CC Resolution 2006-093
RESOLUTION NO. 2006-093
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINT A, CALIFORNIA APPROVING AN AFFORDABLE
HOUSING AGREEMENT BETWEEN THE LA QUINT A
REDEVELOPMENT AGENCY AND THE SOUTHERN
CALIFORNIA HOUSING DEVELOPMENT CORPORATION
FOR THE PROPERTY LOCATED AT 78990 MILES
AVENUE
WHEREAS, the la Ouinta 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
Ouinta ("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 low- and moderate-income housing (Health & Saf. Code, ~ 33071); and
WHEREAS, the Agency staff has negotiated an Affordable Housing
Agreement (" Agreement") with The Southern California Housing Development
Corporation, a non-profit California corporation ("Developer"), pursuant to which (i)
the Agency is to develop certain real property located within the Project Area at
78990 Miles Avenue ("Property") with an eighty (80) unit multifamily residential
housing development (the "Housing Development") and subsequently transfer to
Developer the Property and the Housing Development for Twenty-Five Million
Seven Hundred Thirty-Nine Thousand Eight Hundred Seventy-Three Dollars
($25,739,873) (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 (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; and
WHEREAS, the Purchase Price will be paid from the following sources:
(i) approximately Twelve Million Six Hundred Seventy-Seven Thousand One
Hundred Forty-Nine Dollars ($12,677,149) will be funded in the form of tax credits;
(ii) 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 Eleven Million Seven Hundred Forty-Five Thousand Five
Resolution No. 2006-093
SCHDC Affordable Housing Agreement
Adopted: August 1, 2006
Page 2 '
Hundred Seventy-One Dollars ($11,745,571) will be funded in the form of a loan
from the Agency to the Developer ("Agency Loan"); and
WHEREAS, pursuant to the 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 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;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF LA QUINTA, CALIFORNIA, AS FOLLOWS:
Resolution No.. 2006-093
SCHDC Affordable Housing Agreement
Adopted: August 1. 2006
Page 3
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 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.
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 held this 151 day of August, 2006, by the following
vote:
Resolution No. 2006-093
SCHDC Affordable Housing Agreement
Adopted: August 1. 2006
Page 4
AYES: Council Members Henderson, Kirk, Osborne, Sniff, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Ubc ~ -;;J..L ~WI2 a ~
DEBORAH H. POWEr..L, Interim City Clerk
City of La Quinta, California
(CITY SEAL)
APPROVED AS TO FORM:
MI!!~~ tO~ttorneY
City of La Quinta, California