HomeMy WebLinkAbout03 - JOINT - Lacy Settlementa ~ ~ I
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APRIL 18, 2011
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SETTLEMENT AGREEMENT WITH FRIENDS OF
THE LACY HISTORIC NEIGHEORHOOD AND FIRST
AMENDMENT TO THE DISPOSITION AND
DEVELOPMENT AGREEMENT WITH SANTA ANA
STATION DISTRICT, LLC
CITY COUNCIL ACTION
1. Adopt a resolution adopting CEQA Findings of Fact and a Statement of Overriding
Considerations; consenting to the approval of the First Amendment to the Disposition and
Development Agreement between the Community Redevelopment Agency of the City of Santa
Ana and Santa Ana Station District, LLC dated June 7, 2010 for properties owned by the Agency
in the Station District and making certain other findings in connection therewith.
2. Direct the City Attorney to prepare and authorize the City Manager, the acting Chair of the
Council in this matter, and Clerk of the Council to execute a settlement agreement with the
Friends of the Lacy Historic Neighborhood, Deborah McEwen, the City of Santa Ana, the City
Council of Santa Ana, the Redevelopment Agency of the City of Santa Ana, the Board of the
Agency, and Santa Ana Station District, LLC.
COMMUNITY REDEVELOPMENT AGENCY ACTION
Adopt a resolution adopting CEQA Findings of Fact and a Statement of Overriding
Considerations; approving the First Amendment to the Disposition and Development
Agreement between the Community Redevelopment Agency of the City of Santa Ana and
Santa Ana Station District, LLC dated June 7, 2010 for properties owned by the Community
Redevelopment Agency of the City of Santa Ana in the Station District and making certain other
findings in connection therewith.
3-1
Settlement Agreement With Friends of
the Lacy Historic Neighborhood and First
Amendment to the DDA with Santa Ana
Station District, LLC
April 18, 2011
Page 2
2. Direct the Agency General Counsel to prepare and authorize the Executive Director, the acting
Chair of the Board in this matter, and Clerk of the Council to execute a settlement agreement
with the Friends of the Lacy Historic Neighborhood, Deborah McEwen, the City of Santa Ana,
the City Council of Santa Ana, the Redevelopment Agency of the City of Santa Ana, the Board
of the Agency, and Santa Ana Station District, LLC.
3. Direct the Agency General Counsel to prepare and authorize the Executive Director and Clerk
of the Council to execute the First Amendment to the Disposition and Development Agreement
between the Community Redevelopment Agency of the City of Santa Ana and Santa Ana
Station District, LLC dated June 7, 2010 revising the Scope of Development.
4. Adopt the Lacy Housing Fund Program and authorize the deposit and expenditure of $200,000
5. Authorize the release of Request for Proposals for the demolition of 620E 5t" St., 611 N. Minter
St., 609, 615-617 E. 6t" St., 623 and 707 N. Garfield and 812 E. Santa Ana Blvd., and the
relocation of the structures on 613 E. 6t" St and 610-612 E. 5t" St.
DISCUSSION
On June 7, 2010, the City Council and Redevelopment Agency approved the final Environmental
Impact Report (Final EIR) for the Transit Zoning Code (TZC) and approved a Disposition and
Development Agreement (DDA) with Station District, LLC for the development of Agency owned
properties in the Station District Project. On July 8, 2010, Friends of the Lacy Historic
Neighborhood (FOL) filed a Petition for Writ of Mandamus against the City and Agency challenging
the certification of the Final EIR, approval of the Transit Zoning Code, the Station District Project
and the related purchase and demolition of certain structures in the Lacy Neighborhood.
On February 26, 2011, staff, Agency/City legal counsel, and the developer attended mediation with
FOL in an attempt to resolve the complaint without proceeding to court. After extensive
negotiations through mediation and the weeks following, a settlement has been reached that
maintains the goals and economics of the Station District Project. The following are the terms of
the settlement agreement:
The Station District Project will be revised to include rehabilitation of approximately ten
(10) single-family and multi-family properties to be situated along Fifth Street in the Lacy
Neighborhood.
