RES-ORA-0348 Approving Affordable Housing Agreement 136-150 West Mayfair AvenueRESOLUTION NO. ORA-
0348 A RESOLUTION OF THE ORANGE
REDEVELQPMENT AGENCY APPROVING AN AFFORDABLE
HOUSING AGREEMENT BY AND BETWEEN THE
ORANGE REDEVELOPMENT AGENCY AND PETER D.
BONELLO AND JENNIFER G. BONELLO REGARDING 136-
150 WEST MAYFAIR 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, pursuant to Section 33334.2(e) of the CRL, the
Agency may exercise any and all of its powers to cany
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 areas upon resolution of the City Council and the Agency that such use will
be of benefit
to the redevelopment projects; and WHEREAS, Peter D. Bonello and Jennifer G. Bonello, husband
and wife, as joint tenants Owners"'), own certain improved real property located at
136-150 West Mayfair Avenue (the Site"), which is located outside the boundaries of the
City's redevelopment project areas; and WHEREAS, the Site is improved with two
complexes (Complex # 1 and Complex # 2),each consisting of four dwelling units, six of which are
currently occupied by persons and families of very low income, and one of which is currently occupied
by a low income household; and WHEREAS, Qwners have requested the assistance
of the Agency to make available 231,930 in Housing Funds to be used by Owners (a) to
refinance the acquisition loan relating to Complex # 2 and (b) to rehabilitate Complex # 1 and
Complex # 2 (the "Project"); and Owners have agreed to restrict the use of the Site for thirty (30) years
by renting units exclusively to very low income households as vacancies occur, and by restricting
rents to an affordable rent, as defined in the CRL, as more fully set forth in
an Affordable Housing Agreement ("Agreement") by and between the Agency and Qwners, in a form that
is acceptable to the Agency; and WHEREAS, Complex # 1 is subject to an existing first deed of
trust securing a loan in the amount 01'$144,000 in favor of Homecomings
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 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, THEREFQRE, the Orange Redevelopment Agency resolves, on the basis of
the facts set f4)rth in the agenda report presented to it and any testimony received at the meeting
at which this matter was considered, as
follows:Se,ction 1. That the Agency's use of funds from the Housing Fund in the amount
of 231,930 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 Qrange 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.St:ction 4. That the Agency approves the Project and the preparation of the
Agreement between the Agency and Owners 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 Agret:ment 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,
including signing such subordination agreements as may be required by the Senior Lender in order
to Reso. No. ORiI.-
0348
subordinate the low- and moderate-income covenants and restrictions of the Agreement to
the security interests and liens of the Primary
Lender.ADOPTED this 27th day of October
1998
f
ATTEST:C4f4.d4-<,~~<.;
d-Clerk, Orange Red opment
Agency 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 nTh day
of October ,
1998.AYES: DIRECTORS: SLATER, COONTZ,
ALVAREZ NOES: DIRECTORS:
NONE ABSENT: DIRECTORS: MURPHY,
SPURGEON ABSTAIN: DIRECTORS:
NONE Clerk, Orange Re elopment
Agency Reso. No.
ORA-