HomeMy WebLinkAboutReso 2025-124RESOLUTION NO. 2025-124
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE EXTENSION OF AN
EXISTING LOAN AND RESTRICTIVE COVENANTS FOR
THE SENIORS ON BROADWAY AFFORDABLE HOUSING
DEVELOPMENT LOCATED AT 845 BROADWAY IN
CONNECTION WITH A PLANNED REHABILITATION
WHEREAS, in 2005, the City of Chula Vista City Council approved a loan for $3,511,195
(“Loan”) in HOME Investment Partnership Program (“HOME”) funds pursuant to Resolution Nos.
2005-061 and 2005-315, to assist with the construction of the Seniors on Broadway affordable
housing development (the “Project”), developed by an affiliate of Metropolitan Area Advisory
Committee on Anti-Poverty of San Diego County, Inc. (“MAAC”); and
WHEREAS, the Loan was structured as a 55-year residual receipts loan, with payments
due annually from surplus cash flow generated by the Project, and any remaining balance due in
full at the end of the 55-year term; and
WHEREAS, MAAC is now preparing to undertake a substantial rehabilitation of the
Project including accessibility upgrades, roof repairs, and other improvements (“Rehabilitation”),
and has received an allocation of low-income housing tax credits from the California Tax Credit
Allocation Committee (“TCAC”) to finance the Rehabilitation; and
WHEREAS, TCAC will impose a new 55-year regulatory agreement in connection with
the tax credit award, and TCAC’s underwriting standards require that the Project demonstrate
financial feasibility throughout the 55-year term; and
WHEREAS, the City of Chula Vista (“City”) Loan is currently due and payable in full in
the year 2062, which would result in an infeasible balloon payment in the middle of TCAC’s new
55-year term; and
WHEREAS, the Borrower has requested to extend the term of the City loan by initiating a
new 55-year term in order to meet TCAC’s underwriting standards and align it with the term of
the pending TCAC agreement; and
WHEREAS, the loan extension would enable the rehabilitation to proceed and promote the
long-term stability of the Project; and
WHEREAS, the City would also extend the affordability restrictions to be commensurate
with the loan extension, thus ensuring long-term City oversight over the Project; and
WHEREAS, the City Council has duly considered all terms and conditions of the proposed
Amendment to the Loan Agreement and Affordable Housing Agreement and believes that the
Amendment is in the best interest of the City and the health, safety, and welfare of the residents of
the City, and in accord with the public purposes and provisions of applicable Federal, State and
local law requirements.
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Resolution No. 2025-124
Page No. 2
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it authorizes the Loan previously issued for Rehabilitation of the Seniors on Broadway
affordable housing project, located at 845 Broadway, to be extended with a new 55-year term, and
for the restrictive covenants to also be extended with a new 55-year term, in connection with a
planned rehabilitation of the Project.
BE IT FURTHER RESOLVED, by the City Council of the City of Chula Vista, that the
City Manager is authorized to revise the loan documents consistent with this resolution and its
basic purpose, and which do not materially or substantially increase the obligations of the City
thereunder.
[SIGNATURES ON THE FOLLOWING PAGE]
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Resolution No. 2025-124
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 22nd day of July 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. 2025-124 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 22nd day of July 2025.
Executed this 22nd day of July 2025.
Kerry K. Bigelow, MMC, City Clerk
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