HomeMy WebLinkAboutReso 2015-084 RESOLUTION NO. 2015-084
(HOUSl.4'G dVTHORIT}"RESOLLT/O:�'A'O. ?015-008)
RESOLUTION OF THE CITY COUTCIL OF THE CITY OF
CHULA VISTA AND THE HOUSII�'G AUTHORITY. IN ITS
CAPACITY AS THE SUCCESSOR HOUSING ENTITY A'TTHIi�'
THE MEAI�TII`'G OF HEALTH AI�TD SAFETY CODE SECTION
34176, [1] APPROVIIvG TOTAL FINAI�ICIAL ASSISTANCE OF
�932.000: AI�iD [2] AUTHORIZIIvG THE CITY A4AI�'AGER TO
EXECUTE RELATED LOAI`' DOCUMENTS Bl' AT�TD
BETWEEN THE CITY OF CHLTLA VISTA AI�'D A TO-BE-
FORI�gD LIMITED PARTNERSHIP FOR MILLENIA SENIOR
AFFORDABLE APARTMENTS
WHEREAS, to facilitate and materially assist the housin2 industrv in providina adequate
and affordable shelter for all economic seements of the communin� and to provide a balance of
housing oppominities for verv-lo�� income. lo�ver-income, and senior households, the Citv of
Chula Vista ("Cin `) has adopted Chula Vista Municipal Code (�CVMC") Section 19.90 -
Affordable Housine Incentives. consistent with Sections 6�91� and 6�917 of the California
Go��emment Code: and
il'HEREAS, Chelsea Investment Corporation. utilizine a to be formed limited partnership
of w-hich Chelsea Investment Corporation will be a partner, the "Developer', proposes to
construct a 123 multifamih� rental development, �ti�ith li units affordable to ��ery-low income
senior households at �0 percent (�0%) of the Area Median Income (AA4I) and 109 units
affordable to low-income senior households at 60 percent (60%) of the Area Median Income
(AA�I), ��ithin the Otav Ranch Millenia Master Planned Communin� (`Senior Project"): and
�l'HEREAS. Developer is appl}-ing for an allocation of Multifamih� Housine Re��enue
Bonds from the Califomia Debt Limit Allocation Committee (CDLAC)_ and
WHEREAS. Developer is applyine for four percent (4%) ta� credits from the 7�a� Credit
Allocation Committee (TCAC); and
WHEREAS, in accordance ���ith CVMC §19.90.0�0. the De��eloper has requested
assistance to reduce the development costs for the construction of the Senior Project for its
financial feasibilin�: and
��'HEREAS, the Ciri-`s e��aluation of the development budset. operatins pro forma and
source and uses for the Senior Project determined that additional financing is appropriate and
necessary in order to make the Senior Project feasible; and
VdHEREAS. Califomia Health and Safet� Code Sections 33334? and 3333�.6 authorize
and direct the Housing Authorit� (in its capacit}� as the Successor Housing Entity �vithin the
meaning of Health and Safet}� Code section 34176; "Housine Authorit��'), to expend funds
pursuant to Health and Safetv Code section 34176(d) for the purposes of increasing, impro��ing
and presen�ine the communit�`s suppl}� of lo�r- and moderate-income housine a��ailable at
affordable housine cost to persons and families of low=- and moderate-income, lo�ti°er-income, arid
��en�-lo��� income: and
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Resolution No. 2015-084
HA Resolu�ion No. ?01�-008
Page No. 2
WHEREAS; pursuant to Health and Safety Code section 34176(d) tUe Housing Authority
has established a Low- and Moderate-Income Housing Asset Fund (the "Housing Asset Fund");
and
WHEREAS, pursuant to Health and Safety Code §33334.2(e), in carrying out its
affordable housing activities, the Housing Authority is authorized to provide subsidies to or for
the benefit of very-low income and lower-income households, or persons and families of low- or
moderate-income, to the extent those households cannot obtain housing at affordable costs on the
open market, and to provide financial assistance for the construction and rehabilitation of
housing which will be made available at an affordable housing cost to such persons; and
WHEREAS, the Housing Authority wishes to provide Developer with a development
loan in the amount of nine hundred thirty-two thousand dollars ($932,000) to assist with the
financing gap far the construction of the Senior Project; and
WHEREAS, the Senior Project furthers the goals of tbe Housing Authority and the City,
as it will facilitate the creation of new affordablc rental housing which will serve the needs and
desires of various age, income and ethnic groups of the neighborhood and tl�e City; and
