HomeMy WebLinkAboutReso 1982-11041 RESOLUTION NO. 11041
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA APPROVING TRANSFER
OF ELDERLY PUBLIC HOUSING SITE TO THE
COUNTY HOUSING AUTHORITY
The City Council of the City of Chula Vista does
hereby resolve as follows:
WHEREAS, the Council, on July 29, 1980, purchased a
.98 acre parcel at 432, 436, and 438 F Street with a federal housing
assistance fund loan as a site for elderly low-rent housing; and,
WHEREAS, the County Housing Authority proposes the
development of a 59-unit elderly low-rent public housing project on
this site; and,
WHEREAS, the development of said project would accomplish
goals set by the City for assistance to low-income housing; and,
WHEREAS, the financial feasibility of said proposed
housing project can be accomplished by the elimination of land cost
from said project's overall costs; and,
WHEREAS, the appropriate Real Property Contract and
grant deed have been prepared for transferring said property to the
County Housing Authority for the nominal consideration of $1 in order
to accomplish the proposed elderly low-rent public housing project.
NOW, THEREFORE, BE IT RESOLVED that the City Council of
the City of Chula Vista does hereby approve transfer of the housing
site at 432, 436, and 438 F Street to the County Housing Authority.
BE IT FURTHER RESOLVED by the City Council of the City
of Chula Vista that that certain Real Property Contract, attached
hereto as Exhibit A and incorporated herein by reference as if set
forth in full, and that that certain grant deed, attached hereto as
Exhibit B, and incorporated herein by reference as if set forth in
full, be, and the same are hereby approved and the Mayor is authorized
to execute the same on behalf of the City Council of the City of Chula
Vista.
Presen Approved as to form by
, Community George D. Lindberg, City Attorney
Development Director
ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, this 19th day of October
19'X 2 , by the following vote, to-wit:
AYES: Councilmen Malcolm, Moore, McCandliss, Scott, Cox
NAYES: Councilmen None
ABSTAIN: Councilmen None
ABSENT: Councilmen None
~te Ci~fyeof'~C~ula Vista
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chulo Vista, California,
DO HEREBY CERTIFY that the above and foregoing is o full, true and correct copy of
RESOLUTION NO. 11041 ,and that the same has not been amended or repealed,
DATED
(seal) City Clerk
CC~660 /~>- i/{V/
REAL PROPERTY CONTRACT
San Diego, California Project Title : CHULA u!STA PUBLIC
HOUSING F STREET
October 19, , !9 82 Work Order No. : TE 7361
GRANTOR(S) Parcel No. : 82-0555-A
THE CITY OF CHULA VISTA, Federal No. : NA
a municipal corporation
A GRANT DEED in the form attached hereto as Exhibit "A" and made a part hereof, has
been executed and delivered to Douglas A. Rolan, Real Property Agent of the County of
San Diego, for acceptance by the Roard of Commissioners of the Housing Authority of the
County of San Diego, hereinafter called Housing Authority. The Grantor is the City of
Chula Vista, a municipal corporation, hereinafter called City.
In consideration of which, and other considerations hereinafter set forth, it is
mutually agreed as follows:
1. The performance of this Agreement constitutes the entire consideration for
said document and shall relieve this Mousing Authority of all further obliga-
tion or claims on this account.
2. The Housing Authority shall:
A. Pay to the order of the City the sum of %1.00 for the property and interest
conveyed by the above document(s) within five (5) working days after title
to said property vests in the Housing Authority free and clear of all
liens, encumbrances, assessments, easements and leases (recorded and/or
unrecorded~, and taxes, except:
(1) Exceptions No. ?, 3, a, and 5, as set forth in Title Policy No.
~-612211, dated July 31, 1980, issued by Safeco Title Insurance
Company.
At the option of the Housing Authority, any or all items which become of
record after the date of the above Title Policy and before the date said
document of conveyance is recorded may also be excepted.
B. Pay all escrow and recording fees incurred in this transaction, and, if
title insurance is desired by the Mousing Authority, the premium charged
therefor.
