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AGENDA REPORT
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| | | | | | | | DATE:
| August 4, 2020
| TO:
| Fairfield Housing Authority Chair and Commissioners
| FROM:
| Stefan T. Chatwin, Executive Director 
| | SUBJECT: | Resolution HA2020-06 of the Fairfield Housing Authority Extending the Time for the Fairfield Housing Authority (as Housing Successor to the Former Fairfield Redevelopment Agency) to Retain Properties for the Development of Housing Affordable to Persons and Families of Low and Moderate Income Pursuant to Health and Safety Code Section 34176.1 |
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| | | | | | | | | RECOMMENDED ACTION | | Adopt resolution. |
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| | | | | | | | | STATEMENT OF ISSUE | The former Redevelopment Agency (“Agency”) was dissolved on February 1, 2012, pursuant to AB X1 26. The Fairfield Housing Authority became the housing successor entity to the Agency (the “Housing Successor”) for all assets and responsibilities related to the low and moderate-income housing fund.
A redevelopment dissolution trailer bill, titled Senate Bill 341 (“SB341”), applied certain restrictions to the Housing Successor’s use of assets. One such restriction was to use real property assets for the development of housing affordable to low and moderate-income households within five years. The law additionally allowed for the Housing Successor to adopt a resolution extending by five years the timeframe in which to comply. |
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| | | | | | | | | DISCUSSION | SB 341 created Health and Safety Code Section 34176.1, placing certain restrictions on assets acquired using funds from the low and moderate-income housing fund from the Agency. One requirement provides that real property shall, within five years from the date the Department of Finance approved the property as a housing asset, initiate activities consistent with the development of the property for persons and families of low and moderate income.
The Agency acquired the parcels identified on Exhibit A using low and moderate-income housing moneys, as authorized by Health and Safety Code Section 33334.2 (the “Properties”). The California Department of Finance (“DOF”) approved the transfer of housing assets from the Agency to the Fairfield Housing Authority in a letter dated September 5, 2012. This set the date for the five-year timeframe for the Housing Successor to utilize the transferred housing assets for development of affordable housing by September 5, 2017.
SB341 references the requirement for use of property under Health and Safety Code Section 33334.16. This provision allows the legislative body to extend for five years the period to develop the assets. As required, the resolution shall affirm the intention of the legislative body that the property be used for the development of housing affordable to persons and families of low and moderate income.
Additionally, Health and Safety Code Section 33334.16 allows the Housing Successor to sell property in the event it is unable to commence physical development of the property. Any proceeds from the sale of property shall be used for the development of housing affordable to low and moderate-income households.
For the recommended action, Health and Safety Code Sections 33007 and 33002 define the “legislative body” as the City Council of the City. The proposed resolution allows the City Council to extend the period to September 5, 2022, during which the Fairfield Housing Authority, as Housing Successor, may retain the Properties or sell the properties and use proceeds for development of housing affordable to persons and families of low and moderate-income.
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| | | | | | | | | FINANCIAL IMPACT | | There is no direct impact on the Low and Moderate Income Housing Asset Fund (Fund 022) in approving the Resolution. If and when any of the Properties are sold, any resultant funds would be deposited into the Low and Moderate Income Housing Asset Fund (Fund 022). |
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| | | | | | | | | CITY COUNCIL WORKPLAN | Community Safety
| Community Infrastructure | Quality of Life | | Financial and Operational Sustainability | Economic Development | Travis Air Force Base |
| City Council Goal this item supports:
Quality of Life |
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| | | | | | | | | PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION | N/A
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| | | | | | | | | ALTERNATIVE ACTION | | City Council may choose to not adopt this resolution which would result in the potential loss of the Properties and or the loss of the revenue generated by the sale of the Properties based on changing legislative action. |
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| | | | | | | | | STAFF CONTACT | Jesus M. Morales, Sr. Housing Projects Manager
(707) 428-7426
jmorales@fairfield.ca.gov
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| | | | | | | | | COORDINATED WITH | City Attorney's Office, City Manager's Office
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| REVIEWERS: | | Reviewer | Action | Date | | Gassaway, David | Approved | 7/22/2020 - 3:13 PM | | Ballard, Kelly | Approved | 7/27/2020 - 1:10 PM | | Ballard, Kelly | Approved | 7/28/2020 - 4:42 PM |
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