HomeMy WebLinkAboutRDA Reso 1999-1626 RESOLUTION NO. 1626
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA APPROVING A L()AN AGREEMENT
AND RELATED RESTRICTED COVENANTS I~Y AND BETWEEN
THE AGENCY AND SERENA SUNBOW, L.P.
WHEREAS, California Health and Safety Code Sectio ~s 33334.2 and 33334.6 authorize
and direct the Redevelopment Agency of the City of Chula Vista (the "Agency") to expend a
certain percentage of all taxes which are allocated to the AgE ncy pursuant to Section 33670 for
the purposes of increasing, improving and preserving the community's supply of Iow and
moderate income housing available at affordable housing c¢ st to persons and families of Iow-
and moderate-income, lower income, and very Iow income; a~ ,d
WHEREAS, pursuant to applicable law the Agency ha established a Low and Moderate
Income Housing Fund (the "Housing Fund"); and
WHEREAS, pursuant to Health and Safety Code Sec ion 33334.2(e), in carrying out its
affordable housing activities, the Agency is authorized to pro/ide subsidies to or for the benefit
of very Iow income and lower income households, or persor s and families of Iow or moderate
income, to the extent those households cannot obtain housil~g at affordable costs on the open
market, and to provide financial assistance for the constru,,tion and rehabilitation of housing
which will be made available at an affordable housing cost to ~uch persons; and
WHEREAS, pursuant to Health and Safety Code 3ection 33413(b), the Agency is
required to ensure that at least 15 percent of all new and ~ubstantially rehabilitated dwelling
units developed within a project area under the jurisdiction ,)f the Agency by private or public
entities or persons other than the Agency shall be availa)le at affordable housing cost to
persons and families of Iow or moderate income; and
WHEREAS, Serena Sunbow, L.P. (the "Developer") has proposed to construct a 132
unit apartment building at the northeast corner of Medical Center Drive and Medical Center
Court in the City of Chula Vista, which would be restricted to enior citizens (the "Project"); and
WHEREAS, in order to carry out and implement lhe Redevelopment Plan for the
Agency's redevelopment projects and the affordable housinc requirements thereof, the Agency
proposes to enter into a Loan Agreement and Related Restri ~ed Covenants (the "Agreement")
with the Developer, pursuant to which the Agency would rr ake a loan to the Developer (the
"Agency Loan"), and the Developer would agree to construct the Project in accordance with the
requirements of the Agreement, restrict occupancy of the ap ~rtment units in the Project to very
Iow, lower and Iow and moderate income senior citizen hou," eholds, and rent those units at an
affordable housing cost; and
WHEREAS, the Agreement will leverage the investm .~nt of the Agency by requiring the
Developer to obtain additional financing for the construction a 3d operation of the Project through
a combination of a loan obtained from the proceeds of m Jltifamily mortgage revenue bond
financing to be issued by the Housing Authority of the City of Chula Vista and an equity
contribution by a limited partner investor in consideration for the "4% Tax Credits" to be
generated by the Project; and
Resolution No. 1626
Page 2
WHEREAS, the Project is located outside of the Agency's redevelopment project areas,
but the acquisition, construction and operation of the Project pursuant to the Agreement would
benefit the Agency's redevelopment project areas by providing affordable housing for persons
who currently live and work within those redevelopment project areas; and
WHEREAS, the Agency has adopted an Implementation Plan pursuant to Health and
Safety Code Section 33490, which sets forth the objective of providing housing to satisfy the
needs and desires of various age, income and ethnic groups of the community, and which
specifically provides for the construction of new affordable rental housing units through Agency
assistance; and
WHEREAS, the Agreement furthers the goals of the Agency set forth in the
Implementation Plan as it will facilitate the creation of affordable housing which will serve the
residents of the neighborhood and the City; and
WHEREAS, the Legislature declares in Health and Safety Code Section 36000, et seq.,
that new forms of cooperation with the private sector, such as leased housing, disposition of real
property acquired through redevelopment, development approvals, and other forms of housing
assistance may involve close participation with the private sector in meeting housing needs,
without amounting to development, construction or acquisition of Iow rent housing projects as
contemplated under Article XXXIV of the State Constitution; and
WHEREAS, Health and Safety Code Section 37001 provides that a Iow rent housing
