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HomeMy WebLinkAboutCVRC Reso 2006-034 e e e CVRC RESOLUTION NO 2006-034 RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION RECOMMENDING [A] APPROVAL OF A PREDEVELOPMENT LOAN AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY AND WAKELAND HOUSING AND DEVELOPMENT CORPORATION FOR THE DEVELOPMENT OF AN AFFORDABLE RENTAL HOUSING DEVELOPMENT TO BE LOCATED AT 1501 BROADWAY IN THE CITY OF CHULA VISTA AND AUTHORIZING THE CHAIRMAN OF THE REDEVELOPMENT AGENCY TO EXECUTE SAID AGREEMENT; AND [B] APPROPRIATION OF $200,000 FROM THE UNAPPROPRIATED BALANCE IN THE LOW AND MODERATE INCOME HOUSING FUND FOR SAID PREDEVELOPMENT LOAN TO WAKELAND HOUSING AND DEVELOPMENT CORPORATION WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6 authorize and direct the Redevelopment Agency of the City of Chula 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 of low and moderate income housing available at affordable housing cost to persons and families of low- 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 IS 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 of low or moderate income; and WHEREAS, Wakeland Housing and Development Corporation ("Developer") proposes to construct an affordable rental housing development targeting predominately extremely low and very low households at 50 percent or less of the Area Median Income (AMI) to be located at 1501 Broadway within the Merged Chula Vista Project Area ("Project"); and WHEREAS, in order to carry out and implement the Redevelopment Plan for the Agency's redevelopment projects and the affordable housing requirements and goals thereof, the CVRC Resolution 2006-034 Page 2 """"" Agency and City propose to enter into an Agency Predevelopment Loan Agreement (the "Predevelopment Loan Agreement") with the Developer, pursuant to which the Agency would make a predevelopment loan to the Developer (the "Predevelopment Loan"), and the Developer would agree to develop the Project for occupancy of all apartment units in the Project to very low and lower income households and rent those units at an affordable housing cost; and WHEREAS, the Agency Predevelopment Loan Agreement will leverage the investment of the Agency and City by requiring the Developer to obtain additional financing for the construction and operation of the Project through such resources as "9% Tax Credits" to be generated by the Project; and WHEREAS, the Project is located within the Agency's Merged Chula Vista Redevelopment Project Area and development and operation of the Project pursuant to the Agency 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 new construction of rental housing units through Agency assistance; and """"" WHEREAS, the Agency Agreement furthers the goals of the Agency to facilitate the creation of affordable housing which will serve the residents of the neighborhood and the City as set forth in the Implementation Plan; and WHEREAS, the Agency have duly considered all terms and conditions of the proposed Predevelopment Loan Agreement and believes that this Agreement is in the best interests of the Agency and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local law requirements. NOW, THEREFORE, THE CHULA VISTA REDEVELOPMENT CORPORATION DOES RESOLVE AS FOLLOWS. Section I The Chula Vista Redevelopment Corporation hereby finds that the use of funds from the Agency's Low and Moderate Income Housing Fund pursuant to the Predevelopment Loan Agreement, to facilitate the development and operation of real property will be of benefit to the Agency's redevelopment project areas for the reasons set forth above. Section 2. The Chula Vista Redevelopment Corporation hereby recommends the [A] approval of the Agency Predevelopment Loan Agreement in substantially the form presented to the Agency, subject to such revisions as may be made by the Agency Executive Director/City Manager or his designee subject to the review and approval of the Agency/City Attorney, with ~ Wakeland Housing and Development Corporation for the development of an affordable rental e e e CVRC Resolution 2006-034 Page 3 housing development located at 1501 Broadway and; [B] appropriation of $200,000 from the unappropriated balance in the Low And Moderate Income Housing Fund for said Predevelopment Loan to Wakeland. PRE;;:~ Ann Hix Acting Director of Community Development APPROVED AS TO FORM BY ftJ el PASSED, APPROVED, and ADOPTED by the Chula Vista Redevelopment Corporation of the City ofChula Vista, this lOth day of August 2006, by the following vote: AYES. Directors: Castaneda, Chavez, Desrochers, Paul, Rindone, and Rooney NAYS. Directors: None ABSENT: Directors: Lewis, McCann, Padilla ATTEST ~II{~ Dana M. Smith, Secretary STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Dana M. Smith, Secretary of the Chula Vista Redevelopment Corporation of the City of Chula Vista, California, do hereby certify that the foregoing CVRC Resolution No. 2006-034 was duly passed, approved, and adopted by the Chula Vista Redevelopment Corporation at a regular meeting of the ChuIa Vista Redevelopment Corporation held on the 10th day of August 2006. Executed this 10th day of August 2006. ~ It(. ~/,-J Dana M. Smith, Secretary