The Agency will be responsible for relocating the single-family structure at 613 E. 6t" St
and a duplex at 610-612 E. 5t" St. to 602 E. 6t" St and 511 E. 5t" St, respectively, with
the developer being responsible for rehabilitating the units as part of its Phase 2.
3-2
Settlement Agreement With Friends of
the Lacy Historic Neighborhood and First
Amendment to the DDA with Santa Ana
Station District, LLC
April 18, 2011
Page 3
® 611 North Minter will be demolished unless a buyer can relocate the structure by May
15, 2011.
The City will prepare an historic survey for residential structures 50 years old or older in
the Lacy Neighborhood. The cost of this survey is expected to be approximately
$30,000.
The Agency will establish a $200,000 Lacy Neighborhood Housing Fund to encourage
home owners in the Lacy Neighborhood to make exterior home improvements. This
program would replace the $100,000 targeted residential loan program for the Lacy
Neighborhood approved by the Agency on June 7, 2010. This new program would also
provide grants for eligible property owners who want to propose their homes for listing on
the state or local historic register or apply for the Mills Act Property Tax Abatement
Program. The program would be funded up to $200,000 annually for a period of five
years (Exhibit 4).
® Santa Ana Historic Preservation Society (SAHPS) will be given the opportunity to inspect
homes for salvageable items, which the demolition contractor will remove identified items
prior to demolition. SAHPS will be responsible for the removal of the items from the site
and storage.
® For eighteen (18) months from the effective date of the Settlement Agreement, prior to
future acquisition and/or demolition of homes in the Lacy Neighborhood, the Agency will
provide special notice to FOL and an opportunity for consultation.
The developer will pay Petitioners' attorneys' fees in an amount not to exceed
$72,000.00.
The terms of the Settlement Agreement, necessitate that the Scope of Development and related
sections of the DDA as applicable, be amended to allow for such changes. The following are the
changes that are incorporated into the First Amendment to the DDA (Exhibit 3):
® Change in Scope of Development to include the rehabilitation of single-family and multi-
family properties. A portion of Phase 2multi-family rental will be replaced with For Sale
units. In total, this will result in one additional rental unit and eight fewer For Sale units
than the previously approved project.
® New site map
3-3
Settlement Agreement With Friends of
the Lacy Historic Neighborhood and First
Amendment to the DDA with Santa Ana
Station District, LLC
April 18, 2011
Page 4
® Addition of language referencing the settlement agreement
® Extension of the time to complete the lot mergers
California Environmental Quality Act (CEQA)
The Settlement Agreement and the First Amendment to the DDA will not result in any changes to
the Station District Project or the circumstances under which the Station District Project is
undertaken that would require any major revisions in the Final EIR, and there is no new information
with respect to the Project that would require such revisions. Additionally, no other terms of the
Settlement Agreement would require revisions to the Final EIR or further environmental analysis
because the terms do not involve new significant environmental impacts or a substantial increase
in the severity of an impact, and/or have no potential to result in a direct or indirect physical change
in the environment, and/or are otherwise exempt from CEQA.
Additionally, the preparation of an historic survey is exempt from CEQA under CEQA Guidelines §
15306, which exempts "information collection." Because the Historic Survey would simply evaluate
existing resources and would not result in any disturbance of environmental resources, it is exempt
from CEQA review. Establishment of the Lacy Neighborhood Housing Fund is similarly exempt
from CEQA because any improvements that would result from use of the fund would consist of
repair, maintenance or minor alterations of private structures involving negligible or no expansion
of the existing use. Therefore, establishment of the fund is exempt under CEQA Guidelines §
15301 (Existing Facilities). Further, any rehabilitation of homes consistent with the Secretary of
the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving,
Rehabilitating, Restoring and Reconstructing Historic Buildings would also be exempt under CEQA
Guidelines § 15331. The salvage program is also exempt under CEQA because it is a component
of the ongoing salvage process with the Santa Ana Historic Preservation Society, which began in
2004, and under the Existing Facilities exemption (CEQA Guidelines § 15301) as it involves only
minor exterior and interior alterations. All other provisions of the Settlement Agreement have no
potential for resulting in a direct or indirect physical change on the environment and, therefore, are
not "projects" as that term is defined in CEQA Guidelines § 15378. Accordingly, they are covered
by "the general rule that CEQA only applies to projects, which have the potential for causing a
significant effect on the environment. Where it can be seen with certainty that there is no
possibility that the activity in question may have a significant effect on the environment, the activity
is not subject to CEQA." (See CEQA Guidelines § 15061(b)(3).)
