HomeMy WebLinkAbout2007/03/20 Item 5
CITY COUNCIL
AGENDA STATEMENT
~I!?::. CITY OF
- f CHUIA VISTA
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
March 20, 2007, Item~
"THE LANDINGS AT WINDING WALK" AN
AFFORDABLE HOUSING DEVELOPMENT
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA CONDITIONALLY APPROVING
FINANCIAL ASSISTANCE, SUBJECT TO FUTURE
APPROPRIATION FROM THE HOME INVESTMENT
PARTNERSHIP (HOME) PROGRAM IN AN AMOUNT
NOT-TO-EXCEED $920,000 TO CHELSEA INVESTMENT
CORPORATION, FOR THE DEVELOPMENT OF THE
PROPOSED 92-UNIT "THE LANDINGS AT WINDING
WALK" ~:./
ACTING DIRECTOR OF CO~UNITY DEVELOPMENTP'
INTERIM CITY MANAGER (II
4/STHS VOTE: YES D NO ~
BACKGROUND
On September 5, 2006, the City of Chula Vista and Brookfield Shea Otay, LLC, a California
Limited Liability Corporation, entered into an Affordable Housing Regulatory Agreement
to provide affordable for-sale housing in Neighborhood R-19 ofOtay Ranch Village Eleven.
This Agreement was entered into to satisfy the master developer's affordable housing
obligations to provide 207 total affordable units (92 low-income and 115 moderate-income)
under the City's Balanced Communities Policy of the Housing Element.
Since the execution and subsequent recordation of this Agreement, the master developer has
requested that the City of Chula Vista consider revising the affordable housing development
and the related Agreement to allow the affordable units for low-income households to be
rental rather than for-sale housing, while continuing to provide homeownership
opportunities for moderate-income households. Chelsea Investment Corporation (CIC) has
been selected by the master developer to pursue development of the affordable rental
housing on the R-19 site. CIC is currently in the process of securing financing for the
project and is requesting consideration of fmancial assistance.
5-1
March 20, 2007, Item~
Page 2 of 8
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed project for
compliance with the California Environmental Quality Act and has determined that the
proposed project was adequately covered in previously adopted Final Second Tier
Environmental Impact Report, EIR 01-02. Thus, no further CEQA review is necessary.
The City's HOME funds will be the source of fmancial assistance. Therefore, as required
by the HOME Program, the project must also be reviewed under NEPA. Funding of the
loan will be conditioned upon the completion of all required review under NEP A.
RECOMMENDATION
It is recommended that the City Council take the following actions:
1. Direct staff to bring back to Council for its consideration an amendment to the
Affordable Housing Regulatory Agreement for Neighborhood R-19 in Otay Ranch
Village Eleven replacing the obligation of 92 affordable for-sale units for low-income
households with 92 affordable rental units, concurrently with consideration of all
other agreements and documents necessary for the financing of the proposed rental
housing development.
2. Adopt the resolution conditionally approving financial assistance of $920,000 from
the HOME Investment Partnership Program to Chelsea Investment Corporation for
the development of the proposed The Landings at Winding Walk.
BOARDS/COMMISSION RECOMMENDATION
On February 28, 2007, the Housing Advisory Commission voted to recommend the
development of The Landings at Winding Walk as an affordable rental community and
the conditional approval of HOME funds to assist in its financing.
On August 1, 2005, the Design Review Committee (DRC) reviewed and approved the
proposed site plans and architectural elevations for the 92-unit The Landings at Winding
Walk.
DISCUSSION
Housinl! Element Requirements
The City's State-mandated Housing Element, which was adopted by the City Council in
December 2006, requires the provision of housing for all economic groups and distribution
of affordable housing developments throughout the City. The City's strategy to implement
this mandate is to require 10 percent of any new subdivision in excess of fifty (50) units to
be made affordable for low and moderate-income families (5% low and 5% moderate) and
to balance affordable housing development throughout the City. The primary objective of
5-2
March 20, 2007, ItemL
Page 3 of8
this policy is to increase affordable housing opportunities in the new planned communities
of eastern ChuIa Vista so that residents, particularly low-income households, have equal
housing choices throughout the City.
Affordable Housine: Oblie:ation
Under the City's Affordable Housing Program, the master developer of Otay Ranch
Village 11 ("Winding Walk") has an obligation to provide a total of 207 affordable units:
92 low-income and 115 moderate-income.
