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HomeMy WebLinkAboutRDA Reso 2000-1675 RESOLUTION NO. 1675 AGENCY RESOLUTION [A] APPROVING A LOAN AGREEMENT AND RELATED RESTRICTIVE COVENANTS; THE AFFORDABLE HOUSING AGREEMENT BY LAND BETWEEN THE REDEVE .OPMENT AGENCY AND ST. REGIS PARK, LP (FORMED BY CHELSEA INVES' 'MENT CORPORATION) AND AUTHORIZING THE CHAIRMAN OF THE RED--VELOPMENT AGENCY TO EXECUTE SAID AGREEMENTS; AND [BI APPRC PRIATING $1,387,152 FROM THE UNAPPROPRIATED BALANCE IN THE LO~.¢ AND MODERATE INCOME HOUSING FUND FOR FINANCIAL ASSISTANCE 'O ST. REGIS PARK, LP, FOR THE ACQUISITION AND REHABILITATION OF PEAR TREE MANOR APARTMENTS WHEREAS, California Health and Safety Code Sec :ions 33334.2 and 33334.6 authorize and direct the Redevelopment Agency of the City of Chula Vis a (the "Agency") to expend a certain percentage of all taxes which ,are allocated to the Agency purs Jant to Section 33670 for the purposes of increasing, improving and preserving the commu,n, ty's supply of Iow and moderate income housing available at affordable housing cost to person,; and families of Iow- and moderate-income, lower income, and very Iow income; and WHEREAS, pursuant to applicable law the Agency las established a Low and Moderate Income Housing Fund (the "Housing Fund"); and WHEREAS, pursuant to Health and Safety Code SE ction 33334.2(e), in carrying out its affordable housing activities, the Agency is authorized to provi~ le subsidies to or for the benefit of very Iow income and lower income households, or persons an< ~ families of Iow or moderate income, to the extent those households cannot obtain housing at afford ~ble costs on the open market, and to provide financial assistance for the construction and rehabilitat on of housing which will be made available at an affordable housing cost to such persons; and WHEREAS, pursuant to Section 33413(b), the Ager cy is required to ensure that at least 15 percent of all new and substantially rehabilitated dwelling u~ ~its developed within a project area under the jurisdiction of the Agency by private or public entitie~ or persons other than the Agency shall be available at affordable housing cost to persons and far lilies of Iow or moderate income; and WHEREAS, St. Regis Park, LP, a limited partnershil ~ formed by CIC Pear Tree Services Company, LLC, an affiliate of Chelsea Investment Corporation, as general partner (the "Developer"), has proposed to rehabilitate a 119 unit apartment building Ioca ed at 1025 Broadway in the City of Chula Vista (the "Project"); and WHEREAS, in order to carry out and implement the :~edevelopment Plan for the Agency's redevelopment projects and the affordable housing requiremer ls thereof, the Agency proposes to enter into a Loan Agreement and Related Restricted Covenant; (the "Loan Agreement") with the Developer, together with an "Affordable Housing Agreement" ~ hich would be recorded as an encumbrance to the Project, pursuant to which the Agency woL Id make a loan to the Developer (the "Agency Loan"), and the Developer would agree to rehabilitate lhe Project in accordance with the requirements of the Loan Agreement, restrict occupancy of 101~ of the apartment units in the Project to very Iow and lower income households, and 10 of the apartn ent units to moderate income households, and rent those units at an affordable housing cost; and Resolution No. 1675 Page 2 WHEREAS, the Loan Agreement will leverage the investment of the Agency by requiring the Developer to obtain additional financing for the construction and operation of the Project through a combination of a loan obtained from the proceeds of multifamily 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 WHEREAS, the Project is located outside of the Agency's redevelopment project areas, but the acquisition, rehabilitation and operation of the Project pursuant to the Loan 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 rehabilitation of rental housing units through Agency assistance; and WHEREAS, the Loan 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 XXXIV of the State Constitution does not include a development which consists of the rehabilitation, reconstruction, improvement or addition to, or replacement of, a project previously or currently occupied by lower income households; and WHEREAS, the Developer has conducted an income survey of the current residents of the Project which demonstrates that the residents of 108 of the apartments in the Project are of very Iow and lower income; and WHEREAS, the work required pursuant to the Loan Agreement will consist of the Developer's rehabilitation, reconstruction, improvement and replacement