RES-10869 Affordable Housing Loan AgreementRESOLUTION NO. 10869
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE APPROVING AN AFFORDABLE
HOUSING LOAN AGREEMENT BY AND
BETWEEN THE CITY OF ORANGE AND LEMON
GROVE, LP RELATING TO 1148 NORTH LEMON
STREET AND MAKING CERTAIN FINDINGS.
WHEREAS, the Orange Redevelopment Agency was created, and operated in the
City of Orange, pursuant to the California Community Redevelopment Law (commencing
with Section 33000 of the California Health and Safety Code) (as amended from time to
time, the "CRL "); and
WHEREAS, the Amended and Restated Redevelopment Plan for the Orange Merged
and Amended Redevelopment Project Area (the "Merged Redevelopment Project Area ") was
duly approved by the Orange City Council on November 27, 2001 by Ordinance No. 21 -01,
pursuant to the CRL; and
WHEREAS, Assembly Bill No. X1 26 (2011 -2012 lst Ex. Sess.) became effective
on June 28, 2011, adding Part 1.8 (commencing with Section 34161) and Part 1.85
commencing with Section 34170) to Division 24 of the CRL, which was amended by
Assembly Bill No. 1484 (Chapter 26, Statutes 2012), which became effective on June 27,
2012; and
WHEREAS, pursuant to Section 34176 of the CRL, the City adopted Resolution No.
10626, on January 24, 2012, electing to retain the housing assets, rights, powers, duties,
obligations, and functions previously performed by the dissolved Orange Redevelopment
Agency; and
WHEREAS, pursuant to the CRL, the City has established a Low and Moderate
Income Housing Asset Fund and has deposited therein certain revenues made available to the
City under the CRL exclusively for the purpose of increasing, improving and preserving the
community's supply of affordable low income housing, including very low income housing
Housing Asset Fund "); and
WHEREAS, pursuant to the CRL, the City may use Housing Asset Funds to assist in
the provision of housing for extremely low, very low, and low income households; and
WHEREAS, pursuant to the CRL, the City may exercise any and all of its powers to
carry out this purpose; and
WHEREAS, the City is responsible for administering the use of certain funds made
available to the City by the United States Department of Housing and Urban Development
HUD ") under the HOME Investment Partnerships Program (the "HOME Program ") in
accordance with the regulations issued by HUD and set forth in 24 Code of Federal
Regulations ( "CFR ") Part 92 (the "HOME Regulations "); and
WHEREAS, the City has received HOME Program funds for the purposes of
strengthening public - private partnerships to provide decent, safe, sanitary, and affordable
housing, with primary attention to rental housing for low, very low, and extremely low
income households in the City; and
WHEREAS, Lemon Grove, LP, a California limited partnership (the "Borrower "),
has entered into an agreement for the acquisition of certain improved real property located at
1148 North Lemon Street (the "Site "), which is located within the Merged Redevelopment
Project Area; and
WHEREAS, the Borrower has proposed to enter into an Affordable Housing Loan
Agreement (the "Agreement ") with the City pursuant to which the City will provide financial
assistance to the Borrower in the form of two loans consisting of $6,750,000 in Housing
Asset Funds and $1,300,000 in HOME Program funds, to be used to acquire the Site and
develop and operate 82 housing units on the Site to be made available and rented to persons
and families of extremely low, very low, and /or low income (excluding one manager's unit)
for fifty -five (55) years (the "Project "), as more fully set forth in the Agreement; and
WHEREAS, the Borrower has executed and submitted to the City Council copies of
the Agreement, in a form that is acceptable to the Borrower; and
WHEREAS, the City Council has duly considered all 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 interest of the City and the health, safety, morals and welfare of its residents,
and in accord with the public purposes and provisions of applicable State and local law and
requirements, and that such activities promote the affordable housing objectives of the CRL
as well as the Redevelopment Plan for the Merged Redevelopment Project Area.
NOW, THEREFORE, the City Council of the City of Orange resolves, finds and
determines, 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. The foregoing recitals are true and correct.
Section 2. The City Council recognizes that it has received and heard all oral and
written objections to the Agreement, and to other matters pertaining to this transaction, and
that all such oral and written objections are hereby overruled.
Section 3. The City Council hereby finds that the City's use of Housing Asset Funds
in the amount of $6,750,000 for the Project will be of benefit to the Merged Redevelopment
Project Area 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.
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Section 4. The City Council hereby finds that the City's use of funds from the
HOME Program in the amount of $1,300,000 for the Project will strengthen public - private
partnerships to provide decent, safe, sanitary, and affordable housing, with primary attention
to rental housing for extremely low, very low, and/or low income households in the City of
Orange.
Section 5. The City Council hereby finds that the Agreement will provide for
housing for extremely low, very low, and low income persons.
Section 6. The City Council approves the Agreement and hereby authorizes and
directs the Mayor or City Manager of the City or their respective designee to execute the
Agreement on behalf of the City in the form presented at the meeting at which this matter
was considered, and to take all steps and sign all documents and instruments to carry out the
Agreement on behalf of the City. A copy of the Agreement when executed by all parties
shall be placed on file in the office of the City Clerk.
Section 7. The Mayor or City Manager, or their respective designee, is hereby
authorized, on behalf of the City, to sign all documents necessary and appropriate to carry
out and implement the Agreement and to administer the City's obligations, responsibilities
and duties to be performed under the Agreement.
ADOPTED this 91h day of June, 2015.
Teresa E. Smith, Mayor, City of Orange
ATTEST:
Mary E. rp ,City Cler nge
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1, MARY E. MURPHY, City Clerk of the City of Orange, California, do 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 9 day of June, 2015, by the
following vote:
AYES:COUNCIL MEMBERS:Alvarez, Whitaker, Smith, Murphy, Nichols
NOES:COUNCIL MEMBERS:None
ABSENT:COUNCIL MEMBERS:None
ABSTAIN:COUNCIL MEMBERS:None
Mary E. Mu City Clerk, Cit range
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