RES-8502 Finding the Use of Low and Moderate Income Housing Funds to Benefit Redevelopment ProjectsRESOLUTION NO. 8502
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ORANGE FINDING THAT THE USE OF LOW AND
MODERATE INCOME HOUSING FUNDS TO ASSIST IN
THE FINANCING OF THE PROPOSED 260-UNIT
VILLA SANTIAGO APARTMENTS PROJECT IS OF BENEFIT
TO THE REDEVELOPMENT
PROJECTS WHEREAS, Pursuant to the Community Redevelopment Law of the State
of California (the "Redevelopment Law") , the City of Orange has adopted a
redevelopment plan ("Redevelopment Plan") for each of the following Redevelopment Project
Areas,administered by the Orange Redevelopment Agency (the "Agency): the Tustin
Street Redevelopment Project, the Southwest Redevelopment Project and the
Northwest Redevelopment Project (each one individually referred to as a "Redevelopment
Project"and collectively referred to as the "Redevelopment Projects");
and WHEREAS, in connection with each of the Redevelopment Plans, the Agency
has established a Low and Moderate Income Housing Fund in accordance with
California Health and Safety Code Section 33334.2 et sea. (the "Housing Funds") , to
provide funding for housing within the City of Orange that is affordable to persons and
families of very low, low or moderate income;
and WHEREAS, Forest City Properties Corporation, a California corporation,
through a wholly owned subsidiary or a partnership in which such subsidiary is the
general partner ("Developer") has proposed to acquire the 260-unit Villa Santiago
apartments (the Project"), located at 11841 Prospect Avenue, in the City of Orange (the "
Property"), to rehabilitate the Property and operate the Project as rental housing affordable
to low income
households; and WHEREAS, Developer has requested the assistance of the Agency
in providing for the financing of the Project on the Property, and has submitted to the
Agency a proposal for such assistance (the "
Proposal"); and WHEREAS, on the basis of the Proposal, the Agency has prepared
a proposed Affordable Housing Agreement (the "Agreement") , providing for a loan to
Developer in the amount of $3,750,000 and a grant in the amount of $3,750,000, subject to
terms and conditions set forth in the
Agreement; and WHEREAS, copies of the proposed Agreement in substantially final
form have been presented to the Agency and this City
Council; and RBSO.
WHEREAS, pursuant to the proposed Agreement, all 260 of the apartment units
in the Project (the "Affordable Units") will be occupied by and restricted to low income
households, at affordable rents; and
WHEREAS, pursuant to the proposed Agreement, the Project Costs will be paid
from the combined proceeds of a loan and a grant to be made by the Agency to Developer
with Housing Funds from the Redevelopment Projects, Developer's Equity and the
proceeds of bonds to be issued by the City or loans obtained by Developer; and
WHEREAS, the Property is located in the City of Orange, but outside any of the
Redevelopment Projects, and, pursuant to the Redevelopment Law, in order to use
Housing Funds to assist the Affordable Units outside the Redevelopment Projects, the
Agency and the City Council must fmd that the use of the Housing Funds will be of
benefit the Redevelopment Projects; and
WHEREAS, the Agency and this City Council have each held a public meeting
on the proposed Project and the Agreement, after having duly provided notice of such
public meeting in accordance with State law.
WHEREAS, this City Council has duly considered all of the terms and conditions
of the proposed Agreement and believes that the use of the Housing Funds as provided in
the proposed Agreement will be of benefit to the Redevelopment Projects.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE
DOES HEREBY RESOLVE AS FOLLOWS:
1. The City Council recognizes that it has received and heard all oral and
written objections to the proposed Agreement, to the proposed financing of the Project
pursuant to the proposed Agreement, and to other matters pertaining to this transaction,
and that all such oral and written objections are hereby overruled.
2. The City Council finds and determines, based on the information set forth
in Attachment No. 1 to this Resolution, which is incorporated herein by this reference,
that the use of the Housing Funds from the Redevelopment Projects to pay part of the
cost of acquiring the Property, relocating the occupants therefrom and rehabilitating the
Project, as provided in the Agreement, will be of benefit to the respective Redevelopment
Projects.
