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HomeMy WebLinkAboutRDA Reso 2007-1977 RDA RESOLUTION NO. 2007-1977 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA CONDITIONALLY APPROVING FINANCIAL ASSISTANCE IN AN AMOUNT NOT-TO-EXCEED $5,480,000 SUBJECT TO FUTURE APPROPRIATION FROM THE UNAPPROPRIATED BALANCE IN THE LOW AND MODERATE INCOME HOUSING FUND TO 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 WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6 authorize and direct the Redevelopment Agency of the City ofChula 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 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 (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 carmot 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 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 a Loan Agreement (Loan Agreement) with the Developer, pursuant to which the Agency would make a loan to the Developer (Loan), and the Developer would agree to develop all of the apartment units in the Project for occupancy of very low and lower income households and rent those units at an affordable housing cost; and RDA Resolution No. 2007-1977 Page 2 WHEREAS, the Agency Loan Agreement will leverage the investment of the Agency 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 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 WHEREAS, the Agency has determined, based on the evaluation of the development budget, 55-year operating pro forma, sources and uses for the Project, that additional financing is appropriate and necessary in order to make the Project feasible; and WHEREAS, the Agency wishes to provide Developer with a development loan of five million, four hundred eighty thousand dollars ($5,480,000) from its Housing Fund to assist with the financing gap for the construction of the Project; 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 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, on the 28th day of March, 2007, the City's Housing Advisory Commission, held 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 Agency that financial assistance be approved on the condition that all other necessary financing be secured for the Project; and WHEREAS, on the 14th day of June, 2007, the Chula Vista Redevelopment Corporation (CVRC), held a public meeting to consider said request for financial assistance; and WHEREAS, the CVRC, 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 Agency that financial assistance be conditionally approved subject to the Agency's approval of an affordable housing regulatory and loan agreement; and RDA Resolution No. 2007-1977 Page 3 WHEREAS, the Environmental Review Coordinator reviewed the proposed Project for compliance with the California Environmental Quality Act (CEQA) and prepared an Initial Study, IS-07-017, in accordance with the CEQA. Based upon results of the Initial Study, the Environmental Review Coordinator determined that the Project could result in effects on the environment. However, revisions to the Project made by, or agreed to, by the applicant would avoid the effects, or mitigate the effects, to a point where clearly no significant effects would occur. Therefore, the Environmental Review Coordinator has prepared a Mitigated Negative Declaration, IS-07-017. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of Chula Vista does hereby conditionally approve financial assistance subject to future appropriation in an amount not-to-exceed $5,480,000 from the Agency's Low and Moderate Income Housing Fund to Developer for the construction of the Project subject to the Agency's approval of an affordable housing regulatory and loan agreement and, at a minimum, the following terms and conditions: 1. Developer shall secure all other financing necessary for the acquisition and development of the Project. 2. Developer shall enter into a regulatory and loan agreement with the Agency to be considered at a later date by the Redevelopment Agency. The approval of this agreement remains subject to final approval by the Redevelopment Agency, which retains its sole and unfettered discretion as to that decision. 3. The loan repayment will be secured by a Deed of Trust and Promissory note for the property on behalf of the Redevelopment Agency of the City of Chula Vista and recorded against the Project property. 4. The term ofthe loan shall be fifty-five (55) years. 5. Developer will be required to operate the Project consistent with the Regulatory Agreement required by the Project's tax credit financing, and the Agency's Low/Mod financing, the covenants imposed by these Agreements, and any other Project requirements. 6. The Agency assistance is based upon the assumptions presented within the sources and uses of funds, 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 Agency assistance. Pre_'ffi by ~;z Ann Hix Acting Community Development Director Approved as to form by ~'{~\\~f~\&. Ann Moore ' General Counsel RDA Resolution No. 2007-1977 Page 4 PASSED, APPROVED, and ADOPTED by the Redevelopment Agency of the City of Chula Vista, California, this 14th day of June 2007, by the following vote: AYES: Agency Members: Castaneda, McCann, Ramirez, Rindone, and Cox NAYS: Agency Members: None ABSENT: Agency Members: None ~~ Cheryl Cox, Ch erson ATTEST: STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Ann Hix, Secretary of the Chula Vista Redevelopment Agency, do hereby certifY that the foregoing RDA Resolution No. 2007-1977 was duly passed, approved, and adopted by the Redevelopment Agency at a regular meeting held on the 14th day of June 2007. Executed this 14th day of June 2007.