HomeMy WebLinkAboutRDA Reso 1997-1527 RESOLUTION 1527
(Council Resolution No. 18548)
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
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Village Project are no longer applicable because of the passage of time and the fact that funding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 very Iow, 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 reasonably available,
and the Agency's subordination agreement shall include written cor:nmitments from the lenders
Resolution 1527
Page 2
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;
WHEREAS, City/Agency staff has negotiated with SBCS the terms and conditions of a
Disposition and DevelopmentJHOME Padicipation 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 Redevelopment 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. Approval of Apreement.
The City and Redevelopment 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.
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 J~)C'M. Kaheny
Director of Community Development 0¢~ Attorney
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 Salomone
Executive Secretary
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss:
CITY OF CHULA VISTA )
I, Chris SaIomone, 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. 1527 and that the same has not been amended or repealed.
Dated: January 8, 1997 ~/~ ~
Chris Salomone
Executive Secretary