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HomeMy WebLinkAbout2011/03/08 Item 1~u-,M1..-, CITY COUNCIL & ~S REDEVELOPMENT AGENCY {: AGENDA STATEMENT ~' ~~~ CITY OF -^-- CHULAVISFA MARCH 8, 2011, Item ITEM TITLE: CONSIDERATION BY THE CHULA VISTA REDEVELOPMENT CORPORATION, CITY COUNCIL OF THE CITY OF CHULA VISTA, REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, AND THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA OF A COOPERATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AND HOUSING AUTHORITY OF THE CITY OF CHULA VISTA RELATED TO COMMITING AND APPROPRIATING FUNDS TO THE HOUSING AUTHORITY FOR REDEVELOPMENT AGENCY HOUSING PROJECTS A) RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION RECOMMENDING THAT THE REDEVELOPMENT AGENCY APPROVE A COOPERATION AGREEMENT WITH THE HOUSING AUTHORITY RELATED TO COMMITTING AND APPROPRIATING FUNDS TO THE HOUSING AUTHORITY FOR REDEVELOPMENT AGENCY HOUSING PROJECTS B) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA MAKING FINDINGS RELATED TO THE PROJECTS IDENTIFIED IN THE COOPERATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AND HOUSING AUTHORITY OF THE CITY OF CHULA VISTA C) RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A COOPERATION AGREEMENT WITH THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA; COMMITTING FUNDS AND CONSENTING TO THE PAYMENT OF THOSE FUNDS TO THE HOUSING AUTHORITY FOR COSTS ASSOCIATED WITH CERTAIN REDEVELOPMENT AGENCY FUNDED HOUSING PROJECTS; MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH; AND APPROPRIATING FUNDS THEREFOR D) RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA APPROVING A COOPERATION 1-1 Mazch 8, 2011, Item Page 2 of 6 AGREEMENT WITH THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA; CONSENTING TO PAYMENT BY THE REDEVELOPMENT AGENCY OF ALL OR A PART OF THE COST ASSOCIATED WITH CERTAIN HOUSING .~ PROJECTS; AND APPROPRIATING FUNDS THEREFOR SUBMITTED BY: GARY HALBERT, ASSISTANT CITY MANAGER/DIRECTOR OF~,~ DEVELOPMENT SERVICES REVIEWED BY: CITY MANAGERS 1 4/STHS VOTE: YES ~X NO SUMMARY The purpose of this item is for the City Council and Redevelopment Agency (Agency) to provide the necessary findings to the Housing Authority (Authority) to implement identified housing projects. The source of funding will be the Tax Increment, other revenue received by the Agency and available Redevelopment Low and Moderate Income Housing fund balances in the current fiscal year and forthcoming fiscal yeazs. The Agency and Authority desire to formalize the terms and payment schedule through a Cooperation Agreement. ENVIRONMENTAL REVIEW The proposed approval of the Agreement is not a "project for the purposes of the California Environmental Quality Act (CEQA) and the State CEQA Guidelines (CEQA Guidelines) because, consistent with the CEQA Guidelines Section 15738(b)(4), while the Agreement commits the Agency to fund an affordable housing program, with potential projects identified, it does not commit the Housing Authority to implement any particular housing project without appropriate environmental review. Notwithstanding the foregoing, determination of what constitutes a "project" under CEQA is complex and may be the subject of differing interpretation. If the contemplated action is determined to be a "project" under CEQA, for the reasons stated herein, there is still no possibility that the activity may have a significant effect on the environment. Therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. The Agreement under consideration specifically provides that the Housing Authority shall not be obligated to complete any individual project if the Housing Authority later determines that such project is not exempt from CEQA, has not already undergone complete CEQA review, and requires the preparation of a mitigated negative declazation, environmental impact report (EIR) or supplemental or subsequent EIR. In that regard, the Agreement states that the Housing Authority shall retain the discretion to impose mitigation measures and to adopt project alternatives, consistent with the requirements of CEQA, that may be identified during future 1-2 March 8, 2011, Item t/ Page 3 of 6 environmental review of any specific project. Furthermore, even though the Agreement establishes a funding mechanism, the entirety of the funding support has yet to be established. RECOMMENDATION That the Chula Vista Redevelopment Corporation, City Council, Redevelopment Agency and Housing Authority approve the resolutions. BOARDS/COMMISSION RECOMMENDATION The Chula Vista Redevelopment Corporation is considering a recommendation on the Cooperation Agreement in joint session on Mazch 8, 2011. The Housing Advisory Commission reviewed the draft Affordable Housing Strategy on January 26th, 2011. DISCUSSION The Redevelopment Agency has adopted aFive-Yeaz Implementation Plan for the Project Areas that established goals and objectives to support affordable housing. Within the Project Areas and the surrounding residential areas, the Agency is actively involved in the evaluation of properties for the acquisition and development of affordable housing ("Projects"- map included as Attachment 1) to benefit lower and moderate income households. In order to carry out and implement the City's Housing Element and the Implementation Plan for the Agency's redevelopment projects and the affordable housing requirements and goals thereof, the Agency intends to make funding commitments and budget allocations based on estimated tax increment revenue and debt financing structures for the Projects. In the current budget environment, the Agency's ability to carry out the Projects may be limited. However, pursuant to Section 33220 of the CRL, certain public bodies, including the Housing Authority may aid and cooperate in the planning, undertaking, construction, or operation of affordable housing projects. Historically, the Agency has successfully partnered with the Housing Authority to implement affordable housing projects throughout the city through the Authority's issuance of multifamily housing revenue bonds and ongoing monitoring of these projects. Building on this success, the Agency desires to enter into the subject Cooperation Agreement for payment of costs associated with certain Redevelopment Agency funded Projects ("Agreement" -Attachment 2) with the Housing Authority for assistance and cooperation in the implementation and completion of the Projects identified in the Schedule of Projects included as Exhibit A to the Agreement. The Schedule of Projects includes City/Agency findings to subsidize the property acquisition, development, construction, and operation, monitoring and administration of identified projects within the redevelopment project areas and surrounding areas to implement the City's and Agencys affordable housing goals and requirements. Over the past six months, Agency staff has been actively working on identifying a general area in which to focus its resources and Projects to increase affordable housing. 1-3 March 8, 2011, Item Page 4 of 6 On July 16, 2010, the City issued a Request for Qualifications (RFQ) to actively search for qualified development teams to secure, design, finance and develop appropriate sites for affordable housing development. Subsequently on November 2, 2010, the City and Agency adopted Resolution No. 2010-254 (RDA 2010-2030) certifying a list of four (4) affordable housing developers to collaboratively work with City staff and a Chula Vista Redevelopment Corporation (CVRC) Subcommittee to examine service gaps and identify ideal locations to meet the City's most pressing affordable housing needs and contribute to revitalization concurrently. In the last three months, Agency staff has met with other City staff, a CVRC subcommittee, affordable housing development partners and community organizations to discuss a strategy to increase and prioritize affordable housing opportunities based upon the principals of leveraging its limited resources and maximizing housing, community and revitalization benefits. In looking at the availability of resources and opportunities, existing conditions and needs and using the principals to focus its resources, Agency staff has identified the Northwest area of the city as a focus area to acquire properties for the rehabilitation, preservation and/or construction of affordable housing over the next five years. Staff has identified a number of properties within the Northwest area that are potential opportunities. To implement the Agreement, staff is requesting authority to commit funds to acquire properties for affordable housing. However, this action does not commit the Housing Authority to only implement projects in that azea. As staff completes its due diligence and negotiations, Project specific sites, agreements, and other necessary entitlements will be brought forward to the final decision maker