HomeMy WebLinkAboutReso 2025-158RESOLUTION NO. 2025-158
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE CITY MANAGER TO
EXECUTE A LETTER SUPPORTING THE CONVERSION OF
THE HOUSING AUTHORITY OF THE COUNTY OF SAN
DIEGO’S CHULA VISTA PUBLIC HOUSING PORTFOLIO
THROUGH THE RENTAL ASSISTANCE DEMONSTRATION
PROGRAM AND AUTHORIZING THE CITY MANAGER TO
AMEND OR TERMINATE RELATED AGREEMENTS AND
INSTRUMENTS
WHEREAS, the Housing Authority of the County of San Diego (HACSD) owns four
properties within Chula Vista, located at 772-792 Dorothy Street (Dorothy Street Manor), 584-588
L Street (L Street Manor), 1670-1682 Melrose Avenue (Melrose Manor), and 434 F Street (Town
Center Manor), collectively the “Chula Vista public housing properties”, that it operates as public
housing pursuant to Section 9 of the U.S. Housing Act of 1937, as amended; and
WHEREAS, the current public housing funding model does not generate sufficient revenue
to address capital improvement needs; and
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) administers
the Rental Assistance Demonstration (RAD) program to convert public housing properties to
properties subsidized by Section 8 Project-Based Vouchers; and
WHEREAS, HACSD now desires to carry out a RAD conversion of its Chula Vista public
housing properties in order to reposition them for long-term fiscal and operational stability; and
WHEREAS, HACSD has requested a letter of support from the City of Chula Vista (City)
in carrying out this RAD conversion; and
WHEREAS, the Grant Deed for the property located at 434 F Street property contains a
clause that would cause ownership of the property to revert to the City in the event that the property
is no longer used for low and moderate income housing; and
WHEREAS, this Grant Deed reverter clause does not add meaningful protection to the
affordability covenants, but will materially increase the difficulty of financing a substantial
rehabilitation of the property; and
WHEREAS, HACSD has therefore requested that the 434 F Street grant deed be amended
to remove the reverter clause; and
WHEREAS, the Abstract of Development Agreement for the property located at 584-588
L Street contains a clause granting the City the first right of refusal to acquire the property if
HACSD chooses to sell or otherwise transfer title to the property, and to sell the property at fair
market value if the City declines to exercise its right to acquire the property; and
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Resolution No. 2025-158
Page No. 2
WHEREAS, as part of the RAD conversion, HACSD desires to transfer ownership of the
improvements at 584-588 L Street to an affordable developer in order to carry out a substantial
rehabilitation; and
WHEREAS, the provisions for sale or transfer of the 584-588 L Street property would
prevent HACSD from carrying out a successful RAD conversion or substantial rehabilitation; and
WHEREAS, HACSD therefore requests that the Abstract of Development agreement and
associated Development agreement be terminated.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it does hereby support the conversion of the Chula Vista public housing properties owned by the
Housing Authority of the County of San Diego under the HUD Rental Assistance Demonstration
program and authorizes the City Manager to execute a letter of support to this effect.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it
authorizes the City Manager to negotiate and execute an amendment to the Grant Deed for the
property located at 434 F Street to remove the reverter clause 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, that it
authorizes the City Manager to negotiate and execute a termination of the Developer Agreement
and Abstract of Developer Agreement for the property located at 584-588 L Street 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, that it
authorizes the City Manager to negotiate and execute any necessary additional documents or take
any other action consistent with this resolution and its basic purpose in the form as may be required
or approved by the City Attorney.
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Resolution No. 2025-158
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 23rd day of September 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. 2025-158 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 23rd day of September 2025.
Executed this 23rd day of September 2025.
Kerry K. Bigelow, MMC, City Clerk
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