Loading...
HomeMy WebLinkAboutRDA Reso 2003-1845 AGENCY RESOLUTION NO. 1845 (CITY COUNCIL RESOLUTION NO. 2003-432) A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A LOAN AGREEMENT AND RELATED RESTRICTIVE COVENANTS AND APPROPRIATING $1,000,000 FROM THE AVAILABLE BALANCE IN THE AGENCY'S LOW AND MODERATE INCOME HOUSING FUND AND $500,000 FROM THE CITY'S HOME FUNDS FOR FINANCIAL ASSISTANCE TO CIC EASTLAKE, L.P. FOR THE DEVELOPMENT AND OPERATION OF RANCHO VISTA WHEREAS, the City has been allocated funds from the United States Department of Housing and Urban Development ("HUD") pursuant to the federal government's HOME Investment Partnerships Program (42 U.S.C. Section 1274, et seq.) which can be used to provide subsidies to or for the benefit of very low income and lower income households in accordance with HOME regulations (24 C.F.R. Section 92, et seq.); and WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6 authorize and direct the Redevelopment Agency of the City ofChula Vista (the "Agency") to expend a certain percentage of all taxes which are allocated to the Agency pursuant to Section 33670 for the purposes of increasing, improving and preserving the community's supply oflow and moderate income housing available at affordable housing cost to persons and families oflow- and moderate-income, lower income, and very low income; and WHEREAS, pursuant to applicable law the Agency has established a Low and Moderate Income Housing Fund (the "Housing Fund"); and WHEREAS, pursuant to Health and Safety Code Section 33334.2(e), in carrying out its affordable housing activities, the Agency is authorized to provide subsidies to or for the benefit of very low income and lower income households, or persons and families of low or moderate income, to the extent those households cannot obtain housing at affordable costs on the open market, and to provide financial assistance for the construction and rehabilitation of housing which will be made available at an affordable housing cost to such persons; and WHEREAS, pursuant to Section 33413(b), the Agency is required to ensure that at least 15 percent of all new and substantially rehabilitated dwelling units developed within a project area under the jurisdiction of the Agency by private or public entities or persons other than the Agency shall be available at affordable housing cost to persons and families oflow or moderate income; and WHEREAS, CIC Eastlake, L.P. (the "Developer") has proposed to construct a 150 unit apartment building located at 1311 Eastlake Parkway in the City of Chula Vista (the "Project"); and WHEREAS, in order to carry out and implement the requirements of the HOME Program and the Redevelopment Plan for the Agency's redevelopment projects and the affordable housing requirements thereof, the City and the Agency propose to enter into a Loan Agreement and Related Res1ricted Covenants (the "Loan Agreement") with the Developer, pursuant to which the City would Redevelopment Agency REDEVELOPMENT AGENCY RESOLUTION NO. 1845 CITY COUNCIL RESOLUTION NO. 2003-432 Page 2 loan Five Hundred Thousand Dollars ($500,000) to the Developer, the Agency would loan One Million Dollars ($1,000,000) to the Developer (the "Agency Loan"), and the Developer would agree to construct the Project in accordance with the requirements of the Loan Agreement, restrict occupancy of 149 of the apartment units in the Project to very low, lower income and low and moderate income households, and rent those units at an affordable rent; and WHEREAS, the Loan Agreement will leverage the investment of the City and the Agency by requiring the Developer to obtain additional financing for the construction and operation of the Project through a combination of a loan obtained from the proceeds of multifamily mortgage revenue bond financing to be issued by the Housing Authority of the City of Chula Vista, a private construction loan, an equity contribution by a limited partner investor in consideration for the "4% Tax Credits" to be generated by the Project, and other outside financing; and WHEREAS, the City has adopted a Housing Element of the City General Plan which sets forth the objective of providing housing to satisfY the needs and desires of various age, income and ethnic groups of the community, and which specifically provides for the development of rental housing units through City assistance; and WHEREAS, the Loan Agreement furthers the goals of the City set forth in the Housing Element as it will facilitate the creation of affordable housing which will serve the residents of the neighborhood and the City; and WHEREAS, the Project is located outside of the Agency's redevelopment project areas, but the development and operation of the Project pursuant to the Loan Agreement would benefit the Agency's redevelopment project areas by providing affordable housing for persons who currently live and work within those redevelopment project areas; and WHEREAS, the Agency has adopted an Implementation Plan pursuant to Health and Safety Code Section 33490, which sets forth the objective of providing housing to satisfY the needs and desires of various age, income and ethnic groups of the community, and which specifically provides for the development of rental housing units through Agency assistance; and WHEREAS, the Loan Agreement furthers the goals of the Agency set forth in the Implementation Plan as it will facilitate the creation of affordable housing which will serve the residents of the neighborhood and the City; and WHEREAS, the Legislature declares in Health and Safety Code Section 36000, et seq., that new forms of cooperation with the private sector, such as leased housing, disposition of real property acquired through redevelopment, development approvals, and other forms of housing