for consideration. As some properties may be outside of the Redevelopment Project Areas, findings of benefit aze required by both the City Council and Redevelopment Agency. Benefits to the use of funds for property outside of the project azea which benefit the project include: • The use of the Agency's Housing Funds from the Project Area as a revenue fund for low- and moderate-income housing projects regardless of their location provides a consistent, institutional financing mechanism for low- and moderate- income housing within the City of Chula Vista. The revenue enables the Redevelopment Agency to expedite and maximize housing production and capacity to provide financial assistance based upon project viability, not project location. • The provision of affordable housing is, in itself, a fundamental purpose of redevelopment. Any increase in or preservation of the stock of available housing for low- and moderate-income households benefits the surrounding azea and the City of Chula Vista, including the Project Area providing the funds, by encouraging local accommodations for a diverse workforce and consumers at various income levels throughout the City of Chula Vista. • The use of Agency housing funds outside a project area avoids over-concentration of affordable housing in a project azea and promotes a diverse economic community. 1-4 Mazch 8, 2011, Item Page 5 of 6 • The acquisition, rehabilitation, preservation and/or construction of affordable housing helps fulfill the goals of the Redevelopment Plan and Implementation Plans (Plans) for the Project Area, which include improving, promoting and preserving the positive neighborhood chazacteristics of the Project Area, promoting varied housing opportunities, supporting and promoting the growth and vitality of the Project Area business environment and providing direction, purpose and climate for combined public and private investment which will result in benefits to the community as a whole. • Housing funds may be used for owner-occupied home rehabilitation loans that would support home-ownership by low- and moderate-income residents, stabilizing single- family home-ownership and residential neighborhoods. • The use of Housing Funds will provide assistance with and support energy conservation, energy efficiency and water conservation. • Historically, credit for the production of affordable units is given annually to agencies by the California Housing and Community Development Department, in accordance with California Redevelopment Law. If tax increment funds are used for the development of affordable units outside of the source project area, a maximum of one-half credit for each unit produced may be awarded to the source project azea. The benefit to the Project Area is the potential to receive credit toward the housing obligations defined within its Redevelopment Plan and its Five-Yeaz Implementation Plan in exchange for funding affordable housing outside the Project Area. Documentation for such benefits may further be found in the Redevelopment Plan, Implementation Plan, and the Housing Element, as found in the General Plan. All of which aze incorporated by reference into this report. By entering into the Agreement, the Authority will commit to aid and cooperate with the Agency to expeditiously implement the Projects in accordance with the respective Redevelopment Plans and Implementation Plans for the Project Areas and ensure that the objectives of the Redevelopment Plans and Implementation Plans are fulfilled within the time limits of the Project Areas. In order to ensure the timely implementation and completion of the Projects, the Agency will pledge to provide to the Housing Authority available Redevelopment Low and Moderate Income funds from Tax Increment, other revenue received by the Agency and available fund balances in the current fiscal year and forthcoming fiscal years in amounts equal to the cost to the Authority to carry out the Projects. The Authority will provide the Agency with regular progress reports on the use of funds and the development of the Projects for which payment is made by the Agency. The obligations of the Agency under the Agreement will be paid from Tar. Increment, other revenue received by the Agency and available fund balances in amounts not less than those set forth in the Payment Schedule attached to the Agreement as Exhibit 2 and otherwise necessary to reimburse the Authority for the cost to the Authority of performing its obligations. The Payment 1-5 March 8, 2011, Item Page 6 of 6 Schedule may be revised from time to time as mutually agreed by the Authority and Agency provided that the revised schedule will allow the timely completion of the Projects in conformity with the Redevelopment Plans and the Implementation Plans. All activities paid for with these funds will be in accordance with CRL (H&S 33334). The obligations of the Agency will constitute an indebtedness of the Agency for the purpose of carrying out the Redevelopment Plans for the Project Areas, which indebtedness will be subordinate to payments due on any bonds, notes or other debt instruments of the Agency incurred or issued to finance the Projects, including any pledge of tax increment revenues from the Project Areas. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the Chula Vista Redevelopment Corporation, Redevelopment Agency, and Housing Authority and has found no property holdings within 500 feet of the boundaries of the properties that are the subject of this action. CURRENT YEAR FISCAL IMPACT Current estimated Fund Balance in the Low and Moderate Income Housing Fund in the approximate amount of $9.2 million would be transferred to the Housing Authority. New appropriations in the same amount would be created in the Housing Authority budget to acquire identified properties. ONGOING FISCAL IMPACT The terms of the Cooperation Agreement anticipates future revenue from the Low and Moderate Income Housing Fund to the Housing Authority for the costs associated with the identified affordable housing projects. ATTACHMENTS 1. Map of Potential Sites Identified in Cooperation Agreement 2. Cooperation Agreement (Affordable Housing Projects)-To be provided under separate cover Prepared by: Leilani Hines, Principal Project Coordinator and Amanda Mills, Housing Manager Development Services- Housing Division ~-6 Attachment 1 ~„ .,<.-, ,_ a;t ,~'; ,, fir,. ,, `~ i J v _;, yri~~~u~:~: \ ri!11i \ \ 1 \ \ \~ \ ~ ~~ \ ~ ~ V ~~ \ ~~ e \• l~_ t ~\'' \ ,` , ~GdQ~ypR....,,\ \ ,.,:~ ~,\~. \ \ s ~b4 \ ~ \ .~ N \ ~~ 1 Q?fit 1 i \ let ,, t ~ \ ,` ~ \ ,r ~ ~~\ I \ _, \ \ \ :~c~oa rue:w~a~~ ~ ~., \.Li `;, .. ~ ~~ ~. _, ,,: G - G`li 7 ':~' r ~~ Ir ,~ '; ~ I ~ ~' .~ ~ ~'• 1 Best Western HoYel'; _ ._ 2 Travelers Inn and Sudes - 3 Woodlawn Avenue Apartments 4 Woodlawn 20 Apartments 5 Woodlawn WestApartments 6 Park RegencyApzdments 7 Woodlawn Garden Apartments 8 Used Car Sales -Vacant 9 Flamingo Trailer Park 10 Vacant `, 11'Ndcant - 12 Vacant 13 USA Discounters THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL ~~~ Glen R. Googins City Attorney Dated: ~'~ J ~ COOPERATION AGREEMENT BETWEEN THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA, AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FOR AFFORDABLE HOUSING PROJECTS 1-S COOPERATION AGREEMENT (Affordable Housing Projects) This COOPERATION AGREEMENT (Affordable Housing Projects) ("Cooperation Agreement") is entered into this 8th day of March 2011, by and between the HOUSING AUTHORITY OF THE CITY OF CHULA VISTA, a public body, corporate and politic ("Authority") and the REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, a public body, corporate and politic ("Agency"). RECITALS WHEREAS, the Redevelopment Agency of the City of Chula Vista ("Agency") is a community redevelopment agency organized and existing pursuant to the California Community Redevelopment Law (Health & Safety Code Section 33000, et seg.; "CRL") and has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council ("City Council") of the City of Chula Vista ("City"); and WHEREAS, the Chula Vista Housing Authority is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Housing Authorities Law of the State of California (California Health and Safety Code Section 34200 et sue.) and has been authorized to transact business and exercise the powers of a housing authority pursuant to action of the City Council ("City Council") of the City of Chula Vista ("City"); and WHEREAS, the Agency has adopted Redevelopment Plans for the Agency's redevelopment project areas and the affordable housing requirements and goals thereof; and WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6 authorize and direct the Agency to expend a certain percentage of all taxes which are allocated to the Agency pursuant to Section 33670 for the purposes of increasing, improving and preserving the community's supply of