RDA Resolution 2006-017
RESOLUTION NO. RA 2006-017
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY APPROVING A REVISED AFFORDABLE
HOUSING AGREEMENT BETWEEN THE AGENCY AND
THE SOUTHERN CALIFORNIA HOUSING DEVELOPMENT
CORPORATION FOR THE PROPERTY LOCATED AT
78990 MILES AVENUE
WHEREAS, the La Guinta 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
Guinta ("City" or "City Council," as applicable) <!pproved 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 low- and moderate-income housing (Health & Sat. Code, ~ 33071); and
WHEREAS. on August 1, 2006 the Agency approved an Affordable
Housing Agreement ("Original Agreement") with Southern California Housing
Development Corporation, a non-profit California corporation ("Developer"); and
WHEREAS, as a result of a recent Superior Court Decision which
impacted the finilncing structure set forth in the Original Agreement, the Original
Agreement was never executed; an.d
,
WHEREAS. the Agency staff has negotiated a Revised Affordable
Housing Agreement with the Developer ("Revised Agreement") pursuant to which
(il the Agency is to develop certain real property locat~d within the Project Area at
78990 Miles Avenue ("Property") with an eighty (80) unit multifamily residential
housing development (the "Housing Development") ahd subseq'uently transfer to
Developer the Property and the Housing Development for Twenty-Six Million Six
Hundred Eight Thousand Seven Hundred Thirty-Four Dollars ($26,608,734) (the
"Purchase Price"); and (ii) Developer is to operate the Housing Development as an
affordable housing development restricted for rental to and occupancy by persons
and' families of very low and extremely low income (Le., persons and families
whose income does not exceed 50% of the median income for Riverside County) at
rent levels affordable to such persons; and.
Resolution No. RA 2006-0'7
SCHDC Affordable Housing Agreement
Adopted: December 19. 2006
Page' 2
WHEREAS, the Purchase Price will be paid from the following sources:
(i) approximately Eleven Million Three Hundred Twenty-Four Thousand Seven
Hundred Fifty-One Dollars ($11,324.751) will be funded in the form of tax credits;
Iii) approximately One Million Three Hundred Seventeen Thousand One Hundred
Fifty-Two Dollars ($1.317,152) will be funded in the form of a conventional loan;
and (iii) approximately Thirteen Million Nine Hundred Sixty-Six Thousand Eight
Hundred Thirty-One Dollars ($13.966,831) will be funded in the form of a loan
from the Agency to the Developer ("Agency Loan"); and
WHEREAS. pursuant to the Revised Agreement, Developer, as a
condition to Agency's sale of the Property and Housing Development and provision
of the Agency Loan, shall record against the Property an, Agency Regulatory
Agreement and Declaration of Covenants and Restrictions that restricts the use of
the Property, for a period of fifty-five (55) years, as an affordable rental housing
, project and sets forth management and maintenance requirements for the Housing
Development; 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 Revised Agreement, that the Agency
Board and the City Council conduct a noticed joint public hearing with respect to
the Revised Agreement, and that the approval of the Revised Agreement be
accompanied by certain findings and determinations as set forth herein; and
, WHEREAS, a Summary Report for the Revised 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 Revised Agreement on the Project Area
, and the City as a whole; and '
WHEREAS. the Revised Agreement is in 'accordance with the
Redevelopment Plan and is of benefit to the Project Area and the City of La Guinta;
and .
Resolution No. RA 2006-017
SCHDC Affordable Housing Agreement
Adopted: Cecember 19. 2006
Page 3
WHEREAS, the City Council hereby determines that the Agency's
financial contribution pursuant to the Revised 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. The Revised 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 pf the citizens of the City of
La Guinta.
3. The Agency's sale of the real property identified herein will provide housing
for very low- and extremely low-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.
4. The consideration the Developer will pay for the feal prop,erty 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.
5. The Revised 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
Revised Agreement that are consistent with the substantive terms of the
Revised Agreement approved hereby, and. the Agency Executive Director is
authorized to thereafter sign the Revised Agreement on behalf of the Agency.
6. The Agency Executive Director is authorized and directed, on behalf of
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 thi:l Revised Agreement.
Resolution No. RA 2006-017
SCHDC Affordable Housing Agreement
,Adopted: December 19, 2006
Page-4
PASSED. APPROVED. AND ADOPTED at a regular meeting of the
La Guinta Redevelopment Agency held this 19th day of December, 2006, by the
following vote:
AYES: Board Members Adolph, Henderson, Kirk, Sniff. Chair Osborne
NOES: None
ABSENT: None
ABSTAIN: None
M. OS E, Agency Chair
La Guinta Redevelopment Agency,
ATTEST:
ERONICA J. NTECINO, CMC, Secretary
La Guin~a Re evelopment Agency
(SEAL) -
APPROVED AS TO FORM:
;JI{{t~
M~ KATH RINE SON, Agency Counsel
La Guinta Redevelopment Agency