3-4
Settlement Agreement With Friends of
the Lacy Historic Neighborhood and First
Amendment to the DDA with Santa Ana
Station District, LLC
April 18, 2011
Page 5
FISCAL IMPACT'
Funds for the Lacy Neighborhood Housing Fund will be available in the Tax Increment account.
(no. 50718830-69151).
APPROVED AS TO FUNDS AND ACCOUNTS:
l/
~~ , ~ ., /
Shelly ndry-Bay
Housing Manager
Community Development Agency
Exhibits: 1. Resolution, City
2. Resolution, Agency
3. DDA
4. Fund Program
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RESOLUTION NO. 2011-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA ADOPTING CEQA FINDINGS
OF FACT AND A STATEMENT OF OVERRIDING
CONSIDERATIONS AND CONSENTING TO THE
APPROVAL OF THE FIRST AMENDMENT TO THE
DISPOSITION AND DEVELOPMENT AGREEMENT
BETWEEN THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF SANTA ANA AND
SANTA ANA STATION DISTRICT, LLC AND
MAKING CERTAIN OTHER FINDINGS IN
CONNECTION THEREWITH
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines and
declares as follows:
A. The Community Redevelopment Agency for the City of Santa Ana
("Agency")entered into that certain Disposition and Development Agreement with Santa
Ana Station District, LLC ("Developer"), dated as of June 7, 2010 ("DDA"), a copy of
which is on file with the Agency, under which the Developer was to develop certain
property identified therein as the "Site" located in the City of Santa Ana ("City").
B. Pursuant to the California Environmental Quality Act (Public Resources
Code § 21000, et seq.) ("CEQA")the City Council of the City of Santa Ana ("Council")
certified Environmental Impact Report ("Final EIR") No. 2006-02 for Transit Zoning Code
(SD 84A and SD 84B) and the development of that certain property identified in the DDA
as the Site (the "Station District Project"), a copy of which is on file with the City (SCH No.
2006071100), on June 7, 2010.
C. The Council and the Agency, respectively, adopted CEQA Findings of
Fact, a Statement of Overriding Considerations, and a Mitigation Monitoring and
Reporting Program ("MMRP") in connection with approval of the DDA on June 7, 2010.
D. The DDA provided that the Site would be conveyed to the Developer and
Developer would develop the Site in phases, including the construction of affordable
housing units, as more particularly set out in the Scope of Development attached and
incorporated into the DDA.
E. On July 8, 2010, the unincorporated association "Friends of the Lacy
Historic Neighborhood" filed a Petition for Writ of Mandamus against the City and Agency
challenging the certification of the EIR and approval of the TZC, the Station District
Project and the related purchase and demolition of certain structures in the Lacy
Neighborhood in Orange County Superior Court Case No. 30-2010-00388033-CU-WM-
CXC (the "Litigation").
EXHIBIT 1
3-7
F. The Parties have mutually agreed that settlement is the most efficient and
practical way to resolve the Litigation and have proposed a settlement agreement to
resolve and settle all claims related to the Litigation ("Settlement Agreement").
G. The parties now deem it in their best interests to amend and restate the
Scope of Development as set forth in the proposed First Amendment to Disposition and
Development Agreement in the form submitted herewith ("First Amendment").
H. All actions required by all applicable law with respect to the proposed First
Amendment have been taken in an appropriate and timely manner
I. The DDA as amended by the First Amendment would assist in the
alleviation or removal of blighting conditions and provide housing for low- or moderate-
income persons.