low and moderate income housing available at affordable housing cost to persons and families of low and moderate incomes; and WHEREAS, the current Five-Year Implementation Plan for the Redevelopment Project Areas (Implementation Plan) sets out goals to support affordable housing. To implement the programs and activities associated with each goal, the Agency has made redevelopment fund commitments based on estimated available tax increment revenue and debt financing structures; and WHEREAS, on November 2, 2010, the City and Agency adopted Resolution No. 2010-254 (Agency 2010-2030) certifying a list of four (4) affordable housing developers to collaboratively work with City staff and a Chula Vista Redevelopment Corporation (CVRC) Subcommittee to examine service gaps and identify ideal locations to meet the City's most pressing affordable housing needs and contribute to catalyst development concurrently; and WHEREAS, City staff has worked with the affordable housing developers and the CVRC subcommittee to determine a strategy to increase and prioritize affordable housing opportunities (the "Affordable Housing Strategy"); and WHEREAS, on the 26th day of January, 2011, the City's Housing Advisory Commission, held a public meeting to consider and comment on the Affordable Housing Strategy; and 1 Agency/HOUSINGAUTHORITY COOPERATION AGREEb1ENT 1-9 WHEREAS, the potential sites are located generally within the Project Area, and will be of benefit to the Project Area; and WHEREAS, potential sites may also be located outside of the Project Area, and Health and Safety Code section 33334.2 permits funds to be used outside of the Project area when it is determined that it would be a benefit to the project to do so and for the reasons set forth in the Staff Report prepared in conjunction with this Agreement, the Redevelopment Plan, the Implementation Plan, and the Housing Element, as found in the General Plan, all of which are incorporated herein, it would be a benefit to the project to use funds outside the Project Area. WHEREAS, the Authority and Agency desire to enter into that certain Cooperation Agreement ("Cooperation Agreement") under which the Agency would commit, encumber, and pay up to Twenty-Four Million Dollars ($24,000,000) for part of the costs of acquisition of land and the development, construction, rehabilitation and operation of four affordable housing projects and the Housing Authority would provide staff support services for the implementation of the Projects; and WHEREAS, no other reasonable means of financing said Projects and the programs and activities associated therewith are available to the community; and WHEREAS, the Agency desires to pay for part of the costs of the land and costs of development and construction for affordable housing projects in the amounts set forth herein, in Exhibit A, and provided in the Cooperation Agreement; and WHEREAS, in order to carry out and implement the City's Housing Element and the goals, policies and programs thereof and the Redevelopment Plan for the Agency's redevelopment projects and the affordable housing requirements and goals thereof, the Authority and Agency propose the execution of Cooperation Agreement; and WHEREAS, the Agency has reviewed evidence, including testimony, if any, prepared and/or submitted in connection with this matter, and has determined that the foregoing recitals, and each of them, are true and correct, and further has determined that the provision of the affordable housing projects is in the best interests of the Authority and the Agency and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local law requirements; and WHEREAS, the Agreement has been reviewed for compliance with California Environmental Quality Act (CEQA) and the State CEQA Guidelines (CEQA Guideline) and the Agreement is not a "project" for the purposes of CEQA and the CEQA Guidelines because, consistent with the CEQA Guidelines Section 15738(b)(4), while the Agreement commits the Agency to fund an affordable housing program, with potential projects identified, it does not commit the Housing Authority to implement any particular housing project without appropriate environmental review. Notwithstanding the foregoing, the determination of what constitutes a "project" under CEQA is complex and may be the subject of differing interpretation and, accordingly, if the Agreement is determined to be a "project" under CEQA, for the reasons stated herein, there is still no possibility that the activity may have a significant effect on the environment and, therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines, the activity is not subject to CEQA; and AGENCY/HOUSING AUTHORITY COOPERATION AGREEMENT -~~ WHEREAS, all other legal prerequisites to this Cooperation Agreement have occurred and the Agenda Report accompanying this resolution is incorporated by this reference. WHEREAS, the Authority and the Agency desire to enter into this Cooperation Agreement: (1) To set forth the scope and description of the affordable housing projects that are budgeted for and will be budgeted for payment in subsequent fiscal years in the amounts set forth in Exhibit A, which will cause the Agency to fund in part such public improvement project all in furtherance of the goals, objectives, and functions of the Agency under the CRL; and (2) To provide that the Agency will encumber, allocate, make available, and be responsible for up to Twenty-Four million Dollars ($24,000,000) ("Agency Amount") for payment of part of the costs of the acquisition and development of affordable housing projects; and WHEREAS, the commitment of tax increment hereunder shall constitute an obligation to make payments authorized and incurred pursuant to Section 33334.2 and other applicable statutes. The obligations set forth in this Cooperation Agreement will be contractual obligations that, if breached, will subject the Agency to damages and other liabilities or remedies; and WHEREAS, the foregoing Recitals are true and correct and constitute a substantive part of this Cooperation Agreement. NOW THEREFORE, in consideration of the above Recitals and all of the covenants and conditions set forth in this Cooperation Agreement, the Agency and Authority agree as follows: Section 1. Agency Contribution. Agency agrees to pay the Agency Amount of up to Twenty- Four million Dollars ($24,000,000) of funds required to be deposited in the Agency's Low and Moderate Income Housing Fund to the Authority to pay for all or part of the costs of the land for and other costs of the development and construction of affordable housing projects. A schedule of payments, as estimated as of the date hereof, is set forth in Exhibit A, which is and shall be scheduled debt service of the Agency to the Authority. Section 2. Use of Agency Amount. Authority and Agency agree that the funds provided by the Agency pursuant to this Cooperation Agreement shall be expended to pay part of the costs of the land for and other costs of the development and construction of affordable housing projects as more fully described in Exhibit A consistent with the requirements of the CRL. Section 3. Authority Commitment. The Authority agrees cooperate with the Agency and to cause the aforementioned funds to be spent for the purposes as provided herein. The Authority shall not be required to provide additional funds not provided by the Agency, but may do so in its sole discretion. The Authority will at least annually submit invoices to the Agency for payment of eligible costs and the Authority may demand payment in advance of any expenditure by it for such eligible cost so long as the amounts received are expended solely for such purposes, are accounted for separately, and the Authority makes at least an annual accounting to the Agency of the expenditure of such amounts. 