RES-10051 Affordable Housing Loan Agreement Approval 218-228 W. Hoover Ave.I
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RESOLUTION NO. 10051
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 HOOVER & WILSON I, LP
REGARDING 218-228 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 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
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, Hoover & Wilson I, LP, a California limited partnership (Borrower),
has entered into an agreement for the acquisition of certain improved real property located at
218-228 West Hoover Avenue (the Site), which is located outside the boundaries of
the Merged Redevelopment Project
Area; and 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 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 $2,043,
578 in Housing Funds and $1,782,004 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 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 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
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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 $2,043,578 for the Project will be of benefit to the Merged Redevelopment Project Area
and is in the vital and best interests of the City of Orange and the health, safety and welfare of its
residents, and in accord with the public purposes and provisions of applicable federal, state and
local laws and requirements.
Section 4. The City Council hereby finds that the City's use of funds from the Home
Program in the amount of$I,782,004 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
ADOPTED this 13th day of December, 2005.
of Orange
ATTEST:
Iff
Mary E. M e
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, Dumitru
COUNCILMEMBERS: None
COUNCILMEMBERS: None
COUNCILMEMBERS: None