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Home My WebLink AboutRDA Reso 2000-1673 RESOLUTION NO. 1673 RESOLUTION OF THE REDEVELOPMENT ,~ .~ENCY OF THE CITY OF CHULA VISTA CONDITIONALLY APFROVING FINANCIAL ASSISTANCE NOT TO EXCEED $1,060,000 TO AVALON COMMUNITIES FOR THE DEVELOPMEN'I OF A MIXED USE PROJECT, INCLUDING 106 AFFORDABLE NITS WHEREAS, California Health and Safety Code Seca, is 33334.2 and 33334.6 authorize and direct the Redevelopment Agency of the City of Chula Vistt (the "Agency") to expend a certain percentage of all taxes which are allocated to the Agency pursu ~nt 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 cost to persons and families of Iow- and moderate-income, lower income, and very Iow income; and WHEREAS, pursuant to applicable law the Agency has ~ stablished a Low and Moderate Income Housing Fund (the "Housing Fund"); and WHEREAS, pursuant to Health and Safety Code S,;ction 33334.2(e), in carrying out its affordable housing activities, the Agency is authorized to provi¢ e subsidies to or for the benefit of very Iow income and lower income households, or persons and faro ilies of Iow or moderate income, to the extent those households cannot obtain housing at affordable c¢ sts on the open market, and to provide financial assistance for the construction and rehabilitation of h( :sing which will be made available at an affordable housing cost to such persons; and WHEREAS, pursuant to Health and Safety Code Sec ~n 33413(b), the Agency is required to ensure that at least 15 percent of all new and substantially reha~: ilitated dwelling units developed within a project area under the jurisdiction of the Agency by private or ~: ublic entities or persons other than the Agency shall be available at affordable housing cost to persons ~nd families of Iow or moderate income; and WHEREAS, the Avalon Communities ("Developer") prol: 3ses to construct a mixed use project of 15,000 square feet of commercial retail and 106 apartment uni :s, with 51 units affordable to very Iow households at45 percent of the Area Median Income (AMI) and 55 units affordable to moderate-income households at or below 120 percent of AMI, at the north east cot ~er of Broadway and Main Street in the City of Chula ("Project"); and WHEREAS, Developer is applying for nine percent 9%) tax credits from the Tax Credit Allocation Committee (TCAC); and WHEREAS, additional financing is necessary in order t< makethe residential use ofthe Project feasible; and WHEREAS, the provision of affordable housing units I ke the Project is consistent with and called for by the City's General Plan Housing Element, Consoli Jated Plan, and California Health and Safety Code; and WHEREAS, the Agency wishes to provide Developer v ith a development loan of one million sixty thousand dollars ($1,060,000) to assist with the financing ) for the construction of the residential units of the Project; and Resolution No. 1673 Page 2 WHEREAS, the Agency's provision of funds to the residential use of the Project will directly improve the City's supply of very Iow and moderate-income housing; and WHEREAS, in accordance with California Health and Safety Code Section 33334.2 (g), staff is recommending that the Agency find and determine that even though the Project is to be located outside the City's redevelopment project areas, those areas will benefit through the creation of jobs in the project area and elsewhere in the City, and through the policies served by dispersing affordable housing throughout the jurisdiction rather than clustering it all in one area; 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 satisf,/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 residential use of the Project 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 City's Housing Advisory Commission did, on the 7~" day of June, 2000, hold a public meeting to consider said request for financial assistance; and WHEREAS, the Housing Advisory Commission, upon hearing and considering ail testimony, if any, of all persons desiring to be heard, and considering all factors relating to the request for financial assistance, has recommended to the Redevelopment Agency that the appropriation be approved because the Commission believes that the Agency's financial participation in the development of the Project will be a sound investment based upon Developer's ability to effectively serve the City's housing needs and priorities as expressed in the Housing Element and the Consolidated Plan and the cost effectiveness of the Agency's financial assistance based upon the leveraging of such resources; and WHEREAS, in accordance with the requirements of CEQA, the Environmental Review Coordinator has determined that the Project requires the preparation of an Initial Study, such study (IS 00-47) was prepared, and based on such study a Negative Declaration was adopted in connection with the Special Use Permit for the Project at said hearing for this request for financial assistance. NOW, THEREFORE, BE iT RESOLVED the Redevelopment Agency of the City of Chula Vista does hereby conditionally approve a loan in the maximum amount of $1,060,000 from the Agency's Low and Moderate Income Housing Set-Aside fund to Developer for the construction of the residential units of the Project subject to the following terms and conditions: 1. Funds shall be used only for those costs directly related to the residential units of the Project. 2. The loan repayment will be secured by a Deed of Trust recorded against the Project property. 3. The term of the loan shall be fifty-five (55) years. Resolution No. 1673 Page 3 4. The outstanding balance shall accrue with simple interest at 6 percent per annum. 5. 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 Receipt 3", rental income from the Project minus debt service on the bonds, payment of the deferred der ~loper fee, and reasonable operating expenses. 6. Developer will be required to operate the Project consistent vith the Regulatory Agreement required by the Project's tax credit financing, the convenants nposed by the Agreement, and the requirements of the Special Use Permit for the Project. 7. Develope~' shall enter into a loan agreement with the AgE ~cy consistent with the terms set fodh above and with such other terms as shall be required or a proved by the Agency Attorney. 8. This conditional approval remains subject to final approva by the Agency in its sole discretion. BE IT FURTHER RESOLVED in accordance with Call1 ~rnia 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 thr ~ugh the creation of jobs in the project area and elsewhere in the City, and through the policies set zed by dispersing affordable housing throughout the jurisdiction rather than clustering it all in one are a. PRESENTED BY APPRO~ ~ED AS TO FORM BY Chris Salomone Johr~M (aheny Director of Community Development Agency ¢ ~ttorney Resolution No. 1673 Page 4 PASSED, APPROVED and ADOPTED BY THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA this 13th day of June, 2000 by the foilowir vote: AYES: Members Davis, Moot, Padilla, Salas, al I Chair/Mayor Horton NOES: None ABSENT: None ABSTENTIONS: None Shirle ~rton~' ' -' Chairm ATTEST: Chris Salomone Executive Secretary STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss: CITY OF CHULA VISTA ) I, Chris Salomone, Executive Secretary to the Redevelopment A! icy of the City of Chula Vista, Califomia DO HEREBY CERTIFY that the foregoing is a full, true and corr, ;t copy of Resolution No. 1673 and that the same has not been amended or repealed. Dated: June 14, 2000 ~//'?/~~ · ~ Chris Sal ~mone Executiw ~ Secretary