WHEREAS, in order to carry out and implement the City's Consolidated Plan and
Housing Element of the General Plan and the affordable housing requirements and goals thereof;
the Housing Authority proposes to enter into a Housing Authority Loan Agreement and Related
Restricted Covenants (the "Loan Agreement") with the Developer, to be recorded as
encumbrances to the Senior Project, pwsuant fo which the Housing Authority would make a loan
to the Developer (the "Loan"), and the Developer would agree to develop and operate the Senior
Project in accordance with the requirements of the Loan Agreement, restrict occupancy of 122 of
the apartment units in the Senior Project to very-low and low-income senior households and rent
those units at an affordable housing cost; plus 1 unrestricted apartment unit which will be used as
the manager's unit; and
WHEREAS; the Loan Agreemenf will leverage the investment of the Housing Authority
by requiring the Developer to obtain additional financing for the construction and operation of
the Senior Project through a combination of a loan obtained from the proceeds of multi-family
mortgage revenue bond financing and an equity contribution by a limited partner investor in
consideration for the "4% Tax Credits ' to be generated by the Senior Project; and
WHEREAS, the Cit}�'s Housing Advisory Cominission did, on the 20th day of
November, 2014, hold a public meeting to consider said request for financial assistance; and
WHEREAS, the Housing Advisory Commission, upon hearing and considering all
testimony. if any. of all persons desiring to be heard, and considering all factors relating to the
request for financial assistance, recommended to the Housing Authority and City that financial
assistance be appro��ed on the condition that all other necessary financing be secured for the
Senior Project, and
Resolution No. ZOl�-084
H.9 Resolution A'o. ?OI.i-008
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W7IEREAS; the Housine Ad��isorv Commission found that the Housine Authorit�'s
financial participation in the de�=elopment of the Senior Project w-i11 be a sound in��estment based
upon Developers abilit�� to effecti��el�� ser��e the Cit��`s housing needs and priorities as ezpressed
in the Housine Element and Consolidated Plan and the cost effecti��eness of the Cin�`s financial
assistance based upon the ]e��eraging of such sources and is necessar}� in order to facilitate the
construction of the Senior Project; and
WIIEREAS, in accordance ���ith the requirements of CEQA, the Environmental Review
Coordinator has determined that the proposed project ti�as adequatel�- co��ered in pre�-iously
adopted Final Second Tier Environmental Impact Report. EIR 07-01, and no further action b��
the Cin• Council is necessarv.
NOR%. THEREFORE. BE IT RESOLVED bv the Citv Council of the Cin� of Chula Vista
and the Housing Authority, in its capacity as the Successor Housine Entiry �-ithin the meaning of
Health and Safety Code section 34176, that the Senior Project is consistent ��ith the provisions of
Chula Vista Municipal Code (CVA1C) Section 19.90, ��herein De��eloper will construct housing
units to be restricted for occupanc}� b}� ��ery-low and low-income households or senior citizens as
set forth in CVMC §19.90.040.
BE IT FURTHER RESOLVED by the Housine Authorit��; in its capacity as the
Successor Housine Entiri- within the meanine of Health and Safet}� Code section 34176: and Cin�
Council of the City of Chula Vista that the financial assistance requested bv Developer, in
accordance �i�ith CVMC y 19.90Ai0, is necessan� to provide for affordable rents and to achie��e
lo�ver development costs. The Senior Project cannot be built without such assistance.
BE IT FURTHER RESOLVED bv the Housing Authoriro, in its capacit}� as the
Successor Housine Entirv w�ithin the meanine of Health and Safetv Code section 34176. that it
does hereb}� appro��e a residual receipts loan in an amount not to exceed �932,000 from the
Housine Authoritv's LoH�- and Moderate-Income Housine Asset fund to Developer for the
construction of 123 residential units of the Senior Project ���ithin the Otay Ranch Millenia master
planned communirv.
