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AGENDA REPORT
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| | | | | | | | DATE:
| April 6, 2021
| TO:
| Fairfield Housing Authority Chair and Commissioners
| FROM:
| Stefan T. Chatwin, Executive Director 
| | SUBJECT: | Resolution HA2021-06 of the Fairfield Housing Authority Authorizing the Executive Director to Execute a Contract with Goldfarb & Lipman for an Amount Not to Exceed $200,000 to Provide Legal Advisory Services to the Fairfield Housing Authority to Promote the Development of Mixed Income Housing and Updating the Fiscal Year 2020/2021 Budget |
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| | | | | | | | | RECOMMENDED ACTION | | Adopt resolution. |
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| | | | | | | | | STATEMENT OF ISSUE | The Fairfield Housing Authority (FHA) endeavors to adopt an aggressive multifaceted approach to promote the development of affordable housing. One aspect of that approach involves the formation of a not-for-profit affiliate of the FHA to actively participate in housing development. To this end, the FHA has solicited the services of Goldfarb and Lipman to provide legal services to the FHA in both creating the not-for-profit affiliate of the FHA, and helping it to negotiate and structure development projects to successfully promote affordable housing.
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| | | | | | | | | DISCUSSION | The City of Fairfield is required by state law to adopt a Housing Element every five years to describe the goals and programs it will implement to address housing development, housing rehabilitation, and housing conservation. Pursuant to the City of Fairfield’s 2014 Housing Element, the City adopted a goal of promoting a high-quality residential environment with a wide range of housing opportunities affordable to a diverse population of renters, owners, and people with special needs. The Housing Element includes statewide housing needs that were determined by the Association of Bay Area Governments (ABAG). In accordance with their regional projections throughout the years 2014-2022, it was concluded that Fairfield should provide for approximately 3,100 units of housing in four income categories of very low-income to market-rate housing. Fairfield was successful in reaching and exceeding its expectations in the moderate and market-rate (above moderate) categories. However, Fairfield did not achieve the same level of success in the very low- and low-income categories. This year, the City is preparing its 2022 Housing element and ABAG has already given its initial projections that should be included in the document. These projections provide for approximately 3100 units of housing, 1773 of which must be in the very low- to moderate-income categories.
For Fairfield to meet this goal, the City must adopt an aggressive plan that includes many facets of housing development. One of those facets includes promotion of housing via the use of the Fairfield Housing Authority. Housing Authorities have been an essential provider of affordable housing for years, with Housing Authorities playing a more active role in recent years because of their unique regulatory structure. Housing Authorities as public agencies may form development partnership with for profit and nonprofit entities, acquire land and properties, and perform self-development.
The Fairfield Housing Authority has therefore solicited the services of Goldfarb & Lipman (Goldfarb) to act as special counsel to advise the agency on forming a nonprofit affiliate to promote the development of mixed income housing. Goldfarb is an Oakland based law firm with special strengths in affordable housing, economic development and municipal law. The agency represents over 100 public agencies and nonprofit housing developers engaged in the production of low- and moderate-income housing. The firm has assisted in the development of over 50,000 units of affordable housing in California and presently represents over nineteen California Housing Authorities in a variety of projects including self-development or working with a development partner.
Goldfarb also displays cutting edge experience as the author of legislation for the California Tax Credit Program and the first firm to promote syndication as a source of financing. Due to the extensive experience of Goldfarb in this very specialized area of law, the firm is nationally recognized as a leader in the promotion of affordable housing. Many of the templates and documents used by HUD and other agencies around the country have been developed by Goldfarb. Overall, Goldfarb’s experience includes a variety of skills related to real-estate finance such as a variety of HUD financing programs, property acquisition and disposition, public/private partnerships, tax credit and bond financing, relocation, eminent domain, property leases, and environmental and land use issues.
Staff therefore recommends that the Executive Director of the Fairfield Housing Authority be authorized to execute a contract with Goldfarb and Lipman for a price not to exceed $200,000 to provide legal advisory services for the promotion of mixed income housing. The contract term will be through April 6, 2023 and will only be paid for hours served on an on-call basis.
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| | | | | | | | | FINANCIAL IMPACT | | Goldfarb and Lipman proposes a billing rate of $325 – $350 per hour for partners, $320-$350 per hour for Senior Counsel, $230-320 per hour for associates and $170-$205 per hour for Law Clerks. The total amount of this contract will not exceed $200,000 from Low Mod Income Housing Assets Fund (Fund 22, Division and Responsibility Code 36001). A budget adjustment in the amount of $100,000 is required to fund the legal advisory services work in fiscal year 2020-21. The remaining contract balance will be budgeted in the upcoming bi-annual budget document. |
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| | | | | | | | | PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION | NA
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| | | | | | | | | ALTERNATIVE ACTION | | If the FHA does not approve this item, staff will not have the legal expertise to structure the non-profit affiliate of the FHA and prepare it to successfully negotiate and implement affordable housing development projects that will optimize the ability of the City of Fairfield to expand its range of projects. |
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| | | | | | | | | COORDINATED WITH | City Attorney's Office
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| REVIEWERS: | | Reviewer | Action | Date | | Alexander, Amber | Approved | 3/30/2021 - 10:50 AM |
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