RES-ORA-0370 Affordable Housing Agreement ApprovalRESOLUTION NO. ORA-
0370 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
320 SOUTH HEWES STREET AND 4431
EAST MARMON 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 hereina:tler 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 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(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 proj ect areas (:an 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
the redevelopment projects; and WHEREAS, Orange Housing Development
Corporation, a California nonprofit corporation ("OHDC"), has acquired certain real property located at 320
South Hewes Street and 4431 East Marmon Avenue (the "Site"), which is located outside the boundaries
of the City's
redevelopment project areas; and WHEREAS, OHDC has requested the assistance of the Agency
to make available to OHDC $862,960 in Housing Funds to be used to construct
a multifamily residential structure consis.ting of five (5) dwelling units on 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,
lowand moderate
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 form acceptable to
the Agency and the City;
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 Sit(: (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 Onmge 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 construction of a new multifamily
residential structure in which not more than 49 percent of the apartments will be occupied by persons of
low income as a condition of recorded covenants, 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
dulyconsid<:::red 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 ofthe 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 Plans for the Northwest,
Southwest and Tustin Street Redevelopment
Projects;NOW, THEREFORE, the Orange Redevelopment Agency resolves, on the basis of
the facts S(:t 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. That the Agency's use of funds from the Housing Fund in the amount
of 862,960 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 Reso No. ORA-
0370 2 m_..___.._.____..________.___.______"..____.___ ---.--.--------
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.
S.~ction 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 Counse:l of the Agency (or his designee) upon
consultation with the City 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 required by the Senior Lender in order to subordinate the low- and
moderate-income covenants and restrictions of the Agreement to the security interests and
liens of the Primary
Lender.ADOPTED this 25th day of April,
2000.
I I
i
1, A . - - /' (,
1/ /"'>J o~~ Coontz,
Ch;irmar:,'
Orang~Redevelopment Agency ATTEST:CL Clerk, Orange Redevelopment
Agency
I
h:;:reby certify that
the foregoingResolution was duly and regularly adopted by the Orange: Redevelopment Agency at a
regular meeting thereof held on the 25th day of April, 2000,by the following vote:AYES:
NOES:ABSENT:ABSTAIN:DIRECTORS:
MURPHY,
SLATER,
COONTZ,
SPURGEON,
ALVAREZ DIRECTORS: NONE DIRECTORS: NONE DIRECTORS:
NONE r?
A~ ~A';;#
J4/(..;t-
CassandraJ Cathc , Clerk, Orange
Redevelopment Agency Reso No. ORA-0370 3