J. The Agency has adopted an Implementation Plan pursuant to CRL Section
33490, which sets forth the objective of providing housing to satisfy the needs and
desires of various constituent elements of the community.
K. The DDA as amended by the First Amendment furthers the goals of the
Agency set forth in the Implementation Plan as it will facilitate the creation of affordable
housing which will serve the residents of the neighborhood and the City.
L. The DDA as amended by the First Amendment would assist in the
alleviation or removal of blighting conditions and provide housing for low- or moderate-
income persons and would further the goals of the Implementation Plan by providing for
the development of such housing.
M. The City Council has duly considered all terms and conditions of the
proposed First Amendment and believes that the DDA as amended by the First
Amendment is in the best interests of the Agency and the City and the health, safety, and
welfare of its residents, and in accord with the public purposes and provisions of
applicable State and local law requirements.
Section 2. The foregoing recitals are true and correct and are hereby incorporated by
this reference.
Section 3. The City Council hereby finds and determines that there have been no
substantial changes proposed in the Station District Project as a result of the new Scope of
Development or the circumstances under which the Station District Project is undertaken, and
there is no new information with respect to the Project, which would require any major revisions
in the Final EIR pursuant to California Environmental Quality Act ("CEQA").
Section 4. The City Council hereby adopts the Findings of Fact and Statement of
Overriding Considerations for the Station District Project as defined in the new Scope of
Development, attached as Exhibit "A".
3-8
Section 5. The City Council hereby finds and determines that the MMRP adopted by
the Agency on June 7, 2010 remains in effect.
Section 6. The City Council hereby finds and determines that the terms of the
Settlement Agreement do not require revisions to the Final EIR or further environmental analysis
either because the terms do not involve new significant environmental impacts or a substantial
increase in the severity of an impact, and/or have no potential to result in a direct or indirect
physical change in the environment, and/or are otherwise exempt from CEQA.
Section 7. The City Council hereby finds and determines that, based upon substantial
evidence provided in the record before it, the consideration for the Agency's conveyances real
property to the Developer pursuant to the terms and conditions of the DDA as amended by the
First Amendment is not less than the fair reuse value at the use and with the covenants and
conditions and development costs authorized by the DDA.
Section 8. The City Council hereby finds and determines that, based upon substantial
evidence provided in the record before it, the First Amendment is consistent with the provisions
and goals of the Implementation Plan.
Section 9. The City Council hereby consents to the approval by the Agency of the
First Amendment in substantially the form presented to the Agency, subject to such revisions as
may be made by the Executive Director of the Agency or his or her designee. A copy of the
First Amendment when executed by the Agency shall be placed on file in the office of the City
Clerk.
Section 10. The Executive Director and the Agency Secretary are hereby authorized to
execute and attest the First Amendment, including any related attachments, on behalf of the
Agency. Copies of the final form of the First Amendment, when duly executed and attested,
shall be placed on file in the office of the City Clerk.
Section 11. The Executive Director (or his/her duly authorized representative) is further
authorized to implement the First Amendment and take all further actions and execute all
documents referenced therein and/or necessary and appropriate to carry out the First
Amendment. The Executive Director (or his/her duly authorized representative) is hereby
authorized to the extent necessary during the implementation of the First Amendment to make
technical or minor changes thereto after execution, as necessary to properly implement and
carry out the First Amendment, provided the changes shall not in any manner materially affect
the rights and obligations of the Agency.
Section 12. The City Clerk shall certify to the adoption of this Resolution.
3-9
ADOPTED this day of , 2011.
Carlos Bustamante
Acting Chair
APPROVED AS TO FORM:
By:
Joseph Straka
Interim General Counsel
AYES:
NOES:
ABSTAIN:
NOT PRESENT
Boardmembers:
Boardmembers:
Boardmembers:
Boardmembers:
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Secretary of the Agency, do hereby attest to and certify the attached
Resolution No. 2011- to be the original resolution adopted by the Community
Redevelopment Agency of the City of Santa Ana on , 2011.
