RES-9780 Affordable Housing Loan Agreement Approval 1844 E Wilson Ave.RESOLUTION NO. 9780
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ORANGE APPROVING AN AFFORDABLE HOUSING
LOAN AGREEMENT BY AND BETWEEN THE CITY OF
ORANGE, THE ORANGE REDEVELOPMENT AGENCY
AND ORANGE HOUSI~G DEVELOPMENT
CORPORATION REGARDING 1844 EAST WILSON
AVENUE AND MAKING CERTAIN FINDINGS
WHEREAS, pursuant to Sections 33334.2(a) and 33334.6(c) of the Community
Redevelopment Law (commencing with Section 33000 of the Health and Safety Code and
hereinafter referred to as the CRL) not less than 20% of all taxes which are allocated to the
Orange Redevelopment Agency (Agency) 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 commwlity'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
fanlilies; 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 33205 of the CRL, the Agency may delegate
to the Cilty of Orange (City) any of the Agency's powers under the
CRL; and WHEREAS, the City is responsible fix administering certain funds made
available to th(: City by the U.S. Department of Housing and Urban Development (HUD) under
the HOME Investment Partnerships Act Program (HOME Program) in accordance with
the regulations issued by HUD set forth in 24 CFR Part 92 (the HOME
Regulations); and WHEREAS, Orange Housing Devdopment Corporation, a
California nonprofit corporation (OHDC), has entered int0 an agreement for the acquisition of certain
real property located at 1844 East Wilson Avenue (the Property), located outside the boundaries
of the Orange Merged and Amended Redevelopment Project Area (the Property), which
is improved with a multi-family residential development consisting of ten (10)
apartment units; and WHEREAS, OHDC proposes to rehabilitate the apartments on
the Property and provide rental housing to be occupied by and rented exclusively, at affordable rents,
to Low and Moderate Income households, including Very Low Income households (
the Project); and WHEREAS, the Project will provide an affordable housing resource
for the Orange Merged and Amended Redevelopment
Project Area; and WHEREAS, OHDC has requested that the City make available to OHDC $
313,020,00 in HOME Funds, and that the Agency make available to OHDC $730,380.
00 in Housing Funds, to be used to pay a portion of the cost to acquire and rehabilitate the
fully set forth in an Affordable Housing Loan Agreement (Agreement) by and among the City
of Orange, the Agency and OHDC, substantially in the form presented to the Agency and the
City Council; and
WHEREAS, the Project consists of the replacement 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 XXXN of the California Constitution requiring voter approval at
an election;
and WHEREAS, California Public Resources Code Section 21080.14 establishes
a statutory exemption from the California Environmental Quality Act (CEQA) for
lower-income residential projects in urban areas. The proposed Project complies with the
conditions and limitations of this exemption, which are detailed in Section 15280 of the
State CEQA Guidelines, and are described as follows. Specifically, the proposed Project
will remain affordable to low-, moderate-, and very low-income households for a period of
65 years, is consistent with the City's general plan and zoning, is adequately served by utilities,
and will not involve the: demolition of, or any substantial adverse change in, any
district, landmark, object,building, structure, site, area, or place that is listed, or detemlined to be eligible for
listing in the California Register of Historical Resources. The site, itself, is currently
developed with urban uses, is not more than two acres in area, has no value as wildlife habitat, and is
not included on any list of hazardous waste or other facilities and sites compiled pursuant to Section
65962.5 of the California Government Code. The site and its existing improvements have
been subject to an assessment by a California registered environmental assessor to determine
both the presence of hazardous contaminants, if any, and the potential for exposure of
site occupants to significant health hazards from nearby properties
and activities; and WHEREAS, the City Council and the governing board of the
Agency have 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 be:st 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 California Community Redevelopment Law as
well as the Amended and Restated Redevelopment Plan for the Orange
Merged and Amended
Redevelopment Project Area.NOW, THEREFORE, the City Council of the City of Orange resolves, 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.and correct.The City Council finds and determines that the foregoing
recitals are true Secltion 2. The City Council hereby accepts the delegation by the
Agency of the Agency's power and authority pursuant to the CRL to make a loan of Housing
Funds to OHDC for the Project as provided
in
Section 3. The City Council hereby finds that the proposed loan of $730,380,00 in
funds from the Housing Fund for the Project in accordance with the Agreement will be of
bendit to the Orange Merged and Amended 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 authorizes a combined loan of HOME funds in
the amount of $313,020.00 and Housing Funds in the amount of $730,380.00, in the form of
the Combined Agency-City Loan subject to the terms and provisions set forth in the
agenda report presented to the City Council and any testimony received at the meeting at which
this matter was considered, and in accordance with Ilhe Agreement substantially in the
form presented to the Agency and the City Council;
and Section 5. The City Council approves the Agreement in accordance with the
terms and provisions set forth in the agenda report presented to the City Council and any
testimony received at the meeting at which this matter was considered and hereby authorizes and
directs the Mayor, the City Manager or designee to execute the Agreement on behalf of the City and
to take all steps and sign all documents and instruments to carry out the Agreement on behalf
of the
City.ADOPTED this 14th day of October,
2003.f/1(v-/
H Mark PI. Murphy,
Mayor,
ATTEST:I, CASSANDRA J. CATHCART, City Clerk of the City of Orange, California,
do here:by 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 14th day of October, 2003, by
the following
vote:
AYES:
NOES:
ABSENT:
ABSTAJN:COUNCILMEMBERS: Ambriz, Alvarez, Murphy, Coontz,
Cavecche COUNCILMEMBERS:
None COUNCILMEMBERS:
None COUNCILMEMBERS:
None MA~~&~/
Avf Cassandra J. Cathc , City Clerk, City of
Orange