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HomeMy WebLinkAboutReso 2010-105RESOLUTION NO. 2010-105 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (A) APPROPRIATING $2,400,000 FROM HOME INVESTMENT PARTNERSHIP FUNDS AND $2,000,000 FROM HOUSING AUTHORITY IN LIEU FEES FOR THE DEVELOPMENT OF THE LANDINGS II; AND (B) AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE HOME LOAN AGREEMENT AND A LOAN AGREEMENT BY AND BETWEEN THE CITY OF CHULA VISTA, AND LANDINGS II, L.P. AND ALL OTHER AGREEMENTS AND DOCUMENTS NECESSARY FOR THE FINANCING OF THE LANDINGS II AFFORDABLE APARTMENT PROJECT WHEREAS, Brookfield Shea Otay, LLC proposed to build 207 affordable for-sale units (92 low-income and 115 moderate-income) in Neighborhood R-19 of Otay Ranch Village Eleven to satisfy its affordable housing obligations; and WHEREAS, a 92-unit affordable rental development was completed in satisfaction of the low-income housing obligation on Lot 2 of Map No. 15479 and the 115 moderate-income obligation remains but due to the current financial climate, the Project is infeasible to finance as a moderate income development; and WHEREAS, Landings II, L.P. (the "Developer") proposes to construct a 143-unit multi- family rental development, with units affordable to very low households at 50 percent (50%) of the Area Median Income (AMI) and to low households at 60 percent (60%) of the Area Median Income (AMI) within the Winding Walk master planned community on a vacant site (Lot 1 of Map No. 15479) located at the north west corner of Discovery Falls Drive and Crossroads Street in the City of Chula Vista ("Project", or "Landings II") in satisfaction of the remaining 115 moderate-income housing obligation; and WHEREAS, Developer has received anallocation ofMulti-family Housing Revenue Bonds from the California Debt Limit Allocation Committee (CDLAC) in a principal and aggregate amount of $30,000,000; and WHEREAS, Developer is applying for four percent (4%) tax credits from the Tax Credit Allocation Committee (TCAC); and WHEREAS, the City has determined, based on the evaluation ofthe development budget, 55- year operating pro forma, sources and uses for the Project, that additional financing is appropriate and necessary in order to make the Project feasible; and Resolution No. 2010-] OS Page 2 WHEREAS, on June 9, 2009, pursuant to Resolution No. 2009-132, the City Council approved financial assistance in an amount not to exceed $2,400,000 from the City's HOME Investment Partnership Program (HOME) funds for the development of the Landings II Affordable Apartments and authorized execution of a Loan Agreement, subject to future appropriation; and WHEREAS, an amendment to the loan agreement for the HOME funds is necessary to accurately reflect the name of the Developer and to provide consistency with other City and Agency Loan Agreements and other financing documents for the Project; and WHEREAS, on April 8, 2008, the City Council approved execution of an "Agreement to Post Security for Affordable Housing Obligation" (the "Agreement") wherein the parties to the Agreement acknowledged and agreed to the requirement of twenty-five (25) low income housing units (the "Housing Obligation") as a result of the development of an 18.4 acre parcel within Eastlake III as a 494-unit senior housing complex (Seniors Project) and The Eastlake Company (Eastlake) agreed to post a bond for the benefit of the City to secure satisfaction of the Housing Obligation prior to issuance of any building permits for the Seniors Project; and WHEREAS, on October 20, 2009, pursuant to Resolution No. 2009-255, the City Council amended the Agreement to allow Eastlake to provide payment of $2,000,000 to the City for the use and transfer of 25 low-income housing unit credits to satisfy their Housing Obligation and to facilitate development of the Project; and WHEREAS, on the 30th day of September, 2009, the City's Housing Advisory Commission, held 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 heard, and considering all factors relating to the request for the Agency Loan, has recommended to the Agency that a loan be approved and the agreement be amended to allow a contribution from The Eastlake Company on the condition that all other necessary financing be secured for the Project; and WHEREAS, the City has adopted a Housing Element ofthe General Plan which sets forth the objective of providing balanced and vazied housing opportunities throughout the City to satisfy the needs and desires of various age, income and ethnic groups of the community, and which specifically provides for the construction of new affordable rental housing units through City assistance. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista as follows: 1. That it authorizes the establishment of a new non-CIP project - "Landings II Project" and amends the fiscal yeaz 2010 Home Program Budget to appropriate $2,400,000 in grant funds from Housing and Urban Development to the "Landings II Project" for a loan related to the development of the Landings II project and expenses related to the processing of the loan; and Resolution No. 2010-105 Page 3 2. That it amends the fiscal year 2010 Housing Authority Budget to appropriate $2,000,000 in Affordable Housing In-Lieu Funds to the "Landings II Project" for a loan related to the development of the Landings II project and expenses related to the processing of the loan; and 3. That it authorizes the City Manager to execute the first amendment to the Construction and Permanent Financing Agreement (City HOME Loan) and a loan agreement for $2,000,000 from the Affordable Housing In-lieu funds between the City of Chula Vista and Landings II, L.P. and all other agreements and documents necessary for the financing of the Landings II Affordable Apartments. Presented by Approved as to form by r7 l~ ~~` ",~ Gary H lbert P. ., AICP B C. Miesfeld Deputy City anager/Director of City Attorney Development Services Resolution No. 2010-105 Page 4 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 4th day of May 2010 by the following vote: AYES: Councilmembers: Bensoussan, Castaneda, Ramirez, Thompson and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None ~~h.u, ..kX"A~~ Cheryl Cox, M yor 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. 2010-105 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 4th day of May 2010. Executed this 4th day of May 2010. Donna R. Norris, CMC, City Clerk