HomeMy WebLinkAboutReso 2021-018
RESOLUTION NO. 2021-018
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE CITY TO BECOME A
MEMBER OF THE CALIFORNIA COMMUNITY HOUSING
AGENCY (CALCHA
OF TAX-EXEMPT BONDS FOR THE PRODUCTION,
PRESERVATION AND PROTECTION OF ESSENTIAL
MIDDLE-INCOME RENTAL HOUSING; AND AUTHORIZING
THE CITY MANAGER TO ENTER INTO PURCHASE OPTION
AGREEMENTS WITH CALCHA FOR ESSENTIAL MIDDLE-
INCOME RENTAL HOUSING CREATED WITHIN CITY
LIMITS
WHEREAS, one of the primary goals of the City of Chula Vista is to meet
the growing housing needs of its residents by actively supporting the production, preservation
and protection of market-rate and affordable rental housing for all; and
WHEREAS, no existing Federal, State or local subsidies, programs or motivations
currently exist to meaningfully address the growing shortfall of protected middle-income rental
housing; and
WHEREAS, CalCHA is a Joint Powers Authority created specifically to produce,
preserve and protect quality affordable rental
middle-income workforce; and
WHEREAS, CalCHA intends to acquire existing rental properties within City limits and
restrict future occupancy to middle-income households defined as earning between 80% and
120% of area median income; and
WHEREAS, CalCHA will avoid the displacement of existing residents, implement
regulatory agreements restricting the incomes and rents of future residents, and impose caps on
the annual rent increases of qualified middle-income households; and
WHEREAS, CalCHA will finance its acquisitions through the issuance of tax-exempt
bonds, and in order for CalCHA to issue tax-exempt bonds in Chula Vista, the City must be an
Additional Member of CalCHA; and
WHEREAS, the City proposes to become an Additional Member of CalCHA pursuant to
Section 12 of the Joint Exercise of Powers Agreement Relating to the California Community
Housing Agency; and
WHEREAS, subsequent to becoming an Additional Member of CalCHA, any existing
rental housing within City limits which CalCHA intends to acquire and finance with tax-exempt
bonds must receive support and approval from the City; and
Resolution No. 2021-018
Page No. 2
WHEREAS the City proposes to support and approve -exempt
bonds for the acquisition of existing rental properties as a means towards the preservation and
protection of essential middle-income rental housing within City limits; and
-exempt bonds will provide public benefit through
the production, preservation and protection of below-market-rate rental housing, as well as the
granting of all surplus project revenues to the City; and
WHEREAS, pursuant to one or more
CalCHA will grant the City the option, but never
the obligation, to purchase each essential middle-income rental housing property commencing on
property; and
WHEREAS, the Purchase Option Agreements will additionally provide the City with all
surplus project revenues from each essential middle-income rental housing property; and
WHEREAS, the City will maintain the option to exercise such Purchase Option
Agreements for a period of fourteen (14) years following the commencement dates of the
Purchase Option Agreements for each essential middle-income rental housing property; and
WHEREAS, the City proposes to authorize the City Manager to enter into Purchase Option
Agreements with CalCHA for all essential middle-income rental housing created within City
limits.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista
hereby authorizes the City to become an Additional Member of CalCHA and authorizes the City
Manager to execute the Joint Exercise of Powers Agreement Relating to the California Community
Housing Agency, subject to approval as to form by the City Attorney.
BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista hereby
supports and approves -exempt bonds as a means towards the
production, preservation and protection of essential middle-income rental housing within City
limits.
BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista hereby
authorizes the City Manager to enter into Purchase Option Agreements with CalCHA for all
essential middle-income rental housing created within City limits, in substantially the form
presented to the City, and make such modifications, changes or additions to the Purchase Option
Agreement, as may be required or approved by the Office of the City Attorney, a copy of which
shall be kept on file in the Office of the City Clerk.
Resolution No. 2021-018
Page No. 3
Presented by Approved as to form by
Tiffany Allen Glen R. Googins
Director of Development Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 2nd day of February 2021 by the following vote:
AYES: Councilmembers: Cardenas, Galvez, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2021-018 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 2nd day of February 2021.
Executed this 2ndday of February 2021.
Kerry K. Bigelow, MMC, City Clerk