The master developer had originally proposed satisfying their affordable housing
obligation through a for-sale project of 239 three-bedroom units, known as "The
Landings," located on the corner of Discovery Falls Road and Crossroads Street. Ninety-
two of the units were to be available as low-income for-sale units, 115 as moderate-
income for-sale units, and 32 as market rate/unrestricted units. On September 5, 2006,
the City and master developer executed and recorded against the property an Affordable
Housing Regulatory Agreement that detailed implementation of this project, as described
above.
Proposed Alternative
At this time, the master developer is proposing an alternative to the original project. The
Landings project would be revised to allow the 92 units for low-income households to be
rental housing rather than pursuing a first time homebuyer project. Chelsea Investment
Corporation (CIC) has been selected by the master developer to develop and construct
The Landings as a rental community. Other than the tenure (rental versus owner-
occupied), all aspects of the project site plan and design will remain as approved by the
Design Review Committee.
The master developer is proposing rental housing for the low-income units based upon
the increasing difficulty in developing and implementing successful homeownership
opportunities for low-income households in Chula Vista and throughout the region. A
variety of reasons can be attributed to this difficulty: housing needs, current market
conditions, and difficulty finding qualified applicants. Rental housing within the
Winding Walk community can also serve to meet a great demand for affordable housing
and offer a variety of housing types in an area dominated by higher priced for-sale
housing.
Actions required by the City to revise the project to 92-units of affordable rental housing
would include the reconveyance of the existing Affordable Housing Regulatory
Agreement on the title of the property, and the recordation of two new agreements (one to
address the 92 low income units and one to address the 115 moderate income units).
These agreements will be brought back to City Council for approval. No further
discretionary actions would be required.
5-3
March 20, 2007, Item~
Page 4 of 8
Housing Needs and Balanced Housing
According to the 2000 Census, over 60% of Chula Vista residents qualified as low- or
very low-income (earning less than $52,000 per year for a family of four). Based upon
their income and current housing prices, market rate homeownership is not affordable for
many lower income households.
While homeownership caiJ be a stepping stone for low-income buyers to gain equity and
provide their family with a better quality of life, owning a home is also a very expensive
and demanding choice for those on a fixed income. In addition to the monthly mortgage
and insurance costs, the continuous expenses for home improvements, repairs, and
maintenance can make homeownership more unaffordable for low-income families. For
many low-income families, rental housing is a more appropriate option.
In addition, the majority of the City's rental housing supply is located in the western
portion of the City (55%), while the east (east of 1-805) offers predominately owner
occupied units (84.2%). In recent years, the City has experienced the conversion of
nearly 900 market rate rental units in the east to condominiums, further impacting the
existing supply of rental housing in this area.
The Winding Walk community, as well as other neighboring Otay Ranch communities,
offers various types of homeownership opportunities, such as single family detached
homes, rowhomes, and condominiums, but has no affordable or market rate rental
housing constructed or planned. The Landings will satisfY the affordable obligation for
Village II. The location of The Landings provides an ideal site for an affordable rental
development, with its close proximity to transportation links, substantial commercial
developments at Eastlake Terrace and Otay Ranch Town Center, middlelhigh school, the
planned Eastern Urban Center and the University/Regional Technology Park site.
The proposal to develop The Landings as an affordable rental community would assist in
meeting goals identified in the recently adopted 2005-2010 Housing Element by
encouraging a balanced housing stock and variety of housing choices in the eastern
portion of the City.
Market Conditions
As of 2006, the average price for a medium density attached home in San Diego County
was approximately $440,000 and $825,000 for a single family home. The overall median
price of a home was $550,000.
5-4
March 20, 2007, Item~
Page 5 of8
To afford a median-priced home in San Diego County, buyers need an annual income of
about $134,000.1 In Chula Vista, the area median income for 2006 was $64,900.
Therefore, it is not surprising that less then 10% of the current population can afford
homeownership.2
As housing prices escalate, subsidy levels to qualify low-income buyers for affordable
for-sale projects also increase. .At the City's most recent affordable for-sale project, City
subsidies ranged from $172,000 to $192,000 per low-income unit, with a market price
ranging from $344,000 to $410,000. Unlike rental units, which may provide housing for
numerous low-income families over the life of the project, for-sale units often benefit
only one family, the initial purchaser.
A recent market study completed by the master developer for The Landings echoed
similar concerns regarding the pricing of homes and the potential pool of qualified low-
income homebuyers. The conclusions in the study raised concerns over the master
developer's ability to sell 92 low-income for-sale units.
