RES-10328 Affordable Housing Loan Agreement Approval Citrus Grove 1120 N. Lemon St.RESOLUTION NO. 10328
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 CITRUS GROVE, LP
RELATING TO 1120 NORTH LEMON STREET 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, Citrus Grove, LP, a California limited
partnership (Borrower), has entered into an agreement for the acquisition of certain improved real property
located at 1120 North Lemon Street (the Site), which is located with the Merged
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
6,151,785 in Housing Funds and $1,700,000 in HOME Program funds, to be used to acquire the
Site and develop and operate 56 affordable housing units on the Site to be made available and
rented to persons and families of extremely low, very low, and low income 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 interests of the City and health, safety, morals and welfare of its residents, and
in accord with the public purposes and provisions of applicable State and local law
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 I. 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 $6,151,785 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 $1,700,000 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
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 23rd day of September, 2008.
ATTEST:
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 23rd of September, 2008, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCILMEMBERS: Smith, Murphy, Cavecche, Dumitru, Bilodeau
COUNCILMEMBERS: None
COUNCILMEMBERS: None
COUNCILMEMBERS: None
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