HomeMy WebLinkAboutReso 2008-132
RESOLUTION NO. 2008-132
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE APPROPRIATION OF AN
ADDITIONAL $195,000 FROM THE AVAILABLE BALANCE
IN THE CITY'S HOME INVESTMENT PARTNERSHIP
PROGRAM (HOME) FUNDS, APPROVING THE FIRST
AMENDMENT TO THE LANDINGS LOAN AGREEMENT
BETWEEN THE CITY OF CHULA VISTA AND CIC
LANDINGS, L.P. INCREASING THE LOAN AMOUNT BY
$180,000, AND AUTHORIZING THE CITY MANAGER TO
EXECUTE THE FIRST AMENDMENT TO THE LANDINGS
LOAN AGREEMENT AND ALL OTHER NECESSARY LOAN
DOCUMENTS TO PROVIDE THE ADDITIONAL FINANCIAL
ASSISTANCE FOR THE DEVELOPMENT AND OPERATION
OF THE LANDINGS APARTMENTS
WHEREAS, CIC Landings, L.P. (the Developer) has proposed to construct a 92-unit
apartment community, known as the Landings, in Neighborhood R-19 of Otay Ranch Village
Eleven (the Project) in satisfaction of Housing Element Policy 5.1 - Balanced Communities
Affordable Housing of the City's General Plan; and
WHEREAS, Housing Element Policy 7.4.5 sets forth the objective of providing financial
assistance to new residential developments affordable to very low and low-income households,
particularly those developments addressing the City's underserved housing needs of very low
income households and rental housing for large families; and
WHEREAS, the City receives Home Investment Partnership Program (HOME) funds
from the United States Department of Housing and Urban Development (HUD) exclusively for
the creation of affordable housing opportunities for very low and low-income households; and
WHEREAS, the Project furthers the goals set forth in the City's 2005-2010 Housing
Element of the General Plan and the 2005-2010 Consolidated Plan for the HOME Program; and
WHEREAS, on August 7, 2008, pursuant to Resolution 2007-209, the City Council
approved the Landings Loan Agreement between the City and the Developer (the Loan
Agreement) in which the City agreed to loan Developer $920,000 in HOME funds; and
WHEREAS, the Developer has requested an additional loan of HOME funds not to
exceed $ 180,000 for additional costs related to compliance with the accessibility requirements of
the HOME funds; and
WHEREAS, the additional funds will bring the total amount of City HOME assistance to
$1,100,000 for the construction of the Project; and
WHEREAS, it is necessary to fund additional $15,000 in project management costs
related to the Project, which will offset staff time and overhead costs related to loan
underwriting, legal services, environmental review, and other related internal project staff costs;
and
Reso]ution No. 2008-132
Page 2
WHEREAS, the total amount of City assistance through the HOME Program is
consistent with the maximum per-unit HOME subsidy and such subsidy has been evaluated for
reasonableness; and
WHEREAS, the City Council has considered all terms and conditions of the proposed
First Amendment to the Landings Loan Agreement and believes that the First Amendment is in
the best interest of the City and the health, safety, and welfare of the residents of the City, and in
accordance with the public purposes and provisions of applicable Federa], State and local law
requirements.
NOW, THEREFORE, BE ]T RESOLVED, by the City Council of the City of Chu]a
Vista as follows:
I. That it approves an amendment of the fiscal year 2007/2008 Home Program
Budget to appropriate an additional $195,000 from the available balance in the City's Home
Investment Partnership Program (HOME) funds to the non-CIP project, "Landings Project".
2. That it approves the First Amendment to the Landings Loan Agreement
increasing the loan amount by $180,000 for a total loan amount of$],100,000.
3. That it authorizes the City Manager or his designee to execute the First
Amendment to the Landings Loan Agreement and all related loan documents, to make all
approvals and take all actions necessary or appropriate to carry out and implement the Landings
Loan Agreement, as amended, and to administer the obligations, responsibilities and duties ofthe
City to be performed under the Landings Loan Agreement, as amended~ and related documents.
4. That it authorizes the City Manager to make revisions to the Landings Loan
Agreement, as amended, and all other related loan documents, which do not materially or
substantially increase the obligations of the City under those agreements or material]y or
substantial]y change any aspect of the Project.
Presented by
Approved as to form by
~///
Eric Crockett
Redevelopment & Housing Assistant Director
'.~l~a~
Ann Moore
City Attorney
Resolution No. 2008-132
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 27th day of May 2008 by the following vote:
AYES:
Councilmembers:
Castaneda, McCann, Ramirez, Rindone, and Cox
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
None
Cheryl ~bgly
ATTEST:
line-1M{ ~ J~;{d
Donna R. Norris; CMC, Interim City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA)
I, Donna R. Norris, Interim City Clerk of Chula Vista, California, do hereby certify that the
foregoing Resolution No. 2008-132 was duly passed, approved, and adopted by the City Council
at a regular meeting of the Chula Vista City Council held on the 27th day of May 2008.
Executed this 27th day of May 2008.
."
/JluJL!Av. I /!{!v)~
Donna R. Norfis, C~C, Interim City Clerk
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