3. City warrants that there are no oral or written leases on all or any part of
the property exceeding a period of one month, and the City agrees to hold the
Housing Authority harmless and reimburse the Housing Authority for any and all
of its losses and expenses occasioned by reason of any lease of said property
held by any tenant of City for a period exceeding one month.
4. In regard to the three single-family houses located on the subject property,
the Housing Authority shall, at their sole expense, do the following:
A. Maintain the said houses and their grounds in a neat manner prior to
removal.
B. Remove the three single houses from said property prior to February !,
1983.
C. If economically feasible, as solely determined by the Housing Authority,
the Housing Authority shall move said single-family homes (as described in
Clause 4R above) to another site for low and moderate-income families as
affordable replacement housing under the County's Residential Rehabilita-
tion Program. The selection of the new site shall be determined solely by
the Housing Authority.
B. If the use stated in Clause 4C above is not feasible, then the Housing
Authority shall contribute the proceeds from disposition of said houses to
the Town Centre Public Housing project budget.
5. The City of Chula vista hereby agrees to process and to pay for any and all
claims relating to Relocation Assistance and Real Property Acquisition under
the HCD Guidelines that may apoly to the transfer of said property under this
contract.
6. In addition to the payment in Clause ?A above, further consideration for this
Drooerty transfer of the property described in Exhibit "A" is the obligation
of the Housing Authority for construction of Project CA16-P108-O02 pursuant to
the U. ~. Housing Act of lq37 under the terms of the Annual Contributions
Contract entered into between the United States and the Housing Authonity.
The Parties hereto have herein set forth the whole of their Agreement. No
consideration other than that set forth herein will be honored.
IN WITNESS WHEREOf, the parties hereto have executed this agreement the day and
year first above written.
THE CITY 0 CHULA ~T~
Ma, , City of Chula Vista
THE HOUSING AUTHORITY 0p THE
COUNTY OF SAN DIEGO
By
DepUty ~ecretary
Board of Commissioners
2
THIS INS'/,q.L;',IE:''i~' i'.-):
C:erk, gcard of Supervisors
San Diego Count'/Administration Center
1600 Pacific Highway
San c~ego, Califom a 92101
NO TRANSFER TAX DUE
SPACE ABOVE FOR RECORDER'S USE ONLY
Grant Deed
CHULA VISTA PUBLIC
~ssessor's Parcel proiect HOUSING_L"F" STREET
No. 568-200-03 thru 08 W.O. No. TE2361
Parcel No. 82-0555-A
THE CITY OF CHULA VISTA, a municipal corporation
For a valuable con~deration do(es)hereby GRANT tot he HOUSING AUTHORITY OF THE COUNTY OF SAN DIEGO,
all that real property in the County of San Diego, State of California, described as follows:
Parcel No. 82-0555-A (10-12-82) (JA:JA:ab)
The Easterly 150.00 feet of the Westerly 250.00 feet of the Westerly
Half of the Easterly Half of the lO-acre Lot 12 in Quarter Section 149
of Chula Vista, in the City of Chula Vista, in the County of San Diego,
State of California, according to Map thereof No. 505 filed in the
Office of the County Recorder of San Diego County March 13, 1888.
EXCEPTING THEREFROM the Southerly Half of the Westerly 6.00 feet.
This deed is made and accepted upon the covenant, which shall run for
the duration of any Annual Contributions Contract or its extension
between the Housing Authority of the County of San Diego and the U. S.
Department of Housing and Urban Development involving the premises,
that the property shall be used exclusively for housing for low and
moderate-income persons, as defined by the U.S. Department of Housing
and Urban Development. This covenant shall be binding on the parties
and their successors in interest.
Notwithstanding anything herein to the contrary, said covenant shall not
be deemed in any way to impair the rights of the United States under the
terms of the Annual Contributions Contract entered into between the United
States and Housing Authority for Project Number: CA16-P108-O02, pursuant
to the United States Housing Act of 1937.
(Continued on following pages. )
Page 1 of 3
cos,=, ..,s. sm -//o
Parcel No. 82-0555-A (Cont.)
