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Page 2 of 4 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />a deviation from the insurance requirements outlined in the HPP guidelines. HEART-SV is requesting this <br />deviation because having to provide insurance at the levels required by the City would increase their <br />operating costs and reduce the projects debt coverage ratio. The City’s Risk Manager finds the requested <br />deviation for a lower general liability insurance limit is acceptable for the scope of this proposed project. <br />Under the existing HPP guidelines, the City Council must approve any insurance deviations. <br />ANALYSIS <br />The HPP was designed as a streamlined, over the counter program to be able to quickly provide funding <br />to organizations in the process of acquiring properties to preserve their affordability. As noted, the City <br />Council currently must approve any insurance deviation requests, which can cause delays in approving <br />applications and disbursement of critical and often time-sensitive funds. To approve the insurance <br />deviation requested by HEART-SV and to ensure that future applications to the HPP don’t encounter a <br />similar insurance issue, staff recommends an amendment to the HPP guidelines that would authorize the <br />City’s Risk Manager to make modifications to the insurance requirements deemed necessary or sufficient <br />to effectuate the Program under the circumstances, subject to the approval of the City Attorney. <br />Additionally, staff has identified additional minor amendments to the HPP guidelines and revisions to the <br />template loan documents to aid in the clarity and implementation of HPP. The most substantive of these <br />amendments include the following: <br />1. Updating the local preference section to match the local preference in the City’s Affordable <br />Housing Ordinance, which expands on the live/work preference to include a preference for <br />eligible households that have ever lived in Redwood City and/or have been offered work in <br />Redwood City; <br />2. Clarifying that the affordable rents and income limits and requirements are based on the <br />applicable funding source(s); <br />3. Clarifying the City’s share of residual receipt for loan repayments; <br />4. Clarifying that household income determinations follow the requirements in the City’s <br />Affordable Housing Program Guidelines; and <br />5. Clarifying that the Replacement Reserves shall increase every 5 years by applicable Consumer <br />Price Index for San Francisco-Oakland-Hayward area. <br />The recommended amendments to the HPP guidelines are included as an attachment (Exhibit A) to the <br />resolution attached as Attachment A. The revised template loan documents are included as an attachment <br />(Exhibit B) to the resolution. Staff recommends that the City Council approve these amendments to the <br />HPP guidelines and revisions to the template loan documents, and authorize the City Manager to modify <br />the insurance requirements in the template loan documents when deemed necessary or sufficient under <br />the circumstances. <br />6.M. - Page 2 of 110 <br />458