RES-ORA-0392 Affordable Housing Loan Agreement ApprovalRESOLUTION NO. ORA-
0392 A RESOLUTION OF THE ORANGE
REDEVELOPMENT AGENCY APPROVING AN AFFORDABLE
HOUSING LOAN AGREEMENT BY AND BETWEEN THE
ORANGE REDEVELOPMENT AGENCY AND URBAN
PACIFIC PARTNERS II, LP REGARDING 170 NORTH
PROSPECT STREET AND MAKING CERTAIN
FINDINGS WHEREAS, 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 of Low-
and Moderate-Income housing available at affordable housing costs to persons and families of
Low- and
Moderate-Income; and WHEREAS, 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) of the 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 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, Urban Pacific Partners II, LP,
a California limited partnership Borrower"), has entered into an agreement to purchase certain property
located at 170 North Prospect Street (the "Site"), which is located outside the boundaries of
the City's
redevelopment project areas; and WHEREAS, Borrower proposes to construct on the
Site a residential development consisting of twenty (20) apartment units, to be rented exclusively, at
affordable rents, to Low-and Moderate-
Income seniors (the "Project"); and WHEREAS, the Site is located within an area of the City of
Orange that has been and continues to be the focus of revitalization efforts involving
the investment of significant amounts of public and private funds, including but not limited to
an investment by the Redevelopment Agency of approximately $7,500,000 and approximately $20,000,000
in private equity and loans for the acquisition and rehabilitation of 260 units of affordable
rental housing units, and a significant investment by private enterprise in the rehabilitation of
a major chain supermarket
WHEREAS, Borrower has requested the assistance of the Agency to make available a
maximum total of $1,360,000 (the "Agency Loan") in Housing Funds to be used by Borrower as
follows: (a) $510,000 to acquire the Site and pay certain predevelopment costs; and (b) upon
completion of construction, an additional $850,000, for a total of $1,360,000, to provide a
portion of the permanent financing for the Project; and
WHEREAS, Borrower has agreed to restrict the use of the Site for fifty-five (55)
years by renting nine of the units exclusively to Low Income seniors, and by renting eleven ofthe
units exclusively to Moderate Income seniors. and by restricting rents to an affordable rent, as
defined in the CRL, as more fully set forth in an Affordable Housing Loan Agreement ("
Agreement")proposed to be entered into by and between the Agency and Borrower, in a form that
is acceptable to the Agency;
and WHEREAS, Borrower proposes to obtain the balance of financing needed for the
Project from: (a) a first priority mortgage loan to be made by a construction and/or permanent
lender Senior Lender"); (b) capital contributions to be made by a Low Income Housing Tax
Credit limited partner investor; and (c) other Borrower equity, to the extent needed to complete
the Project;
and WHEREAS, the City Council has found and determined, and the Agency desires to
find and determine, that the use of 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 redevelopment 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 WHEREAS, fewer than fifty percent (50%) of the apartment units in the Project will
be required by the Agreement to be restricted to Low Income households, and the Project 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 WHEREAS, 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 of the City and
health,safety, morals and 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:Reso. No.
ORA-0392
Section 1. That the Agency's use of funds from the Housing Fund in the amount of the
Agency Loan 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 2. 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.
Section 3. That an economically feasible alternative method of financing the Project on
substantially comparable terms and conditions, but without subordination to the Senior Lender, is
not reasonably available.
Section 4. That the Agency approves the Project and the preparation of the Agreement
between the Agency and Borrower 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 Agency 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 in order to subordinate the
Agency Loan and the low- and moderate-income covenants and restrictions of the Agreement
to the security interests and liens of the Senior Lender and the Low Income Housing Tax
Credit Regulatory
Agreement.Section 5. That by approving the investment of $1,360,000 in public funds for
the Project, the Agency hereby reaffirms its commitment to the revitalization of the area of the
City of Orange in which the Site is
located.ADOPTED this 22nd day of May,
2001.1!~"~yl!t:
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ATTEST:Reso. No.
ORA-