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RDA Resolution 2000-009 RESOLUTION NO. RA 2000-09 A RESOLUTION OF THE LA QUINTA REDEVELOPMENT AGENCY APPROVING AN AFFORDABLE HOUSING AGREEMENT BY AND BETWEEN THE AGENCY AND RGC COURTHOMES, INC. FOR AN AFFORDABLE HOUSING DEVELOPMENT ON A SITE WITHIN REDEVELOPMENT PROJECT AREA NO 2 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 c ode § 33000 et seq.) ("CRL"); and WHEREAS, pursuant to the CRL, the Agency and the City Council of the City of La Quinta ("City" or "City Council," as applicable) previously approved and adopted the Redevelopment Plan, as amended ("Redevelopment Plan") for Project Area No. 2 ("Project Area"); and WHEREAS, the Agency is required pursuant to Health and Safety Code Section 33334.2 et seq. to expend monies in its Low and Moderate Income Housing Fund to increase, improve, and preserve affordable housing in or serving the Project Area; and WHEREAS, the Agency now proposes to enter into an Affordable Housing Agreement ("Agreement") with RGC CourtHomes, Inc., a California corporation ("Developer") for the conveyance by the Agency of a site owned by the Agency for development of a fifty-nine (59) unit "for sale" single family detached housing project on a site located within the Project Area, with not fewer than twenty-five (25) of the units required to be developed as affordable units to be sold at an affordable housing cost to persons and families with incomes not exceeding moderate income as defined in California law (the "Project"); and WHEREAS, the site proposed to be conveyed by the Agency to the Developer is defined as numbered Lots 1-12, 19, 41-86, and lettered lots A, B, D, E, and H-R, of Tract 28601-1 as shown on a map filed in Book 278, Pages 86 through 90 of maps recorded in the records of Riverside County (the "Site"); and WHEREAS, the Site is a portion of the "Miraflores" housing development project which in general consists of a three-phase development of single family detached homes and a contemplated future development of an affordable senior citizen rental apartment complex (the "Senior Apartments"); and Resolution No. RA 2000-09 RGC Courthomes, Inc. August1, 2000 Page 2 WHEREAS, before the Agency may dispose of real property, acquired with tax increment funds, for development the Agency and City Council must hold a duly noticed joint public hearing on the proposed disposition; and WHEREAS, notice of a joint public hearing of the Agency and City Council concerning the Agreement and the proposed conveyance described in the Agreement was given in accordance with the requirements of Health & Safety Code Section 33433; and WHEREAS, the Agency also timely prepared and made available for public review a Summary Report of the proposed transaction in accordance with Health & Safety Code Section 33433; and WHEREAS, all action required of the Agency to be taken precedent to review and consideration of the Agreement by the Agency have been taken in accordance with applicable law; NOW, THEREFORE, the La Quinta Redevelopment Agency hereby resolves as follows: 1. The Agency finds and determines: A. That the sale of the Site as set forth in the Agreement, and the terms of the Agreement, will provide housing for low or moderate income persons, in that not fewer than 25 of the 59 units to be developed on the Site shall be sold at an affordable housing cost to persons and families whose incomes do not exceed moderate income as defined in California law. B. That the sale of the Site as set forth in the Agreement, and the terms of the Agreement, are consistent with the Agency's adopted "Second Five- Year Implementation Plan Project Areas No. 1 and 2," adopted by the Agency in accordance with Health and Safety Code Section 33490, in that (i) the goals and objectives set forth in the Implementation Plan include increasing and improving the community's supply of affordable housing, and (ii) the project on the Site is specifically identified as one of the Agency's housing programs to be undertaken in the time period covered by the Implementation Plan. Resolution No. RA 2000-09 RGC Courthomes, Inc. August 1, 2000 Page 3 C. That the highest and best use of the Site in accordance with the Redevelopment Plan is the development of the Site for affordable housing and that the consideration to be paid by the Developer for the Site is not less than the fair reuse value at its highest and best use in accordance with the Redevelopment Plan, for the reasons set forth in the Agency's Summary Report for the Agreement and the transaction described in the Agreement prepared in accordance with Health and Safety Code Section 33433, which Summary Report, a copy of which is on file with the Agency Secretary, is incorporated herein by reference as though fully set forth. D. That the publicly owned improvements to be paid for by the Agency as set forth in the Agreement, including but not limited to a well site and certain street improvements adjacent to the Site, are o.f benefit to the Project Area and to the immediate neighborhood in which the Project is located, in that the improvements are necessary to effect development of the Site and but for the Agency's expenditure the public infrastructure improvements would not be completed thus detrimentally affecting the Project and the residents living adjacent to the Site. E. That there are no other reasonable means available to the community of paying for the publicly owned improvements to be paid for by the Agency as set forth in the Agreement, other than Agency funding in that City general funds, as set forth in the adopted City budget, are earmarked for critical public health and safety expenditures, such as police and fire protection, and for other, previously