Based on a sizeable inventory of new and re-sale units available on the market, the master
developer is projecting "flat" sales price appreciation for the 2007 new-home affordable
market, with 2-4 closings per community per month. Based on this absorption rate and
the lack of a waiting list, it would take approximately 46 months - almost four years - to
sell and close escrow on the 92 low-income units at The Landings.
Finding Qualified Home Buyers
The absorption rates experienced by the master developer for Village Eleven and the
developer of the Mar Brisa development in San Miguel Ranch are symptomatic of a
larger issue: a limited number of qualified buyers. Among the issues that limit the
number of qualified buyers are debt/income ratios, downpayment costs, and total housing
payment.
Today's society is reliant on the use of debt. Experience from past affordable housing
developments has demonstrated that many applicants simply have too much debt (i.e.
student loan debt, car loans, revolving credit) to qualify for loans and/or meet City
debt/income ratio requirements, regardless of subsidy levels. In addition to meeting the
debt to income ratios used for loan qualification, applicants must have sufficient
discretionary cash for a downpayment, closing costs, and reserves.
Unlike rental housing, homeownership costs include the monthly mortgage and
additionally costs for Home Owner Association fees and property taxes (the "Total
Housing Payment"). Potential low-income buyers can barely qualify for a decent
I Homes for All San Diegans, The State of Housing Affordability in the Region, 2006
2 U.S. Department of Housing and Urban Development, March 8, 2006
5-5
March 20, 2007, Item~
Page 6 of8
mortgage amount after Home Owner Association fees and property taxes are factored in.
A recent affordable homeownership project (Mar Brisa) experienced difficulty finding
applicants who could qualify for a $160,000 mortgage.
Financinl?: a Rental Development
Financing and development of The Landings, as a rental community, is proposed as a
joint private-public partnership. CIC will be using Tax Exempt Multi-Family Revenue
Bonds, Low Income Housing Tax Credit financing, and the State Multifamily Housing
Program (MHP) to support the majority of the estimated $33.8 million ($367,300 per
unit) cost of constructing the project (Attachment 2).
Due to the financing programs CIC will be pursuing, the project will provide rents even
lower than the 80% of the Area Median Income (AMI) required by the City's Affordable
Housing Program. Units will be made affordable to families at 30% to 60% of the AMI
and income and rent restrictions will be maintained for a period of 55 years (Attachment
3).
The income and rent restrictions will be incorporated into the various deed restrictions for
The Landings. Compliance with these restrictions will be subject annually to regulatory
audit and annual tax credit certification. Compliance with strict property management
policies and procedures will ensure that income and rent restrictions will be maintained
for the full 55-year compliance period, and will bind all subsequent owners of The
Landings, so that the commitment remains in force regardless of ownership.
With rents restricted at these levels and for this time period, the net operating income is
insufficient to support a loan large enough to cover the project costs. Therefore, there
remains a financing gap of approximately $12 million.
It is proposed that the remaining financing gap will be met by a combination of master
developer land donation, deferred developer fee and City assistance. To close the
financing gap, CIC has requested direct financial assistance of $920,000. The City's
funds would be used to restrict 11 of the units for extremely low-income households at
30% of the AMI. This equates to a per unit subsidy of $83,636.
As specified in the City's Housing Element, the Regional Housing Needs Assessment
estimates a total need of 3,875 new housing units for extremely low and very low-income
households. By using City funds to assist this income category, the City is able to make
progress towards its own Housing Element goals, as well as the Region's.
Staff is recommending that the City conditionally approve financial assistance III an
amount not to exceed $920,000 from its HOME funds to assist the project. The
leveraging of local dollars is necessary to obtain the critical bond/tax credit and MHP
5-6
March 20, 2007, Item~
Page 70f8
fmancing for the project. As proposed, the project would be able to leverage $36 in
private investment for each $1 of our local resources. Financial assistance for the
residential units will be subject to negotiation of satisfactory terms of the Regulatory
Agreement and Loan Agreement and the approval of such terms and documents by the
City at a later date.
Form of Assistance - HOME Funds
City assistance will be provided from funding received from the federal HOME
Investment Partnership Program (HOME). Assistance will be in the form of a loan
secured by a note and deed of trust recorded against the property. The principal and
interest on the loan will be amortized over fifty- five years and repaid from cash surplus in
annual installments. Terms of the loan will be further negotiated and all related loan
documents will be presented to the City for approval at a later date.
