HomeMy WebLinkAboutReso 2010-060RESOLUTION NO. 2010-060
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA CONDITIONALLY APPROVING FINANCIAL
ASSISTANCE, IN THE FORM OF A RESIDUAL RECEIPTS
LOAN IN AN AMOUNT NOT-TO-EXCEED $385,000 FROM THE
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)
PROGRAM TO SOUTH BAY COMMUNITY SERVICES, FOR
THE ACQUISITION AND REHABILITATION OF 1194-1196
TRENTON AVENUE FOR AFFORDABLE HOUSING
WHEREAS, the City of Chula Vista is an entitlement/participating jurisdiction for the U.S.
Department of Housing and Urban Development (HUD) funding programs and is awarded on an
annual basis a formula grant from the Community Development Block Grant (CDBG); and
WHEREAS, CDBG funds are designed to assist in the creation of affordable housing
opportunities for low-income households through the acquisition and/or rehabilitation of affordable
housing; and
WHEREAS, South Bay Community Services (Developer) proposes to acquire and
rehabilitate a 7-unit multi-family rental development, with units affordable to extremely low former
foster youth households at 30 percent (30%) of the Area Median Income (AMI) at 1194-1196
Trenton Avenue (Lot 16 of Map No. 2119) located north of Palomar Road in City of Chula Vista
(Project); and
WHEREAS, Developer is applying for County of San Diego HOME Investment Partnership
funds for Community Housing Development Organizations; and
WHEREAS, additional financing is necessary in order to make the Project feasible; and
WHEREAS, the provision of affordable 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 apre-commitment of $385,000 from
its federal CDBG funds to assist South Bay Community Services in obtaining additional affordable
housing financing; 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-income and low-income housing; and
WHEREAS, the City's Housing Advisory Commission did, on the 3rd day of March, 2010,
hold a public meeting to consider said request for financial assistance; and
Resolution No. 2010-060
Page 2
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, the environmental coordinator has reviewed the proposed action for compliance
with the National Environmental Policy Act (NEPA) due to the use of Federal funds and has
determined that pursuant to Section 58.30 (b), Subpart D, Title 24 ofthe Code of Federal Regulations,
further review and environmental determination as appropriate, will be required prior to appropriating
and/or entering into an affordable housing agreement with South Bay Community Services.
NO W, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA HEREBY
DOES RESOLVE as follows:
1. Financial assistance in an amount not-to-exceed $385,000 from the City's CDBG funds to
Developer for the acquisition and rehabilitation of the Project is conditionally approved.
2. The above conditional approval is conditioned upon the requirement that Developer must secure all
other funding necessary to fund the project.
3. The above conditional approval is conditioned upon the requirement that Developer must select a
qualified property management firm to manage the project.
4. The above conditional approval is conditioned upon the requirement that Developer participate in
the Crime Free Multi-Family Housing Program.
5. The above conditional approval is conditioned upon the requirement that all necessary environmental
and land use review and approvals must be obtained.
6. The above conditional approval is subject to the City's approval of an affordable housing and loan
agreement that shall include, at a minimum, the following terms and conditions:
a. The loan re-payment 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.
b. The principal and interest on the loan will be amortized over fifty-five yeazs and repaid
from cash surplus in annual installments.
c. Developer will be required to operate the Project consistent with the Regulatory
Agreement required by the Project's tax credit and bond financing, covenants imposed by
the Agreement, and any other project requirements.
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Page 3
d. Developer shall enter into a loan agreement with the City consistent with the terms set
forth above and with such any other terms as shall be required or approved by the City
Attorney.
7. That 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 that would lead to an increase in other resources
available, would therefore reduce the level of City assistance.
8. This conditional approval remains subject to final approval by the City in its sole discretion.
Presented by Approved as to form by
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Gary Ha bert, P.E., AICP Bart C. Miesfeld
Deputy City ger/Development Services City Attorney
Director
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Page 4
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 23rd day of Mazch 2010 by the following vote:
AYES: Councilmembers: Bensoussan, Castaneda, Ramirez, Thompson and
Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Cheryl Cox, Ma r
ATTEST:
Donna R. Norris, CMC, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2010-060 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 23rd day of March 2010.
Executed this 23rd day of Mazch 2010.
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Donna R. Norris, CMC, City Clerk