RES-10584 Affordable Housing Loan Agreement ApprovalRESOLUTION NO. 10584
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE APPROVING AN AFFORDABLE
HOUSING LOAN AGREEMENT BY AND AMONG
THE ORANGE REDEVELOPMENT AGENCY, THE
CITY OF ORANGE, AND SERRANO WOODS, LP
RELATING TO 1820 EAST MEATS AVENUE AND
MAKING CERTAIN FINDINGS.
WHEREAS, the Amended and Restated Redevelopment Plan for the Orange Merged
and Amended Redevelopment Project Area (the "Merged Redevelopment Project Area ") was
duly approved by the Orange City Council on November 27, 2001 by Ordinance No. 21 -01,
pursuant to the California Community Redevelopment Law (commencing with Section
33000 of the Health and Safety Code and hereinafter referred to as the "CRL "); and
WHEREAS, pursuant to Sections 33334.2(a) and 33334.6(c) of the CRL, not less
than 20% of all taxes which are allocated to the Orange Redevelopment Agency ( "Agency ")
from the Merged Redevelopment Project Area are set aside by the Agency in its Low- and
Moderate - Income Housing Fund ( "Housing Funds ") and used by the Agency for the purpose
of increasing, improving, and preserving the community's supply of low- and moderate -
income housing available at affordable housing costs to persons and families of low- and
moderate - income, including extremely low, very low, and low income persons and families;
and
WHEREAS, pursuant to Section 33334.2 of the CRL, the Agency may use Housing
Funds to assist in the provision of housing for extremely low, very low, and low income
households; and
WHEREAS, pursuant to Section 33334.2(e) of the CRL, the Agency may exercise
any and all of its powers to carry out this purpose; and
WHEREAS, the City is responsible for administering the use of certain funds made
available to the City by the United States Department of Housing and Urban Development
HUD ") under the HOME Investment Partnerships Program (the "HOME Program ") in
accordance with the regulations issued by HUD and set forth in 24 Code of Federal
Regulations ( "CFR ") Part 92 (the "HOME Regulations "); and
WHEREAS, the City has received HOME Program funds for the purposes of
strengthening public - private partnerships to provide decent, safe, sanitary, and affordable
housing, with primary attention to rental housing for low, very low, and extremely low
income households in the City; and
WHEREAS, Serrano Woods, LP, a California limited partnership (`Borrower "), has
entered into an agreement for the acquisition of certain improved real property located at
1820 East Meats Avenue (the "Site "), which is located outside of the Merged Redevelopment
Project Area; and
WHEREAS, Borrower has proposed to enter into an Affordable Housing Loan
Agreement (the "Agreement ") with the Agency and the City pursuant to which the Agency
and the City will provide financial assistance to Borrower in the form of two loans consisting
of $7,145,234 in Housing Funds and $1,369,527 in HOME Program funds, to be used to
acquire the Site and develop and operate 63 housing units on the Site to be made available
and rented to persons and families of extremely low, very low, and low income (excluding
one manager's unit) for fifty -five (55) years (the "Project "), as more fully set forth in the
Agreement; and
WHEREAS, Borrower has executed and submitted to the Agency and the City
Council copies of the Agreement, in a form that is acceptable to Borrower; and
WHEREAS, the City Council has duly considered all terms and conditions of the
Agreement as set forth in the agenda report presented to it and any testimony received at the
meeting at which this matter was considered and believes that the activities described therein
are in the best interest of the City and the health, safety, morals and welfare of its residents,
and in accord with the public purposes and provisions of applicable State and local law and
requirements, and that such activities promote the affordable housing objectives of the CRL
as well as the Redevelopment Plan for the Merged Redevelopment Project Area.
NOW, THEREFORE, the City Council of the City of Orange resolves, finds and
determines, on the basis of the facts set forth in the agenda report presented to it and any
testimony received at the meeting at which this matter was considered, as follows:
Section 1. The foregoing recitals are true and correct.
Section 2. The City Council recognizes that it has received and heard all oral and
written objections to the Agreement, and to other matters pertaining to this transaction, and
that all such oral and written objections are hereby overruled.
Section 3. The City Council hereby finds that the Agency's use of Housing Funds in
the amount of $7,145,234 for the Project will be of benefit to the Merged Redevelopment
Project Area and is in the vital and best interests of the City of Orange and the health, safety
and welfare of its residents, and in accord with the public purposes and provisions of
applicable federal, state and local laws and requirements.
Section 4. The City Council hereby finds that the City's use of funds from the Home
Program in the amount of $1,369,527 for the Project will strengthen public - private
partnerships to provide decent, safe, sanitary, and affordable housing, with primary attention
to rental housing for extremely low, very low, and low income households in the City of
Orange.
Section 5. The City Council hereby finds that the Agreement will provide for housing
for extremely low, very low, and low income persons.
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Section 6. The City Council approves the Agreement and hereby authorizes and
directs the Mayor or City Manager of the City or their respective designee to execute the
Agreement on behalf of the City in the form presented at the meeting at which this matter
was considered, and to take all steps and sign all documents and instruments to carry out the
Agreement on behalf of the City. A copy of the Agreement when executed by all parties
shall be placed on file in the office of the City Clerk.
Section 7. The Mayor or City Manager, or their respective designee, is hereby
authorized, on behalf of the City, to sign all documents necessary and appropriate to carry
out and implement the Agreement and to administer the City's obligations, responsibilities
and duties to be performed under the Agreement.
ADOPTED this 8 day of November, 2011.
ATTEST:
Mary E. urphy, City Clerk, City range
yn V. Ca,- Mayor,Wity of Orange
i
I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby
certify that the foregoing Resolution was duly and regularly adopted by the City Council of
the City of Orange at a regular meeting thereof held on the 8 day of November, 2011, by the
following vote:
AYES:COUNCIL MEMBERS:Whitaker, Smith, Cavecche
NOES:COUNCIL MEMBERS:Dumitru
ABSENT:COUNCIL MEMBERS:Bilodeau
ABSTAIN:COUNCIL MEMBERS:None
Mary E i , ity Clerk, i y ange
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