HomeMy WebLinkAboutReso 1997-18606 RESOLUTION NO. 18606
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING A FIVE HUNDRED TWENTY-THREE
THOUSAND NINE HUNDRED SIXTY-FIVE DOLLARS (,~523,965)
COMMITMENT FROM THE HOME PROGRAM FOR THE
DEVELOPMENT OF AN EIGHTEEN (18) UNIT AFFORDABLE
HOUSING RENTAL PROJECT AT 746 AND 750 ADA STREET
WHEREAS, the City of Chula Vista ("City") is in control of funds under the HOME
Investment Partnership Program (42 U.S.C. Section 12741 et seq.) ("Home Program Funds")
which program is designed to provide assistance to affordable housing projects; and
WHEREAS, City staff and SBCS have negotiated certain terms for the transfer of the
Site by the City to SBCS as more specifically set forth in that certain Trolley Terrace
Conveyance Agreement and Escrow Instruction between the SBCS and the City ("City/SBCS
Conveyance Agreement"); and
WHEREAS, City staff will negotiate with SBCS the terms of a Disposition and
Development Agreement ("DDA") pursuant to which the City would agree to provide SBCS
(or an assignee thereof approved by the City) with financial and other assistance in order to
facilitate the development of the Project if SBCS secures tax credits from the California Tax
Credit Allocation Committee ("TCAC"); and
WHEREAS, to further assist in funding the cost of the Project, SBCS intends to file an
application for Low Income Housing Tax Credit ("LITHTC") with the California Tax Credit
Allocation Committee under Section 42 of the Internal Revenue Code;
WHEREAS, SBCS proposes to fund the project through the following sources: (1) Bank
of America Community Development Bank Construction and Permanent Loan; (2) Local
Initiative Support Corporation Development Loan; (3) Federal Home Loan Bank Affordable
Housing Program Grant; (4) City of Chula Vista Development Loan; (5) City of Chula Vista
Land Loan; and (6) a sale of LIHTCs allocated by TCAC to the project; and
WHEREAS, the deadline for submission of the TCAC application is March 31, 1997;
and
WHEREAS, various actions required by the City procedures and State law in order to
permit the transfer of the Site to SBCS and the development of the Project on the Site,
including but not limited to, negotiation and approval of the DDA, will not be completed by
March 31, 1997; and
WHEREAS, pursuant to Resolution 18310, City Council previously adopted Negative
Declaration IS-93-07 and addendum thereto; therefore no further action under CEQA is
required for this project; and
WHEREAS, among the requirements of the TCAC application are evidence of financing
commitment by any local public agency, including the amounts and sources thereof and
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Resolution 18606
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evidence of site control or its equivalent where it is impossible to complete the transfer of the
Site proper to the application deadline; and
WHEREAS, the purpose of this Resolution is to comply with such TCAC application
requirements by providing SBCS with documentation evidencing the City's commitment to
provide partial financing for the Project from a Land Loan, HOME Program Funds, and Site
control by SBCS and/or a limited partnership of which SBCS is a general partner; and
WHEREAS, on March 18, 1996 the City Council held a public meeting on the matter
of this Resolution at which meeting the City Council considered the staff rel~ort, the proposed
City/SBCS Amended and Restated Trolley Terrace Conveyance Agreement and Escrow
Instructions, and all other information and evidence presented.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does
hereby find, order, determine and 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 Proiect
The City hereby approves a funding commitment of Five Hundred Twenty-Three
Thousand Nine Hundred Sixty-Five Dollars (~523,965) of HOME Program Funds to be
loaned to SBCS at below market rates and agrees to provide a Purchase Loan of Three
Hundred Seventy-Two Thousand Nine Hundred Forty Dollars (~372,940) to acquire the
site for the development of the Project on the terms and conditions set forth in the
City/SBCS Conveyance Agreement for the development of the Project.
3. Conditions to City Commitment
The City commitments set forth above are each conditioned upon and subject to the
subsequent approval by the City Council of the DDA and related loan documents in
accordance with applicable laws and existing City policies and TCAC's approval of the
tax credit application which was presented to the City in connection herewith, and its
allocation to the Project of the LIHTC requested thereby.
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Resolution 18606
Page 3
4. Directions to Staff
City staff is hereby authorized and directed to take any appropriate action consistent
with the purposes of this Resolution including negotiation of a final DDA and
presentation thereof to the City for its approval.
Presented by Approved as to form by
Chris Salomone J M. Kaheny
Director of Community Development y
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Page 4
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 18th day of March, 1997, by the following vote:
AYES: Councilmembers: Moot, Rindone, Salas, and Horton
NAYES: Councilmembers: None
ABSENT: Councilmembers: Padilia
ABSTAIN: Councilmembers: None
'~hirley Horton, Mayor
ATTEST:
Beverly :~.Authelet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
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. 18606 was duly passed, approved, and adopted by the City
Council at a regular meeting of the Chula Vista City Council held on the 18th day of March,
1997.
Executed this 18th day of March, 1997.
BeverliA~,uthel~t, City Clerk
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