CC Resolution 2003-006 RESOLUTION NO. 2003-006
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA APPROVING AN AFFORDABLE HOUSING
AGREEMENT BETWEEN THE LA QUINTA REDEVELOPMENT
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
Resolution No. 2003-006
Affordable Housing Agreement
Santa Rosa Development, Inc.
Adopted: January 7, 2003
Page 2
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
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 timeframes, 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 City Council hereby determines that the Agency's
financial contribution pursuant to the Agreement is necessary to effectuate the
purposes of the Redevelopment Plan;
Resolution No. 2003-006
Affordable Housing Agreement
Santa Rosa Development, Inc.
Adopted: January 7, 2003
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. 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 Ouinta.
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 City Council consents to the Agency's authorization and
direction to its Executive Director and Agency 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 the Agency.
4. The City Council consents to the Agency's authorization and direction to its
Executive Director 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 City
Council of the City of La Ouinta, California, held this 7th day of January, 2003, by the
following vote:
Resolution No. 2003-006
Affordable Housing Agreement
Santa Rosa Development, Inc.
Adopted: January 7, 2003
Page 4
AYES: Council Members Henderson, Osborne, Perkins, Sniff, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
DON AE
City of La Quinta, California
ATTEST:
JUNE (S?~REEK,-CMc, Ci~-~y-C'lerk
City of La Quinta, California
(CITY SEAL)
APPROVED AS TO FORM:
M. KATHERINE JEN~zJ2~'N, City Attorney
City of La Quinta, California