RES-ORA-0300 Approving Affordable Housing AgreementRESOLUTION NO. ORA-
0300 A RESOLUTION OF THE ORANGE REDEVELOPMENT
AGENCY APPROVING AN AFFORDABLE HOUSING AGREEMENT WITH
THE ORANGE HOUSING DEVELOPMENT CORPORATION
REGARDING 131 EAST WALNUT AVENUE AND 143 EAST WALNUT AVENUE
AND MAKING CERTAIN
FINDINGS CLARK
PROPERTY]WHEREAS, the Orange Redevelopment Agency (hereinafter referred to as the "
Agency")under the provision of the California Community Redevelopment Law, is engaged in
activities necessary for the execution of the Redevelopment Plan for the Southwest Redevelopment
Project Area (hereinafter referred to as the "Project Area");
and WHEREAS, Orange Housing Development Corporation, a California corporation (
ltOHDC")has entered into an agreement for the acquisition of certain improved real property located at
131 East Walnut Avenue and 143 East Walnut Avenue (to be redesignated as 500 North Orange
Street)the "Site") outside but within the vicinity of the Project Area;
and WHEREAS, OHDC shall construct four dwelling units on the Site, which shall
be maintlined available for a period of not less than fifty-five (55) years at affordable rent
to households consisting of senior citizens and having Very Low Income(s) as defined pursuant to
Section 50053 of the California Health and Safety Code, as more fully set forth in a proposed
Affordable Housing Agreement between the Agency and OHDC (the "AHA") in the form submitted
herewith; and WHEREAS, as provided pursuant to Section 33334.2 of the Health & Safety Code,
the use of moneys from the Agency's Low-and-Moderate-Income
Housing Fund ("Housing Moneys") and the provision of affordable housing outside of a redevelopment project
area but within the corporate limits of the City is of benefit to redevelopment projects
and redevelopment projects areas
located within the City; and WHEREAS, in connection with the Tustin
Street, Southwest, and Northwest Redevelopment Projects (collectively, the "Projects "), each of the Agency and the City Council
of the City of Orange have found and determined that the provision of affordable outside of
the Project Areas of the Projects is beneficial to each of those
Projects and Project Areas; and WHEREAS, the AHA provides for the imposition
of long-term affordability covenants, and contemplates the use of varied sources of private financing in
connection with the acquisition
of the Site by OHDC; and WHEREAS, while OHDC has attempted to
obtain private financing on favorable terms which would not require the subordination of long-
term affordability covenants, all of those lenders who have expressed an interest in providing
financing for the proposed acquisition have indicated that they will require that the lien securing repayment of their
loan must be superior to any long-term
affordability covenants in favor
of the Agency; and
PUBL:34059 _1194182359.13
Reso. No. ORA.~)
WHEREAS, based upon the foregoing, as well as the past experience of OHDC in
conne:tion with obtaining permanent financing, it is anticipated that it will be necessary as a
condition to obtaining private funding for the acquisition of the Site by OHDC that the Agency
subordinate its affordability covenants; and
WHEREAS, Section 33334.14 of the Community Redevelopment Law provides, in part, that
affordability covenants of an Agency may be subordinated "where the agency makes a finding that
an economically feasible alternative method of financing,. refinancing, or assisting the units or parcels
on substantially comparable terms and conditions, but without subordination, is not reasonably
available, and where the agency obtains written commitments reasonably designed to protect the
agency's investment in the event of default...": and
WHEREAS, based upon material presented to the Agency, there is not an economically
feasible alternative method of financing available on substantially comparable terms; and
WHEREAS, in the event the Agency subordinates its affordability covenants, the Agency
shall have certain rights to notice and cure in the event of default under such loan as to which the
Agency subordinates its affordability covenant'); and
WHEREAS, the governing board of the Agency has duly considered all terms and conditions
of the AHA and believes that the activities described in the AHA are 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 Community Redevelopment Law as well as the
Redevelopment Plan for the Southwest Redevelopment Project, as well as the other Redevelopment
Plans as adopted by the City of Orange;
NOW, THEREFORE, the Orange Redevelopment Agency does hereby find, determine,
order and resolve as follows:
Section 1. The City Council finds and determines that the use of Housing Moneys from each
of the Projects is of benefit to each and every one of the Projects and corresponding Project Areas.
Section 2. The Agency finds and determines that an economically feasible alternative method
of financing, refinancing, or assisting the units or parcels on substantially comparable terms and
conditions, but without subordination, is not reasonably available, and the Agency shall obtain
written commitments reasonably designed to protect the Agency's investment in the event of default.
Section 3. The Agency approves the AHA, and authorizes and directs the Executive Director
to execute the AHA and to take all steps and sign all documents and instruments including, but not
limited to, agreements and escrow instructions to carry out the AHA on behalf of the Agency, and
agreements or other instruments as may be necessary or convenient to effectuate the subordination
of affordability covenants unless it is hereafter determined by the Executive Director or the Agency
that such subordination is not necessary.
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Reso. No. ORA-03oo
Section 4. This Resolution shall take effect immediately upon adoption.
APPROVED AND ADOPTED by the Orange Redevelopment Agency this 23rd day of
l.:lmmry . 1996.
C/
r
c~~/~e ~~;~
ent Agency l/A
m:
ST:Clerk, Orange
R 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 23rd day of lary , 1996,
by the following:AYES: DIRECTORS
MURPHY, BARRERA, CHAIRMAN COONTZ, SPURGEON,SLATER NOES:
DIRECTORS
NONE ABSENT: DIRECTORS
NONE ABSTAIN: DIRECTORS
NONE 1 Clerk,
Orange
Re Rcso No.
ORA.o300 3