RES-9573 Loan and Grant Agreement Regarding Property Located North of La Veta AveRESOLUTION NO. 9573
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE 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
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
hereinafiter 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 pres'~rving 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 WHEREAS, pursuantto Section 33334.2(e) ofthe 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, 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 bOlmdaries 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 assistance of the Agency to
make available to OHDC 403,319 in Housing Funds to be used to develop six (6) units ofrental 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 Agency and OHDC in a form acceptable to the
Agency and the City; and WHEREAS, in addition to the Agency Housing Funds,
ofthe City to make available to OHDC a grant in the amount of$511 ,296 from funds made available
to the Cilty by the U.S. Department of Housing and Urban Development ("HUD") under the HOME
1nvestmtmt Partnerships Act Program ("HOME Program") in accordance with the regulations issued
by HUD set forth in 24 CFR Part 92 (the "HOME Regulations"); and
WHEREAS, the City Council wishes to make available to OHDC a grant of HOME Program
funds in the amount of$51 1,296 in accordance with the terms and provisions of the agenda report
presented to this City Council; and
WHEREAS, the City Council 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 ofthe Agreement, is for the benefit of the City's
redevelopment project areas and is in the vital and best interests ofthe 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, 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 WHEREAS, the City Council and the governing board of the Agency 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 City Council of the City of Orange 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 1. The foregoing recitals are true and
correct.Section 2. The Agency's use of funds from the Housing Fund in the amount of$403,319
for the Proj.:ct 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. 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 4. The City Council hereby authorizes the expenditure of HOME Program Funds
in the form of a grant to OHDC in the amount of $511 ,296 for the Project and in accordance with
the terms and provisions set forth in the agenda report presented to the City Council and any
testimony Reso. No. 9573
received at the meeting at which this matter was considered and in accordance with the Agreement to
be prepared b the General Counsel of the Agency (or designee) upon consultation with the City
Attorney.
Section 5. The City Council approves the preparation of the Agreement with OHDC and the
Agency in accordance with the terms and provisions set forth in the agenda report presented to the
City COlmcil and any testimony received at the meeting at which this matter was considered and
hereby authorizes and directs the City Manager to execute the Agreement on behalf of the City 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
Agreemt:nt on behalf of the City.
ADOPTED this 26th day of March, 2002.
fJ:r) ~/j
fthe City of Orange
ATTEST:
uAJ~ Dr~A'.id
Cassandra J. C art, CIty Clerk, CIty of Orange
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 26th day of March, 2002, by
the following vote:
A YES: COUNCILMEMBERS: SLATER, ALVAREZ, MURPHY, COONTZ, CAVECCHE
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: NONE
t7tt~--~Cassandra
J. Cat rt, City Clerk, City of Orange Reso.
No. 9573 3-