The City is required to use its HOME funds solely for the purpose of providing
affordable housing for low-income persons. Federal requirements outline timeframes in
which HOME dollars must be allocated and actually expended. By July 2007, the City
must commit $927,860 to eligible activities. With no current plans for the expenditure
of HOME funds and looming expenditure deadlines, the funding of this project will assist
the City in meeting the allocation and expenditure requirements.
Conditions of Fundinl!
It is recommended that funding approved for The Landings be conditioned on approval of
all other funding necessary to fund the project and execution of all necessary loan
documents.
CONCLUSION
staff has analyzed the issues of an affordable for-sale development and rental housing and
the specific issues related to the Otay Ranch community. As stated within the City's
Housing Element, the more pressing need for the City's lower income population is for
quality affordable rental housing, and a more balanced and varied housing stock is
recommended for eastern Chula Vista. The proposal of 92 affordable rental units for
low-income households in the Winding Walk community of Otay Ranch meets both of
these goals, and provides a variety of benefits such as a preferred location to
neighborhood services, amenities and employment centers, private funding opportunities,
long term affordability, and a balance and variety of housing.
At the request of the master developer, and following staff's review and analysis, staff
recommends changing the project from for-sale affordable housing to a rental community.
Based on the foregoing, staff furthermore recommends approval of the City resolution
conditionally approving financial assistance, subject to future appropriation, in an amount
5-7
March 20,2007, Item-5-
Page 8 of8
not-to-exceed $920,000 from the City's HOME funds for the development and
construction of 92-units for lower income households, particularly II-HOME assisted units
for extremely low-income households, within The Landings at Winding Walk.
DECISION MAKER CONFLICT
staff has reviewed the property holdings of the City Council and has found no property
holdings within 500 feet of the boundaries of the property which is the subject of this
action.
FISCAL IMP ACT
Approval of this resolution indicates an intention by the City to provide financial
assistance for the development and construction of The Landings to provide affordable
rental housing opportunities within the Winding Walk Otay Ranch community, once all
other necessary financing for the project is secured. The loan amount of $920,000 will be
appropriated at the time of execution of the City Loan Agreement from the
unappropriated balance in the HOME Program. Funds for staff services are budgeted in
the staff services portion of the Housing Division budget.
ATTACHMENTS
1. Locator Map
2. Summary of Project Sources & Uses
3. Proposed Income & Rent Levels
Prepared by: Leilani Hines. Senior Community Development Specialist, Community Development
J:\COMMDEV\Shea Homes AffHsg Reg Agreement (Vll).dooc [3/14/07; 3:07 PM]
5-8
)"
'"
/
",< ./'
/./ /~',.
'>... / /',
'<" /<-, /"' />"
/' , '< /.)/ >~"
,', ,/ / 'y ./ '>.. -'
\ 'A ~./ /'y/ /' /).",
"-/ . '" '<//"/~\ </ A '
/' ( / /" ,( / .~. <- c: / \. "
/',,"' / /, '/ / V V '/ /',
.// /><// ,/^,<j::~r/>, ':A'/>
" /' ' . .'. ~ ';:' :( ..... V.'~~' ,j
'\ /' ,)'..// // j 0'" /^ // /^.. ,~\. //"-,
/, "<, /'/ ,I;/~~ V /X / /<~~'~/
',).. '..( /~. /~~' ('"\ ,( / /" ". ;....
, '. -, ( 0 , ,/ / v/ /' '.( "' "-
/ ~, ..., /.~O~:;:/ /'. '/ /v' ,/' "''.
, / /'.')" ~ <{,,~? ;~/.).' ':::'/~</./~>A <<> "
X, / ,L.T c: / ,/ /', l7.\./ /' / /' / // ....
// // v_ ,/. .//'.. // ./~ ~.^ / )" / //", '/ /'
/ r-/ ~~. ',/ x: / '" VA',. / -< / ,>. / ~
// .;' ,/"-... ,( // 'v/ //" ~"L"' //',,: / > "-
'\.,~/ /) ^' 'v A./ /"^', ~-1f.<'" "' / ""/ // /'
/ / "" "-./ / / ./ .>-,/ / \
(/ /'" / /~ V; ///V/ / v/ ),V/ I
F,. /V />://\\\()~/~~. '( (]I
/ V ./ ),Vy:;//'
.. ./" , / '( ./ '. / /-. ~
/ / /./ /// . X ~ "1\
:'<< /A....'.\ //'.v\ </'(v\. /~/
//\V),,), /
/ >:/ ,/ \ \\-// )/ /,/
'~~/.)) V:~0.' \'-..'//
/\\/V/ Y?