Date:
Clerk of the City Council
3-10
FOR THIS ATTACHMENT,
PLEASE REFER TO CITY COUNCIL ITEM 80A, EXHIBIT 1
REVISE ~~'A~IOIV
~:~~~ I'F~IC~ PROJECT ANA
"I~FtI~NDS OF LACY"
SETTLEMENT
AGREEMENT
Findings of Fact/
Statement of Overriding Considerations
The City of Santa Ana
20 Civic Center Plaza M20
PO Box 1988
Santa Ana, California 92702
EXHIBIT A
April 1S, 2011
3-11
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3-12
RESOLUTION NO. CRA 2011-
A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF
SANTA ANA ADOPTING CEQA FINDINGS OF FACT
AND A STATEMENT OF OVERRIDING
CONSIDERATIONS AND APPROVING THE FIRST
AMENDMENT TO THE DISPOSITION AND
DEVELOPMENT AGREEMENT BETWEEN THE
AGENCY AND SANTA ANA STATION DISTRICT,
LLC AND MAKING CERTAIN OTHER FINDINGS IN
CONNECTION THEREWITH
BE IT RESOLVED BY THE MEMBERS OF THE BOARD OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS:
Section 1. The Board of the Community Redevelopment Agency of the City of Santa
Ana hereby finds, determines and declares as follows:
A. The Community Redevelopment Agency for the City of Santa Ana
("Agency") entered into that certain Disposition and Development Agreement with Santa
Ana Station District, LLC ("Developer"), dated as of June 7, 2010 ("DDA"), a copy of
which is on file with the Agency, under which the Developer was to develop certain
property identified therein as the "Site" located in the City of Santa Ana ("City").
B. Pursuant to the California Environmental Quality Act (Public Resources
Code § 21000, et seq.) ("CEQA") the City Council of the City of Santa Ana ("Council")
certified Environmental Impact Report ("Final EIR") No. 2006-02 for Transit Zoning Code
(SD 84A and SD 84B) and the development of that certain property identified in the DDA
as the Site (the "Station District Project"), a copy of which is on file with the City (SCH No.
2006071100), on June 7, 2010.
C. The Council and the Agency, respectively, adopted CEQA Findings of
Fact, a Statement of Overriding Considerations, and a Mitigation Monitoring and
Reporting Program ("MMRP") in connection with approval of the DDA on June 7, 2010.
D. The DDA provided that the Site would be conveyed to the Developer and
Developer would develop the Site in phases, including the construction of affordable
housing units, as more particularly set out in the Scope of Development attached and
incorporated into the DDA.
E. On July 8, 2010, the unincorporated association "Friends of the Lacy
Historic Neighborhood" filed a Petition for Writ of Mandamus against the City and Agency
challenging the certification of the EIR and approval of the TZC, the Station District
Project and the related purchase and demolition of certain structures in the Lacy
Neighborhood in Orange County Superior Court Case No. 30-2010-00388033-CU-WM-
CXC (the "Litigation"). EXHIBIT 2
3-13
F. The Parties have mutually agreed that settlement is the most efficient and
practical way to resolve the Litigation and have proposed a settlement agreement to
resolve and settle all claims related to the Litigation ("Settlement Agreement").
G. The parties now deem it in their best interests to amend and restate the
Scope of Development as set forth in the proposed First Amendment to Disposition and
Development Agreement in the form submitted herewith ("First Amendment").
H. All actions required by all applicable law with respect to the proposed First
Amendment have been taken in an appropriate and timely manner
I. The DDA as amended by the First Amendment would assist in the
alleviation or removal of blighting conditions and provide housing for low- or moderate-
income persons.
J. The Agency has adopted an Implementation Plan pursuant to CRL Section
33490, which sets forth the objective of providing housing to satisfy the needs and
desires of various constituent elements of the community.
K. The DDA as amended by the First Amendment furthers the goals of the
Agency set forth in the Implementation Plan as it will facilitate the creation of affordable
housing which will serve the residents of the neighborhood and the City.
L. The DDA as amended by the First Amendment would assist in the
alleviation or removal of blighting conditions and provide housing for low- or moderate-
income persons and would further the goals of the Implementation Plan by providing for
the development of such housing.
