RES-9409 Loan & Grant Agreement ApprovalRESOLUTION NO. 9409
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
481-491 SOUTH 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 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, including very low income persons
and families; 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, 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, pursuantto Section 33334.2(g) of the CRL, the AgencymayuseHousingFundstoassistintheprovisionofhousingforverylow-,
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, Orange Housing Development
Corporation, a California nonprofit corporation ("OHDC"), has entered into an agreement for the
acquisition of certain improved real property located at 481-491 South Lemon Street (the "Site"),
which is located outside the boundaries of the City'
s redevelopment project areas; and WHEREAS, the Site is improved with six dwelling
units, which units OHDC has inspected and believes 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 a grant of $69,000 in Housing Funds to be used to acquire
and rehabilitate the Site and,thereafter, to cause the dwelling units at the Site to be made available
and rented to persons and families of low and moderate income for fifty-five (55) years (
the "Project"), as more fully set forth in a Loan and Grant Agreement ("Agreement") to be entered
into by and among the City,the Agency and OHDC in a form acceptable to
WHEREAS, in addition to the Agency grant of funds, OHDC has requested the
assistance of the City to make available to OHDC a loan in the amount of $207,000 and a grant
in the amount of $69,000 from funds made available to the City by the U.S. Department of
Housing and Urban Development ("BUD") under the HOME Investment Partnerships Act
Program (the "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 desires to make available to OHDC the loan of HOME
Program funds in the amount of $207,000 and a grant in the amount of $69,000 in accordance
with the terms and provisions of the agenda report presented to this City Council herewith; 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 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
contemplates the use of varied sources of private financing in connection with the acquisition
of the Site by OHDC; and
WHEREAS, the Project consists of the rehabilitation 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 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. That the Agency's use of funds from the Housing Fund in the amount
of 69,000 for the Project will be of benefit to the City's redevelopment
projects.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.Resolution No. 9409
2
Section 3. The City Council hereby authorizes the expenditure of HOME Program
funds in the form of a loan to OHDC in the amount of $207,000 and a grant in the amount of
69,000 to OHDC 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 received at the meeting at
which this matter was considered and in accordance with the Agreement to be prepared by the General
Counsel of the Agency (or his designee) upon consultation with the City Attorney.Section
4. 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 Council 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.
Section
5. Moreover, the City Council hereby authorizes and directs the City Manager
to execute the Agreement on behalf of the City and to take all steps and sign all documents
and instruments to carry out the Agreement on behalf of the City.ATTEST:
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 13th day of
February, 2001, by the following vote:AYES:
COUNCILMEMBERS: SLATER, ALVAREZ, MAYOR MURPHY, COONTZ NOES:
COUNCILMEMBERS: NONE ABSENT:
COUNCILMEMBERS: NONE ABSTAIN:
COUNCILMEMBERS: NONE Cassandra
J Cathcart, . y Clerk of the City of Orange Resolution
No. 9409 3 J