CC Resolution 2006-033
RESOLUTION NO. 2006-033
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA APPROVING AN AFFORDABLE HOUSING
AGREEMENT BETWEEN THE LA QUINTA
REDEVELOPMENT AGENCY AND THE COACHELLA
VALLEY HOUSING AUTHORITY FOR THE PROPERTY
LOCATED AT THE NORTHWEST CORNER OF AVENUE
48 AND DUNE PALMS
WHEREAS, the La Guinta Redevelopment Agency r' 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) approved and adopted the
Redevelopment Plan (IIRedevelopment Plan") for Project Area No. 2 (IIProject
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 & Saf. Code, § 33071); and
WHEREAS, the Agency staff has negotiated an Affordable Housing
Agreement ("Agreement") with the Coachella Valley Housing Authority, a non-profit
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 a
Two Hundred Eighteen (21 8) unit multi-family affordable housing development
restricted for rental to and occupancy by persons and families of very low income
(i.e., persons and families whose income does not exceed 50% of the median
income for Riverside County) at rent levels affordable to such persons (the
"Project"); (ij) the Agency is to reimburse the Developer, in an amount up to but not
exceeding Thirty Million One Hundred Fifty Three Thousand Four Hundred Thirty
Five Dollars ($30,153,435), from the Agency's Low and Moderate Income Housing
Fund ("Housing Fund"), for engineering, architectural, planning and development
costs (the "Agency 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 Agency Assistance, 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
Resolution No.' 2006-033
Affordable Housing Agreement
Coachella Valley Housing Coalition
Adopted: April 4, 2006
Page 2
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 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 Hedevelopment 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 Guinta; 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;
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 Guinta.
b. The Agency's sale of the real property identified herein will provide
housing for very low income persons and iscònsistent with the
Agency's Five-Year Implementation Plan, based on the findings and
conclusions of the Summary Heport, which is incorporated herein.
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Resolution No. 2006-033
Affordable Housing Agreement
Coachella Valley Housing Coalition
Adopted: April 4, 2006
Page 3
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 Agree~ent 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 Guinta held this 4th day of April, 2006, by the following
vote:
AYES: Council Members Henderson, Kirk, Osborne, Sniff, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
Resolution No. 2006-033
Affordable Housing Agreement
Coachella Valley Housing Coalition .
Adopted: April 4, 2006
Page 4' '
ATTEST:
JUœRËËK'~i~~. 1J
'City of La Guinta, California
(CITY SEAL)
APPROVED AS TO FORM:
M. KATHERINE JENS , City Attorney
City of La Guinta, California
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