-6:;\ /
. ~ "~v
~ ~/ 'y/
\ /\
\
, ". /~//'\
~\y \
~'Y'S/ \
\
)
/~~~
\ / /' ,\P-
\ //~/ \~
\ / / / '\i/Q
\ / / \~
\~/ X,X <v,\..
/\ < .
~ \ \ \
\ \ \
\ \ \
\ \ \
\\ 5-9 \ \\
"
,
\
.
\,
~\
"
z
'....
,
-
_Co
s::: 0
ClJ:E
E ...
.s:::O
U-
o 0
_ U
- 0
<(.....
The Landings at Wmding Walk
Attachment 2
PROFORMA SUBSIDY ANALYSIS
Cost Funds
Financing Gap
Project Cost
Land Purchase (Land Value & $10,000 Fee)
Construction
Contingency
Permits & Fees
Interest/Fees, Financing Costs
DesignJEngineering
Developer Fees
Reserves, Legal, Other
Sources of Funds
$10,590,000
$14,269,634
$625,861
$2,684,928
$1,668,887
$755,000
$2,500,000
$695,939
Tax Credit Equity
State MHP Loan
Bond
Subtotal $ 33,790,249 $
Subsidies
City Loan
Land Donation
Deferred Developer Fee
TOTAL
Cost per Unit @ 92 Units)
City/Agency Subsidy per Unit @ II Units
City/Agency Leverage
$ 33,790,249 $
5-10
$9,624,000
$7,216,260
$4,948,000
21,788,260 $
12,001,989
$920,000
$10,580,000
$501,989
33,790,249 $
$ 367,285
$ 83,636
$ 36 to $1 of City Assistance
Attachment 3
The Landings at Winding Walk
PROPOSED INCOME & RENT lEVELS
l nit Description No. of Target Income Croup InclusionaQ Proposed
lInits 'X. of AMI Annuallncolllc Housin~ Rents
(-I Persons) Obli~ation
3 Bd/2 Ba 32 30% $20,700 $1,035 $479
3 Bd/2 Ba 12 50% $34,500 $1,035 $838
3 Bd/2 Ba 22 55% $38,000 $1,035 $928
3 Bd/2 Ba 25 60% $41,400 $1,035 $1,018
MGR 1 N/A N/A N/A N/A
Total Restricted 92
5-11
COUNCIL RESOLUTION NO. 2007-_
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA CONDITIONALLY APPROVING FINANCIAL ASSISTANCE,
SUBJECT TO FUTURE APPROPRIATION FROM THE HOME
INVESTMENT PARTNERSHIP PROGRAM IN AN AMOUNT NOT-TO-
EXCEED $920,000 TO CHELSEA INVESTMENT CORPORATION FOR
THE DEVELOPMENT OF THE PROPOSED 92-UNIT AFFORDABLE
RENTAL COMMUNITY, KNOWN AS THE LANDINGS AT WINDING
WALK
WHEREAS, the City of Chula Vista is an entitlement/participating jurisdiction for the U.S.
