HomeMy WebLinkAbout2001-07 CRA
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CGN: 7/6/01
RESOLUTION NO. 01- 07
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA APPROVING
MODIFICATIONS TO THE CORNERSTONE VILLAGE
OWNER PARTICIPATION AGREEMENT AND
CORNERSTONE VILLAGE LOAN PROGRAMS TO ALLOW
RESIDUAL RECEIPT LOANS AND TO SUBORDINATE THE
FACADE AND COURTYARD IMPROVEMENT LOANS TO
NEW PRIORITY LIENS.
BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY OF SANTA ANA AS FOLLOWS:
SRCtinn 1. The Community Redevelopment Agency of the City of Santa Ana
("Agency"}does hereby find, determine and declare as follows:
A. Approximately 48 multi-family housing complexes located along Minnie
Street between Mcfadden Avenue and Grant Street in the City of Santa Ana,
commonly known as the Minnie Street Neighborhood. (the "Neighborhood") contain
approximately 527 dwelling units, and is home to approximately 4,000 low and
moderate income persons; and,
B. The Agency, in partnership with the City of Santa Ana (the "City"), the
residents and most of the property owners in the Neighborhood (the "Owners") had
determined that the Neighborhood is in significant need of rehabilitation of bOth the
private and public infrastructure so as to preserve this important stock of low income
housing for the community; and,
C. On March 6, 2000, the City and Agency approved the form of the
Cornerstone Village Owner Participation Agreements and the Cornerstone Village loan
Programs, which provided three loan programs to Owners with zero percent interest or
forgivable loan terms.
D. A number of the buildings in the Neighborhood are proposed to be acquired
by new buyers who are applying for an allocation of federal low-income housing tax
credits from the State of California Tax Credit Allocation Committee ("TCAC"), which
gives a competitive advantage to applicants who make nominal loan payments over
applicants with zero percent interest or forgivable loan terms.
Section 2. The Agency hereby approves amending the form of the
Cornerstone Village Owner Participation Agreement to allow the City and Agency to
offer alternative loan terms for the Facade and Courtyard Improvement Program
consisting of :
. a three percent (3%) interest rate;
. principal and interest payments amortized over 30 years; and
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CGN: 716101
. repayment of principal and accrued interest conditioned on
sufficient cash flow based on net operating income.
Rectinn 3- The Agency hereby approves amending the form of the Cornerstone
Village Owner Participation Agreements to allow the City and Agency to subordinate the
Facade and Courtyard Improvement Program loan to loans to finanœ or refinance the
purchase, of the property.
Sectinn 4. The Agency hereby authorizes the City Attorney to prepare and the
Chairman to execute amendments to the Cornerstone Village Owner Participation
Agreements consistent with terms of Sections 2 and 3 of this resolution.
RActinn 4 The Agency hereby approves modifying the Cornerstone Village
Loan Programs to allow the City and Agency to offer alternative loan terms for the Stair
and Balcony Loan Program and the General Property Improvement Loan Program
consisting of:
. a three percent (3%) interest rate;
. principal and interest payments amortized over 30 years; and
. repayment of principal and accrued interest conditioned on
sufficient cash flow based on net operating income.
ADOPTED this l£1h day of
July
,2001.
ATTEST:
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~ Miguel A. Pulido
\) Chairman
iÞL
Joh~eekstin
Executive Director/Recording
Secretary
APPROVED AS TO FORM:
Joseph W. Fletcher
City Attorney
By: C{il h !/6--
ChristopherG.Norrnan
Agency General Counsel
AYES:
Alvarez, Bist, Christy, Franklin, McGuigan, Solorio (6)
Members
NOES:
None (0)
Members
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ABSTAIN:
NOT PRESENT:
Members
Members
None (0)
Pulido (1)
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CGN: 7/6101
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