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HomeMy WebLinkAboutReso 1997-18548 RESOLUTION NO. 18548 (Agency Resolution No. 1527) RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT AND HOME PARTICIPATION AGREEMENT WITH SOUTH BAY COMMUNITY SERVICES FOR THE DEVELOPMENT OF A FORTY (40) UNIT AFFORDABLE HOUSING RENTAL PROJECT PROPOSED TO BE DEVELOPED IN RANCHO DEL REY SPA III. 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Rey SPA Ill; and WHEREAS, all prior agreements and resolutions made by the Agency for the Cordova Village Project are no longer applicable because of the passage of time and the fact that funding sources for the Project have changed significantly; and WHEREAS, Rancho del Rey Investors ("RDR") must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 Resolution 18548 Page 2 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 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 through (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 characteristics to support affordable housing; (b) 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 Addendum 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; and WHEREAS, City/Agency staff has negotiated with SBCS the terms and conditions of a Disposition and Development/HOME Participation Agreement ("Development Agreement") which established the terms for the City/Agency loans to the Project, SBCS's obligations to develop and operate the Project, and which imposes affordability covenants on the Project property. NOW, THEREFORE, the City Council and Redevelopmerit Agency of the City of Chula Vista do hereby resolve as follows: 1. Recitals True and Correct, The Agency finds and determines the recitals set forth above are true and correct to the best of its knowledge. 2. ADDrOVal Of Aareement. The City and Redevelopmerit Agency hereby approve the Development Agreement in the form presented, with such minor changes as may be approved or required by the City Attorney, and hereby authorize and direct the Mayor/Chairman to execute same. A final form of the Agreement shall be kept on file, the City Clerk as Document No. CO97- 003. Resolution 18548 Page 3 3. Directions to Staff. 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 Chris Salomone M. Kaheny Community Development Director y Resolution 18548 Page 4 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 Hotton NAYES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: Moot Shirley/Horton, Mayor ATTEST: Beverly ~. A~thelet, 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. 18548 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. Beverly A~Auth~let, City Clerk