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HomeMy WebLinkAboutReso 2026-041RESOLUTION NO. 2026-041 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING RESOLUTION NO. 2024-119 TO EXTEND THE DEADLINE FOR CONSTRUCTION START ON AN AFFORDABLE HOUSING PROJECT TO BE LOCATED AT 610 PASEO DEL REY WHEREAS, the City of Chula Vista previously appropriated funds for the production of Permanent Supportive Housing (“PSH”), including $2,668,810.45 in HOME America Rescue Plan (“HOME-ARP”) funds and more than $631,189.55 in HOME Investment Partnership Program (“HOME”) funds pursuant to Resolution No. 2023-166, adopted on October 17, 2023, and Resolution No. 2024-085, adopted on May 21, 2024; and WHEREAS, on June 11, 2024, the City Council adopted Resolution No. 2024-119 committing a loan of up to $3,300,000 in HOME and HOME-ARP funds to a 96-unit affordable housing project, including 48 PSH units, to be located at 610 Paseo Del Rey (the “Project”), to be developed by Wakeland Housing and Development Corporation (“Wakeland”); and WHEREAS, on September 10, 2024, City Council adopted Resolution No. 2024-180 amending Resolution No. 2024-119 to restructure the HOME loan commitment to the Project to make up to $500,000 of the loan available for pre-development costs, in order for the City to meet deadlines for disbursement of HOME funds set forth by the U.S. Department of Housing and Urban Development (“HUD”); and WHEREAS, to begin construction, the Project must obtain major additional financing from public sources, including an allocation of Low Income Housing Tax Credits (“Tax Credits”) from the California Tax Credit Allocation Committee (“CTCAC”); and WHEREAS, Resolution 2024-119 states that the City’s funding commitment shall expire on June 11, 2026, if the Project has not secured all necessary commitments of financing and undertaken the necessary steps to commence construction; and WHEREAS, Wakeland has taken significant steps to complete its financing and prepare for construction, including obtaining environmental approvals pursuant to the National Environmental Policy Act (“NEPA”), and submitting a building permit application, currently under review by the City, but was not successful in its 2025 application for Tax Credits and is therefore not prepared to meet the June 11, 2026, construction start deadline specified by Resolution 2024-119; and WHEREAS, Wakeland is preparing to reapply for an allocation of Tax Credits this spring and anticipates being able to commence construction within the next year; and WHEREAS, the City still supports construction of the Project, which will include PSH for 48 households exiting homelessness, including 25 homes set aside for homeless veterans. Docusign Envelope ID: 8F91566D-8A2F-45C3-9291-1CB51F2E7039 Resolution No. 2026-041 Page No. 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that Section 3 of Resolution No. 2024-119 is hereby deleted in its entirety and replaced with the following: 3. Excepting the pre-development loan portion authorized by Resolution 2024-180, the City shall not disburse loan funds until Wakeland has secured all other necessary financing for the construction of the Project. The City’s funding commitment shall expire on March 17, 2028, if the Project has not secured all necessary commitments of financing and undertaken the necessary steps to commence construction. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that all other provisions of Resolution No 2024-119, as amended by Resolution 2024-180, shall remain in full force and effect. [SIGNATURES ON THE FOLLOWING PAGE] Docusign Envelope ID: 8F91566D-8A2F-45C3-9291-1CB51F2E7039 Resolution No. 2026-041 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 17th day of March 2026, by the following vote: AYES: Councilmembers: Chavez, Fernandez, Inzunza, and McCann NAYS: Councilmembers: None ABSENT: Councilmembers: Preciado 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. 2026-041 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 17th day of March 2026. Executed this 17th day of March 2026. Kerry K. Bigelow, MMC, City Clerk Docusign Envelope ID: 8F91566D-8A2F-45C3-9291-1CB51F2E7039