3 AGENCY/HOUSING AUTHORITY COOPERATION AGREEMENT ~-~~ Section 4. Indebtedness. The obligations of the RDA under this Cooperation Agreement shall constitute an indebtedness of the RDA for the purposes of carrying its affordable housing program, which includes, but is not limited to the acquisition of property for affordable housing, which indebtedness shall be payable from tax increment funds generated from the Project Area pursuant to Section 33670(b), et seg., of the CRL. The RDA's payment obligation hereunder is and shall be deemed to be, a pledge of tax increment allocated to the RDA for purposes of Article XVI, Section 16 of the State Constitution, the CRL (including without limitation Section 33670 and 33691 therein) and the Redevelopment Plan attributable to the Project Area. The indebtedness of Agency under this Agreement shall be subordinate to the rights of the holder or holders of any existing bonds, notes or other instruments of indebtedness (all referred to herein as "indebtedness") of the RDA incurred or issued to finance the Project Area, including without limitation any pledge of tax increment revenues from the Project Area to pay any portion of the principal and interest (and otherwise comply with the obligations and covenants) of any bond or bonds issued or sold by the RDA with respect to the Project Area and any other prior express pledges of such tax revenues made or contemplated by the Agency on or before the effective date of this Agreement, and shall not include any funds otherwise required to be deposited in the Agency's Low and Moderate Income Housing Fund. In no event shall amounts be payable hereunder in the amounts or for any period which would cause the Agency to violate any limitation in effect as of the date of this Agreement with respect to the Agency's right to receive taxes allocated to the Agency under Section 33670(b) and related laws, including the limit on the last date to receive tax increment or on the gross amount of tax purposenand intent thahall amountsopayablethereundlerahlall beltlimped byanld withib all such applicable limits. Section 5. Authority Acceptance. The Authority accepts funds, if any, remitted by the Agency pursuant to this Cooperation Agreement. Section 6. General Provisions. (a) AQency Approvals and Actions. The Agency shall maintain the authority to implement this Cooperation Agreement through the Executive Director (or his duly authorized representative). The Executive Director shall have the authority to make approvals, issue interpretations, waive provisions, and/or enter into certain amendments of this Cooperation Agreement on behalf of the Agency so long as such actions do not add to the costs incurred or to be incurred by the Agency as specified herein. Such approvals, interpretations, waivers and/or anterpretafons waiversl oaeamendments shalltrequire consideration and actiontby the Agenc bBoard e (b) Authority Approvals and Actions. The Authority shall maintain the authority to implement this Cooperation Agreement through the Director (or his or her duly authorized representative). The Director shall have the authority to make approvals, issue interpretations, waive provisions, and/or enter into certain amendments of this Cooperation Agreement on behalf of the Authority so long as such actions do not add to the costs incurred or to be incurred by the Authority as specified herein. Such approvals, interpretations, waivers and/or amendments may include extensions of time to perform. All material and/or substantive interpretations, waivers, or amendments shall require consideration and action by the Housing Authority. The Authority shall not be obligated to complete any individual project if the Housing Authority later determines that such project is not exempt from CEQA, has not already undergone complete CEQA review, and requires the preparation of a mitigated negative declaration, environmental impact report (E[R) or 4 AGENCY/HOUSING AUTHORITY COOPERATION AGREEMENT ~-12 supplemental or subsequent EIR. Further, the Housing Authority shall retain the discretion to imp hae mitigation measures and to adopt project alternatives, consistent with the requirements of CEQA, may be identified during future environmental review of any specific project. (c) Modify S• AnY alteration, change or modification of or to this Cooperation Agreement, in order to become effective, shall be made in writing and in each instance signed on behalf of each party. (d) Severabiliri. If any term, provision, condition or covenant of this Cooperation Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Cooperation Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law. (e) Third Partv Beneficiaries. The terms and provisions of this Cooperation Agreement are for the benefit of the Agency and Authority, and as and if applicable for the benefit of any successor entity pursuant to applicable laws and regulations, as now existing or hereafter amended or added. ((~ Cooperation. Each party agrees to cooperate with the other in this transaction and, in that regard, to sign any and all documents which may be reasonably necessary, helpful, or appropriate to carry out the purposes and intent of this Cooperation Agreement including, but not limited to, releases or additional agreements. (g) Liability and Indemnification. In contemplation of the provisions of California Government Code Section 895.2 imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Government Code Section 895, the parties hereto, as between themselves, pursuant to the authorization contained in Government Code Sections 895.4 and 895.6, shall each assume the full liability imposed upon it, or any of its officers, agents or employees, by law for injury caused by negligent or wrongful acts or omissions occurring in the performance of this Cooperation Agreement to the same extent that such liability would be imposed in the absence of Government Code Section 895.2. To achieve the above stated purpose, each party indemnifies, defends and holds harmless the other party for any liability, losses, cost or expenses that may be incurred by such other party solely by reason of Government Code Section 895.2. (h) Default. If either party fails to perform or adequately perform an obligation required by this Cooperation Agreement within thirty (30) calendar days of receiving written notice from the non-defaulting party, the party failing to perform shall be in default hereunder. In the event of default, the non-defaulting party will have all the rights and remedies available to it at law or in equity to enforce the provisions of this contract, including without limitation the right to sue for damages for breach of contract. The rights and remedies of the non-defaulting party enumerated in this paragraph are cumulative and shall not limit-the non-defaulting party's rights under any other provision of this Cooperation Agreement, or otherwise waive or deny any right or remedy, at law or in equity, existing as of the date of the Cooperation Agreement or hereinafter enacted or established, that may be available to the non-defaulting party against the defaulting party. All notices of defaults shall clearly indicate a notice of default under this Cooperation Agreement. 5 AGENCY/HOUSING AUTHORITY COOPERATION AGREEMENT 1-13 (i) Bindine on Successors. This Cooperation Agreement shall be binding on and shall inure to the benefit of all successors and assigns of the parties, whether by agreement or operation of law. G) Riahtgate. The Authority shall have the right to terminate this Cooperation Agreement in its sole determination upon reasonable cause. In the event the Authority terminates this Cooperation Agreement, Agency shall immediately pay the entire portion of the Agency Amount attributable to any and all expenditures made by the Authority in furtherance of the development of approved housing projects. (k) Term. Unless earlier terminated by the Authority pursuant to Section SQ), this Agreement shall remain in effect until the Authority has completed the affordable housing projects identified and as amended, from time to time, and Agency has paid the entire Agency Amount to the Authority. IN WITNESS WHEREOF, the Authority and the Agency have executed this Cooperation Agreement as of the date first set forth above. AUTHORITY: HOUSING AUTHORITY OF THE CITY OF CHULA VISTA, a public body, corporate and politic By: Jim Sandoval, Director ATTEST: Donna Norris, Secretary APPROVED AS TO FORM: Glen R. Googins, Legal Counsel 6 AGENCY/HOUSING AUTHORITY COOPERATION AGREEMENT 1-14 AGENCY: REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, a public body, corporate and politic By: Executive Director ATTEST: Agency Secretary 7 AGENCY/HOUSING AUTHORITY COOPERATION AGREEMENT 1-15 EXHIBIT A SCHEDULE OF PROJECTS Proiect Description: Provide funding for property acquisition, construction or rehabilitation, monitoring and administration of one or more of the identified properties listed herein to provide for redevelopment plan affordable housing obligations. Existing Schedule of CRL Section/ Project Area APN Address/Location Use Performance Applicability Best Merged Chula Vista 5670311700 710 E St Western Start: 2011 33334.2 Motel End: 2016 5670313000 Merged Chula Vista 5670320400 235 Woodlawn Traveler Inn Start: 201 I 33334.2 and Suites End: 2016 5670320500 265-67 Woodlawn Woodlawn Start: 2011 Outside 5670323]00 Ave Avenue End: 2016 33334.2 Apartments Outside 5670323200 275 Woodlawn Ave Woodlawn Start: 2011 33334 2 20 Apts End: 2016 . Outside 285-93 Woodlawn Woodlawn Start: 2011 5670324400 Ave West End: 2016 33334.2 Apartments Outside Park 5670900500 706-708 F St Regency Start: 2011 33334.2 Apartments End: 2016 5710400600 5710400500 5710400400 502,512-516,520, 5710400300 544 528 536 535 Woodlawn Start: 2011 Outside 5710400200 , , , , & 545 Woodlawn Garden End: 2016 33334.2 Apartments 5710400100 Ave 5710611100 5710610800 5670321800 