San Rafael approves funds for affordable housing acquisition
December 5, 2024
By Adrian Rodriguez | arodriguez@marinij.com | Marin Independent Journal
UPDATED: December 5, 2024 at 7:14 AM PST
San Rafael has awarded $252,000 to the Canal Alliance nonprofit organization to support its purchase and preservation of an apartment complex for low-income renters.
The City Council voted unanimously Monday to approve the allocation from the city’s affordable housing trust fund. The outlay is the first the city has awarded as part of a “rolling application process” approved in September, enabling organizations to ask for affordable housing dollars when an acquisition is pending.
The Paloma Apartments at 1400 Lincoln Ave. is a low-rise complex offering 17 bedrooms in nine residences that are rented at below-market rate.
“This type of affordable housing that occurs naturally is most at risk for conversion to market rate,” said Alexis Captanian, the city’s housing manager.
“The project preserves existing unrestricted affordable housing for the long-term,” Captanian said. “The acquisition prevents displacement of current low-income tenants.”
With a $3.12 million purchase pending, Canal Alliance submitted its application in September. The nonprofit had $2.4 million in grants, loans and $470,000 of its own capital.
The nonprofit and the Marin Community Foundation gathered another $700,000 in “bridge” funds so they could close the sale while the grant application was pending.
Canal Alliance is also seeking $450,000 from the Marin County Affordable Housing Fund. County supervisors will consider the allocation on Tuesday. It was contingent on the city’s grant.
“I just have to say how excited I am for this,” said Councilmember Maika Llorens Gulati. “So grateful for the Canal Alliance and all of the funding partners, because this is what we need.”
“Sometimes we are limited on what we can build,” Llorens Gulati said. “This is a way to preserve something that already exists.”
With the addition the nine apartments, Canal Alliance now owns 21 residences offered to low-income tenants.
Yolanda Oviedo, senior manager of housing at Canal Alliance, thanked the city for the support. She said the nonprofit has attempted to acquire other properties over the past two years and it finally came together.
“We’re hoping this is one of many as we plan to expand affordable housing in Marin County for the community that we serve,” Oviedo said.
The agency’s housing preservation strategy aims to acquire 100 residences.
“The purchase of this building represents a step forward for Canal Alliance, and for Latinos in Marin,” said Omar Carrera, chief executive officer of the organization. “Secure housing is the cornerstone of safety, and a foundational building block for anyone, particularly for Latino and immigrant families.”
On Monday, the council also approved a plan to issue a notice of funding availability for early next year.
The notice of funding availability, or NOFA, is the way the city has traditionally advertised a competitive application process for affordable housing trust fund dollars. Organizations seeking funding to support the acquisition, preservation or development of housing in San Rafael for low-income families are eligible to apply.
The city’s affordable housing trust fund is funded through two types of development fees. One is an in-lieu fee that developers creating market-rate housing pay instead of building low-income residences. The other is a fee that applies to certain commercial projects to offset the additional affordable housing need that the new commercial use is anticipated to create, such as housing for employees.
This time, the city will offer $500,000 through a joint NOFA application process with the county. The county is expected to make available more than $2 million for affordable housing and community service projects.
San Rafael Mayor Kate Colin said she appreciates the collaboration with the county.
“By us working together, we can further amplify these very precious dollars,” Colin said.
Originally Published: December 4, 2024 at 5:30 PM PST
