HomeMy WebLinkAboutReso 2009-132RESOLUTION NO. 2009-132
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE CITY MANAGER TO
EXECUTE A LOAN AGREEMENT BY AND BETWEEN THE
CITY OF CHULA VISTA, AND CIC LANDINGS, L.P. FOR THE
HOME FINANCING OF THE LANDINGS II AFFORDABLE
APARTMENTS
WHEREAS, the City of Chula Vista (City) has been allocated funds from the United States
Department of Housing and Urban Development (HUD) pursuant to the federal government's
HOME Investment Partnerships Program (42 U.S.C. Section 1274, et seq.) which can be used to
provide subsidies to or for the benefit of very low income and lower income households in
accordance with HOME regulations (24 C.F.R. Section 92, et seq.); and
WHEREAS, City has adopted a Housing Element to the City General Plan 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 development of rental housing
units through City assistance; and
WHEREAS, Chelsea Investment Corporation (Developer) proposes to construct a 143 -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 (Lot 1 of Map No. 15479) located east of Eastlake
Parkway 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 Multi-family Housing Revenue
Bonds from the California Debt Limit Allocation Committee (CDLAC) and four percent (4%) tax
credits from the Tax Credit Allocation Committee (TCAC) to support the majority of the
development and construction costs of the Project; and
WHEREAS, additional financing is still necessary in order to make the Project feasible; and
WHEREAS, on February 3, 2009, pursuant to Resolution No. 2009-019, City conditionally
approved financial assistance, subject to future appropriation, in an amount not to exceed $2,400,000
from the City's HOME Investment Partnership Program (HOME) funds to assist in the development
of the Landings Affordable Apartments and the direct financing of eleven (11) HOME units subject
to the City's approval of a Construction and Permanent Financing Agreement (the "Loan
Agreement") and certain minimum conditions; and
Resolution No. 2009-132
Page 2
WHEREAS, in order to implement the requirements of the HOME funds, City shall enter
into a Loan Agreement with the Developer, pursuant to which the City would provide a loan not to
exceed Two Million Four Hundred Thousand and 00/100 Dollazs ($2,400,000.00) to the Developer,
and the Developer shall develop, construct, and operate the Project, restricting the occupancy of 11
HOME-assisted units in the Project to very low income, and rent those units at an affordable rent in
compliance with the HOME regulations; and
WHEREAS, the City has duly considered all terms and conditions of the Loan Agreement
and believes that the Agreement is in the best interest of the City and the health, safety, and welfare
of the residents of the City, and in accord with the public purposes and provisions of applicable
Federal, State and local law requirements; and
WHEREAS, the City's provision of $2,400,000 for the eleven (11) HOME assisted units
($218,182 per unit subsidy) does not exceed the HOME Program's Section 221(d)(3) maximum per
unit subsidy limits ($228,780 per HOME assisted 3-bedroom unit) effective January 1, 2009; and
WHEREAS, the City's provision of funds to the Project will directly improve the City's
supply of very low and low income housing and is consistent with and called for by the City's
General Plan Housing Element and Consolidated Plan; and
WHEREAS, the City's Housing Advisory Commission did, on the 28~' day of January, 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 fmancial 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 Environmental 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 by the City Council of the City of Chula Vista as
follows:
1. The City Council hereby approves the Loan Agreement in substantially the form presented.
The City Manager and his designee are hereby authorized to sign all documents, to make all
approvals and take all actions necessary or appropriate to carry out and implement the Loan
Agreement and to administer the obligations, responsibilities and dufies of the City to be
performed under the Loan Agreement, and related documents.
Resolution No. 2009-132
Page 3
2. The City Attorney, on behalf of the City, is hereby authorized to make revisions to the Loan
Agreement which do not materially or substantially increase the obligations of the City
thereunder or materially or substantially change the uses or development permitted on the
Site.
Presented by
`, lGU'C-~~ i~~IJL
Gary Ha1beN, P.E., AICP
Deputy City Manager/
Development Services Director
Approved as to form by
~'~--i ' ; =~'7
~~~ • T , _ i
tB~C. Miesfeld'
City Attornev`~~ /'~
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 9th day of June 2009 by the following vote:
AYES: Councilmembers: Bensoussan, Castaneda, McCann, Ramirez, and Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
ATTEST:
0
Donna R. Norris, MC, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
,;„
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Cheryl Cox, 1~Jayo
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2009-132 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 9th day of June 2009.
Executed this 9th day of June 2009.
t,ua o
Donna R. Norris, C, City Clerk