Used Car Merged Chula Vista 5670321900 260-270 Broadway Sales Start: 201 I 33334.2 End: 2016 5670322000 Vacant Merged Chula Vista 5672001900 466 Broadwa y Flamingo Trailer Park Start: 201 l End: 2016 33334.2 Merged Chula Vista 5672004600 476 Broadway USA Discounters Start: 201 I End: 2016 33334.2 Merged Bayfront/Town 5680710100 SE Corner Of Third Vacant Start: 2011 33334.2 Ave And E St End: 2016 Centre I Page 1 of 2 AGENCY/HOUSING AUTHORITY COOPERATION AGREEMENT 1-16 Project Area APN Address/Location Existing Use Schedule of Performance CRL Section/ Applicability Merged NW Corner of Bayfront/Town 5680431400 Landis and Vacant Start: 2011 33334.2 Centre I Davidson End: 2016 Merged 5684201400 Start: 2011 ~'~ Bayfront/Town 435-445 Third Ave Vacant 33334.2 5684201500 End: 2016 Centre I EXHIBIT A Page 2 of 2 1-17 EXHIBIT B ESTIMATED PAYMENT SCHEDULE FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 TOTAL Available $9,200,000 $9,200,000 Fund Balance Potential $2,800,000 $2,900,000 $3,000,000 $3,000,000 $3,100,000 $14,800,000 Low Mod De osit Loan $1,200,000 $1,700,000 $1,800,000 $500,000 $5,200,000 Repayments Obligations ($900,000) ($4,000,000) ($4,900,000) Total $24,300,000 Revenue Available Low Mod ($24,300,000) Transfer to Authori EXHIBIT B Page 1 of 1 AGENCY/HOUSING AUTHORITY COOPERATION AGREEMENT ~-~$ CVRC RESOLUTION NO. 2011- RESOLUTION OF THE CHULA VISTA REDEVELOPMENT CORPORATION RECOMMENDING THAT THE REDEVELOPMENT AGENCY APPROVE A COOPERATION AGREEMENT WITH THE HOUSING AUTHORITY RELATED TO COMMITING AND APPROPRIATING FUNDS TO THE HOUSING AUTHORITY FOR REDEVELOPMENT AGENCY HOUSING PROJECTS WHEREAS, the Chula Vista Redevelopment Corporation (CVRC) of the City of Chula Vista has received and considered the Cooperation Agreement between the Chula Vista Redevelopment Agency (the "Agency") and Chula Vista Housing Authority (the "Authority") for the implementation of affordable housing projects and commitment and appropriation of funds therefore; and WHEREAS, the current Five-Year Implementation Plan for the Redevelopment Project Areas (Implementation Plan) sets out goals to support affordable housing. To implement the programs and activities associated with each goal, the Agency has made redevelopment fund commitments based on estimated available tax increment revenue and debt financing structures; and WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6 authorize and direct the Agency to expend a certain percentage of all taxes which are allocated to the Agency pursuant to Section 33670 for the purposes of increasing, improving and preserving the community's supply of low and moderate income housing available at affordable housing cost to persons and families of low and moderate incomes; and WHEREAS, on November 2, 2010, the City and Agency adopted Resolution No. 2010-254 (Agency 2010-2030) certifying a list of four (4) affordable housing developers to collaboratively work with City staff and a Chula Vista Redevelopment Corporation (CVRC) Subcommittee to examine service gaps and identify ideal locations to meet the City's most pressing affordable housing needs and contribute to catalyst development concunently; and WHEREAS, City staff has worked with the affordable housing developers and the CVRC subcommittee to determine a strategy to increase and prioritize affordable housing opportunities (the "Affordable Housing Strategy"); and WHEREAS, on the 26th day of January, 2011, the City's Housing Advisory Commission, held a public meeting to consider and comment on the Affordable Housing Strategy; and WHEREAS, the Affordable Housing Strategy identified the Northwest area of the City as a focus of the Agency's resources and potential sites for affordable housing projects have been identified in this area and generally within the Project Area, and will be of benefit to the Project Area and the low and moderate income residents of the community; and 1-19 CVRC Resolution No. 2011- Page 2 WHEREAS, the Agency and the Authority propose to enter into a Cooperation Agreement (Agreement) to provide for the implementation of affordable housing projects set forth in the Schedule of Projects attached to the Agreement as Exhibit A (Projects), and to require the Agency to advance funds to the Authority in accordance with the Payment Schedule attached to the Agreement as Exhibit 2 for the Authority's cost of performing its obligations under the Agreement, subject to all of the terms and conditions of the Agreement; and WHEREAS, no other reasonable means of financing said Projects and the programs and activities associated therewith are available other than with Agency funds; and WHEREAS, the programs and activities associated with the Projects include, but are not limited to, administration, acquisition and disposition of property, development of design criteria, design, planning, feasibility studies, permitting, preparation of construction bid documents, financial and economic analysis, financing, new construction, rehabilitation of existing improvements and structures, remediation of hazardous materials, elimination or removal of blighting conditions, and monitoring and enforcement of affordable housing covenants and other requirements pursuant to applicable law; and WHEREAS, all buildings and improvements thereof of the Projects shall not be owned or operated by the Agency or Authority; and WHEREAS, the payment of funds by the Agency for the costs related to said Projects and the programs and activities associated therewith is consistent with the Implementation Plan adopted pursuant to Section 33490, and Housing Fund Requirements in 33334 of the California Redevelopment Law ("CRL"); and WHEREAS, the Agreement has been reviewed for compliance with California Environmental Quality Act (CEQA) and the State CEQA Guidelines (CEQA Guideline) and the Agreement is not a "project" for the purposes of CEQA and the CEQA Guidelines because, consistent with the CEQA Guidelines Section 15738(b)(4), while the Agreement commits the Agency to fund an affordable housing program, with potential projects identified, it does not commit the Housing Authority to implement any particular housing project without appropriate environmental review. Notwithstanding the foregoing, the determination of what constitutes a "project" under CEQA is complex and may be the subject of differing interpretation and, accordingly, if the Agreement is determined to be a "project" under CEQA, for the reasons stated herein, there is still no possibility that the activity may have a significant effect on the environment and, therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines, the activity is not subject to CEQA; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred and the agenda report accompanying this resolution is incorporated by this reference. NOW, THEREFORE, BE IT RESOLVED that the Chula Vista Redevelopment Corporation does hereby recommend that the Redevelopment Agency of the City of Chula Vista 1) enter into a Cooperative Agreement with the Housing Authority of the City of Chula Vista for the implementation of affordable housing projects, 2) commit fund balance of the 1-20 CVRC Resolution No. 2011- Page 3 Redevelopment Low and Moderate Income Housing Funds, future Tax Increment, loan repayments, or other revenue received by the Agency, and 3) appropriate in the current year for the Transfer Out to the Housing Authority in the approximate amount of $9.2m of available fund balance of Low/Mod Fund. Presented by: Gary Halbert, AICP, PE Chief Executive Officer Approved as to form by: Glen R. Googins General Counsel 1-21 RESOLUTION N0.2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA MAKING FINDINGS RELATED TO THE PROJECTS IDENTIFIED IN THE COOPERATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AND HOUSING AUTHORITY OF THE CITY OF CHULA VISTA WHEREAS, the Chula Vista Redevelopment Agency (the "Agency") is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California (California Health and Safety Code Section 33000 et se .); and WHEREAS, the Chula Vista Housing Authority (the "Authority") is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Housing Authorities Law of the State of California (California Health and Safety Code Section 34200 et sue.); and WHEREAS, the current Five-Year Implementation Plan for the Redevelopment Project Areas (Implementation Plan) sets out goals to support affordable housing. To implement the programs and activities associated with each goal, the Agency has made redevelopment fund commitments based on estimated available tax increment revenue and debt financing structures; and WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6 authorize and direct the Agency to expend a certain percentage of all taxes which are allocated to the Agency pursuant to Section 33670 for the purposes of increasing, improving and preserving the community's supply of low