Department of Housing and Urban Development (HUD) funding programs and is awarded on an annual
basis a formula grant from the HOME Investment Partnership Program (HOME); and
WHEREAS, HOME funds are designed exclusively to create affordable housing opportunities for
low-income households through the construction, purchase, and/or rehabilitation of affordable housing for
rent or homeownership or provide direct rental assistance to low-income people; and
WHEREAS, Chelsea Investment Corporation ("Developer") proposes to construct a 92 unit
multifamily rental development, with 25 units affordable to low-income households at 60 percent of the
Area Median Income (AMI), 22 units for low-income households at 55 percent of the AMI, 12 units for very
low-income at 50 percent of the AMI, and 32 units affordable to extremely low-income households at 30
percent of the AM I, within the Otay Ranch Village Eleven (also known as "Winding Walk") master planned
community on a vacant 14 acre (gross) site known as Neighborhood R19 located on the corner of
Discovery Falls Road and Crossroads Street in the City of Chula Vista ("Project"); and
WHEREAS, Developer is applying for an allocation of Multifamily Housing Revenue Bonds from
the California Debt Limit Allocation Committee (CDLAC), four percent (4%) tax credits from the Tax Credit
Allocation Committee (TCAC), and Multifamily Housing Program from the State of California Housing
and Community Development Department; and
WHEREAS, subsidies were obtained in the form of a land donation from the master developer,
Brookfield Shear Otay, LLC, and the Developer is proposing to defer a portion of their development fee to
assist in the financing of the Project; and
WHEREAS, the City's evaluation of the development budget, 45-year operating pro forma,
sources and uses for the Project has determined that additional financing is appropriate and necessary in
order to make the Project feasible; and
WHEREAS, the City wishes to provide Developer with a development loan of nine hundred twenty
thousand dollars ($920,000) from its HOME funds to assist with the financing gap for the construction of
the Project, more particularly for eleven floating "HOME-assisted" units for extremely low-income
households; and
WHEREAS, the City's development loan does not exceed the HOME maximum per-unit subsidy
limits based on the Section 221 (d)(3) limits established by HUD; and
WHEREAS, the City's provision of funds to the Project will directly improve the City's supply of
extremely low, very low and low-income housing within the area of the City east of interstate-805; and
WHEREAS, the City has adopted a Housing Element of the General Plan which sets forth the
objective of providing balanced and varied housing opportunities throughout the City to satisfy the needs
5-12
Resolution No. 2007-_
Page 2
and desires of various age, income and ethnic groups of the community, and which specifically provides
for the construction of new affordable rental housing units through City assistance; and
WHEREAS, the Project furthers the goals of the City set forth in the Housing Element and the
Consolidated Plan as it will facilitate the creation of affordable housing which will serve the residents of
the neighborhood and the City; and
WHEREAS, the City's Housing Advisory Commission did, on the 28th day of February, 2007, hold
a public meeting to consider said request for financial assistance; and
WHEREAS, the Housing Advisory Commission, upon hearing and considering all testimony, if
any, of all persons desiring to be heard, and considering all factors relating to the request for financial
assistance, has recommended to the City that financial assistance be approved on the condition that all
other necessary financing be secured for the Project; and
WHEREAS, the Housing Advisory Commission found that the City's financial participation in the
development of the Project will be a sound investment based upon Developer's ability to effectively serve
the City's housing needs and priorities as expressed in the Housing Element and the Consolidated Plan
and the cost effectiveness of the City's financial assistance based upon the leveraging of such resources;
and
WHEREAS, in accordance with the requirements of NEPA, the proposed project will be reviewed
prior to the appropriation of funds from the HOME Program; and
WHEREAS, the development of the Project implements the affordable housing requirements for
Otay Ranch Village Eleven, impacts were previously analyzed in the certified EIR for the Otay Ranch
Village Eleven GDP and SPA Plan (Final Second Tier EIR-01-02), and the Project is in compliance with
the previously certified EIR, therefore, no further action is required under CEQA.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby
conditionally approve financial assistance subject to future appropriation in an amount not-to-exceed
$920,000 from the City's HOME funds to Developer for the construction ofthe Project subject to the City's
approval of an affordable housing regulatory and loan agreement and, at a minimum, the following terms
and conditions:
1. Certification of the appropriate NEPA documentation prior to appropriation of any HOME funds for the
Project.
2. Developer shall secure all other financing necessary for the acquisition and development of the
Project.
3. Developer shall enter into a regulatory and loan agreement with the City to be considered at a later
date by the City Council The approval of this agreement remains subject to final approval by the City
Council which retains its sole and unfettered discretion as to that decision.
4. The loan repayment will be secured by a Deed of Trust and Promissory note for the property on
behalf of the City of Chula Vista and recorded against the Project property.
5. The term of the loan shall be fifty-five (55) years.
5-13
Council Resolution No. 2007-
Page 3
6. Developer will be required to operate the Project consistent with the Regulatory Agreement required
by the Project's tax credit financing, bond financing, the City's Affordable Housing Program, and the
City's HOME financing, the covenants imposed by these Agreements, and any other project
requirements.
7. The City assistance is based upon the assumptions presented within the sources and uses offunds,
development budget, development proforma and other information filed with the Affordable Housing
Review Application for the project as submitted and reviewed by the Community Development
Department. The City assistance is a maximum level of participation. It is expected that any
substantive revisions in such financing assumptions which would lead to an increase in other
resources available, would therefore reduce the level of City assistance.
8. This conditional approval remains subject to final approval by the City in its sole and unfettered
discretion.
pre'~"dl2 /
~ ~V
Ann Hix
Acting Director of Community Development
Approved as to form by
~4:rM
An oore
City Attorney
5-14