HomeMy WebLinkAboutReso 1997-18545 RESOLUTION NO. 18545
,[ (Agency Resolution 1526)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING A FIVE HUNDRED AND TEN THOUSAND
DOLLAR (9510,000) COMMITMENT FROM HOME PROGRAM
FUNDS FOR THE DEVELOPMENT OF A FORTY (40) UNIT
AFFORDABLE HOUSING RENTAL PROJECT PROPOSED TO BE
DEVELOPED IN RANCHO DEL REY SPA Ill
WHEREAS, the City and Redevelopment Agency has previously approved the
commitment of HOME and Low and Moderate Income Housing funds to develop a 40 unit
affordable housing project ("Cordova Village Project" or "Project") to be located on 2.97 acres
in Rancho Del Rey SPA III; and
WHEREAS, all prior agreements and resolutions made by the Agency for the Cordova
Village Project are no longer applicable because of the passage of time and the fact that
funding sources for the Project have changed significantly; and
WHEREAS, Rancho del Rey Investors ("RDR") must provide twenty three (23)
affordable housing units to be built in SPA III to satisfy their five percent low-income unit
requirements and RDR is proposing to donate the necessary land for the Project towards
satisfaction of this obligation; and
WHEREAS, City staff has presented for City Council approval a Conveyance
Agreement, an Assignment of Conveyance Agreement, a Low Income Housing Development
Agreement and a Second Amendment and Restatement of the SPA III Affordable Housing
Agreement which, collectively, implement RDR's SPA III affordable housing obligation and the
donation of the Project property; and
WHEREAS, South Bay Community Services, the Project developer ("SBCS"), has
obtained a commitment for Project predevelopment financing from LISC and Project
construction financing from Bank of America; and
WHEREAS, SBCS is applying for permanent financing for the Project from the California
Housing Finance Agency (CHFA) and for four percent (4%) tax credits from the Tax Credit
Allocation Committee (TCAC); and
WHEREAS, additional financing is necessary in order to make the Project feasible; and
WHEREAS, the provision of affordable housing units like the Project is consistent with
and called for by the City's General Plan Housing Element, the Comprehensive Housing
Affordability Strategy, the federal HOME program, and California Health and Safety Code; and
WHEREAS, the City/Agency wishes to provide South Bay Community Services with
loans from federal HOME funds and Low/Mod Housing funds in order to partially finance the
development of the Project; and
WHEREAS, the City/Agency provision of funds to the Project will directly improve the
City's supply of very low, low and moderate income housing; and
WHEREAS, in accordance with California Health and Safety Code Section
33334.14(a)(4) the Agency has agreed to subordinate its affordability covenants to
construction and permanent financing for the Project based upon the Agency's finding and
determination that no economically feasible alternative method of financing, refinancing or
assisting the Projects is reasonably available, and the Agency's subordination agreement shall
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Resolution 18545
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include written commitments from the lenders protecting the Agency's right to cure a
Developer default under the superior loans and to assume or purchase such loans; and
WHEREAS, in accordance with California Health and Safety Code Section 33334.2[g]
the Agency finds and determines that even though the Project is to be located outside the
City's redevelopment project areas, those areas will benefit (a) the creation of housing
displaced by previous and expected future redevelopmerit activities and/or the creation of
housing is necessary because certain of those areas do not themselves contain the necessary
zoning and characterstics to support affordable housing; (b) through the creation of jobs in the
project areas and elsewhere in the City; and (c) through the policies served by dispersing
affordable housing throughout the jurisdiction rather than clustering it all in one area; and
WHEREAS, the City/Agency has previously adopted Addendure EIR 89-10A for the
Project and found that the Addendure was prepared in full compliance with CEQA and the
Guidelines promulgated thereunder; therefore, no further CEQA analysis is required for the
Project; and
WHEREAS, the proposed use of HOME Program funds requires compliance with the
National Environmental Policy Act (NEPA) and staff has commenced the compliance process
by filing required notices and preparing the required Environmental Assessment document.
NOW, THEREFORE, the City Council of the City of Chula Vista does hereby resolve as
follows:
1. Recitals True and Correct.
The City finds and determines the recitals set forth above are true and correct
to the best of its knowledge.
2. City Contribution to the Project.
The City hereby appropriates Five Hundred and Ten Thousand Dollars
(~510,000) of HOME Program funds to be loaned to South Bay Community Services for the
development of Project in accordance with all terms and conditions of Disposition and
Development Agreement between the City, Agency and SBCS being approved concurrently
herewith.
3. Directions to Staff.
City/Agency staff is hereby authorized and directed to take any appropriate
action consistent with the purposes of this Resolution.
Presented by Approved as to form by
Chris Salomone Jo . Kaheny (~
Community Development Director
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Resolution 18545
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PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 7th day of January, 1997, by the following vote:
AYES: Councilmembers: Padilia, Rindone, Salas, and Horton
NAYES: Councilmembers: None
ABSENT: Councilmembers: None
ABSTAIN: Councilmembers: Moot
s(,ir .or o...ayor
ATTEST:
Beverl;~.Authelet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that
the foregoing Resolution No. 18545 was duly passed, approved, and adopted by the City
Council at a regular meeting of the Chula Vista City Council held on the 7th day of January,
1997.
Executed this 7th day of January, 1997.
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