M. The Agency has duly considered all terms and conditions of the proposed
First Amendment and believes that the DDA as amended by the First Amendment is in
the best interests of the Agency and the City and the health, safety, and welfare of its
residents, and in accord with the public purposes and provisions of applicable State and
local law requirements.
Section 2. The foregoing recitals are true and correct and are hereby incorporated by
this reference.
Section 3. The Agency hereby finds and determines that there have been no
substantial changes proposed in the Station District Project as a result of the new Scope of
Development or the circumstances under which the Station District Project is undertaken, and
there is no new information with respect to the Project, which would require any major revisions
in the Final EIR pursuant to California Environmental Quality Act ("CEQA").
Section 4. The Agency hereby adopts the Findings of Fact and Statement of
Overriding Considerations for the Station District Project as defined in the new Scope of
Development, attached as Exhibit "A".
Section 5. The Agency hereby finds and determines that the MMRP adopted by the
Agency on June 7, 2010 remains in effect. 3 - ~ 4
Section 6. The Agency hereby finds and determines that the terms of the Settlement
Agreement do not require revisions to the Final EIR or further environmental analysis either
because the terms do not involve new significant environmental impacts or a substantial
increase in the severity of an impact, and/or have no potential to result in a direct or indirect
physical change in the environment, and/or are otherwise exempt from CEQA.
Section 7. The Agency hereby finds and determines that, based upon substantial
evidence provided in the record before it, the First Amendment is consistent with the provisions
and goals of the Implementation Plan
Section 8. The Agency hereby approves the First Amendment between the Agency
and Developer, in the form of the First Amendment.
Section 9. The Executive Director and the Agency Secretary are hereby authorized to
execute and attest the First Amendment, including any related attachments, on behalf of the
Agency. Copies of the final form of the First Amendment, when duly executed and attested,
shall be placed on file in the office of the City Clerk.
Section 10. The Executive Director (or his/her duly authorized representative) is further
authorized to implement the First Amendment and take all further actions and execute all
documents referenced therein and/or necessary and appropriate to carry out the First
Amendment. The Executive Director (or his/her duly authorized representative) is hereby
authorized to the extent necessary during the implementation of the First Amendment to make
technical or minor changes thereto after execution, as necessary to properly implement and
carry out the First Amendment, provided the changes shall not in any manner materially affect
the rights and obligations of the Agency.
Section 11. The Agency Secretary shall certify to the adoption of this Resolution.
3-15
ADOPTED this day of
2011.
Carlos Bustamante
Acting Chair
APPROVED AS TO FORM:
By:
Joseph Straka
Interim General Counsel
AYES: Boardmembers:
NOES: Boardmembers:
ABSTAIN: Boardmembers:
NOT PRESENT: Boardmembers:
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Secretary of the Agency, do hereby attest to and certify the attached
Resolution No. 2011- to be the original resolution adopted by the Community
Redevelopment Agency of the City of Santa Ana on , 2011.
Date:
Secretary, Community Redevelopment Agency
3-16
FOR THIS ATTACHMENT,
PLEASE REFER TO CITY COUNCIL ITEM 80A, EXHIBIT 2
R~i/ISED STATION
DISTRICT PROJECT AND
"FRIENDS OF LACY"
SETTLEMENT
AGREEMENT
Findings of Fact/
Statement of Overriding Considerations
The City of Santa Ana
Community Redevelopment Agency
20 Civic Center Plaza M20
PO Box 1988
Santa Ana, California 92702
EXHIBIT A
Apri9 18, 2011
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3-18
FIRST NDMENT T®
I~EVEI_,P1i~IEN'I' A.~D AISP®SITI41\T AGREElV~ENT
THIS FIRST AMENDMENT TO DISPOSITION AND DEVELOPMENT
AGREEMENT (this "First Amendment"} is entered into as of 2011 by and
between the COM1V>CCTN><TY REDEVELOPMENT AGENCY OF TIE CITY OF SANTA ANA,
a public body, corporate and politic (the "Agency"), and SANTA ANA STATION DISTRICT,
LLC, a California limited liability company (the "Developer"}.