BE IT FURTHER RESOLVED b�� the Housing Authoritv; in its capacit}� as the
Successor Housing Entiri� k�ithin the meaning of Health and Safet}� Code section 34176, that it
directs staff to prepare all necessan� documents and any actions, as mav be required by
California Health and Safetv Code Sections 33334.2 and 33334.6. to commit the Housine
Authorit�`s funds and authorizino the Cit�� Manaser. or his designee to e�ecute a Loan
Aereement and all associated loan documents. and reeulaton� a�reements. consistent with the
Ciri�`s standard documents as re��ie�i-ed and approved by the Cit�- Attorney's office, necessary for
the financing of the proposed Senior Projec[, securing said Loan, and, at minimum, subject to the
follo��ine terms and conditions:
1. Cer[ification of the appropriate CEQA documentation prior to any Cit}� and Housing
Authorit}� Loan disbursements for any portion of the Senior Project.
I.
Resolution No. 201�-084
HA Resolutio�a A'a. ?Ol.i-008
Page No. 4
2. Developer shall secure all other financing necessary for the acquisition and development
of the Senior Project.
3. The loan repayment will be secured by Deeds oF Trust and Promissory Notes for the
propert}� in favor of the Housing Authority and recorded against the Project property.
The Housing Authorit��`s loan will be junior to the Ciry's Development Fee Deferral deed
of trust, the bond financing and the deferred developer fees on the Senior Project.
4. The term of the Housing Authoriq- loan sl�all be fifty-five (55) years.
5. The outstanding balance shall accrue simple interest at 3 percent (3%) per annum.
6. Payment of principal and interest on the Housing Authority loan shall be made out of a
fund equal to fifry percent (�0%) of the "Residual Receipts ', defined as the income
which remains after the payment of the debt service on the permanent loan, payment on
subordinate junior bonds, pa}'ment of the deferred developer fee, and reasonable
operating expenses.
7. Developer will be required to operate the Senior Project consistent with the Regulatory
Agreement required by the Senior Project's bond and tax credit financing, the City's
Affordable Housing Program, and the Housing Authority's financing, the covenants
imposed by these Agreements, and any other project requirements.
8. The Housing Authority assistance is based upon tl�e assumptions presented within the
sources and uses of funds, develop�nent budget, development proforma and other
information filed ti�ith the Affordable Housing Review Application for the project as
submitted and reviewed by the City's Development Services Housing Division. The
Housing Authority assistance is a mahimum leve] 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 Housing Authority and City
assistance.
9. The Ciry Council and Housing Authority retain their sole and unfettered discretion to
approve, deny; or to take alternative actions, of, but not limited to, the following: the
commitment of$932,000 of Housing Authority funds and final approval of multifamily
mortgage re��enue bond financing for the Senior Project.
Presented by Approved as to form by
,� /� `
\
Kelly G. ug ton, FA G(len R. Go gins �
Director of Development Services C�t}ZAtto- y
Resolution\o. 201�-084
H.9 ResolutionNo. 201�-008
Paee No. �
PASSED. APPROVED, and ADOPTED b�- the Citv Council and the Housine Authorit.�.
in its capacity as the Successor Housine Entit�� of the Cih� of Chula Vista, Califomia, this Zlst
da}� of April 201� bv the follo�-ing vote�
AI'ES: Council/Authorin members: Aeuilar. Bensoussan and McCann
NAYS: Council/Authoritv members: ?�'one
ABSENT: CounciVAuthorit�� members: Salas
ABSTAII�': Council/Authorirv members: A4iesen
��
Mary S s, A4avor/Chairperson
ATTEST:
°�
0
Donna R. Noms. 9C. Citv Clerl:/Secretan�
STATE OF CALIFORI�'IA )
COLJNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I. Donna R. Noms. Citv Clerk of Chula Vista. Califomia. do herebvi certif�� that the foreeoine
Cin� Council Resolution No. 201�-084/Housine Authoritv Resolution I�'o. 201�-008 «�as�dul��
passed, approved, and adopted b}� the City Council and Housing Authorit}� at a regular meeting
held on the 21st dav of April 201�.
Executed this 21 st dav of April 201�.
���� � o��
Donna R. I�'orris. CA4C. Cirv Clerk/Secretaz��