of a housing project previously and currently occupied by lower income households; 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 Resolution No. 1675 Page 3 WHEREAS, the Loan !Agreement provides for assistan :e by the Agency to the Project, and the Agency's monitoring of construction of the Project to the e~ tent of carrying out routine governmental functions, performing conventional activities of; lender, and imposing constitutionally mandated or statutorily authorized conditions accepted by a g~ ~ntee of assistance; and WHEREAS, the Agency has duly considered all term~ ~nd conditions of the proposed Loan Agreement and Affordable Housing Agreement and believes at the Loan Agreement and Affordable Housing Agreement are in the best interests of the ~,gency and the City and the health, safety, and welfare of its resio~ents, and in accord with the publ purposes and provisions of applicable State and local law requirements; NOW, THEREFORE, THE REDEVELOPMENT AGEN Y OF THE CITY OF CHULA VISTA DOES RESOLVE AS FOLLOWS,: Section 1. The Agency hereby finds that the use ~ I funds from the Agency's Low and Moderate Income Housing Fuhd pursuant to the Loan Agreem .,nt, for the acquisition, rehabilitation and operation of real property which is outside of the Agency's redevelopment project areas, will be of benefit to the Agency's redevelopment project areas for the 'easons set forth above. Section 2. The Agency hereby determines that the Project is not a "low rent housing project" within the meaning of Article XXXlV of the State Consl tution, and that the assistance to be provided pursuant to the Loan~ Agreement does not constitute ~ levelopment, construction or acquisition of a Iow-rent housing project within the meaning of ~,rticle XXXlV of the State Constitution. This Resolution :is hereby deemed to constitute ~ final approval of a proposal which may result in housing assistance benefiting persons of Iow inc~ ,me, within the meaning of Health and Safety Code Section 36005. Section 3. The Agency hereby IA]approves the Lo ~n Agreement and Related Restrictive Covenants and Affordable Housing Agreement in substantially the form presented to the Agency, subject to such revisions as may be made by the Agency Exec Jtive Director or his designee subject to the review and approval of ~he Agency Attorney. The Chairr lan of the Agency is hereby authorized to execute the Loan Agreement and Affordable HOL sing Agreement on behalf of the Agency and [BI appropriate $t ,387,152 from the unappropriatEd balance in the Low and Moderate Income Housing Fund for financial assistance to St. Regis Parl :, LP (formed by Chelsea Investment Corporation) for the acquisition and rehabilitation of Pear Tree Vlanor Apartments. A copy of the Loan Agreement and Affordable Housing Agreement when exEcuted by the Agency shall be placed on file in the office of the Secretary of the Agency. Section 4. The Executive Director of the Agency (( r his designee) is hereby authorized, on behalf of the Agency, to make revisions to the Loan Agreerr ent'and Affordable Housing Agreement which do not materially or substantially increase th,~ Agency's obligations thereunder or materially or substantially change the uses or development per 'nitted on the Site, to sign all documents, to make all approvals and take all actions necessa ¥ or appropriate to carry out and implement the Loan Agreement and Affordable Housing Agree nent and to administer the Agency's obligations, responsibilities and duties to be performed under ti ~e Loan Agreement, Affordable Resolution No. 1675 Page 4 Housing Agreement and related documents. Any such revisions or modifications to the Loan Agreement or the Affordable Housing Agreement are subject to the review and approval of the Agency Attorney. PRESENTED BY APPROVED AS TO FORM BY Chris Salomone Joh_.p/M. Kaheny ~/' Director of Community Development A~ency Attorney Resolution No. 1675 Page 5 PASSED, APPROVED and ADOPTED BY THE REDEVELOF MENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA this 23rd day of May, 2000 by th; following vote: AYES: Members Davis, Moot, Padilla, Salas, nd ChaidMayor Horton NOES: None ABSENT: None ABSTENTIONS: None ~3hirley H ort~,~ ' .~hairman ATTEST: ~ ~ Chris Salomone Executive Secretary STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss: CITY OF CHULAVISTA ) I, Chris Salomone, Executive Secretary to the Redevelopmen Agency of the City of Chula Vista, California DO HEREBY CERTIFY that the foregoing is a full, ti ue and correct copy of Resolution No. 1675 and that the same has not been amended or repealed. Dated: May 24, 2000 '~"- ~ ;hris Salomone -'xecutive Secretary