project under Article XXXlV of the State Constitution does not include a development which is
privately owned housing, receiving no ad valorem property tax exemption, other than
exemptions granted pursuant to subdivision (f) or (g) of Section 214 of the Revenue and
Taxation Code, not fully reimbursed to all taxing entities, and not more than 49 percent of the
dwellings, apartments, or other living accommodations of the development may be occupied by
persons of Iow income; and
WHEREAS, the Project will not receive any ad valorem property tax exemption, other
than exemptions granted pursuant to subdivision (f) or (g) of Section 214 of the Revenue and
Taxation Code, and the Agreement restricts less than 49 percent of the units within the Project
to persons of Iow and very Iow income; and
WHEREAS, Health and Safety Code Section 37001.5 provides that a public body does
not develop, construct or acquire a Iow rent housing project under Article XXXIV of the State
Constitution when the public body provides assistance to a Iow rent housing project and
monitors construction or rehabilitation of the project to the extent of carrying out routine
governmental functions, performing conventional activities of a lender, and imposing
constitutionally mandated or statutorily authorized conditions accepted by a grantee of
assistance; and
WHEREAS, the Agreement provides for assistance by the Agency to the Project, and
the Agency's monitoring of construction of the Project to the extent of carrying out routine
governmental functions, performing conventional activities of a lender, and imposing
constitutionally mandated or statutorily authorized conditions accepted by a grantee of
assistance; and
WHEREAS, the Agency has duly considered all terms and conditions of the proposed
Agreement and believes that the Agreement is in the best interests of the Agency and the City
Resolution No. 1626
Page 3
and the health, safety, and welfare of its residents, and in ac :ord with the public purposes and
provisions of applicable State and local law requirements;
NOW, THEREFORE, THE REDEVELOPMENT AG[ NCY OF THE CITY OF CHULA
VISTA DOES RESOLVE AS FOLLOWS:
Section 1. The Agency hereby finds that the use of funds from the Agency's Low
and Moderate Income Housing Fund pursuant to the Agreement, for the acquisition,
construction and operation of real property which is outsid~ of the Agency's redevelopment
project areas, will be of benefit to the Agency's redevelopmen: project areas for the reasons set
forth above.
Section 2. The Agency hereby determines that the Project is not a "low rent housing
project" within the meaning of Article XXXIV of the State Con.~/itution, and that the assistance to
be provided pursuant to the Agreement does not constittte development, construction or
acquisition of a Iow-rent housing project within the meanir g of Article XXXIV of the State
Constitution. This Resolution is hereby deemed to constit~le a final approval of a proposal
which may result in housing assistance benefiting persons of ow income, within the meaning of
Health and Safety Code Section 36005.
Section 3. The Agency hereby approves the Agleement in substantially the form
presented to the Agency, subject to such revisions as may I: e made by the Agency Executive
Director or his designee. The Chairman of the Agency is ~ereby authorized to execute the
Agreement on behalf of the Agency. A copy of the Agreem,~nt when executed by the Agency
shall be placed on file in the office of the Executive Secretary, )f the Agency.
Section 4. The Executive Director of the Agen;y (or his designee) is hereby
authorized, on behalf of the Agency, to make revisions to the, ~greement which do not materially
or substantially increase the Agency's obligations thereun, ter or materially or substantially
change the uses or development permitted on the site on wh ch the Project is to be located, to
sign all documents, to make all approvals and take all actions necessary or appropriate to carry
out and implement the Agreement and to administer the Ag ;ncy's obligations, responsibilities
and duties to be performed under the Agreement and related ~locuments.
Presented by Presented by
Chris Salomone Joi-~l. Kaheny ~..~...~/
Director of Community Development City Attorney
Resolution No. 1626
Page 4
PASSED, APPROVED and ADOPTED BY THE REDEVELOPMENT AGENCY OF THE CITY OF
CHULA VISTA, CALIFORNIA this 27th day of April, 1999 by the following vote:
AYES: Members Davis, Padilla, Salas, and Chair/Mayor Horton
NOES: None
ABSENT: Moot
ABSTENTIONS: None
Shirley Ho~on
Chairman
Chris Salomone
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. 1625 and that the same has not been amended or repealed.
Dated: April28,1999 ~"k~ ~
Chris Salomone
Executive Secretary