RES-ORA-0414 Disposition & Development Agreement ApprovalRESOLUTION NO. ORA-
0414 A RESOLUTION OF THE
ORANGE REDEVELOPMENT AGENCY APPROVING
A DISPOSITION AND DEVELOPMENT
AGREEMENT BY AND AMONG THE CITY OF ORANGE,
THE ORANGE REDEVELOPMENT AGENCY
AND ORANGE HOUSING
DEVELOPMENT CORPORATION REGARDING
PROPERTY LOCATED NORTH OF LA VETA
AVENUE BETWEEN OLIVE STREET AND LEMON
STREET AND MAKING CERTAIN
FINDINGS WHEREAS, the Amended and Restated Re:development Plan for the Orange Merged
and Amended Redevelopment Project Area (the Merged Redevelopment Project Area) was
duly approv(:d by the Orange City Council on November 13,200 I by Ordinance No. 210 I, 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 Sections33334.2(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 Ag(:ncy in its Low- and Moderate-
Income Housing Fund (Housing Fund) and used by theAgency fi:::>r 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 33334.6(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-im:ome households, outside the boundariesof its redevelopment
project area<; upon resolution of the City Council and the Agency that such use will be of benefit
to the redevelopment projects; and WHEREAS, the City of Orange (City) 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
YHEREAS, the Agency owns certain unimproved real property located north of La Veta
Avenue between Olive Street and Lemon Street (the"Site), which is located outside the boundaries of
the Project Area; and
YHEREAS, Orange Housing Development Corporation (OHDC) has proposed to develop
the Site with six (6) units of rental housing, to be made available and rented to very low income
senior citizen households for fifty-five (55) years (the Project);
and HEREAS, OHDC has proposed to enter into a Disposition and Development
Agreement the Agreement) with the City and the Agency, pursuant to which: (a) the Agency would sell
the Property to OHDC for a purchase price that is not less than the fair reuse value of the Property, at
the use and with the covenants and conditions and development costs required by the Agreement; (b)
the Agency would lend OHDC $516,495 in Housing Funds to be used to develop the Project; (c)
the City would make available to OHDC a grant in the amountof$639,120 from HOME
Progranlfunds;
and NHEREAS, OHDC has submitted to the Agency and the City Council copies of
the proposed Agreement, in a form that is acceptable to OHDC;
and NHEREAS, the Project consists of the constmction of dwelling units of a
previously existing low-rent housing project and is not, therefon:, a low rent housing project within
the meaning of Artic:,e XXXIV of the California Constitution requiring voter approval at an
election; and HEREAS, pursuant to the California Community Redevelopment Law (
California Health and Saft:ty Code, Section 3300 et seq.), the Agency and the City Council held ajoint
public hearing on the proposed conveyance of the Site pursuant to the Agreement, having duly published
notice of such public hearing and made copies of the proposed Agreement, and other repOlis
and documents available for public inspection and
comment; and WHEREAS, the Agency has duly considered all terms and conditions of
the proposed conveyance of the Site and believes that the development of the Site pursuant to
the proposed Agreement is in the best interest of the City and the health, safety, morals and welfare
of its residents, and in accord with the public purposes and provisions of applicable State and local
law
and requirements;SOW, THEREFORE, the Orange Redevelopment Agency 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 I. The foregoing recitals are tme
and correct.Section 2. The Agency recognizes that it has received and heard all oral
and written objections to the proposed Disposition and Development Agreement, to the proposed sale of
the real property pursuant to the proposed Agreement, and to othc;:r matters pertaining to this
transaction, and that all such oral and written objections are
Section 3. The Agency hereby finds and determines that the consideration to be paid by
OHDC for the Site as described in the Agreement is not less than the fair reuse value at the use and
with the covenants and conditions and development costs authorized by the Agreement.
Section 4. The Agency hereby finds and determines that the Agency's use offunds from the
Housing Fund in the maximum amount of$516,495 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 ,..vith the public purposes and provisions of
applicable federal, state and local laws and requirements.
Section 5. The Agency hereby finds that the sale of the Site will provide housing for low- or
moderate-income persons, specifically, very low income senior citizen households, and is
consistent with the 5-year Implementation Plan adopted by the: Agency on November
25, 1999.Section 6. The Agency hereby finds that an economically feasible alternative
method of financing the Project on substantially similar terms but without subordination of the
Agency's affordable housing covenants is not reasonably available, and authorizes the Executive
Director or designee to subordinate the Agency's affordable housing covenants to the lien ofOHDC'
s lender.Section 7. The Agency hereby authorizes the expenditure of Housing Funds in the
form of loans to OHDC in the maximum amountof $516,495 for the Project and 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 in accordance with
the Agreement.Section 8. The Agency approves the Agreement and hereby authorizes and
directs the Chairman or Executive Director of the Agencyor th<:::ir designee to execute the Agreement
on behalf of the Agency 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 Agency.A copy of the Agreement when executed by all parties shall be placed on file in the office
of the
Agency Clerk.Sectiun 9. The Chairman or Executive Director, or their designee, is hereby
authorized, on behalf of the Agency, to sign all documents necessary and appropriate to carry out and
implement the Agreement and to administer the Agency's obligations, responsibilities and duties to
be performed under
ADOPTED this 24th day of September, 2002.
M2t.~U:1i
ATTEST:
L(-t(,,~ e~~U~1Cassndr . thcart, Agency Cler
I hereby certify that the foregoing Resolution was duly and regularly adopted by the Orange
Redevelopment Agency at a regular meeting thereof held on the 24th day of September, 2002, by the
following vote:
AYES: DIRECTORS: SLATER, ALVAREZ, MURPHY, COONTZ, CAVECCHE
NOES: DIRECTORS: NONE
ABSENT: DIRECTORS: NONE
ABSTAIN: DIRECTORS: NONE
It~tlt~~ul-<r.CassandrF1~Uathcart, Agency rk