and moderate income housing available at affordable housing cost to persons and families of low and moderate incomes; and WHEREAS, on November 2, 2010, the City and Agency adopted Resolution No. 2010-254 (Agency 2010-2030) certifying a list of four (4) affordable housing developers to collaboratively work with City staff and a Chula Vista Redevelopment Corporation (CVRC) Subcommittee to examine service gaps and identify ideal locations to meet the City's most pressing affordable housing needs and contribute to catalyst development concurrently; and WHEREAS, City staff has worked with the affordable housing developers and the CVRC subcommittee to determine a strategy to increase and prioritize affordable housing opportunities (the "Affordable Housing Strategy"); and WHEREAS, on the 26th day of January, 2011, the City's Housing Advisory Commission, held a public meeting to consider and comment on the Affordable Housing Strategy; and 1-22 Resolution No. Page 2 WHEREAS, the Affordable Housing Strategy identified the Northwest area of the City as a focus of the Agency's resources and potential sites for affordable housing projects have been identified in this area and generally within the Project Area, and will be of benefit to the Project Area and the low and moderate income residents of the community; and WHEREAS, the City of Chula Vista is aware the Agency and the Authority propose to enter into a Cooperation Agreement (Agreement) to provide for the implementation of affordable housing projects set forth in the Schedule of Projects attached to the Agreement as Exhibit A (Projects), and to require the Agency to advance funds to the Authority in accordance with the Payment Schedule attached to the Agreement as Exhibit 2 for the Authority's cost of performing its obligations under the Agreement, subject to all of the terms and conditions of the Agreement; and WHEREAS, the payment of funds by the Agency for the costs related to said Projects and the programs and activities associated therewith is consistent with the Implementation Plan adopted pursuant to Section 33490, and Housing Fund Requirements in 33334 of the California Redevelopment Law ("CRL"); and WHEREAS, Health and Safety Code section 33334.2 permits the use of such funds outside of a project area upon a finding that such use will be a benefit to the project and for the reasons set forth in the Staff Report for this Resolution, the Redevelopment Plan, the hplementation Plan, and the Housing Element (as found in the General Plan), all of which are hereby incorporated by reference herein, it is determined that the use of such funds outside a project area is and would be a benefit to the Project Area. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista that: The City Council finds and determines that: (i) the implementation of the Projects constitutes the acquisition of property and the development of affordable housing for low and moderate income households that are of benefit to the Project Area by, but not limited to, encouraging local accommodations for a diverse workforce and consumers at various income levels; (ii) said Projects and the programs and activities associated therewith are limited without Agency funds; (iii) the acquisition of property and development, construction, rehabilitation, and operation of the Projects are provided for in the Redevelopment Plan and the Implementation Plan; and (iv) the payment by Agency of funds for part of the costs related to said Projects and the programs and activities associated therewith is consistent with the implementation plan adopted pursuant to Section 33490. 2. The City Council finds and determines that the use of the Redevelopment Low and Moderate Income Housing Funds for the Projects that include low and moderate income housing located outside of the Project Areas will be of benefit to the community because the use of such funds will be of benefit to the Project Areas in accordance with Health and Safety Code Sec. 33334.2, as set forth in the Agenda Report to this resolution (which is hereby incorporated by reference herein, and in that: (i) the use of the Agency's Low and Moderate Income Housing Funds from the Project Area as a revenue fund for low and moderate-income housing projects regardless of their location provides a consistent, 1-23 Resolution No. Page 3 institutional financing mechanism for low- and moderate- income housing within the City of Chula Vista; (ii) the revenue enables the Agency to expedite and maximize housing production and capacity to provide financial assistance based upon project viability, not project location; (iii) the provision of affordable housing is, in itself, a fundamental purpose of redevelopment; iv) any increase in or preservation of the stock of available housing for low and moderate- income households benefits the surrounding area and the City of Chula Vista, including the Project Area providing the funds, by encouraging local accommodations for a diverse workforce and consumers at various income levels throughout the City of Chula Vista; (v) the acquisition, rehabilitation, preservation and/or construction of affordable housing helps fulfill the goals of the Redevelopment Plan and Implementation Plans of the Project Areas, which includes improving, promoting and preserving the positive neighborhood characteristics of the Project Areas, promoting varied housing opportunities, supporting and promoting the growth and vitality of the Project Area business environment and providing direction, purpose and climate for combined public and private investment which will result in benefits to the community as a whole; (vi) that such use of funds will prevent an over-concentration of affordable housing in one location and will promote an economically diverse community, and (vii) a maximum of one-half credit for each affordable housing unit produced outside of the Project Areas may be credited towards the housing obligations defined within its Redevelopment Plan and its Five-Year Implementation Plan in exchange for funding affordable housing outside the Project Areas. 3. Further, the implementation of the Projects provided for by the Cooperation Agreement will further the Agency's goals and objectives as set forth in the Redevelopment Plan and Implementation Plan. Presented by: Gary Halbert, AICP, PE Assistant City Manager/Director of Development Services Approved as to form by: /~ ~%E~ Glen R. Googins City Attorney 1-24 RESOLUTION NO. 2011- RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A COOPERATION AGREEMENT WITH THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA; COMMITTING FUNDS AND CONSENTING TO THE PAYMENT OF THOSE FUNDS TO THE HOUSING AUTHORITY FOR COSTS ASSOCIATED WITH CERTAIN REDEVELOPMENT AGENCY FUNDED HOUSING PROJECTS; MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH; AND APPROPRIATING FUNDS THEREFOR WHEREAS, the Chula Vista Redevelopment Agency (the "Agency") is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California (California Health and Safety Code Section 33000 et sue.); and WHEREAS, the Chula Vista Housing Authority (the "Authority") is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Housing Authorities Law of the State of California (California Health and Safety Code Section 34200 et sec .); and WHEREAS, the Agency was established to exercise and undertake redevelopment activities for purposes of implementing the Redevelopment Project Areas (the "Project Areas"), including Merged Bayfront/Town Centre I Project Area (Bayfront and Town Centre I) and Merged Chula Vista Project Area (Otay Valley, Southwest, Town Centre II, and Added Area); and WHEREAS, the Agency has adopted Redevelopment Plans for the Agency's redevelopment project areas and the affordable housing requirements and goals thereof; and WHEREAS, the current Five-Year Implementation Plan for the Redevelopment Project Areas (Implementation Plan) (adopted in Resolution No. 2009-2015 and incorporated herein by reference) sets out goals to support affordable housing. To implement the programs and activities associated with each goal, the Agency has made redevelopment fund commitments based on estimated available tax increment revenue and debt financing structures; and WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6 authorize and direct the Agency to expend a certain percentage of all taxes which are allocated to the Agency pursuant to Section 33670 for the purposes of increasing, improving and preserving the community's supply of low and moderate income housing available at affordable housing cost to persons and families of low and moderate incomes; and 1-25 Resolution No. Page 2 WHEREAS, on November 2, 2010, the City and Agency adopted Resolution No. 2010-254 (Agency 2010-2030) certifying a list of four (4) affordable housing developers to collaboratively work with City staff and a Chula Vista