RES-9994 Affordable Housing Loan Agreement Approval 1944 E. Wilson Ave.I
I
RESOLUTION NO. 9994
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 ORANGE HOUSING DEVELOPMENT
CORPORATION REGARDING 1944 EAST WILSON
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 13, 2001 by Ordinance No. 2101, 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 Fund) 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 very 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 very 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, pursuant to Section 33334.6(a) of the CRL, the California State Legislature
has found and declared that the provision of affordable housing outside of redevelopment project
areas can be of direct benefit to those projects in assisting the accomplishment of project objectives;
and
WHEREAS, pursuant to Section 33334.2(g) of the CRL, the Agency may use Housing
Funds to assist in the provision of housing for low and moderate income households, including very
low-income households, outside the boundaries of its redevelopment project areas upon resolution
of the City Council and the Agency that such use will be of benefit to the redevelopment projects;
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 Income and Very Low Income
households in the City; and
WHEREAS, Orange Housing Development Corporation, a California nonprofit
corporation (OHDC), has entered into an agreement for the acquisition of certain improved real
property located at 1944 East Wilson Avenue (the Site), which is located outside the boundaries of
the Merged Redevelopment Project Area; and
WHEREAS, the Site is improved with ten (10) dwelling units, which units OHDC has
inspected and believes to be suitable for the provision and maintenance of affordable housing; and
WHEREAS, OHDC 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 OHDC in the form of two loans consisting of $499,057.00 in
Housing Funds and $1,145,574.00 in HOME Program funds, to be used to acquire and rehabilitate
the Site and, thereafter, to cause the dwelling units at the Site to be made available and rented to
persons and families of very low income, for fifty-five (55) years (the Project), as more fully set
forth in the Agreement; and
WHEREAS, the City Council desires to find and determine, that the use of a portion of the
funds from the Housing Fund outside the boundaries of the Merged Redevelopment Project Area
for the Project in accordance with the terms and provisions of the Agreement, is for the benefit of
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; and
WHEREAS, OHDC has executed and submitted to the Agency and the City Council
copies of the Agreement, in a form that is acceptable to OHDC; and
WHEREAS, the Project consists of the acquisition and rehabilitation of dwelling units of a
previously existing low-rent housing project and is not, therefore, a "low rent housing project"
within the meaning of Article XXXIV of the California Construction requiring voter approval at an
election; 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.
I
I
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
obj ections 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 funds from the Housing
Fund in the amount of $499,057.00 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 $1,145,574.00 for the Project will strengthen public-private partnerships
to provide decent, safe, sanitary, and affordable housing, with primary attention to rental housing
for Very Low Income households in the City of Orange.
Section 5. The City Council hereby finds that the Agreement will provide for housing for
very low-income persons.
Section 6. The City Council approves the Agreement and hereby authorizes and directs
the Mayor or City Manager of the City or their 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
Agency Clerk.
Section 7. The Mayor or City Manager, or their 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 26th day of July, 2005.
e-tJ1
Mark I\.. Murphy, Mayor,of Orange
ATTEST:
Mary E.It 0 range
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 26th day of July, 2005, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCILMEMBERS: Smith, Ambriz, Murphy, Cavecche, Dumitru
COUNCILMEMBERS: None
COUNCILMEMBERS: None
COUNCILMEMBERS: None