This deed is further made and accepted on the express condition that,
subsequent to the term of any Annual Contributions Contract between
the Housing Authorityof the County of San Diego and the U. S. Depart-
ment of Housing and Urban Development involving the premises, the
premises shall continue to be used exclusively for housing for low
and moderate-income persons, as defined by the U. S. Department of
Housing and Urban Development. A brea~h of the foregoing conditions
shall cause the premises to revert to the grantor, his heirs, successors,
or assigns, who shall have the right of reentery upon the premises in
the event of such a breach. Provided, however, grantor shall, prior to
reentry, give written notice of alleged breach of conditions to grantee,
specifying in detail the all eged breach of conditions and grantee shall
have 90 days to cure said breach.
Notwithstanding ~nything herein to the contrary, in the event that
the housing for low and moderate-income persons is destroyed by fire
or other catastrophe, the Housing Authority of the County of San Diego
shall be granted a reasonable period of time to rebuild such housing
for low and moderate-income persons.
Page 2 of 3
-II
Dated this
THE CITY OF CHULA VZSTA. a municipal
corpora 'on
.Y.
On , 19~ before me, the undersigned, a Notery Public in and for said County and
S~ate, personally appeared
Known to me to be the person whose name robscribed to the within instrument,
and acknowledged that executed the same.
Wireass my hand and official seal.
~'~tary Public in and for said County and State
)n this day of in the y~r 19__, before me, ROBERT D. ZUMWALT.
;ounty Clerk end ex-officio Clerk of the Superior Court in and for ~ County, which is a court of record having a
eel, personally appeared
;nuwn to me to be the person described in and whom name
ubscriped to and who executed the annexed instrument, end acknowledged to me that
se executed the same.
n Witness Whereof, I have hereunto sat my hand and affixed the seal of said Court at my office in the Ceq~nty of
~n Diego, the day and year in ~is Certificate first above writ*.en.
ROBERT D. ZUMWALT, County Clerk and ex-officio Clerk of the Superior Court
By , Deputy
his iS to certify that the interest in real property conveyed by the fotlgoing deed or grant to the County of San Die9~
political corporation, is hereby accepted on behalf of the Board of Supervisors of said County of San Diego p~jrs, Ja~
> authority conferred by Resolution of said Board adopted on Ivtarch 20,1979,, and the Grantee consents to rotor
~tion thereof by its duly authorized officer.
Page 3 of 3 ' :IAJ'J C ~'
REPORT ON TOWN CENTRE MANOR PUBLIC HOUSING PROJECT
Submitted by David Gustafson, Housing Coordinator
I. Introduction
As its final discretionary act on the Town Centre Public Housing Project,
the City Council i s acting on the transfer of the "F" Street housing site
to the County Housing Authority. The result of that property transfer
will be the development of 59 elderly Low Rent Public Housing units. The
City will be making a significant commitment of its housing assistance
resources to accomplish those 59 units.
The structure of the City's involvement in the project was approved by the
City Council on February 9, 1982, at the time of the submission of the
Development Program to HUD. The complexity of the issues involved and the
changes in Council membership suggest the value of a review and of
clarification. This report, in question and answer form, deals with both
the basic concepts planned into this joint venture with the County Housing
Authority and with questions which have arisen during the land use
processing on the project.
II. Issues
1. QUESTION: Why is the City participating in such a project?
~SWER: The project offers the City an opportunity to realize
goals that the City has set for itself for the provision of low and
moderate income housing. The Housing Element of the General Plan,
mandated by the State Planning and Zoning Law, is a commitment to
making "adequate provisions for the housing needs of all economic
segments of the community [Section 65302(c)]." In response, Chula
Vista established an Affordable Housing Program as an action program
of its Housing Element. That program calls for the development of
Low Rent Public Housing as a response to Article XXXIV Referendum
Authority from Chula Vista citizens to develop 400 units of such
housing.
