Loading...
RES-ORA-0407 Loan & Grant Agreement Approval Property North of La Veta AvenueRESOLUTION NO. ORA- 0407 A RESOLUTION OF THE ORANGE REDEVELOPMENT AGENCY APPROVING A LOAN AND GRANT AGREEMENT BY AND AMONG THE CITY OF ORANGE, THE ORANGE REDEVELOPMENT AGENCY AND ORANGE HOUSING DEVELOPMENT CORPORATION REGARDING PROPERTY LOCATED NORTH OF LA VETA AVENUE BETWEEN OLIVE STREET AND LEMON STREET AND MAKING CERTAIN FINDINGS VHEREAS, pursuant to Sections 33334.2(a) and 33334.6(c) of the Community Redevelopment Law (commencing with Section 33000 of the Health and Safety Code and hereinafter referred to as the "CRL") not less than 20% of all taxes which are allocated to the Orange Redevelopment Agency ("Agency") are set aside by the Agency in its Low- and Moderate- Income Housing Fund ("Housing Fund") and used by the Agency for the purpose of increasing, improving and preserving the community's supply oflow- and moderate-income housing available at affordable housing costs to persons and families of low- and moderate-income, including very low income persons and families; and NHEREAS, pursuantto Section 33334.2(e) of the CRL, the Agency may exercise any and all of its powers to carry out this purpose; and WHEREAS, pursuant to Section 33334.6(a) ofthe CRL, the California State Legislature has found and declared that the provision of affordable housing outside of redevelopment project areas can be of direct benefit to those projects in assisting the accomplishment of project objectives; and WHEREAS, pursuant to Section 33334.2(g) of the CRL, the Agency may use Housing Funds to assist in the provision of housing for low and moderate income households, including very low-income households, outside the boundaries of its redevelopment project areas upon resolution of the City Council and the Agency that such use will be of benefit to the redevelopment projects; and WHEREAS, the Agency owns certain unimproved real property located north of La Veta Avenue between Olive Street and Lemon Street (the "Site"), which is located outside the boundaries of the City's redevelopment project areas; and WHEREAS, OHDC has inspected the Site and believes it to be suitable for the provision and maintenance of affordable housing; and WHEREAS, OHDC has requested the assistanct: of the Agency to make available to OHDC 403,319 in Housing Funds to be used to develop six (6) units of rental housing on the Site to be made available and rented to very low income seniors for fifty-five (55) years (the "Project"), to be more fully set forth in a Loan and Grant Agreement ("Agreement") by and among the City of Orange,the Agl~ncy and OHDC in a form acceptable to the rVHEREAS, the Housing Funds to be made available to OHDC during the construction period will exceed fifty percent (50%) of the cost of producing the units, but substantial evidence has been presented to the Agency demonstrating that no other reasonable means of private or commercial financing for the Project at the same level of affordability and quantity is available to OHDC or the Agency; and W'HEREAS, OHDC intends to obtain part of the permanent financing for the Project with a loan made by a bank or other lender, secured by a first trust deed on the Site (the "Senior Lender"); and W'HEREAS, the City Council has found and determined, and the Agency desires to find and determine, that the use of a portion of the funds from the Housing Fund outside the boundaries of the City's redevelopment project areas for the Project in accordance with the terms and provisions of the Agreement, is for the benefit of the City's redevelopmem project areas 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; and HEREAS, the Project consists of the construction of dwelling units of a previously existing low-rent housing project and is not, therefore, a "low rent housing project" within the meaning of Article XXXIV of the California Constitution requiring voter approval at an election; and HEREAS, the governing board of the Agency, along with the City Council, have duly considered all of the 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 interests ofthe City and health, safety,morals ,md welfare of its residents, and 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 CRL as well as the Redevelopment Plans for the Northwest, Southwest and Tustin Street Redevelopment Projects;NOW, THEREFORE, the Orange Redevelopment Agency resolves, 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 I. That the foregoing recitals are true and correct.Section 2. That the Agency's use of funds from the Housing Fund in the amountof$403, 319 for the Project will be of benefit to the City's redevelopment projects 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 3. That the provision of affordable housing pursuant to the Agreement is of benefit to each of the following redevelopment projects and their project areas: the Tustin Street Redevelopment Project; the Southwest Redevelopment Project; and the Northwest Redevelopment Project.Reso. No. ORA- Section 4. That OHDC has made a good faith attempt but has been unable to obtain commercial or private means of financing the Project at the same level of affordability and quantity. Section 5. That an economically feasible alternative method of financing the Project on substantially comparable terms and conditions, but without subordination, is not reasonably available. Section 6. That the Agency approves the preparation ofthe Agreement with OHDC and the City in accordance with the terms and provisions set forth in the agenda report presented to the Agency and any testimony received at the meeting at which this matter was considered and hereby authorizes and directs the Executive Director of the Ageney to execute the Agreement on behalf of the Agency in a form to be prepared by the General Counsel of the Agency (or his designee) upon consultation with the City Attorney and to take all steps and sign all documents and instruments to carry out the Agreement on behalf of the Agency, including signing such subordination agreements as may be required by the Senior Lender in order to subordinate the low- and moderate- income covenants and restrictions ofthe Agreement to the security interests and liens of the Senior Lender.ADOPTED this 26th day of March, 2002. IN~Mark A. Murphy, Ch ' ATTEST:R~~&;(-~/~ Cassandra J. C cart, Agency Clerk 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 26th day of March, 2002, by the following vote: AYES: DIRECTORS: SLATER, ALVAREZ, MURPHY, COONTZ, CAVECCHE NOES: DIRECTORS: NONE ABSENT: DIRECTORS: NONE ABSTAIN: DIRECTORS; NONE 4d'(4"~~~ Cassandra]. Cat , Agency Clerk ResQ, Nc. ORA-0407