HomeMy WebLinkAboutRDA Reso 2008-1992
RDA RESOLUTION NO. 2008-1992
(Cily Council Resolution No. 2008-065)
JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
AUTHORIZING (I) AN AMENDMENT TO THE EXISTING
AFFORDABLE HOUSING REGULATORY AGREEMENT AND
ITS FIRST AMENDMENT FOR THE 115 MODERATE INCOME
FOR-SALE UNITS AND THE 92 LOW-INCOME RENTAL
UNITS; AND (2) AN AMENDMENT TO THE AFFORDABLE
HOUSING AGREEMENT FOR THE 92 LOW-INCOME RENTAL
UNITS IN NEIGHBORHOOD R-19IN OT A Y RANCH VILLAGE
ELEVEN
WHEREAS, Brookfield Shea Otay, LLC (Brookfield Shea) originally proposed to build 207
affordable for-sale units (92 low-income and lIS moderate-income) in Neighborhood R-19 ofOtay
Ranch Village Eleven to satisfY its affordable housing obligations; and
WHEREAS, the City of Chula Vista (City) and Brookfield Shea entered into an Affordable
Housing Regulatory Agreement (Regulatory Agreement) to assure the continued affordability of
these for-sale units; and
WHEREAS, Brookfield Shea, the City and the Agency entered into a separate Affordable
Housing Agreement recorded December 4, 2007, as Document No. 2007-0753144 in the Official
Records (For-Rent Agreement) and the First Amendment to Affordable Housing Regulatory
Agreement recorded August 29, 2007, as Document No. 2007 (First Amendment) to allow the
construction and operation of the 92 units for low-income households as a multifamily rental housing
project, known as the Landings, by CIC Landings, LLC (C1C) (which approval was made by City
Council Resolution No. 2007-064 and conditioned upon the obtaining of subsidies and tax credits
including those from the State of California Multifamily Housing Program) while maintaining the
lIS moderate-income units as for-sale units; and
WHEREAS, in November 2007, Brookfield Shea processed a subdivision map for its real
property and subdivided Lot I of Chula Vista Tract No. 01-11 Otay Ranch Village 11
Neighborhoods MU-19 and R-19 into two separate lots to allow for the separate ownership and
development of the 115 moderate-income for-sale units and the Landings. These lots are now known
as Lot I and Lot 2 Chula Vista Tract No. 01-11 Otay Ranch Village II portions of Neighborhoods
MU-19 and R-19 according to Map No.1 5640, filed in Official Records of San Diego County, and
these two lots are sometimes collectively referred to herein as the "Real Property"; and
RDA Resolution No. 2008-1992
City Council Resolution No. 2008-065
Page 2
WHEREAS, Brookfield Shea is the legal owner of the fee title to Lot I of the Real Property.
Lot 1 is currently unimproved and will be developed, constructed and operated by Brookfield Shea as
a multifamily housing project of 115 Moderate-Income Units and 32 unrestricted Units (Moderate-
Income Project). Through the complete and satisfactory performance of the City's moderate-income
housing obligations, covenants, requirements and conditions of the Regulatory Agreement and the
First Amendment to the Regulatory Agreement, Brookfield Shea intends for the Moderate-Income
Project to satisfY its obligations for Moderate-Income Units; and
WHEREAS, CIC is the legal owner of the fee title to that portion of the Real Property,
known as Lot 2. Lot 2 of the Real Property is currently undergoing construction and development for
operation as a multifamily rental housing project of 92 Low-Income Units by CIC (Apartment
Project). Through complete and satisfactory performance of the City's low-income housing
obligations, covenants, requirements and conditions under the For-Rent Agreement and any
amendments thereto, CIC intends for the Apartment Project to satisfY the obligations for Low-
Income Units; and
WHEREAS, Brookfield Shea desires to remove the obligation to provide Low-Income Units
on Lot 1, so Brookfield Shea can designate Lot 1 as the Moderate-Income Parcel on which the
Moderate-Income Units will be developed; and
WHEREAS, CIC desires to remove the obligation to provide Moderate-Income Units on
Lot 2, so CIC can designate Lot 2 as the Low-Income Parcel on which the Low-Income Units will be
developed; and
WHEREAS, through a Second Amendment to the Regulatory Agreement, the City,
Brookfield Shea, and CIC desire to allocate the affordable housing obligations arising out of the
Master Affordable Housing Agreement, Regulatory Agreement, For-Rent Agreement, and all
amendments thereto, to individual parcels and their respective owners or successors in interest such
that the Moderate-Income Units shall be provided on Lot 1 and the Low-Income Units shall be
provided on Lot 2; and
WHEREAS, additionally, criteria for the pnonty and selection of tenants have been
developed and included in the body of the For-Rent Agreement. Since the execution of the For-Rent
Agreement, it has come to the attention of the Agency, that in certain circumstances and during the
timeframe that U.S. Housing and Urban Development (HUD) restrictions are in place, the criteria
developed for residential preferences may not be in full compliance with relevant HUD regulations.
In such situations, City would like to ensure that the language of the For-Rent Agreement is made
consistent with applicable law and all relevant regulations for the receipt and use of HOME funds;
and
,
RDA Resolution No. 2008-1992
City Council Resolution No. 2008-065
Page 3
WHEREAS, the For-Rent Agreement, as originally drafted and executed, also contains a
provision, Article 6, entitled Conflicts of Law, which addresses conflicts with state and federal laws
enacted after the F or-Rent Agreement was executed. Though such provision creates a process by
which the conflicts will be resolved, it does not contemplate how CIC is to meet its obligations under
the For-Rent Agreement without running afoul of the law that is the subject of the conflict. It is the
intent of this Amendment to permit CIC to comply with the law without breaching the terms and
conditions of the For-Rent Agreement; and
WHEREAS, all parties desire to amend the Regulatory Agreement, the First Amendment
thereto, and the F or-Rent Agreement to address these matters.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista and
the Redevelopment Agency of the City ofChula Vista as follows:
I. That it authorizes the City Manager to execute an amendment to the existing Regulatory
Agreement for the 115 moderate-income for-sale units and the 92 low-income rental units,
known as the Landings, in Neighborhood R-19 ofOtay Ranch Village Eleven, on file in the
Office of the City Clerk; and
2. That it authorizes the City Manager and the Executive Director of the Redevelopment
Agency to execute an amendment to the existing For-Rent Agreement for the 92 low-income
rental units, known as The Landings, in Neighborhood R -19 of Otay Ranch Village Eleven,
on file in the Office ofthe City Clerk.
Presented by
Approved as to form by
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Ann Moore
Agency Counsel/City Attorney
Eric Crockett
Secretary/Redevelopment & Housing Assistant
Director
RDA Resolution No. 2008-1992
City Council Resolution No. 2008-065
Page 4
PASSED, APPROVED, and ADOPTED by the Redevelopment Agency and the City Council
ofthe City of Chula Vista, California, this 26th day of February 2008, by the following
vote:
AYES:
Agency/Council Members: Castaneda, McCann, Ramirez, Rindone, and
Cox
NAYS:
Agency/Council Members: None
ABSENT:
Agency/Council Members: None
ATTEST:
.6~
Eric Crockett, Secretary
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Eric Crockett, Secretary of the Redevelopment Agency of the City ofChula Vista, California, do
hereby certifY that the foregoing Redevelopment Agency Resolution No. 2008-1 992/City Council
Resolution No. 2008-065 was duly passed, approved, and adopted by the Redevelopment Agency
and Chula Vista City Council at a regular meeting held on the 26th day of February 2008.
Executed this 26th day of February 2008.
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Eric Crockett, Secretary