3.This Resolution shall take effect upon adoption.
RESO. NO. 8502 2-
ADOPTED this 22nd day of August 1995.
ATTEST:
e
MARILYN J. JENSEN
City Clerk of the City of Orange
By:~~JC~~fDeputyCiCler
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 22nd day
of August , 1995, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
MURPHY, BARRERA, MAYOR COONTZ, SPURGEON,
SLATER
NONE
NONE
NONE
MARILYN J. JENSEN
City Clerk of the City of Orange
BY:~~ an/..,d
Deputy y C erk
BBSO. NO. 8502 3-
ATTACHMENT NO.1
TO CITY OF ORANGE RESOLUTION NO. 8502
VILLA SANTIAGO]
Benefit to the Redevelopment Proiect Areas
The use of funds from the Low and Moderate Income Housing Fund of the Tustin Street
Redevelopment Project, the Southwest Redevelopment Project and the Northwest
Redevelopment Project (collectively referred to as the "Redevelopment Projects") for the
financing and development of low income dwelling units in the Villa Santiago complex
located in the City of Orange (the "Villa Santiago Project") , will be of benefit to the
Redevelopment Projects, as follows:
1. Land use in the Tustin Street Redevelopment Project is currently limited to
commercial, non-residential uses. Accordingly, there are no reasonable or
appropriate opportunities to develop affordable housing in the Tustin Street Project. In
Section 33334.6 of the California Health and Safety Code, the State Legislature has found
and declared that the provision and improvement of affordable housing outside
of redevelopment project areas can be of direct benefit to those projects in assisting
the accomplishment of project objectives whether or not those redevelopment
projects provide for housing within the project area. By improving the currently deteriorated
Villa Santiago complex and providing decent, safe and affordable housing for low
income households in the City of Orange, the Villa Santiago Project will benefit the Tustin
Street Redevelopment Project by providing affordable housing for a segment of the
population of the City of Orange in need of affordable housing, and by providing and enhancing
the physical, economic and social conditions needed to prevent the recurrence of blight in
the Tustin Street Redevelopment Project and elsewhere in the City of
Orange.2. Land use in the Southwest Redevelopment Project is limited primarily
to commercial, non-residential uses. Accordingly, there are no reasonable
or appropriate opportunities to develop affordable housing in the Southwest Redevelopment
Project. In Section 33334.6 of the California Health and Safety Code, the State Legislature
has found and declared that the provision and improvement of affordable housing
outside of redevelopment project areas can be of direct benefit to those projects in
assisting the accomplishment of project objectives whether or not those
redevelopment projects provide for housing within the project area. By improving the currently
deteriorated Villa Santiago complex and providing decent, safe and affordable housing for
low income households in the City of Orange, the Villa Santiago Project will benefit
the Southwest Redevelopment Project by providing affordable housing for a segment of
the population of the City of Orange in need of affordable housing, and by providing and
enhancing the physical, economic and social conditions needed to prevent the recurrence of blight
in the Southwest Redevelopment Project and elsewhere in the City
of Orange.RESO. NO. 8502 Attachment
3. Land use in the Northwest Redevelopment Project is limited primarily to
industrial, non-residential uses. Accordingly, there are no reasonable or
appropriate opportunities to develop affordable housing in the Northwest Redevelopment Project.
In Section 33334.6 of the California Health and Safety Code, the State Legislature has
found and declared that the provision and improvement of affordable housing outside
of redevelopment project areas can be of direct benefit to those projects in assisting
the accomplishment of project objectives whether or not those redevelopment
projects provide for housing within the project area. By improving the currently deteriorated
Villa Santiago complex and providing decent, safe and affordable housing for low
income households in the City of Orange, the Villa Santiago Project will benefit the
Northwest Redevelopment Project by providing affordable housing for a segment of the
population of the City of Orange in need of affordable housing, and by providing and enhancing
the physical, economic and social conditions needed to prevent the recurrence of blight in
the Northwest Redevelopment Project and elsewhere in the City of
Orange.RESO. NO. 8502 Attachment No.
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