HomeMy WebLinkAboutReso 2026-130RESOLUTION NO. 2026-130
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A LOAN TO WAKELAND
HOUSING AND DEVELOPMENT CORPORATION, OR AN
AFFILIATED ENTITY, TO ASSIST IN THE CONSTRUCTION
OF A 62-UNIT AFFORDABLE HOUSING DEVELOPMENT TO
BE LOCATED AT 545 EAST NAPLES STREET,
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND
EXECUTE ALL DOCUMENTS RELATED TO THE LOAN IN A
FORM APPROVED BY CITY ATTORNEY, AND
APPROPRIATING FUNDS THEREFOR
WHEREAS, in 2024, the City of Chula Vista (“City”) established a Local Housing Trust
Fund (“LHTF”) to assist with the construction, rehabilitation, and preservation of affordable
housing, and deposited $500,000 into the LHTF pursuant to Resolution No. 2024-102; and
WHEREAS, the City applied for a LHTF matching grant from the California Department
of Housing and Community Development (“HCD”) pursuant to Resolution No. 2024-163, adopted
on August 6, 2024, and was subsequently awarded a matching grant of $500,000 from HCD; and
WHEREAS, the combined LHTF local contribution and state match must be spent on the
production of affordable housing, less $25,000 for administrative costs; and
WHEREAS, the Chula Vista Housing Authority (“Housing Authority”) also has
$3,000,000 available for the production of affordable housing; and
WHEREAS, the City and the Housing Authority issued a combined Notice of Funding
Availability (“NOFA”) for the new construction of affordable housing; and
WHEREAS, the NOFA was issued on November 7, 2025, with a deadline of January 15,
2026, and two (2) proposals were submitted for consideration; and
WHEREAS, a selection committee of City staff determined that a submittal by Wakeland
Housing and Development Corporation (“Wakeland”) for a 68-unit affordable project to be located
at 545 East Naples Street (“Project”) scored highest on a range of factors, including project
readiness, developer experience, and overall quality; and
WHEREAS, the Housing and Homeless Advisory Commission provided an advisory
recommendation that the Housing Authority approve the loan by a vote of 3-0 at its special meeting
on March 25, 2026; and
WHEREAS, Wakeland has conducted outreach to the neighboring community regarding
the Project, and has received feedback requesting that the Project be designed to adequately
mitigate drainage and stormwater runoff concerns, privacy and lighting concerns, and concerns
regarding the site’s parking configuration; and
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Resolution No. 2026-130
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WHEREAS, in accordance with community feedback, the Chula Vista Housing Authority
desires that the project be reduced in size to a maximum of 62 units.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it does hereby authorize a loan from its Housing Fund to Wakeland, or an affiliated entity, in
an amount not to exceed one million dollars ($1,000,000), less $25,000 for administrative costs,
for the construction of the Project, to be secured against the property and repaid from cash surplus
in annual installments.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it
amends the Fiscal Year 2025-26 budget by appropriating $475,000 to the other expenses category
and $25,000 to the supplies and services category of the Local Housing Trust Fund, Fund 313.
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 loan agreement, regulatory agreement, and
all associated loan documents, and to carry out all other actions necessary for the development of
the Project, consistent with the City’s standard documents, in a form approved by the City
Attorney, and at minimum, subject to the following terms and conditions:
1. The Project shall consist of a maximum of sixty-two (62) units.
2. Prior to grading and building permit issuance, the Director of Development Services,
in consultation with the Building Official and the Civil Engineer supervising the Land
Development Division, shall advise the City Manager of the efforts to mitigate privacy,
parking, lighting, line of sight, drainage, and stormwater runoff concerns for residential
properties abutting the Project. The City Manager’s written confirmation that the
mitigation is satisfactory shall be required prior to the disbursement of loan funds.
3. The City shall not disburse loan funds until Wakeland has secured all necessary
financing for the construction of the Project and taken all other steps necessary to carry
out the close of financing.
4. The funding commitment shall be valid for a period of two (2) years from the date of
this resolution, with one optional extension of one year at the sole discretion of the City
Manager (the Commitment Term). The commitment shall expire if the Project has not
secured all other necessary financing and taken all other steps necessary to commence
construction by the end of the Commitment Term, unless further extended with the
approval of Council.
5. The loan shall be evidenced by a promissory note in favor of the City, secured by a
deed of trust recorded against the property.
6. The term of the loan and regulatory agreement shall be fifty-five (55) years.
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Resolution No. 2026-130
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7. Wakeland, or its affiliate or approved successors in interest, shall operate the Project
consistent with a regulatory agreement to be recorded against the Project and running
with the land, along with any other covenants imposed by other Project lenders.
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 16th day of June 2026, by the following vote:
AYES: Councilmembers: Chavez, Fernandez, Inzunza, and Preciado
NAYS: Councilmembers: McCann
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. 2026-130 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 16th day of June 2026.
Executed this 16th day of June 2026.
Kerry K. Bigelow, MMC, City Clerk
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