HomeMy WebLinkAboutRDA Reso 2006-1956
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RDA RESOLUTION NO. 2006-1956
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF CHULA VISTA APPROVING [A] A
PREDEVELOPMENT LOAN AGREEMENT BY AND BETWEEN
THE REDEVELOPMENT AGENCY AND WAKELAND HOUSING
AND DEVELOPMENT CORPORATION FOR THE
DEVELOPMENT AND OPERATION 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 THE 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 (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 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 (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 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
RDA Resolution No 2006-1956
Page 2
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
Agency and City propose to enter into an Agency Predevelopment Loan Agreement
(Predevelopment Loan Agreement) with the Developer, pursuant to which the Agency would
make a predevelopment loan to the Developer (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 rehabilitation of rental housing units through Agency assistance; and
--,
WHEREAS, the Environmental Review Coordinator has reviewed the proposed activity
for compliance with the California Environmental Quality Act (CEQA) and has determined that
the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines;
therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not
subject to CEQA. Thus, no environmental review is necessary; 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 dilly considered all terms and conditions of the proposed
Agency Loan Agreement and believes that this Loan 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 REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA DOES RESOLVE AS FOLLOWS:
Section I. The Agency hereby fmds 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. --,
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RDA Resolution No 2006-1956
Page 3
Section 2. The Agency hereby approves [A] A 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 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.
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Approved as to form by
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Ann Moore
General Counsel
Acting Community Development Director
PASSED, APPROVED, and ADOPTED by the Redevelopment Agency of the City of
Chula Vista, California, this 22nd day of August 2006, by the following vote:
AYES:
Agency Members: Castaneda, Chavez, McCann, Rindone, and Padilla
NAYS:
Agency Members: None
ABSENT:
Agency Members:
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ATTEST:
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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 Agency, do hereby certify that
the foregoing RDA Resolution No. 2006-1956 was duly passed, approved, and adopted by the
Redevelopment Agency at a special meeting held on the 22nd day of August 2006.
Executed this 22nd day of August 2006.
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Dana M. Smith, Secretary