Redevelopment Corporation (CVRC) Subcommittee to examine service gaps and identify ideal locations to meet the City's most pressing affordable housing needs and contribute to catalyst development concurrently; and WHEREAS, City staff has worked with the affordable housing developers and the CVRC subcommittee to determine a strategy to increase and prioritize affordable housing opportunities (the "Affordable Housing Strategy"); and WHEREAS, on the 26th day of January, 2011, the City's Housing Advisory Commission, held a public meeting to consider and comment on the Affordable Housing Strategy; and WHEREAS, the Affordable Housing Strategy identified the Northwest area of the City as a focus of the Agency's resources and potential sites for affordable housing projects have been identified in this area and generally within the Project Area, and will be of benefit to the Project Area and the low and moderate income residents of the community; and WHEREAS, the Agency and the Authority propose to enter into a Cooperation Agreement (Agreement) to provide for the implementation of affordable housing projects set forth in the Schedule of Projects attached to the Agreement as Exhibit 1 (Projects), and to require the Agency to advance funds to the Authority in accordance with the Payment Schedule attached to the Agreement as Exhibit 2 for the Authority's cost of performing its obligations under the Agreement, subject to all of the terms and conditions of the Agreement; and WHEREAS, no other reasonable means of financing said Projects and the programs and activities associated therewith are available other than with Agency funds; and WHEREAS, the programs and activities associated with the Projects include, but are not limited to, administration, acquisition and disposition of property, development of design criteria, design, planning, feasibility studies, permitting, preparation of construction bid documents, financial and economic analysis, financing, new construction, rehabilitation of existing improvements and structures, remediation of hazardous materials, elimination or removal of blighting conditions, and monitoring and enforcement of affordable housing covenants and other requirements pursuant to applicable law; and WHEREAS, all buildings and improvements thereof of the Projects shall not be owned or operated by the Agency or Authority; and WHEREAS, potential sites may also be located outside of the Project Area, and Health and Safety Code section 33334.2 permits funds to be used outside of the Project area when it is determined that it would be a benefit to the project to do so and for the reasons set forth in the Staff Report prepared in conjunction with this Agreement, the Redevelopment Plan, the Implementation Plan, and the Housing Element (as found in the General Plan) all of which are incorporated herein by reference, it would be a benefit to the project to use such funds outside the Project Area; and 1-26 Resolution No. Page 3 WHEREAS, the payment of funds by the Agency for the costs related to said Projects and the programs and activities associated therewith is consistent with the Implementation Plan adopted pursuant to Section 33490 of the California Redevelopment Law ("CRL"); and WHEREAS, the Agency has reviewed evidence, including testimony, if any, prepared and/or submitted in connection with this matter, and has determined that the foregoing recitals, and each of them, are true and correct, and further has determined that the provision of the Projects is in the best interests of the City and the Agency and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local law requirements; and WHEREAS, the Agency has reviewed the proposed Cooperation Agreement between the Authority and the Agency; and WHEREAS, the Agreement has been reviewed for compliance with California Environmental Quality Act (CEQA) and the State CEQA Guidelines (CEQA Guideline) and the Agreement is not a "project" for the purposes of CEQA and the CEQA Guidelines because, consistent with the CEQA Guidelines Section 15738(b)(4), while the Agreement commits the Agency to fund an affordable housing program, with potential projects identified, it does not commit the Housing Authority to implement any particular housing project without appropriate environmental review. Notwithstanding the foregoing, the determination of what constitutes a "project" under CEQA is complex and may be the subject of differing interpretation and, accordingly, if the Agreement is determined to be a "project" under CEQA, for the reasons stated herein, there is still no possibility that the activity may have a significant effect on the environment and, therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines, the activity is not subject to CEQA; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred and the Agenda Report accompanying this resolution is incorporated by this reference. NOW, THEREFORE, BE IT RESOLVED, by the Redevelopment Agency of the City of Chula Vista that: The Agency finds and determines that: (i) the implementation of the Projects constitutes the acquisition of land and the development of affordable housing for low and moderate income households that are of bene£t to the Project Area by, but not limited to, encouraging local accommodations for a diverse workforce and consumers at various income levels; (ii) said Projects and the programs and activities associated therewith are limited without Agency funds; (iii) the acquisition of property and development, construction, rehabilitation, and operation of the Projects are provided for in the Redevelopment Plan and the Implementation Plan; and (iv) the payment by Agency of funds for part of the costs related to said Projects and the programs and activities associated therewith is consistent with the implementation plan pursuant to Section 33490. 2. The Agency finds and determines that the use of the Redevelopment Low and Moderate Income Housing Funds for the Projects that include low and moderate income housing located outside of the Project Areas will be of benefit to the community because the use of such funds will be of benefit to the Project Areas in accordance with Health &Safety Code Sec. 33334.2, in that, but not limited to: (i) the use of the Agency's Low and Moderate 1-27 Resolution No. Page 4 Income Housing Funds from the Project Area as a revenue fund for low and moderate- income housing projects regardless of their location provides a consistent, institutional financing mechanism for low- and moderate- income housing within the City of Chula Vista; (ii) the revenue enables the Agency to expedite and maximize housing production and capacity to provide financial assistance based upon project viability, not project location; (iii) the provision of affordable housing is, in itself, a fundamental purpose of redevelopment; (iv) any increase in or preservation of the stock of available housing for low and moderate- income households benefits the surrounding area and the City of Chula Vista, including the Project Area providing the funds, by encouraging local accommodations for a diverse workforce and consumers at various income levels throughout the City of Chula Vista; (v) the acquisition, rehabilitation, preservation and/or construction of affordable housing helps fulfill the goals of the Redevelopment Plan and Implementation Plans of the Project Areas, which includes improving, promoting and preserving the positive neighborhood characteristics of the Project Areas, promoting varied housing opportunities, supporting and promoting the growth and vitality of the Project Area business environment and providing direction, purpose and climate for combined public and private investment which will result in benefits to the community as a whole; (vi) that such use of funds will prevent an over-concentration of affordable housing in one location and will promote an economically diverse community; and (vi) a maximum of one-half credit for each affordable housing unit produced outside of the Project Areas may be credited towards the housing obligations defined within its Redevelopment Plan and its Five-Year Implementation Plan in exchange for funding affordable housing outside the Project Areas. 3. The Agency finds and determines that payment for part of the costs related to said Projects and the programs and activities associated therewith and entering into the Cooperation Agreement are consistent with and are provided for in the Implementation Plan for the Community Project Area. 4. Further, the implementation of the Projects provided for by the Cooperation Agreement will further the Agency's goals and objectives as set forth in the Redevelopment Plan and Implementation Plan. 5. The Agency hereby commits, allocates, encumbers, and agrees to pay up to Twenty-Four Million Dollars ($24,000,000) to pay for part of the costs related to said Projects and the programs and activities associated therewith. 