RDA Resolution 2003-004 RESOLUTION NO. RA 2003-04
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY APPROVING AN AFFORDABLE HOUSING
AGREEMENT BETWEEN THE AGENCY AND SANTA ROSA
DEVELOPMENT, LLC FOR THE PROPERTY LOCATED AT
THE NORTHEAST CORNER OF AVENUE 48 AND ADAMS
STREET
AFFORDABLE HOUSING AGREEMENT
SANTA ROSA DEVELOPMENT, LLC
WHEREAS, the La Quinta Redevelopment Agency ("Agency") is a public
body, corporate and politic, organized and existing under the California Community
Redevelopment Law ("Health & Safety Code § 33000 et seq.) ("CRL"); and
WHEREAS, pursuant to the CRL, the City Council of the City of La Quinta
("City" or "City Council," as applicable) approved and adopted the Redevelopment Plan
("Redevelopment Plan") for Project Area No. 2 ("Project Area"), on May 16, 1989, by
Ordinance No. 139; and
WHEREAS, a fundamental purpose of the CRL is to expand the supply of
Iow- and moderate-income housing (Health & Saf. Code, § 33071); and
WHEREAS, the Agency staff has negotiated an Affordable Housing
Agreement ("Agreement") with Santa Rosa Development, LLC, a California corporation
("Developer"), pursuant to which (i) the Agency is to convey to the Developer certain
real property located within the Project Area ("Property") for One Dollar ($1.00) for the
Developer's subsequent development thereon of One Hundred Forty-Nine (149) single
family homes for sale to senior citizens who are at least 55 years of age and who are
also "persons and families of moderate income" (i.e., persons and families whose
income does not exceed 120% of the median income for Riverside County, adjusted
for family size) (the "Project"); (ii) the Agency is to reimburse the Developer, in an
amount up to, but not exceeding Eight Hundred Thousand Dollars ($800,000), from
the Agency's Low and Moderate Income Housing Tax Increment Fund ("Housing
Fund"), for engineering, architectural and planning costs and building permit fees
incurred in planning and developing the Project (the "Development Assistance"); and
(iii) the Agency is to provide second trust deed assistance to qualified buyers of units
in the Project in an amount not to exceed, collectively, Seven Million Dollars
($7,000,000), from the Agency's Housing Fund (the "Homebuyer Assistance"), all as
more particular described in the Agreement; and
WHEREAS, pursuant to the Agreement, Developer, as a condition to
Agency's provision of the Development Assistance and the Homebuyer Assistance,
shall record against the Property a Declaration of Covenants, Conditions, and
Restrictions for Property that requires each qualified buyer of a home in the Project to
execute a complete set of affordable housing documents ("Buyer Affordable Housing
Documents") to assure the affordability of the home to qualified buyers for a period
of forty-five (45) years from the date the home is first sold (the "Affordability Period");
and
Resolution No. RA 2003-04
Affordable Housing Agreement
Santa Rosa Development, LLC
Adopted: January 7, 2003
Page 2
WHEREAS, the Buyer Affordable Housing Documents include a note and
a deed of trust, which note shall be cancelled and deed of trust reconveyed at the
expiration of the Affordability Period, unless the buyer transfers the home or otherwise
commits any act, in violation of the terms and conditions of the Buyer Affordable
Housing Documents; and
WHEREAS, the Agreement requires the Developer to execute and record
against the Property an Option Agreement, which permits the Agency to reacquire the
Property in the event the Developer fails to commence or complete construction of the
Project within certain specified time frames, interrupts construction of the Project for
a specified period of time, or transfers the Property in violation of the Agreement, all
as more particularly described in the Agreement; and
WHEREAS, Health and Safety Code Section 33433 requires that the
Agency prepare a Summary Report to consider the Agency's proposed financial
contribution to the Project as set forth in the Agreement, that the Agency Board and
the City Council conduct a noticed joint public hearing with respect to the Agreement,
and that the approval of the Agreement be accompanied by certain findings and
determinations as set forth herein; and
WHEREAS, a Summary Report for the Agreement has been prepared and
the joint public hearing has been conducted in accordance with applicable requirements
of law; and
WHEREAS, the City Council and the Redevelopment Agency have
considered all the information and evidence set forth in the Summary Report presented
by the City/Agency staff and presented by persons wishing to appear and be heard
concerning the impact of the Agreement on the Project Area and the City as a whole;
and
WHEREAS, the Agreement is in accordance with the Redevelopment Plan
and is of benefit to the Project Area and the City of La Quinta; and
WHEREAS, the Agency hereby determines that the Agency's financial
contribution pursuant to the Agreement is necessary to effectuate the purposes of the
Redevelopment Plan;
NOW, THEREFORE, BE IT RESOLVED BY THE LA QUINTA
REDEVELOPMENT AGENCY AS FOLLOWS:
1. That the above recitals are true and correct and incorporated herein.
2. That the La Quinta Redevelopment Agency hereby resolves as follows:
Resolution No. RA 2003-04
Affordable Housing Agreement
Santa Rosa Development, LLC
Adopted: January 7, 2003
Page 3
a. The Agreement effectuates the purposes of the Community
Redevelopment Law (Health & Safety Code § 33000 et seq.) and of the
Redevelopment Plan and is in the best interests of the citizens of the City
of La Quinta.
b. The Agency's sale of the real property identified herein will provide
housing for moderate income persons and is consistent with the
Agency's Five-Year Implementation Plan, based on the findings and
conclusions of the Summary Report, which is incorporated herein.
c. The consideration the Developer will pay for the real property to be
conveyed by the Agency is not less than the fair reuse value at the use
and with the covenants and conditions and development costs authorized
by the sale, based on the findings and conclusions of the Summary
Report.
3. The Agreement, a copy of which is on file with the Agency Secretary, is hereby
approved. The Agency Executive Director and Agency Counsel are hereby
authorized and directed to make final modifications to the Agreement that are
consistent with the substantive terms of the Agreement approved hereby, and
the Agency Executive Director is authorized to thereafter sign the Agreement
on behalf of the Agency.
4. The Agency Executive Director is authorized and directed, on behalf of the
Agency, to (i) sign such other and further documents, including, but not limited
to Subordination Agreements and escrow instructions that require the Agency's
signature, and (ii) take such other and further actions, as may be necessary and
proper to carry out the terms of the Agreement.
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency held this 7th day of January, 2003, by the following vote:
AYES: Members Adolph, Osborne, Perkins, Sniff, Chair Henderson
NOES: None
ABSENT: None
ABSTAIN: None
TERRY .,I-~NDERSON, Agency Chair
La QuintJ~ Redevelopment Agency
Resolution No. RA 2003-04
Affordable Housing Agreement
Santa Rosa Development, LLC
Adopted: January 7, 2003
Page 4
ATTEST:
JUNE-S~GREEK, CMC, Agency Secretary
La Quinta Redevelopment Agency
(AGENCY SEAL)
APPROVED AS TO FORM:
U. K~ATHE~~EJE~N ~S~J~nse,
La Quinta Redevelopment Agency