Loading...
HomeMy WebLinkAboutReso 2013-061RESOLUTION N0.2013-061 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA COMMITTING HUD FUNDS TO WAKELAND HOUSING CORPORATION FOR AN AMOUNT NOT TO EXCEED $2,000,000 FOR THE DEVELOPMENT OF A PROPOSED MIXED USE RESIDENTIAL PROJECT AT 240 LANDIS AVENUE AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE TO EXECUTE ALL NECESSARY DOCUMENTS WHEREAS, the City of Chula Vista is an entitlement/participating jurisdiction for the U.S. Department of Housing and Urban Development (HUD) funding programs and is awarded on an annual basis a formula grant from the HOME Investment Partnership Program (HOME); and WHEREAS, the City of Chula Vista Program (NSP) funds for eligible activities removing blighted vacant, foreclosed and/or opportunities to low income households; and received one-time Neighborhood Stabilization that help stabilize neighborhoods, including abandoned properties, while providing rental WHEREAS, pursuant to Council Resolution Numbers 2010-098, 2011-072, and 2012-72 respectively, City Council approved the HUD Annual Action Plans which includes funding for the production of affordable rental housing for low income households using HOME Investment Partnership Program (HOME) funds; and WHERES, in May 2013, the City Council will approve the final 2013/2014 Annual Action Plan for the HOME Investment Partnership Program that includes funding for the production of affordable rental housing for low income households; and WHEREAS, Wakeland Housing and Development Corporation (Developer) has proposed to construct a mixed use residential project at 240 Landis, with thirty-three (33) units affordable to extremely low, very low, and low income households located on the northwest corner of Landis and Davidson in the V-3 (West Village) district of the Urban Core Specific Plan; and WHEREAS, the Developer is applying for an allocation from California Tax Allocation Committee (CTAC), nine percent (9%) tax credits from the Tax Credit Allocation Committee; and WHEREAS, the City's evaluation of the development budget, operating pro forma, and source and uses for the Project determined that additional financing is appropriate and necessary in order to make the Project feasible; and WHEREAS, the City wishes to provide Developer with a development loan of an amount not to exceed two million dollars ($2,000,000) using $1,000,000 of HOME Investment Partnership funds from prior years, $500,000 of Neighborhood Stabilization Program funds, and an allocation of $500,000 from 2013/2014 HOME funds to assist with the financing gap for the construction of the Project, more particularly for 33 affordable rental housing units; and Resolution No. 2013-061 Page No. 2 WHEREAS, NSP funds will be used for the land costs and HOME funds will be used for the construction of the housing units; and WHEREAS, the City's development loan does not exceed the HOME maximum per-unit subsidy limits based on the Section 221(d)(3) limits established by HUD; and WHEREAS, the City's provision of funds to the Project will directly improve the City's supply of extremely low, very low, and low-income housing; and WHEREAS, the City has adopted a Housing Element of the General Plan which sets forth the objective of providing balanced and vazied housing opportunities throughout the City to satisfy needs and desires of various age, income, and ethnic groups of the community, and which specifically provides for the construction of new affordable housing units through City assistance; and WHEREAS, the Project furthers the goals of the City set forth in the City's HUD approved Consolidated Plan as it will facilitate the creation of affordable housing which will serve the residents of the neighborhood and the City; and WHEREAS, the City's Housing Advisory Commission did, on April 8, 2013, hold a public meeting to consider said request for financial assistance; and WHEREAS, the Housing Advisory Commission, upon heazing and considering all testimony, if any, of all persons desiring to be heazd, and considering all factors relating to the request for financial assistance, recommended to the City that financial assistance be approved on the condition that all other necessary financing be secured for the Project; and WHEREAS, the Housing Advisory Commission found that the City's financial participation in the development of the Project will be a sound investment based upon Developer's ability to effectively serve the City's housing needs and priorities as expressed in the Housing Element and Consolidated Plan and the cost effectiveness of the City's financial assistance based upon the leveraging of such sources; and WHEREAS, the development of the Project is subject to completing an environmental review under CEQA and NEPA prior to construction. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve committing $1,000,000 of HOME Investment Partnership funds (HOME) and $500,000 of Neighborhood Stabilization Program funds (NSP) and authorize the allocation of $500,000 of 2013/2014 HOME funds to Wakeland Housing and Development Corporation in a total amount not to exceed $2,000,000 for the development of a proposed mixed use residential project at 240 Landis Avenue. Resolution No. 2013-061 Page No. 3 BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it directs staff to prepare all necessary documents and any actions, as required by HUD, to commit the HOME and NSP funds and authorizing the City Manager, or his designee to execute a Development Loan Agreement and all associated loan documents, and regulatory agreements, consistent with the City's standard documents as reviewed by the City Attorney's office, necessary for the financing of the proposed mixed use development and, at minimum, subject to the following terms and conditions: 1. Certification of the appropriate CEQA and NEPA documentation prior to any City and Housing Authority Loan disbursements for any portion of the Project. 2. Developer shall secure all other financing necessary for the acquisition and development of the Project. 3. The loan repayment will be secured by a Deed of Trust and Promissory note for the property on behalf of the City of Chula Vista and recorded against the Project property. 4. The term of the loan shall be fifty-five (55) years. 5. Developer will be required to operate the Project consistent with the Regulatory Agreement required by the Project's tax credit financing, and the City's Affordable Housing Program, and the City's financing, the covenants imposed by these Agreements, and any other project requirements. 6. The City assistance is based upon the assumptions presented within the sources and uses of funds, development budget, development proforma and other information filed with the Affordable Housing Review Application for the project as submitted and reviewed by the City's Development Services Housing Division. The City assistance is a maximum level of participation. It is expected that any substantive revisions in such financing assumptions which would lead to an increase in other resources available, would therefore reduce the level of City assistance. 7. This conditional approval remains subject to additional approvals by City Council, in which City Council retains its sole and unfettered discretion to approve, deny, or to take alternative actions, of, but not limited to, the following: the commitment of $1,500,000 of HOME funds, including $500,000 from its 2013/2014 Annual Action Plan, and an amendment to the City's NSP Plan to allocate $500,000 in NSP funds to the Project. Presented by Approved as to form by Gary albeit P.E., AIC Glen R. oogins Assistant C~ y Manager/Director of orney Development Services Resolution No. 2013-061 Page No. 4 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 23rd day of Apri12013 by the following vote: AYES: Councilmembers: Aguilar, Bensoussan, Ramirez, Salas and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None Cheryl Cox, M or ATTEST: ~~~~ ~ ~,~0~~~ Donna R. Noms, CMC, City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2013-061 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 23rd day of April 2013. Executed this 23rd day of Apri12013. ~~~, ~ ~~~ Donna R. Norris, CMC, City Clerk