CC Resolution 2006-130
RESOLUTION NO. 2006-130
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA GUINTA, CALIFORNIA APPROVING A REVISED
AFFORDABLE HOUSING AGREEMENT BETWEEN THE
LA GUINTA REDEVELOPMENT AGENCY AND THE
SOUTHERN CALIFORNIA HOUSING DEVELOPMENT
CORPORATION FOR THE PROPERTY LOCATED AT
78990 MILES AVENUE
WHEREAS, the La Guinta Redevelopment Agency ("Agency") is a
public 'body, corporate and politic, organized and existing under the California
CommlJnity Redevelopment Law ("Health & Safety Code ~ 33000 et seq.) ("CRL "I;
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 ("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, on August 1, 2006 the Agency approved an Affordable
Housing Agreement ("Original Agreement") with Southern California Housing
Development Corporation, a non-profit California corporation ("Developer"); and
,
WHEREAS, as a result of a recent Superior Court Decision which
impacted the financing structure set forth in the Original Agreement, the Original
Agreel'T1ent was never executed; and .
. WHEREAS, the Agency staff has negotiated a Revised Affordable
Housing Agreement with the Developer ("Revised Agreement") 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-Six Million Six
Hundred Eight Thousand Seven Hundred Thirty-Four Dollars ($26,608,734) (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
I
rent levels affordable to such persons; and
Resolution No. 2006-130
SCHDC Affordable Housing Agreement
Adopted: December 19. 2006
Page 2
WHEREAS, the Purchase Price will be paid from the following sources:
(i) approximately Eleven Million Three Hundred Twenty-Four Thousand Seven
Hundred Fifty-One Dollars ($11,324,751) 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 Thirteen Million Nine Hundred Sixty-Six Thousand Eight
Hundred Thirty-One Dollars ($13,966,831) will be funded in the form of a loan
from the Agency to the Developer ("Agency Loan"); and
WHEREAS, pursuant to the Revised 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 Revised Agreement, that the Agency
. .
Board and the City Council conduct a noticed joint public hearing with respect to
the Revised Agreement, and that the approval of the Revised Agreement be
accompanied by certain findings and determinations as set forth herein; and
WHEREAS, a Summary Report for the Revised 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 Revised Agreement on the Project Area
and the City as a whole; and
WHEREAS. the Revised Agreement is 'in accordance with the
Redevelopment Plan and is of benefit to the Project Area and the City of La Guinta;
and
Resolution: No. 2006-130
SCHDC Affordable Housing Agreement
Adopted: !Oecember 19, 2006
Page 3
WHEREAS, the City Council hereby determines that the Agency's
financi;lI contribution pursuant to the Revised 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:
<iI. The Revised Agreement effectuates the purposes of the Community
Redevelopment Law (Health & Safety Code ~ 33000 et seq.l 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 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 Revised Agreement, a copy of which is on file with the Agency
Secretary, is hereby approved. The City Council consents to the Agency's
<iluthorization and direction to its' Executive Director and Agency counsel to
make final modifications to the Revised Agreement that are consistent with
the substantive terms of the Revised Agreement approved hereby, and to
thereafter sign the Revised Agreement on behalf of the Agency.
4. The City Council consents to the Agency's authorization and direction to its
~xecutjve Director to (i) sign such other and further documentli,iricluding but
not limited to subordination agreements and escrow instructions that require
the Agency's signature, and Iii) take such other and .further actions, as may
be necessary and proper. to carry out the terms of the Revised Agreement.
Resolution No. 2006-130
Sc:::HDC Affordable Housing Agreement
Adopted: December 19, 2006
Page 4
PASSED. APPROVED, AND ADOPTED at a regular meeting of the City
Council of the City of La Guinta held this 19th day of December, 2006, by the
following vote:
AYES: Council Members Henderson, Kirk, Osborne, Sniff, Mayor Adolph
NOES: None
. ABSENT: None
ABSTAIN: None
~
DON ADO PH, M
City of La Guinta,
ATTEST:
APPROVED AS TO FORM:
M. KATHERINE JENSO ,City Attorney
City of La Guinta, California