Additionally, in Chula Vista's Housing Assistance Plan, which the
City adopted as a statement of goal s for affordable housing, and
which is required for eligibility for Federal Community Development
Block Grant funds, the City set goals for the provision of new
construction rentals for low and moderate income seniors. The goal
is based on a statistical appraisal of the need for such housing in
Chula Vista. The goal set for FY 1981-82 was 100 units, and none has
yet been realized.
Town Centre Manor
Public Housing Project - 2 -
Finally, it should be realized that in today's housing and economic
climate, greater emphasis is being put on local solutions to housing
problems. This project is quite innovative and should be a real
credit to Chula Vista's commitment to affordable housing; it takes
advantage of increasingly scarce federal subsidies, while also
providing enabling land use exceptions and local housing assistance
funds and utility company funds.
2. QUESTION: Will the project cost the City's General Fund anything?
ANSWER: No general fund dollars have been used or will be used to
accomplish this project. The funds used or proposed to be used are
from a Federal Section 108 loan, from Community Development Block
Grant funds, and from the Redevelopment Agency's Low Income Housing
fund. All of these funds are restricted to the provision of housing
a ssi stance.
3. QUESTION: Why does the County Housing Authority need Chula Vista's
assistance to build this federal housing project?
ANSWER: The County Housing Authority is in receipt of HUD funds
sufficient to purchase an appropriate property at market rate and to
construct 30 dwelling units. The financial participation by the
City, through land write-down and construction cost assistance, was
conceived to use the ideally-sited "F" Street property and to
increase the unit count, thereby getting maximum utilization out of a
valuable property and accomplishing City-funded new construction at a
favorable rate.
4. QUESTION: How much will the project cost in City Housing
Assi stance funds?
ANSWER: The Council has approved in concept transferring the
property to the County Housing Authority for $1. The City used
$561,000 in Section 108 Loan funds to purchase the site in 1980.
That loan, which was granted specifically for acquisition of housing
sites, must be paid back to HUD from annual Block Grant entitlemerits,
and the purchase cost thus represents a subsidy to the housing
project.
Additionally, the project involves a contingency pledge from the
Redevelopmerit Agency Low Income Housing Fund. The project budget for
59 units without land cost, as reviewed by City staff and approved by
HUD, exceeded the HUD funding available for 30 units by $183,291.
The City's Redevelopment Agency's FY 1982-83 budget makes available
to the project the total sum of ~183,291 in order to construct 59
units.
IlL}c//
Town Centre Manor
Public Housing Project - 3 -
While it is possible that the total amount will be required by the
project, reasonable expectations are that much less would actually be
required. Savings are anticipated for the following reasons:
A. The project budget was based on an architect's estimate, and
recent experience with falling industry prices suggests that
actual costs will come in substantially below the estimate.
B. The budget includes the cost of a solar hot water system
installation at ~64,900. It appears at this point that a grant
for that cost will be received from San Diego Gas and Electric
Company.
It should be realized that part of the City's pledge might be
requi red to pay for a portion of the patio and balcony installation
cost, even if cost savings exceed the amount of the City's pledge.
This is due to the fact that HUD considers patio and balcony costs as
part of the individual unit construction cost, which they calculate
apart from the total development cost. Regardless of project
revenues or of savings on the total development cost, the individual
unit construction cost cannot exceed a set maximum, or prototype,
which is quite low. As the estimated cumulative unit cost exceeds
the prototype limit by $58,928, it is possible that, even with actual
bid savings, the City would have to pay some or even all of the cost
of those particular amenities.
5. QUESTION: Are the project's hard construction costs reasonable in
relation to the private market?
ANSWER: City Staff has evaluated the estimate/budget for the
project and has concluded that the project is quite cost effective,
even in light of the required adherence to federal labor standards
and federal Minimum Property Standards. The Building Contractors
Association reports that the regional average structural construction
costs for this type of building in July and August of 1982 was $39,49
per square foot for "good" construction and $33.22 per square foot
for "average" construction. This project, which would certainly be
classified as "good" construction, is budgeted conservatively at
531.02 per square foot, and should come in at substantially less when
bids are received.
6, QUESTION: Is the provision of patios and balconies desirable, and
does such provision come at the cost of additional units?
