HomeMy WebLinkAboutReso 2025-027RESOLUTION NO. 2025-027
(Successor Agency to the Redevelopment Agency 2025-001 / Housing Authority 2025-001)
JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA, THE CHULA VISTA HOUSING
AUTHORITY, AND THE CHULA VISTA HOUSING
AUTHORITY ACTING IN ITS CAPACITY AS THE
SUCCESSOR HOUSING AGENCY TO THE CHULA VISTA
REDEVELOPMENT AGENCY: (1) AUTHORIZING THE CITY
MANAGER TO NEGOTIATE AND ENTER INTO A
LEASEHOLD DISPOSITION AND DEVELOPMENT
AGREEMENT AND GROUND LEASE, AND TO CONVEY THE
PALOMAR MOTEL IMPROVEMENTS TO WAKELAND
HOUSING AND DEVELOPMENT CORPORATION, OR AN
AFFILIATE; (2) AUTHORIZING A LOAN FROM THE CHULA
VISTA HOUSING AUTHORITY IN AN AMOUNT NOT TO
EXCEED $3,000,000 OF SUCCESSOR HOUSING AGENCY TO
THE CHULA VISTA REDEVELOPMENT AGENCY FUNDS TO
WAKELAND HOUSING AND DEVELOPMENT
CORPORATION, OR AN AFFILIATE, FOR THE
REHABILITATION AND CONVERSION OF THE PALOMAR
MOTEL TO PERMANENT SUPPORTIVE HOUSING; (3)
AMENDING THE FISCAL YEAR 2024-25 BUDGET; AND (4)
AMENDING THE 2024-25 CAPITAL IMPROVEMENT
PROGRAM BUDGET THEREFOR
WHEREAS, the California Health and Safety Code (HSC) Sections 33334.2, 33334.6, and
34176.1 authorize and direct the Chula Vista Housing Authority (Housing Authority), in its
capacity as the Successor Housing Entity as defined in California Health and Safety Code Section
34176, to expend Low and Moderate Income Housing Asset Funds for the purposes of increasing,
improving, and preserving the community’s supply of low and moderate-income housing available
at an affordable rent to persons and families of low or moderate income; and
WHEREAS, pursuant to HCD Section 34176(d) the Housing Authority has established a
Low and Moderate Income Housing Asset Fund (the Housing Fund); and
WHEREAS, pursuant to HSC Section 34176.1, Housing Successor Entities may not
accumulate an “excess surplus,” or a high unencumbered Housing Fund balance as determined by
a threshold formula, and the Housing Fund has accumulated an excess surplus of approximately
$7,000,000 that must be encumbered by June 30, 2025; and
WHEREAS, the City of Chula Vista (City) acquired that certain real property located at
1160 Walnut Avenue (the Property), containing a 28-unit motel known as the Palomar Motel (the
Project), with the intent to rehabilitate it and convert it to Permanent Supportive Housing,
combining affordable housing assistance with voluntary support services such as substance abuse
treatment and mental health care to address the needs of chronically homeless people; and
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Resolution No. 2025-027
(SA 2025-001 / HA 2025-001)
Page No. 2
WHEREAS, the City carried out a competitive selection process consisting of a Request
for Qualifications (RFQ) and Request for Proposals (RFP) to select a developer to carry out the
substantial rehabilitation of the Project and oversee its long-term operation, and selected Wakeland
Housing and Development Corporation, or an affiliate thereof (Wakeland), as the developer via
Resolution No. 2024-031; and
WHEREAS, the Housing Authority wishes to partially fulfill the encumbrance
requirements of the Housing Fund and assist with the substantial rehabilitation of the Project by
making a loan to Wakeland in an amount not to exceed $3,000,000; and
WHEREAS, a balance of $5,284,245 from the Capital Improvement Program (CIP) fund
was previously appropriated for the Project via Resolution Nos. 2024-133, adopted on June 25,
2024, and 2024-0263, adopted on November 12, 2024; and
WHEREAS, the City Charter states that at any meeting after the adoption of the budget,
the City Council may amend or supplement the budget by a motion adopted by the affirmative
votes of at least four members; and
WHEREAS, the City and Housing Authority, acting in its capacity as the Successor
Housing Entity, now desire to amend the Fiscal Year 2024-25 Successor Agency Budget by
appropriating $3,000,000 in Low-Mod funds for the Project; and
WHEREAS, the City and Housing Authority also desire to amend the Fiscal Year 2025
Infrastructure, Facilities, and Equipment Expenditures Plan to reallocate CIP funds previously
appropriated for the Project to other purposes; and
WHEREAS, in order to further facilitate the substantial rehabilitation and long-term
operation of the property, the City desires to negotiate and enter into various agreements with
Wakeland, including a Leasehold Disposition and Development Agreement (LDDA), a long-term
ground lease agreement for the Property, and a conveyance of the Project to Wakeland.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it authorizes and directs the City Manager or designee to negotiate and enter into a Leasehold
Disposition and Development Agreement (LDDA) between the City of Chula Vista and Wakeland,
a long-term ground lease agreement for the Property between the City of Chula Vista and
Wakeland with an annual rent of $1, and a conveyance of the Project to Wakeland for the sum of
$1, along with a regulatory agreement and all other necessary documents, in the form as may be
required or approved by the City Attorney.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista and the
Chula Vista Housing Authority, that it appropriates $3,000,000 from the available fund balance of
the Successor Agency to the Redevelopment Agency Fund increasing CIP GGV0270.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista , the Chula
Vista Housing Authority, and the Chula Vista Housing Authority acting in its capacity as the
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Resolution No. 2025-027
(SA 2025-001 / HA 2025-001)
Page No. 3
Successory Housing Entity to the Chula Vista Redevelopment Agency, that they each authorize
and direct the Executive Director to make a loan from the Chula Vista Housing Authority to
Wakeland in an amount not to exceed $3,000,000 for the substantial rehabilitation of the Project.
BE IT FURTHER RESOLVED, by the City Council of the City of Chula Vista and the
Chula Vista Housing Authority, that they hereby amend the Fiscal Year 2024-25 budget and
approve the following appropriations and transfers:
Fund Supplies and
Services
Transfers Out Capital
Projects
(GGV0270)
Total
Expenditures
Estimated
Revenue
Net
Impact
Housing Authority
Fund
$5,000,000 $5,000,000 ($5,000,000) $ -
Capital Improvement
Fund
$5,000,000 ($5,000,000) $ - $ -
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Resolution No. 2025-027
(SA 2025-001 / HA 2025-001)
Page No. 4
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 4th day of March 2025 by the following vote:
AYES: Councilmembers: Chavez, Fernandez, Inzunza, Preciado, and McCann
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
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. 2025-027 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 4th day of March 2025.
Executed this 4th day of March 2025.
Kerry K. Bigelow, MMC, City Clerk
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