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RES-10584 Affordable Housing Loan Agreement ApprovalRESOLUTION NO. 10584 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ORANGE APPROVING AN AFFORDABLE HOUSING LOAN AGREEMENT BY AND AMONG THE ORANGE REDEVELOPMENT AGENCY, THE CITY OF ORANGE, AND SERRANO WOODS, LP RELATING TO 1820 EAST MEATS AVENUE AND MAKING CERTAIN FINDINGS. 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 California Community Redevelopment Law (commencing with Section 33000 of the Health and Safety Code and hereinafter referred to as the "CRL "); and WHEREAS, pursuant to Sections 33334.2(a) and 33334.6(c) of the CRL, not less than 20% of all taxes which are allocated to the Orange Redevelopment Agency ( "Agency ") from the Merged Redevelopment Project Area are set aside by the Agency in its Low- and Moderate - Income Housing Fund ( "Housing Funds ") 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 extremely low, very low, and low income persons and families; and WHEREAS, pursuant to Section 33334.2 of the CRL, the Agency may use Housing Funds to assist in the provision of housing for extremely low, very low, and low income households; and WHEREAS, pursuant to Section 33334.2(e) of the CRL, the Agency 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, Serrano Woods, LP, a California limited partnership (`Borrower "), has entered into an agreement for the acquisition of certain improved real property located at 1820 East Meats Avenue (the "Site "), which is located outside of the Merged Redevelopment Project Area; and WHEREAS, Borrower has proposed to enter into an Affordable Housing Loan Agreement (the "Agreement ") with the Agency and the City pursuant to which the Agency and the City will provide financial assistance to Borrower in the form of two loans consisting of $7,145,234 in Housing Funds and $1,369,527 in HOME Program funds, to be used to acquire the Site and develop and operate 63 housing units on the Site to be made available and rented to persons and families of extremely low, very low, and low income (excluding one manager's unit) for fifty -five (55) years (the "Project "), as more fully set forth in the Agreement; and WHEREAS, Borrower has executed and submitted to the Agency and the City Council copies of the Agreement, in a form that is acceptable to 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 Agency's use of Housing Funds in the amount of $7,145,234 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. Section 4. The City Council hereby finds that the City's use of funds from the Home Program in the amount of $1,369,527 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 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. 2- 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 8 day of November, 2011. ATTEST: Mary E. urphy, City Clerk, City range yn V. Ca,- Mayor,Wity of Orange i I, 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 8 day of November, 2011, by the following vote: AYES:COUNCIL MEMBERS:Whitaker, Smith, Cavecche NOES:COUNCIL MEMBERS:Dumitru ABSENT:COUNCIL MEMBERS:Bilodeau ABSTAIN:COUNCIL MEMBERS:None Mary E i , ity Clerk, i y ange 3-