identified capital improvement projects, and for City service programs, all of which cannot be adjusted to accommodate City expenditure for these public improvements, and thus Agency payment is the sole available source for the publicly owned improvements to be paid for by the Agency as set forth in the Agreement. F. That the payment by the Agency for the publicly owned improvements as set forth in the Agreement will facilitate the provision of housing for low or moderate income persons, in that the publicly owned improvements designated in the Agreement for Agency payment are necessary for the development of the Site as an affordable housing development because the economics of the Project do not permit the Developer to pay for these improvements and still maintain a reasonable return on investment, as set forth in the Summary Report prepared for the Project. Resolution No. RA 2000-09 RGC Courthomes, Inc. August 1, 2000 Page 4 G. That the payment by the Agency for the publicly owned improvements to be paid for by the Agency as set forth in the Agreement is consistent with the Agency's adopted "Second Five-Year Implementation Plan Project Areas No. 1 and 2," adopted by the Agency in accordance with Health and Safety Code Section 33490, in that (i) the goals and objectives set forth in the Implementation Plan include increasing and improving the community's supply of affordable housing, and (ii) the Project n the Site is specifically identified as one of the Agency's housing programs to be undertaken in the time period covered by the Implementation Plan, (iii) the Project on the Site is specifically identified as addressing inadequate public infrastructure and facilities. H. That the Agency's expenditures for the onsite and offsite improvements identified in the Agreement will facilitate, and result in, the new construction of affordable housing units for low or moderate income persons that are directly benefited by the improvements, in accordance with the authorization to the Agency to expend monies in its Low and Moderate Income Housing Fund for such purposes pursuant to Health and Safety Code Section 33334.2(e). I. That the Agency's expenditures for the HOA Assistance to buyers of the affordable housing units, as set forth in the Agreement, to the extent such is a subsidy to or for the benefit of persons and families of low or moderate income as defined in Health and Safety Code Sections 50093, is necessary and proper to assist such households in obtaining housing at an affordable housing cost in comparison to the cost of housing on the open market, in accordance with the authorization to the Agency to expend monies in its Low and Moderate Income Housing Fund for such purposes pursuant to Health and Safety Code Section 33334.2(e). J. That the Agency is further authorized under Health and Safety Code Section 33449 which grants the Agency authority to improve sites in order to provide housing for persons of low and moderate income, and thus the Agency's expenditures for the Project, as jet forth in the Agreement, including but not limited to Acquisition Assistance, Additional Assistance, and HOA Assistance (as defined in the Agreement) is necessary and proper for the development of the Site as an affordable housing project. Resolution No. RA 2000-09 RGC Courthomes, Inc. August 1, 2000 Page 5 2. The Affordable Housing Agreement, between the Agency and RGC CourtHomes, Inc., a copy of which is on file with the Agency Secretary, is here 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 business terms of the Agreement approved hereby, and the Agency Executive Director is authorized to thereafter sign the Agreement on behalf of the Agency. 3. To facilitate and effect the Agreement, the Agency Executive Director is hereby authorized and directed to (a) allocate Four Million Nine Hundred Eighty Thousand Twenty-Three Dollars (94,980,023) from the Agency's Low and Moderate Income Housing Fund to the Project, which amount is comprised of (i) Four Million Eight Hundred Forty-Five Thousand One Hundred Forty-Seven Dollars ($4,845,147) as Agency Assistance (as defined in the Agreement) for the Project; (ii) Thirty-Four Thousand Eight Hundred Seventy-Six Dollars (934,876) in additional potential homeowner's association costs pertaining to affordable units in Phase I of the Project; and (iii) One Hundred Thousand Dollars (9100,000) for staff and consultant expenses pertaining to the negotiation and creation of the Agreement the monitoring of the Agreement, and (b) reallocate Two Hundred Seventy-Five Thousand Dollars (~275,000) from the previously anticipated costs for the Project to the future contemplated Senior Apartments. 4. The Agency Executive Director is authorized and directed, on behalf of the Agency, to sign such other and further documents, including but not limited to attachments and exhibits to the Agreement which require the Agency's signature, and to take such other and further actions, as may be. necessary and proper to carry out the terms of the Agreement. 5. The Agency Executive Director and the Agency Counsel and their respective authorized designees are each individually authorized to sign escrow instructions on behalf of the Agency in order to effect the close of escrow described in the Agreement. PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta Redevelopment Agency held on this 1 st day of August, 2000, by the following vote, to wit: Resolution No. RA 2000-09 RGC Courthomes, Inc. August 1, 2000 Page 6 AYES: Members Adolph, Pe~a, Perkins, Sniff, Chair Henderson NOES: None ABSENT: None ABSTAIN: None ATTEST: J ret ry La Quinta Redevelopmerit Agency (Agency Seal) ' APPROVED AS TO FORM: M. A~HERIKIE~/J~NSON, ,Acy~l La Quinta Redevelopment