6. The Agency authorizes and directs the Executive Director of the Agency or his designee to execute on behalf of the Agency the Cooperation Agreement substantially in the form submitted herewith and with such changes as approved by the Executive Director and Agency Counsel that are consistent herewith. The Agency further authorizes and directs staff to take all actions necessary and appropriate to implement the participation by the Agency pursuant to the Cooperation Agreement, including without limitation issuance of warrants. 7. The Agency authorizes and directs the Executive Director of the Agency or his designee to do all acts and things which may required of them by this Resolution or which may be necessary or desirable to carry out the issuance or execution of the Cooperation Agreement as 1-28 Resolution No. Page 5 provided by this Resolution and all matters incidental thereto. All such acts and things heretofore done are hereby approved, ratified, and confirmed. 8. The Agency authorizes and directs the Executive Director of the Agency or his designee to transfer to the Housing Authority available fund balance of the Redevelopment Low and Moderate Income Housing Funds, future Tax Increment, loan repayments, or other revenue received by the Agency and as described in the Payment Schedule set forth in Exhibit 2 of the Agreement as authorized. 9. The Agency Secretary is authorized to attest the final form of the Cooperation Agreement on behalf of the Agency. 10. The Agency Secretary shall certify to the adoption of this Resolution. Presented by: Approved as to form by~/ i~%G~/~ t Gary Halbert, AICP, PE Assistant City Manager/Director of Development Services Glen R. Googins Agency Counsel 1-29 RESOLUTION NO. 2011- RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA APPROVING A COOPERATION AGREEMENT WITH THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA; CONSENTING TO PAYMENT BY THE RDA OF ALL OR A PART OF THE COST ASSOCIATED WITH CERTAIN HOUSING PROJECTS; AND APPROPRIATING FUNDS THEREFOR WHEREAS, the Chula Vista Redevelopment Agency (the "Agency") is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California (California Health and Safety Code Section 33000 et sec .); and WHEREAS, the Chula Vista Housing Authority (the "Authority") is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Housing Authorities Law of the State of California (California Health and Safety Code Section 34200 et seq.); and WHEREAS, the Agency has adopted Redevelopment Plans for the Agency's redevelopment project areas and the affordable housing requirements and goals thereof; and WHEREAS, the current Five-Year Implementation Plan for the Redevelopment Project Areas (Implementation Plan) (adopted in Resolution No. 2009-2015 and incorporated herein by reference) sets out goals to support affordable housing. To implement the programs and activities associated with each goal, the Agency has made redevelopment fund commitments based on estimated available tax increment revenue and debt financing structures; and WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6 authorize and direct the Agency to expend a certain percentage of all taxes which are allocated to the Agency pursuant to Section 33670 for the purposes of increasing, improving and preserving the community's supply of low and moderate income housing available at affordable housing cost to persons and families of low and moderate incomes; and WHEREAS, on November 2, 2010, the City and Agency adopted Resolution No. 2010- 254 (RDA 2010-2030) certifying a list of four (4) affordable housing developers to collaboratively work with City staff and a Chula Vista Redevelopment Corporation (CVRC) Subcommittee to examine service gaps and identify ideal locations to meet the City's most pressing affordable housing needs and contribute to catalyst development concurrently; and WHEREAS, City staff has worked with the affordable housing developers and the CVRC subcommittee to determine a strategy to increase and prioritize affordable housing opportunities (the "Affordable Housing Strategy"); and 1-30 Resolution No. Page 2 WHEREAS, on the 26th day of January, 2011, the City's Housing Advisory Commission, held a public meeting to consider and comment on the Affordable Housing Strategy; and WHEREAS, the Agency and the Authority propose to enter into a Cooperation Agreement (Agreement) to provide for the implementation of affordable housing projects set forth in the Schedule of Projects attached to the Agreement as Exhibit 1 (Projects), and to require the Agency to advance funds to the Authority in accordance with the Payment Schedule attached to the Agreement as Exhibit 2 for the Authority's cost of performing its obligations under the Agreement, subject to all of the terms and conditions of the Agreement; and WHEREAS, no other reasonable means of financing said Projects and the programs and activities associated therewith are available to the community; and WHEREAS, in order to carry out and implement the City's Housing Element and Consolidated Plan and the goals, policies and programs thereof and the Redevelopment Plan for the Agency's redevelopment projects and the affordable housing requirements and goals thereof, the Authority and Agency propose the execution of Cooperation Agreement; and WHEREAS, the Authority has reviewed evidence, including testimony, if any, prepared and/or submitted in connection with this matter, and has determined that the foregoing recitals, and each of them, are true and correct, and further has determined that the provision of the Projects is in the best interests of the City and the Agency and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local law requirements; and WHEREAS, the Authority has reviewed the proposed Cooperation Agreement between the Authority and the Agency; and WHEREAS, the Agreement has been reviewed for compliance with California Environmental Quality Act (CEQA) and the State CEQA Guidelines (CEQA Guideline) and the Agreement is not a "project" for the purposes of CEQA and the CEQA Guidelines because, consistent with the CEQA Guidelines Section 15738(b)(4), while the Agreement commits the Agency to fund an affordable housing program, with potential projects identified, it does not commit the Housing Authority to implement any particular housing project without appropriate environmental review. Notwithstanding the foregoing, the determination of what constitutes a "project" under CEQA is complex and may be the subject of differing interpretation and, accordingly, if the Agreement is determined to be a "project" under CEQA, for the reasons stated herein, there is still no possibility that the activity may have a significant effect on the environment and, therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines, the activity is not subject to CEQA; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred and the agenda report accompanying this resolution is incorporated by this reference. 1-31 Resolution No. Page 3 NOVJ, THEREFORE, BE IT RESOLVED, by the Housing Authority of the City of Chula Vista that: The Housing Authority of the City of Chula Vista consents to and authorizes the Director or his designee to enter into and execute the Cooperation Agreement ("Agreement") Between the Redevelopment Agency ("Agency") and the Housing Authority ("Authority"); in the principal amount of up to Twenty Four Million dollars ($24,000,000) and in substantially the form submitted herewith and with such changes as approved by the Director and Authority Counsel that are consistent herewith. 2. The Director or his designee is hereby authorized to do all acts and things which may required of them by this Resolution or which may be necessary or desirable to carry out the issuance or execution of the Cooperation Agreement as provided by this Resolution and all matters incidental thereto. All such acts and things heretofore done are hereby approved, ratified, and confirmed. 3. The Director or his designee are hereby authorized to execute any amendments to the Agreement that will not result in an increase in the total amount of Funds payable by the Agency to the Authority under the Payment schedule attached to the Agreement. 4. Appropriations in the current year for the Transfer In to the Housing Authority in the approximate amount of $9.2 million dollars of available fund balance of Low/Mod Funds, and Expenditures of the same amount for the Acquisition of Land are authorized. 5. The Agency Secretary is authorized to attest the final form of the Cooperation Agreement on behalf of the Agency. 6. The Agency Secretary shall certify to the adoption of this Resolution. Presented by: Gary Halbert, AICP, PE Assistant Director of the Housing Authority Approved as to form by: ~~ Glen R. Googins Housing Authority Attorney 1-32