RES-ORA-0367 Affordable Housing Agreement Approval 264-280 S Esplanade StRESOLUTION NO. ORA-
0367 A RESOLUTION OF THE
ORANGE REDEVELOPMENT AGENCY APPROVING
AN AFFORDABLE HOUSING AGREEMENT BY
AND BETWEEN THE ORANGE
REDEVELOPMENT AGENCY AND ORANGE
HOUSING DEVELOPMENT CORPORATION REGARDING
264-280 SOUTH ESPLANADE STREET AND
MAKING CERTAIN FINDINGS AND APPROVING
A COOPERATION AGREEMENT WITH THE CITY
OF ORANGE RELATING
THERETO.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 Orang(~ 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 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, pursuantto Section 33334.2(e) ofthe 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
Califorrua State Legislature has fOlmd 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 n::development project
areas upon resolution of the City Council and the Agency that such use will be of benefit to
the
redevelopment projects;and WHEREAS, Orange Housing Development Corporation,
a California nonprofit corporation ("OHDC"), has entered into an agreement for the acquisition of
certain improved real property located at 264-280 South Esplanade Street (the "Site"), which
is located outside the boundaries ofthe City's
WHEREAS, the Site is improved with 27 dwelling units, which units OHDC has inspected
and believes to be suitable for the provision and maintenance of affordable housing; and
WHEREAS, OHDC has requested the assistance of the Agency to make available to
OHDC $1,153,360 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
low income, including very low income, for fifty-five (55) years (the "Project"), as more fully
set forth in an Affordable Housing Agreement ("Agreement") by and between the Agency and
OHDC in a fonn acceptable to the Agency;
and WHEREAS, OHDC intends to finance the Project in part with a loan made by a bank
or other lender, secured by a first trust deed on the Site (the "Senior Lender");
and WHEREAS, the City Council has found and determined, and the Agency desires to
find and determine, that the use of a portion of the funds from the Housing Fund outside the
boundaries of the City's redevelopment project areas for the Project in accordance with the terms
and provisions of the Agreement, is for the benefit of the City's redevelopment project areas 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, the Project consists of the 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 Constitution requiring voter approval at
an
election;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 ,mdhealth, safety,morals .md 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 theaffordablehousingobjectivesoftheCRLaswellastheRedevelopmentPlansfortheNorthwest, Southwest
and Tustin Street Redevelopment
Projects; and vHEREAS, the County of Orange ("Coun~v") has received funds from the
United States Department of Housing and Urban Development under the Community Development
Block Grant Program ("CDBG Program"), and has agreed to enter into that certainCommunityDevelopmentBlockGrantAgreement ("CDBG Agreement") with the City of Orange ("City"), pursuant
to which Reso.
No.
ORA-03672-
the County has agreed to set aside $500,000 in CDBG Program funds for use by the City for the
purposes of providing affordable housing, and the City wishes to enter into the CDBG Agreement
and alloeate the $500,000 of CDBG Program funds for property acquisition for the Project; and
NHEREAS, the City and Agency wish to coordinate the provision of Agency and City
assistanee for the Project in one agreement, and propose to enter into an agreement (the
Cooperation Agreement") to provide for the disbursement and use of the CDBG Program funds
for the Project pursuant to the terms and conditions S(:t forth in the Agreement.
NOW, THEREFORE, the Orange Redevelopment Agency resolves, on the basis of the
facts set forth in the agenda report presented to it and .my testimony received at the meeting at
which this matter was considered, as follows:
Section 1. That the Agency's use of funds from the Housing Fund in the amount of
1,153,360 for the Project will be of benefit to the City's redevelopment projects 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 2. That the provision of affordable housing pursuant to the Agreement is of benefit
to each of the following redevelopment projects and their project areas: the Tustin Street
Redevelopment Project; the Southwest Redevelopment Project; and the Northwest Redevelopment
Project.
Section 3. That an economically feasible alternative method of financing the Project on
substantially comparable terms and conditions, but without subordination, is not reasonably
available.
Section 4. That the Agency approves the preparation of the Agreement with OHDC 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 of the Agency to execute the: Agreement on behalf of the Agency in a
form to be prepared by the General Counsel of the Agency (or his designee) upon consultation with
the Ci1CY Attorney and to take all steps and sign all documents and instruments to carry out the
Agreement on behalf of the Agency, including signing such subordination agreements as may be
requin~d by the Senior Lender in order to subordinate the low- and moderate-income covenants
and restricltions ofthe Agreement to the security interests and liens of the Primary
Lender.Reso. No.
ORA-
0367 3-
S~:ction 5. The Agency approves the preparation of the Cooperation Agreement between
the Agency and the City in accordance with the terms and provisions set forth in the agenda report
presented to the Agency and any testimony presented at the meeting at which this matter was
considered and hereby authorizes and directs the Chairman of the Agency, or designee, to execute
the Cooperation Agreement on behalf of the Agency upon consultation with the Agency General
Counsel and to take all steps and assign all documents and instruments to carry out the Cooperation
Agreement on behalf ofthe Agency.
ADOPTED this ~ day of April ,2000.
ATTEST:
Cassandra J. Ca Clerk, Orange Redevelopment Agency
I hereby certify that the foregoing Resolution was duly and regularly adopted by the Orange
Redevdopment Agency at a regular meeting thereof held on the 11 t:h day of ll.pri 1
2000, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
DDRECTORS: MURPHY, SLATER, COONTZ, SPURGEON, ALVAREZ
DDRECTORS: NONE
DDRECTORS: NONE
DDRECTORS: NONE
4'~/IAAl~~~'~~
Cassandra J. Cathcart, Clerk, Orange Redevelopment Agency
Reso. 110. ORA-
0367
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