RES-10050 Affordable Housing Loan Agreement Approval 108-118 W. Hoover Ave.I
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RESOLUTION NO. 10050
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE APPROVING AN AFFORDABLE
HOUSING LOAN AGREEMENT BY AND BETWEEN
THE ORANGE REDEVELOPMENT AGENCY AND
HOOVER & WILSON I, LP, REGARDING 108-
118 WEST HOOVER 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 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 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 proj ects in assisting the accomplislnnent of
proj
ect objectives;and WHEREAS, pursuantto 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, Hoover & Wilson I, LP, a California
limited partnership (Borrower), has entered into an agreement for the acquisition of certain improved real
property located at 108-118 W. Hoover Avenue (the Site), which is located outside
the boundaries of the
WHEREAS, the Site is improved with twenty (20) dwelling units, which units Borrower
has inspected and believes to be suitable for the provision and maintenance of affordable housing;
and
WHEREAS, Borrower has proposed to enter into an Affordable Housing Loan Agreement
the "Agreement") with the Agency pursuant to which the Agency will provide financial assistance
to Borrower in the form of a loan consisting of $3,484,353 in Housing 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 sixty-five (65) 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 Housing
Funds 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, 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 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 $3,484,353 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
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Section 4. The City Council hereby finds that the Agreement will provide for housing for
very low-income
persons.Section 5. The City Council approves the
Agreement.ADOPTED this 13th day of December,
2005.
ATTEST:Mary E.y, City
Clerk, .I, MARY E. MURPHY, City Clerk of the City of Orange, 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 13th of December, 2005, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:COUNCILMEMBERS: Smith, Ambriz, Murphy, Cavecche,
Durnitru COUNCILMEMBERS:
None COUNCILMEMBERS:
None COUNCILMEMBERS:
None ity Clerk,