HomeMy WebLinkAboutReso 2024-180RESOLUTION NO. 2024-180
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING RESOLUTION NO. 2024-119 TO
RESTRUCTURE A LOAN COMMITMENT TO WAKELAND
HOUSING AND DEVELOPMENT CORPORATION, OR AN
AFFILIATED ENTITY, FOR AN AFFORDABLE PROJECT TO
BE LOCATED AT 610 PASEO DEL REY, TO ALLOW A
PORTION OF FUNDS TO BE USED FOR PRE-DEVELOPMENT
COSTS, AND MAKING OTHER CHANGES RELATED
THERETO
WHEREAS, on June 11th, 2024, the City of Chula Vista (City) adopted Resolution No.
2024-119 approving a loan of up to three million three hundred thousand dollars ($3,300,000) and
the Chula Vista Housing Authority (Housing Authority) adopted Resolution No. 2024-005
approving a loan up to seven hundred thousand dollars ($700,000), for a cumulative funding
commitment of up to four million dollars ($4,000,000), to Wakeland Housing and Development
Corporation (Wakeland), or an affiliated entity, to assist in the construction of a ninety-six (96)
unit affordable housing development to be located at 610 Paseo Del Rey (the “Project”), and
authorizing the City Manager or designee to negotiate and execute all documents related to the
loan in a form approved by the City Attorney’s Office; and
WHEREAS, Resolution No. 2024-119 specifies the sources of the three million three
hundred thousand dollars ($3,300,000) of funds as HOME Investment Partnerships Program
(HOME) and HOME Investment Partnerships Program American Rescue Plan (HOME-ARP)
funds allocated to the City by the U.S. Department of Housing and Urban Development (HUD);
and
WHEREAS, the City subsequently became aware that $239,271.45 of the committed
HOME funds must be disbursed on or before September 30, 2024, or they will be reclaimed by
HUD; and
WHEREAS, the execution of loan documents and the disbursement of funds pursuant to
Resolution No. 2024-119 was made contingent upon the Project attaining certain milestones,
including completion of environmental review in accordance with 24 CFR Part 58 of the National
Environmental Policy Act (“NEPA”), and having secured all other necessary financing for the
construction of the Project; and
WHEREAS, the Project will not be able to reach these milestones within the compressed
time period for disbursement of the aforementioned portion of HOME funds; and
WHEREAS, Wakeland has incurred eligible pre-development costs that may be
reimbursed prior to construction start under federal HOME and HOME-ARP regulations.
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Resolution No. 2024-180
Page No. 2
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it amends Resolution No. 2024-119 as follows:
1. Up to five hundred thousand dollars ($500,000) of the loan of HOME and HOME-ARP
funds may be issued in the form of a pre-development loan, to be disbursed for eligible
predevelopment expenses in advance of Wakeland securing all other necessary
financing for the construction of the Project. In accordance with 24 CFR Part
58.35(b)(6), any pre-development loan funds issued to the Project shall only be applied
to pre-development activities which do not have a physical impact on the environment.
The pre-development loan shall be due and payable in full on or before June 11, 2028,
four years from the date of first commitment of funds, unless converted to a
construction and permanent financing loan as set forth below; provided, however, that
the City, in its sole discretion, may waive repayment of the loan, in whole or in part, if
there are impediments to Project development that the City determines are reasonably
beyond the control of the borrower.
2. Upon satisfactory completion of environmental review of the Project under 24 CFR
Part 58 of NEPA, and the securing of all other Project financing necessary to begin
construction, the pre-development loan will be amended and converted to a fifty-five
year construction and permanent financing loan in an amount not to exceed three
million three hundred thousand dollars ($3,300,000). Loan funds shall be secured
against the Property and repaid from cash surplus in annual installments.
3. All other provisions of Resolution No. 2024-119 shall remain in full force and effect.
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Resolution No. 2024-180
Page No. 3
Presented by Approved as to form by
Stacey Kurz Marco A. Verdugo
Director of Housing and Homeless Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 10th day of September 2024 by the following vote:
AYES: Councilmembers: Chavez, Gonzalez, Preciado, and McCann
NAYS: Councilmembers: None
ABSENT: Councilmembers: Morineau
John McCann, 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. 2024-180 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 10th day of September 2024.
Executed this 10th day of September 2024.
Kerry K. Bigelow, MMC, City Clerk
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