ANSWER: The inclusion of patios and balconies was a recommendation
of the City Planning Department, to satisfy the City's policy
regarding private open space, a policy which pertains to all
mul tifamily residences in Chula Vista, but which may be waived by the
Council under the Senior Housing Development Policy. If the patios
and balconies were not included, additional common open space might
have been recommended by the Planning Department, thereby reducing
the possible total unit count.
Town Centre Manor
Public Housing Project - 4 -
7. QUESTION: How is the City guaranteed that the "F" Street property
will be used for low income housing?
ANSWER: Restrictive language has been included in the Grant Deed
which has been determined to be acceptable to HUD and to the County
Housing Authority. The funding mechanism for the project makes it
impossible for HUD to accept a reversion clause during the life of
any Annual Contributions Contracts between HUD and the County Housing
Authority. This is because notes are sold by the County Housing
Authority to fund construction, and these notes are guaranteed and
paid by HUD. To secure the notes, a Declaration of Trust is taken on
the property. A reversion clause would invalidate that Declaration
of Trust. Therefore, during the period in which an Annual
Contributions Contract is in effect, deed language will impose a
covenant on the land which would give us the right to pursue a legal
remedy if low income housing were discontinued. After the period of
HUD housing contracts on the property, a period of between 30 and 75
years, a reversion clause will pertain.
8. QUESTION: Will Chula Vista be compensated for loss of property tax
revenues on the project?
ANSWER: A1 though the project will be exempt from property tax, the
Cooperation Agreement between the County Housing Authority and the
City calls for an annual Payment in Lieu of Taxes (PILOT). PILOT is
10% of the annual net rental income. The project budget estimates
this annual payment to the City to be $8200, which would be
distributed proportionately to the various taxing bodies.
9. QUESTION: Will Chula Vista residents get occupancy preference?
ANSWER: Federal regulations allow the County Housing Authority to
give preference to applicants within its jurisdiction, That
jurisdiction is county-wide, however, so priority could not be
restricted to Chula Vista residents. But the County Housing
Authority will concentrate advertising on the Chula Vista area.
Statistical studies of HUD projects suggest an average of 80% of the
occupants are from their local communities.
10. QUESTION: How will the project be managed?
ANSWER: Administrative management of the public housing projects
will be done by the County Housing Authority. On-site management
will be provided by a contract management firm.
Z- ii 'ql
Town Centre Manor
Public Housing Project - 5 -
ll. QUESTION: What provisions are made for elderly and handicapped
assistance fixtures?
ANSWER: Six units will be fully equipped according to State
handicapped requirements, as will all common areas. All 58 tenant
units will have an emergency sick call button in the bedroom which
activates a signal light outside the room in the hallway, a signal
light in the manager's office and his apartment, and an outside
alarm; peep hole for observation at the entry door; smoke detector
alarms which also signal at the manager's office and apartment; doors
large enough for wheelchairs to pass through; a grab bar at the
toilet; and a grab bar at the tub/shower.
CONCLUSION
This report has dealt with the significant issues involved in our
participation with the County Housing Authority to accomplish the maximum
local benefit from the Federal Public Housing Program. The approaches of both
the County Housing Authority staff and City staff could be characterized as
cooperative and committed exclusively to the provision of housing assistance
to those in need in the Chula Vista area, while making most efficient use of
available assistance funds. We have attempted throughout negotiations to
utilize City assistance funds, not for unnecessary embellishment, but to
increase the actual unit count. I feel we have created an opportunity to
maximize the impact of our available funds.
Additionally, we have attempted to provide all reasonable assurances that the
City's investment i n this project i s protected and that the City mai ntai ns a
voice in the development and maintenance of the project. Cooperative
agreements and deed language guarantee that the City will be satisfied or will
recapture its investment.
The Town Centre Manor Project as conceived would be an innovative, efficient
utilization of the resources currently available for housing our lowest-i ncome
citizens. I feel it would be a tangible demonstration of this City's
commitment to housing of which we could be proud, and it would be recognized
on a national scale.
WPC Ol19X
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