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HomeMy WebLinkAboutRDA Reso 2008-1989 RDA RESOLUTION NO. 2008-1989 RESOLUTION OF THE CHULA VISTA REDEVELOPMENT AGENCY (A) APPROPRIATING $5,570,000 FROM REDEVELOPMENT AGENCY LOW AND MODERATE INCOME HOUSING FUNDS FOR FINANCIAL ASSISTANCE FOR THE DEVELOPMENT OF LOS VECINOS; AND (B) AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A LOAN AGREEMENT BY AND BETWEEN THE CHULA VISTA REDEVELOPMENT AGENCY, AND LOS VECINOS, L.P. AND ALL OTHER IMPLEMENTING AGREEMENTS AND DOCUMENTS WHEREAS, pursuant to California Government Code Section 65915, the City Council of the City of Chula Vista by ordinance granted density bonus concessions and incentives for the multi-family Los Vecinos apartment complex in exchange for the development of 42 residential units, which would be restricted for a period of 55 years for occupancy by very low and low income families; and 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 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 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, the 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. 2008-1989 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, Agency proposes to enter into an Agency Loan Agreement (Loan Agreement) with the Developer's limited partnership, Los Vecinos, L.P., pursuant to which the Agency would make a loan to Los Vecinos, L.P., 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 Loan will leverage the investment of the Agency by obtaining 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 Project has incurred legal, architectural, engineering costs and other salaries, wages, and costs directly related to the planning and execution of the project, which are allowed under Health and Safety Code section 33334.3( e )(2) as project costs; 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 Loan Agreement furthers the goals of the Agency to facilitate the creation of affordable housing that will serve the residents of the neighborhood and the. City as set forth in the Implementation Plan; and WHEREAS, the Agency has duly considered all terms and conditions of the proposed 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 accordance with the public purposes and provisions of applicable state and local law requirements. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of Chula Vista does resolve as follows: Section I. The Chula Vista Redevelopment Agency hereby finds that the use of funds from the Agency's Low and Moderate Income Housing Fund pursuant to the Loan Agreement for the development of an affordable rental housing project located at 1501 Broadway, will benefit the Agency's redevelopment project areas for the reasons set forth above. J RDA Resolution No. 2008-1989 Page 3 Section 2. The Chula Vista Redevelopment Agency does hereby: (A) Establish a new non-Capital Improvement Project - "Los Vecinos Project" and amend the fiscal year 2008 Low and Moderate Income Housing Budget to appropriate $5,570,000 from the available fund balance for financial assistance for the development of Los Vecinos costs, including $90,000 for costs directly related to the planning and execution of the project, and (B) Authorize the Agency Executive Director/City Manager or his designee to execute the Loan Agreement by and between the Chula Vista Redevelopment Agency and Los Vecinos, L.P., and all other implementing agreements and documents, subject to such revisions as may be made reviewed and approved by the Agency/City Attorney. BE IT FURTHER RESOLVED that the Chula Vista Redevelopment Agency has made their recommendations, as herein contained, after considering all evidence and testimony presented at its public meeting and is hereby incorporated into the record. Presented by Approved as to form by c/Ld Eric C. Crockett Redevelopment Manager /-', l^'- l'\~~ Ann Moore Agency General Counsel RDA Resolution No. 2008-1989 Page 4 PASSED, APPROVED, and ADOPTED by the Redevelopment Agency of the City of Chula Vista, California, this 5th day of February 2008, by the following vote: AYES: Agency Members: Castaneda, McCann, Ramirez, Rindone, and Cox NAYS: Agency Members: None ABSENT: Agency Members: None ATTEST: J I /;(~ Eric Crockett, Secretary STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Eric Crockett, Secretary of the Chula Vista Redevelopment Agency, do hereby certify that the foregoing RDA Resolution No. 2008-1989 was duJy passed, approved, and adopted by the Redevelopment Agency at a regular meeting held on the 5th day of February 2008. Executed this 5th day of February 2008. /' fl/~ /' Eric Crockett, Secretary