RES-ORA-0430 Affordable Housing Loan Agreement Approval 1844 E Wilson Ave.RESOLUTION NO. ORA-
0430 A RESOLUTION OF THE
ORANGE REDEVELOPMENT AGENCY APPROVING
AN AFFORDABLE HOUSING LOAN AGREEMENT
BY AND AMONG THE CITY OF ORANGE, THE
ORANGE REDEVELOPMENT AGENCY AND
ORANGE HOUSING 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 Onmge Redevelopment Agency (Agency) are set aside by the Agency in its Low-
and Moderate-Income Housing Fund (Housing Fund) :md 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 exercise any and all of its powers to carry out
this purpose; lmd WHEREAS, pursuant to Section 33205 of the CRL, the Agency may
delegate to the City of Orange any of its powers under
the CRL; and WHEREAS, the City of Orange is responsible for administering
certain funds made available to the 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 Development Corporation,
a California nonprofit corporation (OHDC), has entered into an agreement for the acquisition of
certain real property located at 1844 East Wilson Avenue (the Propeliy), 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 often (
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 alIordable housing
resource for the Orange Me:rged and Amended
WHEREAS, OHDC has requested that the Agency make available to OHDC
730,380.00 in Housing Funds to be used, together with $313,020.00 in HOME Funds to be
made available by the City and a bank loan of $284,060, to pay the cost to acquire the Property
and rehabilitate the apartment units, as more 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 requested Housing Funds will exceed fifty percent of the cost of
acquiring the Property and rehabilitating the apartment units; and
WHEREAS, OHDC has presented to the Agency substantial evidence that OHDC has
made a good faith attempt but been unable to obtain additional commercial or private means of
financing for the acquisition of the Property and rehabilitation of the apartment units, at the
same level of affordability and quantity as provided in the Agreement; 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 XXXIV of the Califomia 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 determined 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 governing board of the Agency, along with the
City Council, have duly considered all of the 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 requiremmts, and that
such activities promote the affordable housing objectives of the Califomia Community Redevelopment Law
as well as the Amended and Restated Redevelopment Plan for the Orange
Merged and Amended
Redevelopment
NOW, THEREFORE, the Board of Directors of the Orange Redevelopment Agency
finds, determines and 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. The foregoing recitals are true and correct.
Section 2. The Agency hereby delegates to the City all 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 the Agreement.
Section 3. The Agency 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 benefit 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 Agency hereby finds, based on substantial evidence, that the amount of
the Housing Funds to be used for the acquisition of the property and rehabilitation of the
apartments, as proposed in the Agreement, is necessary because OHDC has made a good faith
attempt but been unable to obtain additional commercial or private financing for the units, at
the same level of affordability and quantity as provided in the Agreement; and
Section 5. The Agency hereby authorizes a loan of Housing Funds in the amount of
730,380.00, subject to the terms and provisions set forth in the agenda report presented to the
Agency and any testimony received at the meeting at which this matter was considered, and in
accordance with the Agreement substantially in the form presented to the Agency; and
Section 6. The Agency hereby approves the Agreement in accordance with the terms
and provisions set forth in the agenda report presented to the Agency and any testimony
received at the meeting at which this matter was considered and hereby authorizes and directs
the Chairman or Executive Director of the Agency or designee to execute the Agreement on
behalf of the Agency substantially in the form presented to the Agency and the City Council,
and to take all steps and sign all documents and instruments to carry out the Agreement on
behalf of the Agency.
ADOPTED this 14th day of October, 2003.
J/ J ~ !fJ!
Mark A. Murphy, Chai
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ATTEST:
1~4fAA~.e ~;OiAA1A;f-
Cassandra J. C art, Clerk
I, CASSANDRA J. CATHCART, Clerk of the Orange Redevelopment Agency,
Orange, California, do hereby certify that the foregoing Resolution was duly and regularly
adopted by the Orange Redevelopment Agency at a regular meeting thereof held on the 14th
day of October, 2003, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
DIRECTORS: Ambriz, Alvarez, Murphy, Coontz, Cavecche
DIRECTORS: None
DIRECTORS: None
DIRECTORS: None
C44~~
Cassandra J. Cat , Clerk
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