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HomeMy WebLinkAbout1997-03 CRA . . . COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA RESOLUTION NO. 97-3 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING THE IMPLEMENTATION AGREEMENT BETWEEN THE AGENCY AND SOUTHLAND ECONOMIC DEVELOPMENT CORPORATION, dba SANTA ANA DEVELOPMENT COMPANY, PERTAINING TO THE SALE OF FIVE AGENCY-OWNED PARCELS AND THE CONSTRUCTION THEREON OF FIVE REPLACEMENT HOUSING UNITS; AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE, ON BEHALF OF THE AGENCY, THE IMPLEMENTATION AGREEMENT AND RELATED DOCUMENTS AS NECESSARY; AND MAKING CERTAIN FINDINGS WITH RESPECT THERETO. THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: WHEREAS, the City of Santa Ana has an obligation to provide replacement low and moderate income dwelling units in accordance with HUD Regulations (24 CFR §570.606) in the city of Santa Ana (the "Replacement Housing"); and WHEREAS, the HUD Regulations provide that Replacement Housing units may be provided by any government agency or private developer, and must meet the requirements set forth in 24 CFR §570.606(c) (ii) (the "HUD Requirements"); and WHEREAS, Southland Economic Development Corporation, dba Santa Ana Development Company ("Developer") is a nonprofit corporation having experience and qualifications in acquiring, constructing and providing well-managed and affordable housing for low and moderate income persons and families in the community; and WHEREAS, pursuant to the Community Redevelopment Law (California Health and Safety Code section 33334.2 et ~., referred to hereinafter as the "Redevelopment Law"), not less than 20% of the tax increment derived from redevelopment projects in the city of Santa Ana must be used to provide affordable housing for persons and families of low and moderate income in the City of Santa Ana (the "Housing Funds"); and WHEREAS, using a portion of its Housing Funds, the Agency has acquired five parcels of property in the City of Santa Ana, described as set forth in the legal description attached to this Resolution as Exhibit "A" (each one referred to as a "Parcel" and referred to collectively as the "Parcels") which are appropriate -1- . . . for the development of single-family housing which may be counted towards the City's Replacement Housing obligation; and WHEREAS, Developer has proposed to acquire the Parcels and construct Replacement Housing units on the Parcels, to be rented or sold to Lower Income households, at an affordable housing cost, and has requested the assistance of the Agency in financing the acquisition and development costs; and wttEREAS, the Agency has prepared a proposed Implementation Agreement (the "Agreement"), providing for a loan to Developer in the amount of not to exceed $910,000, subject to terms and conditions set forth in the Agreement; and WHEREAS, the Replacement Housing to be developed pursuant to the Agreement will comply with the applicable HUD Requirements; and WHEREAS, the Agreement provides that upon completion of construction, if the Developer elects to operate the Replacement Housing units as rental housing, Developer will obtain a permanent conventional first mortgage loan in the maximum amount obtainable in light of the restricted rents, the proceeds of which shall b~ used to repay all or part of the Agency Loan; and WHEREAS, in order to facilitate Developer's ability to obtain. such permanent financing, the Agency will be required to subordinate its deed of trust and affordable housing requirements to the lien of the permanent lender; and WHEREAS, pursuant to the Redevelopment Law, in order to subordinate the affordable housing covenants and restrictions of the Agreement to the security interests and liens of a lender, the Agency is required to find that an economically feasible alternative method of financing the Replacement Housing units on substantially comparable terms and conditions, but without subordination, is not reasonably available; and WHEREAS, copies of the proposed Agreement in substantially final form have been presented to this Agency and city Council; and WHEREAS, pursuant to the proposed Agreement, the five units to be constructed on the Parcels will be occupied by and restricted to lower income households, at affordable housing cost; and WHEREAS, the development of the Parcels pursuant to the Agreement is an activity that is categorically exempt from the California Environmental Quality Act (Class 3, CEQA Guidelines § 15303); and -2- . . . WHEREAS, the Parcels are located in the City of Santa Ana, but outside any Redevelopment Project area, and, pursuant to the Redevelopment Law, in order to use Housing Funds to assist affordable housing outside a Redevelopment Project, the Agency and the City Council must find that the use of the Housing Funds will be of benefit the Redevelopment Projects; and WHEREAS, the Agency has duly considered all of the terms and conditions of the proposed Agreement, and believes that the proposed Agreement is in the best interests of the City and the health, safety, morals