assistance may involve close participation with the private sector in meeting housing needs, without amounting to development, construction or acquisition of low rent housing projects as contemplated under Article XXXIV of'the State Constitution; and REDEVELOPMENT AGENCY RESOLUTION NO. 1845 CITY COUNCIL RESOLUTION NO. 2003-432 Page 3 WHEREAS, Health and Safety Code Section 37001(a) provides that a low rent housing project does not include the development of privately owned housing, receiving no ad valorem Redevelopment Agency property tax exemption, other than exemptions granted pursuant to subdivision (f) or (g) of Section 214 of the Revenue and Taxation Code, not fully reimbursed to all taxing entities; and not more than 49 percent of the dwellings, apartments, or other living accommodations of the development may be occupied by persons oflow income; and WHEREAS, the Project will be privately owned, will receive no ad valorem property tax exemption, other than exemptions granted pursuant to subdivision (f) or (g) of Section 214 of the Revenue and Taxation Code, and not more than 49 percent of the apartment units in the Project are restricted to very low and lower income persons pursuant to the Loan Agreement; and WHEREAS, Health and Safety Code Section 37001.5 provides that a public body does not develop, construct or acquire a low rent housing project under Article XXXIV of the State Constitution when the public body provides assistance to a low rent housing project and monitors construction or rehabilitation of the project to the extent of carrying out routine governmental functions, performing conventional activities of a lender, and imposing constitutionally mandated or statutorily authorized conditions accepted by a grantee of assistance; and WHEREAS, the Loan Agreement provides for assistance by the City and Agency to the Project, and the monitoring of construction of the Project by the City and Agency to the extent of carrying out routine governmental functions, performing conventional activities of a lender, and imposing constitutionally mandated or statutorily authorized conditions accepted by a grantee of assistance; and WHEREAS, the City Council and the Agency have duly considered all terms and conditions of the proposed Loan Agreement and believe that the Loan Agreement is in the best interests of the City and the Agency 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. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA AND THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA DO JOINTLY RESOLVE AS FOLLOWS: Section 1. The City Council and the Agency hereby find that the use of funds from the Agency's Low and Moderate Income Housing Fund pursuant to the Loan Agreement, for the acquisition, development and operation of real property which is outside of the Agency's redevelopment project areas, will be of benefit to the Agency's redevelopment project areas for the reasons set forth above. REDEVELOPMENT AGENCY RESOLUTION NO. 1845 CITY COUNCIL RESOLUTION NO. 2003-432 Page 4 Section 2. The City Council and the Agency hereby determine that the Project is not a "low rent housing project" within the meaning of Article XXXIV of the State Constitution, and that the assistance to be provided pursuant to the Loan Agreement does not constitute development, construction or acquisition of a low-rent housing project within the meaning of Article XXXIV of the State Constitution. This Resolution is hereby deemed to constitute a final approval of a proposal which may result in housing assistance benefiting persons oflow income, within the meaning of Health and Safety Code Section 36005. Section 3. The City Council and the Agency hereby approve the Loan Agreement in substantially the form presented to the City Council and Agency, subject to such revisions as may be made by the City Manager/Agency Executive Director or his designee. The Mayor and City Manager and their designees are hereby authorized to execute the Loan Agreement on behalf of the City. The Chairman and Executive Director of the Agency and their designees are hereby authorized to execute the Loan Agreement on behalf of the Agency. A copy of the Loan Agreement when executed by the City and Agency shall be placed on file in the office of the City Clerk. Section 4. The Mayor and City Manager (or their designee) on behalf of the City, and the Chairman and Executive Director (or their designee) on behalf of the Agency, are hereby authorized to make revisions to the Loan Agreement which do not materially or substantially increase the obligations of the City or Agency thereunder or materially or substantially change the uses or development permitted on the Site, to sign all documents, to make all approvals and take all actions necessary or appropriate to carry out and implement the Loan Agreement and to administer the obligations, responsibilities and duties of the City and Agency to be performed under the Loan Agreement and related document Presented by Approved as to form by Lauri Madigan Direct r of Communi ~~jz../M; Moore Attorney REDEVELOPMENT AGENCY RESOLUTION NO. 1845 CITY COUNCIL RESOLUTION NO. 2003-432 Page 5 PASSED, APPROVED and ADOPTED BY THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA this 7th day of October, 2003 by the following vote: AYES: Members Davis, Rindone, Salas, McCann, Chair/Mayor Padilla NOES: None ABSENT: None ABSTENTIONS: None JilL ATTEST: ~ STATE OF CALIFORNIA) COUNTY OF SAN DIEGO) ss: CITY OF CHULA VISTA) I, Laurie Madigan, Executive Secretary to the Redevelopment Agency of the City of Chula Vista, Califomia DO HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution No. 1845 and that the same has not been amended or repealed. Dated: October 7, 2003 ,; Lau 'e A. Madigan Exe utive Secretary <-.-J