HomeMy WebLinkAboutRDA Reso 1999-1640 RESOLUTION NO. 1640
RESOLUTION OF THE REDEVELOPMENT AG ENCY OF THE CITY
OF CHULA VISTA CONDITIONALLY APPF OVING FINANCIAL
ASSISTANCE OF $595,000 TO AVALON COM zlUNITIES, LLC FOR
THE ACQUISITION AND REHABILITATIO OF PEARTREE
APARTMENTS
WHEREAS, Avalon Communities, is proposinc, an acquisition/rehabilitation project
involving a 119 unit family apartment complex known as PEartree Apartments located at 1025
Broadway; and
WHEREAS, Avalon Communities, LLC ("Develol ~er") will apply for tax credits from the
Tax Credit Allocation Committee (TCAC) for the Project; and
WHEREAS, Developer has requested financial assistance from the Agency in the
amount of $595,000 in Low and Moderate Income Housing fund ~ to be used for gap financing for the
Project; and
WHEREAS, the rehabilitation of multifamily rental Jnits like the Project is consistent with
and called for by the City's General Plan Housing Element, Con ;olidated Plan, and California Health
And Safety Code; and
WHEREAS, the Redevelopment Agency ("Agen(y") desires to provide Developer with
a development loan of $595,000 to be used for gap financing fo~ the Project and;
WHEREAS, the use of said funds for the acquis tion and rehabilitation of the Project
complies with all applicable laws pertaining to the use of Low id Moderate Income Housing funds;
and
WHEREAS, the Agency provision of funds to th, Project will improve the City's supply
of multifamily rental housing through rehabilitation activities; anc
WHEREAS, the Housing Advisory Commissior, upon hearing and considering all
testimony, if any, of all persons desiring to be heard, and considE ring all factors relating to the request
for financial assistance, has recommended to the Redevelopm~ ,nt Agency that the appropriation be
app, roved because the Commission believes that the Agency's fin~ ncial participation in the development
Project will be a sound investment based on Developer's ability 1 ~ effectively serve the City's housing
needs and priorities as expressed in'the Housing Element and the Consolidated Plan and the cost
effectiveness of thb Agency's financial assistance based upon ,e leveraging of such resources; and
WHEREAS, the loan agreement setting forth th terms for the $595,000 Agency loan
to the project is in process of negotiation and will be brought forw; rd for Agency consideration at a later
date.
NOW, THEREFORE, BE IT RESOLVED by the I ',edevelopment Agency of the City of
Chula Vista does hereby conditionally approve a loan in the amou ~t of $595,000 from the Agency's Low
and Moderate Income Housing Set-Aside fund to Developer for tt acquisition and rehabilitation of the
Project subject to the Agency's approval of an Affordable Housir Cooperation and Loan Agreement
which shall include, at a minimum, the following terms and con ons:
Resolution No. 1640
Page 2 of 3
1. The loan will be secured by a Deed of Trust and Promissory Note for the properly on behalf of
the Redevelopment Agency of the City of Chula Vista.
2. The term of the loan shall be for sixty (60) 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. The deferred developer fee shall be subordinate to the Agency's loan.
6. Developer will be required to operate the Project consistent with the Regulatory Agreement
required by the affordability and use covenants imposed by the Agreement.
7. The agreement shall include and such additional terms and conditions consistent herewith
required by the Agency.
8. Avalon shall provide 100% of the units to household earning at or below 50% of the area median
income.
9. In the event a current tenant does not meet the affordability requirement, said tenant shall be
phased from the complex through attrition.
10. This conditional approval remains subject to final approval by the Agency in its sole
discretion.
Presented by Approved as to form by
Chris Salomone
Director of Community Development
Resolution No. 1640
Page 3 of 3
PASSED, APPROVED and ADOPTED BY THE REDEVELOPMEN I' AGENCY OF THE CITY OF CHULA
VISTA, CALIFORNIA this 13th day of July, 1999 by the following ore:
AYES: Members Davis, Salas, Moot, and Chaid~ ayor Horton
NOES: None
ABSENT: Padilla
ABSTENTIONS: None
Shidey Ho
Chairman
Chds Salomone
Executive Secretary
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss:
CITY OF CHULA VISTA )
I, Chds Salomone, Executive Secretary to the Redevelopment Agen ,'y of the City of Chula Vista, Califomia
DO HEREBY CERTIFY that the foregoing is a full, true and correct ~py of Resolution No. 1640 and that
the same has not been amended or repealed.
Chris Salo none
Executive ~ecretary