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