RES-ORA-0286 Approving an Affordable Housing AgreementRESOLUTION NO. ORA-
0286 A RESOLUTION OF THE ORANGE REDEVELOPMENT
AGENCY APPROVlNG AN AFFORDABLE HOUSING AGREEMENT WITH
THE ORANGE HOUSING DEVELOPMENT CORPORATION
REGARDING 161 NORTH PARKER STREET AND MAKING CERTAIN
FINDINGS 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
Northwest Redevelopment Project Area (hereinafter referred to as the "Project Area");
and WHEREAS, Orange Housing Development Corporation. a California
corporation OHDC") has entered into an agreement for the acquisition of certain improved realpropertylocatedat161NorthParkerStreet (the "Site") outside but within the vicinity of the Project
Area;
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;
and WHEREAS, the dwelling units on the Site are currently not available at affordable
rent to households having Very Low Income(s) as defined pursuant to Section 50053 of the
California Health and Safety Code;
and WHEREAS, OHDC proposes to complete the acquisition of the Site and to cause not
less than two of the three dwelling units at the Site to be maintained available at affordable rent
to Very Low Income households for a period of fifty-five (55) years, as more fully set forth
in an Affordable Housing Agreement (the" AHA") in the form submitted
herewith; and WHEREAS, as provided pursuant to Section 33334.2 of the Health & Safety
Code. the provision of affordable housing outside of a redevelopment project area but withinthecorporatelimits ()f 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 connectionwiththeacquisitionoftheSite
by OHDC; and PUBL,
Z1339 _1194182359.13
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 WHEREAS, based upon the foregoing, as well as the past experience of
OHDC in connection 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 eventof
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
covenants; 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
mat such activities promote the affordable housing objectives of me Community Redevelopment
Law as well as the Redevelopment Plan for the Northwest 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 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 wimout 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 2. 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 PU6L,21339 _1194182359.13 2 December
effectuate the subordination of affordability covenants unless it is hereafter determined
by the Executive Director or the Agency that such subordination is not necessary.
PASSED, APPROVED AND ADOPTED this lQth day of January 1995.
ORANGE REDEVEWPMENT AGENCY,
a public body, corporate and politic
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hereby certify that the foregoing Resolution was duly and regularly adopted by
the Orange Redevelopment Agency at a regular meeting thereof held on the lilth day
of January, 1995, by the following vote:AYES:
MURPHY, BARRERA, CHAIRMAN COONTZ, SPURGEON NOES:
NONE ABSENT:
NONE ABSTAIN:
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