HomeMy WebLinkAboutRDA Reso 1997-1526 RESOLUTION NO. 1526
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY
OF CHULA VISTA APPROVING A FOUR HUNDRED SEVENTY
EIGHT THOUSAND TWO HUNDRED AND EIGHTY DOLLAR
(478,280) COMMITMENT FROM THE LOW AND MODERATE
INCOME HOUSING FUND FOR A 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 III;
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Cordova Village Project are no longer applicable because of the passage of time and the fact that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 Iow-income unit
requirements and RDR is proposing to donate the necessary land for the Project towards
satisfaction of this obligation;
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;
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;
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);
WHEREAS, additional financing is necessary in order to make the Project feasible;
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;
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;
WHEREAS, the City/Agency provision of funds to the Project will directly improve
the City's supply of ~/e'ry IoWl Iow and moderate income housing;
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
Resolution 1526
Page 2
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;
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 redevelopment 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;
WHEREAS, the City/Agency has previously adopted Addendum 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;
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, BE IT RESOLVED the Redevelopment Agency of the City of
Chula Vista does 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. Agency Contribution to the Project.
The Agency hereby appropriates Four Hundred Seventy Eight Thousand Two
Hundred and Eighty Dollars ($478,280) of Low and Moderate Income Housing Fund monies to be
loaned to SBCS for the development of Project in accordance with the terms and conditions of the
Disposition and Development Agreement between the City, Agency and SBCS being approved
concurrently herewith.
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 by
Chris Salomone
Director of Community Development
PASSED, APPROVED and ADOPTED BY THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA, CALIFORNIA this 7th day of January 1997 by the following vote:
AYES: Members Rindone, Padilla, Horton, Salas
NOES: None
ABSENT: None
ABSTENTIONS: Moot
Shirley Hort(~
Chairman
ATTEST: ~ ~
Chris Salomcne
Executive Secretary
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss:
CITY OF CHULA VISTA )
I, Chris Salomone, Executive Secretary to the Redevelopment Agency of the City of Chula Vista,
California DO HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution
No. 1526 and that the same has not been amended or repealed.
Dated: January 8, 1997 ~"~/~ ~'~j
Chris Salomone
Executive Secretary