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HomeMy WebLinkAboutAgenda Statement 1982/07/06 Item 11COUNCIL AGENDA STATEMENT Item 11 Meeting Date 7/6/82 IT M TITLE: Resolution /~ 9.t~ Approving transfer of Public Housing site to County Housing Authority SU MITTED BY: Community Development Director (4/5ths Vote: Yes No X ) On August 19, 1981, the City purchased a 2.03 acre parcel at Melrose Avenue an Otay Valley Road to be used as a site for Low Rent Public Housing. It was in ended that the property be conveyed to the County Housing Authority for Pu lic Housing development at the point at which they had received the ne essary HUD clearances. Those clearances have been accomplished. Th refore, it is my RE OMMENDATION: That Council adopt the resolution transferring the Public Ho sing site to the County Housing Authority and authorizing the Mayor and Ci y Clerk to sign the necessary documents. BO DS/COMMISSIONS RECOMMENDATION: The Affordable Housing Subcommittee of th Human Relations Commission approved the development of Public Housing in Ch la Vista most recently on April 8, 1981. DI CUSSION: Th Public Housing site at Melrose Avenue and Otay Valley Road was purchased b the City for $565,000 plus closing costs of $2,102.60 from Biddle Chula Vista Limited. It is a partially-improved condominium site, with grading, u ilities and paving completed. T e Public Housing project architect has departed from the original c ndominium plans in designing a 24-unit townhouse family Public Housing p oject. Schematic plans for the new design were approved by the City Council o July 7, 1981. The new configuration obviates the need for an existing e sement to the City for general access, utilities, and incidental purposes, a d it necessitates vacation of that easement, which will be before you t night as a separate item from the City Engineer. T e real property contract and grant deed are attached for your c nsideration. The purchase price is the original sales price to the City p us the total closing costs originally incurred by the City, for a total s ttlement of $567,102.60. The County will pay all closing costs associated w th this sale. Payment in full to the City will occur within five days of r cordation of the transaction. Page 2, Item 11 Meeting Date 7/6/82 The following mechanisms exist for assuring that the City's interest in pro iding low and moderate income housing on this site will be sustained: 1. A Cooperation Agreement and an Memorandum of Understanding exist between the City and the Housing Authority for the provision of Low Rent Public Housing in Chula Vista. Both documents establish the City's voice in effecting the provision of that housing. 2. An Annual Contributions Contract (ACC) has been executed between the Housing Authority and HUD which pledges the federal funding for the Low Rent Public Housing project and which exacts certain conditions from the Housing Authority. Among those conditions are the requirements that the Housing Authority sustain a Cooperation Agreement with the City, that the Housing Authority use the acquired property only for Low Rent Public Housing during the term of the ACC (40 years plus possible extensions to 75 years), and that the Housing Authority cannot sell or lease the property during the term of the ACC. Further, HUD pledges in the ACC that if they should have to take title to the property, they would operate it as Low Rent Public Housing. 3. The Grant Deed on the property contains deed restriction language which assures the use of the property for low income housing for a period of 40 years. Thr ugh these mechanisms, which have been reviewed by the City Attorney's off ce, the City can be assured that its efforts to acquire suitable sites for Pub is Housing, which included obtaining a federal loan, will result in the lon -term provision of assisted housing in Chula Vista. Sub equent to Council action, the property transfer will be conveyed to the Boa d of Supervisors of the Housing Authority for approval. HUD approval and fun ing have already been secured. FIS AL IMPACT: The City will receive $567,102.60 through this transaction. Of hat amount, $131,038.33 will be repaid to the Redevelopment Agency Housing Fun Of the balance, $346,240 will be used to make a Section 108 Guaranteed Loa payment to HUD on August 1, 1982. The balance will be held in an int rest-bearing account for future Section 108 Loan payments. DG: r WPC 0033X b~ the City C~~.incil ©f t;;:~la V;sta, Califior~~la f Z..r~ ~o y~~