RES-8985 Loan and Grant Approval Regarding 1915-1919 E Adams AvenueRESOLUTION NO. 8985
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ORANGE APPROVING A LOAN AND GRANT
AGREEMENT BY AND AMONG THE CITY OF ORANGE,
THE ORANGE REDEVELOPMENT AGENCY AND
ORANGE HOUSING DEVELOPMENT CORPORATION
REGARDING 1915-1919 EAST ADAMS 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 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) of the CRL, the Agency
may exercise any arid 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 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 very low-, low-
and moderate-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 entered into an agreement for the acquisition
of certain improved real property located at 1915, 1917 and 1919 East Adams Avenue (the "
Site"), which is located outside the boundaries ofthe City's redevelopment
proj ect areas; and WHEREAS, the Site is improved with three dwelling units,
which units OHDC has inspected and believes to be suitable for the provision and
maintenance
of affordable housing;2md WHEREAS, OHDC has requested the assistance of the Agency
to make available to OHDC $56,925 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 very low income for fifty-five (55) years (the "Project"), as more fully set forth
Agreement ("Agreement") to be entered into by and among the City, the Agency and OHDC in a
form ac,ceptable to the Agency and the City; and
WHEREAS, in addition to the Agency grant of funds, OHDC has requested the assistance
of the City to make available to OHDC a loan in the amount of$126,300 and a grant in the amount
of $101,400 from funds made available to the City by the U. S. Department of Housing and Urban
Development ("HUD") under the HOME Investment Partnerships Act Program (the "HOME
Program") in accordance with the regulations issued by HUD set forth in 24 CFR Part 92 (the
HOME Regulations"); and
WHEREAS, the City Council desires to make available to OHDC the loan of HOME
Program funds in the amount of $126,300 and a grant in the amount of $101,400 in accordance
with the terms and provisions ofthe agenda report presented to this City Council herewith; and
WHEREAS, the City Council 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
contemplates the use of varied sources of private financing in connection with the acquisition of
the Sitl: by OHDC; 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 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 best interests of the City and health, safety,
morals and wdfare of its residents, and in accord with the public purposes and provisions of
applicable State ,md 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 City Council ofthe 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. That the Agency's use offunds from the Housing Fund in the amount
of 56,925 for the Project will be of benefit to the City's redevelopment
projects.Reso No.
8985
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. The City Council hereby authorizes the expenditure of HOME Program
fimds in the form of a loan to OHDC in the amount of $126,300 and a grant in the amount of
101,400 to OHDC for the Project and 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 in accordance with the Agreement to be prepared by the
General Counsel of the Agency (or his designee) upon consultation with the City Attorney; and
Section 4, The City Council approves the preparation of the Agreement with OHDC and
the Agency 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 Executive Director 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 City Attorney and to take all steps and sign
all documents and instruments to carry out the Agreement on behalf of the Agency.
Section 5, Moreover, the City Council hereby authorizes and directs the City Manager 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 ~th day of Julv 1998.
ATTEST:
k4#A4#{I<'~#1/~T
City Clerk of the . of Orange
I hereby 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 ----2a th of ,Tn 1 y
1998, by the following vote:
Reso No. 8985
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AYES:
NOES:
ABSENT:
ABSTAIN:
Reso No. 8985
COUNCIL MEMBERS: MURPHY, SLATER, COONTZ, SPURGEON, ALVAREZ
COUNCIL MEMBERS: NONE
COUNCIL MEMBERS: NONE
COUMCIL MEMBERS: NONE
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