent" as not exceeding the rents specified by Section 50053 of the California Health and Safety Code. The new Section 29.2(C) also allows the City to permit alternative rent criteria, when necessary, to be consistent with pertinent state and federal statutes and regulations governing publicly assisted rental housing. Mosaic Gardens is primarily financed with tax credits. MP Mosaic Garden Associates, L.P., entered into a regulatory agreement with the Tax Credit Allocation Committee (TCAC) which includes definitions of "Affordable Rent" that are inconsistent with the Health and Safety Code definition, which the TCAC definitions are equal to or more restrictive. The City recommends permitting the alternative TCAC definition and requirements to replace the previous definition imposed by the City. This action will allow MP Mosaic Garden Associates, L.P., to be in compliance with City and TCAC requirements related to affordability. FISCAL IMPACT There is no fiscal impact. ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 78