Loading...
HomeMy WebLinkAboutReso 2009-019RESOLUTION NO. 2009-019 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CONDITIONALLY APPROVING FINANCIAL ASSISTANCE, SUBJECT TO FUTURE APPROPRIATION FROM THE HOME INVESTMENT PARTNERSHII' (HOME) PROGRAM IN AN AMOUNT NOT-TO-EXCEED $2,400,000 TO CHELSEA INVESTMENT CORPORATION FOR THE DEVELOPMENT OF A 147 UNIT PROJECT FOR LOW INCOME HOUSEHOLDS, THE LANDINGS AT WINDING WALK-PHASE II, IN OTAY RANCH VILLAGE ELEVEN WHEREAS, the City of Chula Vista is an entitlement/participating jurisdiction for the U.S. Department of Housing and Urban Development (HLTD) funding programs and is awazded on an annual basis a formula grant from the HOME Investment Partnership Program (HOME); and WHEREAS, HOME funds are designed exclusively to create affordable housing opportunities for low income households through the construction, purchase, and/or rehabilitation of affordable housing for rent or homeownership or provide direct rental assistance to low income people; and WHEREAS, Chelsea Investment Corporation (Developer) proposes to construct a 147 unit multi-family rental development, with units affordable to very low households at 50 percent of the Area Median Income (AMI) and to low households at 60 percent of the AMI within the Winding Walk master planned community on a vacant site (Lotl of Map No. 15479) located east of Eastlake Pazkway south of Birch Road and north of Crossroads Street in the City of Chula Vista (Project); and WHEREAS, Developer is applying for an allocation of Multifamily Housing Revenue Bonds from the California Debt Limit Allocation Committee (CDLAC); and WHEREAS, Developer is applying for four percent (4%) tax credits from the Tax Credit Allocation Committee (TCAC); and WHEREAS, additional financing is necessary in order to make the Project feasible; and WHEREAS, the provision ofaffordable housing units like the Project is consistent with and called for by the City's General Plan Housing Element and Consolidated Plan; and WHEREAS, the City wishes to provide Developer with a development loan of two million four hundred thousand dollazs ($2,400,000) to assist with the financing gap for the construction of the residential units of the Project; and WHEREAS, the City's provision of funds to the residential use of the Project will directly improve the City's supply of very low and low income housing; and Resolution No. 2009-019 Page 2 WHEREAS, the City's Housing Advisory Commission did, on the 28~' day ofJanuary, 2009, hold 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 heazd, and considering all factors relating to the request for financial assistance, has recommended to the City Council that the conditional financial assistance be approved because the Commission believes that the City's financial participation in the development of the Project will be a sound investment based upon Developer's ability to effectively serve the City's housing needs and priorities as expressed in the Housing Element and the Consolidated Plan and the cost effectiveness of the City's financial assistance based upon the leveraging of such resources; and WHEREAS, in accordance with the requirements of CEQA, the Enviromnental Review Coordinator has determined that the proposed project has had adequate prior review and is in compliance with the previously adopted Final Second Tier Environmental Impact Report, EIR O1-02 and no further action by the City Council is necessary. NOW, THEREFORE, BE IT RESOLVED that the City of Chula Vista does hereby conditionally approve financial assistance subject to future appropriation in an amount not-to-exceed $2,400,000 from the City's HOME funds to Developer for the construction of the Project subject to the City's approvals of an affordable housing and loan agreement which shall include, at a minimum, the following terms and conditions. Terms of the loan will be further negotiated and all related loan documents will be presented to the City Council at such time other necessary financing is secured. The loan repayment will be secured by a Deed of Trust and Promissory note for the property on behalf of the City of Chula Vista and recorded against the Project property. 2. The principal and interest on the loan will be amortized over fifty-five yeazs and repaid from cash surplus in annual installments. 3. Developer will be required to operate the Project consistent with the Regulatory Agreement required by the Project's tax credit and bond fmancing, the covenants imposed by the Agreement, and any other project requirements. 4. Developer shall enter into a loan agreement with the City consistent with the terms set forth above and with such other terms as shall be required or approved by the City Attorney. 5. The City 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 Development Services 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 City assistance. ;- Resolution No. 2009-019 Page 3 6. This conditional approval remains subject to final approval by the City in its sole discretion. Presented by Halbe , P.E., AICP Deputy Ci Manager /Development Services Director Approved as to form by Xb Bart C. e d-"- ~City Atto PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 3rd day of February 2009 by the following vote: AYES: Councilmembers: Bensoussan, Castaneda, McCann, Ramirez, and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None ATTEST: Donna R. Norris, CMC, ity Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CFNLA VISTA ) Cheryl Cox, ay r I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No.2009-019 was duly passed, approved, and adopted by the City Council at a regulaz meeting of the Chula Vista City Council held on the 3rd day of February 2009. Executed this 3rd day of February 2009. ® r Donna R. Norris, MC, City Clerk