and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local laws and requirements; and WHEREAS, this Agency and the City Council have held a joint public hearing on the proposed Project and the Agreement, after having duly provided notice of such public hearing in accordance with State law. NOW, THEREFORE, BE IT RESOLVED by the Community Redevelopment Agency of the City of Santa Ana as follows: SECTION 1. The Agency recognizes that is has received and heard all oral and written objections to the proposed Agreement, to the proposed financing of the Project pursuant to the proposed Agreement, and to other matters pertaining to this transaction, and that all such oral and written objections are hereby overruled. SECTION 2. The Agency hereby finds and determines that the consideration to be paid by the Developer for the sale of the Parcels as described in the Agreement is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the Agreement. SECTION 3. The Agency hereby finds and determines that the sale of the property in accordance with the Agreement will provide housing for low or moderate income persons and is consistent with the Implementation Agreement approved by the Agency pursuant to California Health and Safety Code section 33490. SECTION 4. The sale of the Parcels and the Agreement establishing the terms and conditions for the sale and development of the Parcels, including all attachments thereto, are hereby approved. SECTION 5. The Executive Director of the Agency or her designee is hereby authorized, on behalf of the Agency, to execute the Agreement and each and every Attachment and Exhibit thereto that is to be signed by the Agency, and to make such changes of a nonsubstantive nature to such documents as the Executive Director -3- . . . or designee shall deem appropriate. A copy of the Agreement, Attachments and Exhibits, when executed, shall be placed on file in the office of the Clerk of the Agency. SECTION 6. The Executive Director of the Agency or her designee is hereby authorized, on behalf of the Agency, to sign all documents necessary and appropriate to carry out and implement the Agreement and to administer the Agency's obligations, responsibilities and duties to be performed under said Agreement. SECTION 7. The Agency finds and determines that the use of the Housing Funds as authorized by this Resolution will be of benefit to the Redevelopment Projects. SECTION 8. The Agency finds and determines that an economically feasible alternative method of obtaining permanent financing for the Replacement Housing units on substantially comparable terms and conditions, but without subordination, is not reasonably available. SECTION 9. The Agency Executive Director or his designee is hereby authorized to execute such subordination agreements as may be required, in order to subordinate the Agency's security interest in the Property, as set forth in the Deed of Trust, and covenants and restrictions set forth in the Agreement containing Covenants, to the security interests and liens of any senior lender. . APPROVED and ADOPTED this Third day of February, 1997. ATTEST: ~ Cha1rman ~~ Cynth a J. Nelson Executive Director AYES: MEMBERS: Espinoza, Franklin, Lutz, McGuigan, Richardson (Moreno abstained) NOES: MEMBERS: ABSENT: MEMBERS: Pulido -4- . . . 2. 4. EXHIBIT "A" LEGAL DESCRIPTION 1. Property East of and Adjacent to 1629 East 6th Street: That real property in the City of Santa Ana, County of Orange, State of California, described as: That portion of Lot 34 of Tract No. 1790, as shown on a map filed in Book 60, page 9 of Miscellaneous Maps, in the office of the County Recorder of said County, together with that portion of that certain parcel of land acquired by the State of California by deed recorded August 28, 1990 as Document No. 90-457453 of Official Records, in said office. 4501 Sunswept Avenue (APN 100-421-01): That real property in the City of Santa Ana, County of Orange, State of California, described as: Lot 53 of Tract No. 2463, as per map recorded in Book 72, Pages 4& and 47 of Miscellaneous Maps, in the office of the County Recorder of said county. 3. 4501 West Flight Avenue (APN 108-351-017): That real property in the City of Santa Ana, County of Orange, State of California, described as: Lot 90 of Tract No. 2969, as shown on a map recorded in Book 84, Pages 39 and 40 of Miscellaneous Maps, in the office of the County Recorder of said County. 2309 Monica Lane (APN 399-131-07): That real property in the City of Santa Ana, County of orange, state of California, described as: Lot 21 of Tract No. 1425, as per map thereof in Book 79, Pages 26 and 27 of Maps, in the office of the County Recorder of said County. 5. 814 North Garfield (APN 398-042-09): All that certain land situated in the State of California, County of Orange, City of Santa Ana, described as: Lots 22 and 23 in Block 74 of the Town of Santa Ana East, as per map recorded in Book 10, Pages 43 and 44 of Miscellaneous Records, in the office of the County Recorder of said County. 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