CC Resolution 2017-025RESOLUTION NO. 2017 - 025
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA
QUINTA APPROVING AN AFFORDABLE HOUSING AND
PROPERTY DISPOSITION AGREEMENT BETWEEN THE LA
QUINTA HOUSING AUTHORITY AND COACHELLA VALLEY
HOUSING COALITION FOR THE PROPERTY LOCATED EAST
OF WASHINGTON STREET AND SOUTH OF HIDDEN RIVER
ROAD
WHEREAS, the La Quinta Housing Authority ("Authority") is a public body,
corporate and politic, organized and existing under the Housing Authorities Law
(Health & Safety Code § 34200 et seq.) (the "HAL"); and
WHEREAS, a fundamental purpose of the HAL is to expand the supply of low -
and moderate -income housing (Health & Safety Code, § 33071); and
WHEREAS, Authority is the successor housing entity to the former La Quinta
Redevelopment Agency pursuant to Health and Safety Code section 34176(b)(2), and
Authority Resolution No. 2012-002, which was adopted by Authority on January 17,
2012; and
WHEREAS, Authority staff have negotiated an Affordable Housing and Property
Disposition Agreement ("Agreement") with Coachella Valley Housing Coalition, a
California corporation ("Developer"), pursuant to which (i) Authority would sell to
Developer the existing 73 -residential unit senior and disabled adult affordable housing
development commonly known as Washington Street Apartments (the "Apartment
Site"), and that certain vacant real property located adjacent to the Apartment Size
and consisting of approximately 6.8 acres (the "Vacant Site", and, collectively with the
Apartment Site, the "Property"), and provide to Developer financial assistance (the
"Authority Assistance") in an amount up to Seventeen Million Four Hundred Twenty -
Five Thousand Ten Dollars ($17,425,010); and (ii) Developer would rehabilitate 72 of
the existing residential units on the Apartment Site, develop 26 new residential units
on the Apartment Site, and develop 42 new residential units on the Vacant Site, with
all but two of the units restricted for rental to and occupancy by persons and families
of very low-, and low-income, at rent levels affordable to such persons, two
management units restricted for rental to and occupancy by persons and families of
moderate income, at rent levels affordable to such persons, and certain on-site
private improvements and off-site public improvements necessary to serve the
development (collectively, the "Project"), all as more particularly described in the
Agreement; and
WHEREAS, pursuant to the Agreement, as a condition to Authority's sale of the
Property and provision of the Authority Assistance, Developer and Authority would
Resolution No. 2017-025
Housing and Property Disposition between Housing Authority and CV Housing Coalition
Adopted: June 6, 2017
Page 2
record against the Property an Affordable Housing Regulatory Agreement
substantially in the form attached to the Agreement (the "Regulatory Agreement"),
that restricts the use of the Property, for a period of fifty-five (55) years, as a senior
and disabled adult affordable rental housing project; and
WHEREAS, Developer would be required to execute two notes evidencing its
obligation to repay the Authority Assistance, with such repayment based on the cash
flow generated from Developer's operation of the Project; and
WHEREAS, the La Quinta Planning Commission previously adopted (i) with
respect to the rehabilitation of 72 of the existing residential units and development of
26 new residential units at the Apartment Site, a Negative Declaration of
Environmental Impact for Tentative Parcel Map 36421, Conditional Use Permit 2011-
135, and Site Development Permit 2011-920, under Environmental Assessment 2011-
613, by adoption of Planning Commission Resolution No. 2012-003, on February 14,
2012, and (ii) with respect to the development of 42 new residential units on the
Vacant Site, a Mitigated Negative Declaration of Environmental Impact under
Environmental Assessment 2013-627, by adoption of Planning Commission Resolution
No. 2013-008, on June 25, 2013 (collectively, the "Prior Environmental Approvals");
and
WHEREAS, each of Health and Safety Code Section 33433 and Government
Code 52201 require that Authority prepare a Summary Report to consider Authority's
proposed financial contribution to the Project as set forth in the Agreement, that the
Authority 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 Authority Board have considered all the
information and evidence set forth in the Summary Report presented by City/Authority
staff and presented by persons wishing to appear and be heard concerning the impact
of the Agreement on the City; and
WHEREAS, the Agreement will increase, improve, and preserve affordable
housing in the City of La Quinta; and
WHEREAS, the Agreement and the Authority's financial contribution pursuant
to the Agreement are of benefit to and in the best interests of the City of La Quinta.
Resolution No. 2017-025
Housing and Property Disposition between Housing Authority and CV Housing Coalition
Adopted: June 6, 2017
Page 3
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City Of La Quinta,
California, as follows:
1. That the above recitals are true and correct and incorporated herein.
2. That the City Council resolves as follows:
a. No further environmental analysis is required, because the Project
is consistent with, and contemplated by the Prior Environmental Approvals, and
none of the events listed in Public Resources Code section 21166 have occurred.
b. The Agreement is in the best interests of the citizens of the City of
La Quinta.
c. Authority's sale of the Property will provide housing for very low-,
low-, and moderate -income persons, and is consistent with the final Five -Year
Implementation Plan of the former La Quinta Redevelopment Agency (e.g.,
2009/2010 - 2013/2014).
d. The consideration Developer will pay for the acquisition of the
Property is not less than the fair reuse value at the use and with the covenants
and conditions and development costs authorized by the Agreement, in that
the sale price for the Property is not less than the value set forth in an
independent appraisal that analyzed the value of the Property with the
conditions and affordability covenants required pursuant to the Regulatory
Agreement, as more fully explained in the Summary Report.
e. Authority's sale of the Property will assist in the creation of an
economic opportunity, in that the sale will result in the creation of affordable
housing, with the substantial rehabilitation of 72 existing affordable units and
the new construction of 68 new affordable units, and the need for affordable
housing has been demonstrated in the Housing Element of the City's General
Plan, all as more fully explained in the Summary Report.
3. The Agreement, a copy of which is on file with the Authority Secretary, is
hereby approved. The City Council consents to Authority's authorization and direction
to its Executive Director and Authority counsel to make final modifications to the
Agreement that are consistent with the substantive terms of the Agreement approved
hereby, and to thereafter sign the Agreement on behalf of Authority.
4. The City Council consents to Authority's authorization and direction to its
Executive Director to (i) sign such other and further documents, including but not
limited to escrow instructions, that require Authority's signature, and (ii) take such
other and further actions, as may be necessary and proper to carry out the terms of
the Agreement.
Resolution No. 2017-025
Housing and Property Disposition between Housing Authority and CV Housing Coalition
Adopted: June 6, 2017
Page 4
PASSED, APPROVED, and ADOPTED at a regular meeting of the City Council of
the City of La Quints held this 6th day of June, 2017, by the following vote:
AYES: Council Members Fitzpatrick, Pena, Radi, Sanchez, Mayor Evans
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
SUSAN MAYSELS, City C ? k
City of La Quinta, California
(City Seal)
APPROVED AS TO FORM:
WILLIAM H. IHRKE, City Attorney
City of La Quints, California
LINDA EVANS, Mayor
City of La Quinta, California