RES-9009 Approving Loan and Grant Agreement Regarding 1743 East Rose AvenueRESOLUTION NO, 9009
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 1743 EAST
ROSE AVENUE AND MAKING CERTAIN FINDINGS
WHEREAS, pursuant to Section 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 10w- and moderate-income,
including very low income persons and
families; and WHEREAS, pursuant to Section 33334.2(e) of the CRL,
the Agency mal' 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 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 redevelopment project arl~as 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 1743 Ea:3t Rose Avenue (the "Site"), which is
located outside the boundaries of the City's redevelopment
project. areas; and WHEREAS, the Site is improved with six
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 $137,690 in Housing Funds to
be used to acquire the Site and, thereafter, to cause the
dwelling units at the Site to be made available and rent'ed to persons
and families of ve,ry low income for fifty-five (55) years (
the "Project"), as more fully set forth in a Loan and Grant
entered into by and among the City, the Agency and OHDC in a form
acceptable 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 $81,220, for the acquisition and
rehabilitation of the Site, and a grant in the amount of $95,740
for the acquisition of the Site, from funds made available to the
Ci ty 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 $81,220 and a grant
in the amount of $95,740 in accordance with the terms and
provisions of the 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
A9reement, 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 m,eaning of Article XXXIV of the California Construction
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 A9reement 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 a]~d 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,Reso. No. 9009
NOW, THEREFORE, the City Council of the 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 of funds from the Housing
Fund in the amount of $137,690 for the project will be of benefit
to the City's redevelopment projects.
Section 2. That the provision of affordable housing pursuant
to the Agreement is of benefit to each of the following
redevelopment proj ects and their proj ect 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 funds in the form of a loan to OHDC in the amount
of $81,220 and a grant to OHDC in the amount of $95,740 for the
Proj ect 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
con,sidered 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
Chairman of the Agency Board of Directors 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 13th day of October 1998,
Reso.
No. 9J09 3-
ATTEST:
AAV~h<4~~/A.d-
City Clerk of e City 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 13th of October ,1998, by
the following vote:
AYES:COUNCIL MEMBERS: MURPHY, SLATER, COONTZ, SPURGEON, ALVAREZ
NOES:COUNCIL MEMBERS: NONE
ABSENT:COUNCIL MEMBERS: NONE
3STAIN: COUNCIL MEMBERS: NONE
Cu-~~~~
City Clerk of he City of Orange
Reso. No. 9009 4-