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HomeMy WebLinkAboutReso 2003-145RESOLUTION NO. 2003-145 (AGENCYRESOLUTION NO. 1819) JOiNT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA CONDITIONALLY APPROVING FINANCIAL ASSISTANCE, SUBJECT TO FUTURE APPROPRIATION, IN THE FORM OF A RESIDUAL RECEIPTS LOANS FROM THE LOW AND MODERATE INCOME HOUSING FUND IN AN AMOUNT NOT-TO-EXCEED $1,000,000 AND $500,000 FROM THE HOME INVESTMENT PARTNERSHIP PROGRAM TO CIC EASTLAKE, L.P., FOR THE DEVELOPMENT OF THE PROPOSED 150 UNIT RANCHO VISTA APARTMENTS AT EASTLAKE WHEREAS, the City of Chula Vista is an entitlement/participating jurisdiction for the U.S. Department of Housing and Urban Development (HUD) funding programs and is awarded on an annual basis a formula grant from the HOME Investment Partnership Program (HOME); and WHEREAS, HOME funds are designed exclusively to create affordable housing opportunities for low-income households through the construction, purchase, and/or rehabilitation of affordable housing for rent or homeownership or provide direct rental assistance to low-income people; and WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6 authorize and direct the Redevelopment Agency of the City of Chula Vista (Agency) to expend a certain percentage of all taxes which are allocated to the Agency pursuant to Section 33670 for the purposes of increasing, improving and preserving the community's supply of low and moderate income housing available at affordable housing cost to persons and families of low- and moderate-income, lower income, and very low income; and WHEREAS, pursuant to applicable law the Agency has established a Low and Moderate Income Housing Fund (Housing Fund); and WHEREAS, pursuant to Health and Safety Code Section 33334.2(e), in carrying out its affordable housing activities, the Agency is authorized to provide subsidies to or for the benefit of very low income and lower income households, or persons and families of low or moderate income, to the extent those households cannot obtain housing at affordable costs on the open market, and to provide financial assistance for the construction and rehabilitation of housing which will be made available at an affordable housing cost to such persons; and WHEREAS, pursuant to Health and Safety Code Section 33413(b), the Agency is required to ensure that at least 15 percent of all new and substantially rehabilitated dwelling units developed within a project area under the jurisdiction of the Agency by private or public entities or persons other than the Agency shall be available at affordable housing cost to persons and families of low or moderate income; and WHEREAS, CIC Eastlake, L.P. (Developer) proposes to construct a 150 unit multifamily rental development, with 30 units affordable to very low households at 50 percent of the Area Median Income (AMI), 43 units affordable to low households at 60 percent of the Area Median Resolution 2003-145 Page 2 Income (AMI) and 77 units affordable to moderate-income households at or below 120 percent of AMI, within the Eastlake master planned community on a vacant 8.25 acre (gross) site located on the east side of future Eastlake Parkway, approximately 3,000 feet south of Clubhouse Drive in the City of Chula Vista (Project); and WHEREAS, Developer is applying for an allocation of Multifamily Housing Revenue Bonds fi.om the California Debt Limit Allocation Committee (CDLAC); and WHEREAS, Developer is applying for four percent (4%) tax credits fi.om the Tax Credit Allocation Committee (TCAC); and WHEREAS, additional financing is necessary in order to make the Project feasible; and WHEREAS, the provision of affordable housing units like the Project is consistent with and called for by the City's General Plan Housing Element, Consolidated Plan, and California Health and Safety Code; and WHEREAS, the Agency/City wishes to provide Developer with a development loan of one million five hundred dollars ($1,500,000) to assist with the financing gap for the construction of the residential units of the Project; and WHEREAS, the Agency's/City's provision of funds to the residential use of the Project will directly improve the City's supply of very low and moderate-income housing; and WHEREAS, in accordance with Califomia 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 by providing housing for persons who work within the City's redevelopment project areas, 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 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 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 26th day of February, 2003, hold a public meeting to consider said request for financial assistance; and WHEREAS, the Housing Advisory Commission, upon heating and considering all 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 Resolution 2003 - 145 Page 3 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 the California Environmental Quality Act (CEQA), the Environmental Review Coordinator has determined that the project is covered by Addendum (IS-03-009) to the Eastlake Replann'lng Program Final Subsequent Environmental Impact Report (FSEIR) 97-04 and FSEIR 86-04, plus other related environmental documents and no further action by the City Council is necessary. The proposed project will not result in any new environmental effects that were not previously identified, nor would the proposal result in a substantial increase in severity in any impacts previously identified. NOW, THEREFORE, BE IT RESOLVED the City Council and the Redevelopment Agency of the City of Chula Vista do hereby conditionally approve a residual receipts loan subject to future appropriation in an amount not-to-exceed $1,000,000 from the Agency's Low and Moderate Income Housing Set-Aside fund and $500,000 from the City's HOME funds to Developer for the construction of the Project subject to the Agency's/City's approvals of an affordable housing and loan agreement which shall include, at a minimum, the following terms and conditions: The loan repayment 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 and the City of Chula Vista and recorded against the Project property. 2. The term of the loan shall be fifty-five (55) years. 3. The outstanding balance shall accrue with simple interest at 3 percent per annum. Payment of principal and interest on the Agency/City loan shall be made, on an annual basis, out of a fund equal to fifty percent (50%) of the "Residual Receipts", rental income from the Project minus debt service on the bonds, payment of the deferred developer fee, and reasonable operating expenses. Developer will be required to operate the Project consistent with the Regulatory Agreement required by the Project's tax credit financing, the covenants imposed by the Agreement, and any other project requirements. Developer shall enter into a loan agreement with the Agency/City consistent with the terms set forth above and with such other terms as shall be required or approved by the Agency Attorney. The Agency/City assistance is based upon the assumptions presented within the sources and uses of funds, development budget, development proforma and other information filed with the Affordable Housing Review Application for the project as submitted and reviewed by the Community Development Department. The Agency/City assistance is a maximum level of participation. It is expected that any substantive revisions in such financing assumptions which would lead to an increase in other resources available, would therefore reduce the level of Agency/City assistance. This conditional approval remains subject to final approval by the Agency/City in its sole discretion. Resolution 2003 - 145 Page 4 BE IT FURTHER RESOLVED in accordance with California 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 through the creation of jobs in the project area and elsewhere in the City by providing housing for persons who work within the City's redevelopment project areas, and through the policies served by dispersing affordable housing throughout the jurisdiction rather than clustering it all in one area. Presented by Approved as to form by Cont~munity Development Director Ann Moore City Attorney PASSED, APPROVED, and ADOPTED by the City Council and the Redevelopment Agency of the City of Chula Vista, California, this 8th day of April, 2003, by the following vote: AYES: Agency/Councilmembers: Davis, Rindone, Salas, McCann, and Padilla NAY S: Agency/Councilmembers: None ABSENT: Agency/Councilmembers: ATTEST: Sus~i~w, C~yS~ None ~/Stephemeadilla, Mayor/Chair STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA ) ) ) I, Susan Bigelow, City Clerk of Chula Vista, Califomia, do hereby certify that the foregoing City Council Resolution No. 2003-145/Redevelopment Agency Resolution No. 1819 was duly passed, approved, and adopted by the City Council and Redevelopment Agency at a regular meeting held on the 8th day of April, 2003. Executed this 8th day of April, 2003.