HomeMy WebLinkAboutRDA Reso 2000-1661 RESOLUTION N~ 1661
RESOLUTION OF THE REDEVELOPM~ IT AGENCY OF THE
CITY OF CHULA VISTA CONDITI()NALLY APPROVING
FINANCIAL ASSISTANCE IN THE FO:~M OF A RESIDUAL
RECEIPT LOAN FROM THE LOW AND MODERATE INCOME
HOUSING FUND IN AN AMOUNT NOT 10 EXCEED $1,387,152
TO CHELSEA INVESTMENT CORP~)RATION FOR THE
ACQUISITION AND REHABILITATION O -- PEAR TREE MANOR
APARTMENTS
WHEREAS, Chelsea Investment Corporation is proposing an
acquisition/rehabilitation project involving a 119 unit famil apartment complex known as Pear Tree
Manor Apartments located at 1025 Broadway; and
WHEREAS, Chelsea Investment Corpor~ on ("Developer") will apply for tax credits
from the California Debt Limit Allocation Committee (CDL AC) for the Project; and
WHEREAS, Developer has requested fina ~cial assistance from the Redevelopment
Agency ("Agency") in the form of a residual receipt loan ir an amount not to exceed $1,387,152 in
Low and Moderate Income Housing funds to be used for c ~ financing for the Project; and
WHEREAS, the rehabilitation of multif; ly rental units like Pear Tree Manor
Apartments ("Project") is consistent with and called for by ~e City's General Plan Housing Element,
Consolidated Plan, and California Health And Safety Code and
WHEREAS, the Agency desires to pro' ide Developer with a residual receipt
development loan in an amount not to exceed $1,387,152 t, ~ be used four gap financing for the Project
and;
WHEREAS, the use of said funds for the a :quisition and rehabilitation of the Project
complies with all applicable laws pertaining to the use of L( w and Moderate Income Housing funds;
and
WHEREAS, the Agency provision of fun, Is to the Project will improve the City's
supply of multifamily rental housing through rehabilitation; ~ctivities; and
WHEREAS, the Housing Advisory Comrr ssion, upon hearing and considering all
testimony, if any, of all persons desiring to be heard, at the ~ neeting of December 15, 1999, approved
conditionally funding the project; and
WHEREAS, the loan agreement setting fo~ ~h the terms for the residual receipt loan to
the Project in an amount not to exceed $1,387,152 is in ocess of negotiation and will be brought
forward for Agency consideration at a later date.
NOW, THEREFORE, BE IT RESOLVED I the Redevelopment Agency of the City of
Chula Vista does hereby conditionally approve a residual' receipt loan in an amount not to exceed
$1,387,152 from the Agency's Low and Moderate Income -~ousing Set-Aside fund to Developer for
the acquisition and rehabilitation of the Project subject to the Agency's approval of an Affordable
Housing Cooperation and Loan Agreement which shall incl~ de, at a minimum, the following terms and
conditions:
Resolution No. 1661
Page 2 of 3
1. The loan will be secured by a Deed of Trust and Promissory Note for the property on behalf
of the Redevelopment Agency of the City of Chula Vista.
2. The term of the loan shall be for fifty-two (52) years.
3. The outstanding balance shall accrue with simple interest at 6 percent per annum.
4. Payment of principal and interest on the Agency loan shall be made, on an annual basis, out of a fund
equal to ninety percent (90%) of the "Residual Receipts", rental income from the Project minus debt
service and reasonable operating expenses.
5. Developer will be required to operate the Project consistent with the Regulatory Agreement required
by the affordability and use covenants imposed by the Agreement.
6. The Agreement shall include and such additional terms and conditions consistent herewith required
by the Agency.
7. Developer shall provide 20% of the units to household earning at or below 50% of the area median
income. The remaining units shall be provided to households earning at or below 60% of the area
median income.
8. In the event a current tenant does not meet the affordability requirement, said tenant shall be phased
from the complex through attrition.
9. This conditional approval remains subject to final approval by the Agency in its sole discretion.
Presented by Approved as to form by
Chris Salomone Jo. gbn/M Kaheny ,51J
Director of Community Development City Attorney
Resolution No. 1661
Page 3 of 3
PASSED, APPROVED and ADOPTED BY THE REDEVE .OPMENT AGENCY OF THE CITY OF
CHULA VISTA, CALIFORNIA this 18th day of January, 2001~ by the following vote:
AYES: Members Davis, Moot, Padilla, Sal ~s and ChaidMayor HoC(on
NOES: None
ABSENT: None
ABSTENTIONS: None
,hirley Hort~n
;hairman"
A'i-I'EST: ~ ~
Chris Salomone
Executive Secretary
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss:
CITY OF CHULA VISTA )
I, Chris Salomone, Executive Secretary to the Redevel¢ 'nent Agency of the City of Chula Vista,
California DO HEREBY CERTIFY that the foregoing is a I I, true and correct copy of Resolution No.
1661 and that the same has not been amended or repeale¢.
Dated: January 19, 2000 ~' ~
~,hds Salomone
;xecutive Secretary