RECITALS
A. The Agency arzd the Developer have en~~i"~~: ~~~ito a Disposition and Development
Agreement ("DDA"), dated as of June 7, 2010, which pxt3:~'des tae Agency to acquire possession
of and assemble an approximately six {6) acre site (,`.,`~~te"}' Iocatecl'`F;anta Ana, California ("City"),
and in turn to convey the Site to Developer in phases°~The DDA fitrtlierpxovides for the Developer
to develop, construct, and operate a number cri~"~Fai•dable housing untis-~"Project"), the details of
which are described more particularly in the '`~~S4pe of Development" iitta~hed to the DDA as
Attachment No. 5. - -.:.:.::..._. _ _ _ .._.:_....
..
B. Developer, City, and =er~cy;entered into==a=~ltlement Agreement dated as of April
18, 2011 with certain other parties ("S~t~~~i~~1Agreemerit?3)`~'he Settlement Agreement relates to
and affects the development of the Site an;~;xegi~ir that certain ~~a'anges be made to the DDA.
:.:~..,
~, ~s::: ......:....... ~,.
C. The artz~e~efare now~'c~~ it i~~t~~~;;::best ~it`C.~aests to amend the DDA b
amending and restating the Scope ~~ Developi~e~t, ai~d~malet~ig.:o~her related changes in accordance
with the terms and cottd~tzons set fort`lz~in this Fu.st~}~iendment.
herein,
NOW
mutual covenants and undertakings set forth
:'receipt and sufficiency of which are hereby
ree as follows;
I`~'~~~;> Defined Tear
this First Arri'~~clment shall ha
2. Siro~e;.,of De.
Attachment No. 5, is ~nereby c
this First Amendment~a`s~~hil
in the DDA• AlI capitalized and defined teirns used in
~~iven to them in the DDA,
int. The Scope of Development attached to the DDA as
and replaced with the new Scope of Development, attached to
3. Site Map. Tfie Site Map attached to the DDA as Attachment No. 1, is hereby deleted
and replaced with the new Site Map, attached to this First Amendment as Exhibit 2.
4. Definitions. The definitions of "For Sale Portion of the Project," "For Sale Unit(s),"
"Phase FS," and "Phase R-2" shall be deleted and xeplaced with the fallowing definitions
(a) "For-Sale Portlofe of tYie Project" means that portion of the Project that
consists of the For-Sale Units (including the Affordable For-Sale Units). The
For-Sale Portion of the Project consists of three (3) Lots as identified on the
Site Map and maybe constn~cted in multiple phases, and shall include any
E hibit 3
F°QCSOC/14s1239v3/200272-0001 ~ ~ g
Additional Properties designated for For-Sale Units which are added to the
Project pursuant to Section 207 hereof. The Affordable For-Sale Units shall
be located within the For-Sale Portion of the Project.
(b) "For Safe U~:it(s)" means the Housing Unit(s) (inclusive of the Affordable
For-Sale Units) that shall be constructed and developed on the For-Sale
Portion of the Project pursuant to and consistent with the terms of this
Agreement. A total of approximately twenty-four (24) For-Sale Units (plus
any For Sale Units to be constructed on the Additional Properties) shall be
constructed and developed by the Developer, inclusive of the Affordable For-
Sale Units. .....:.::. .....
(c} "Fliase F.S" shall mean the Phase Qf`i>r~truction of the Project which shall
include the development of appraatelt~uenty-four (24) For-Sale units
Inclusive of the Affordable Fir-;Sale Units =t~t<the Far-Sale Portion of the
Site. Specifically, Phase FS~11' be constructed~;ilhin the area identified on
the Site Map as Lot B,,;~:,ot~F, and Lot 4. -_-: ,-_
(d) "Phase R 2" shall mean the ~~'l~ase of eq~~ir~uction of tl~`Pxoject, which shall
include the development of app;i~kl=thirty-nine (39)~~ntal Units on
the Rental Po~toi::p~the Property-'alall include any Additional Properties
designated for'Pk%~erR_2:which are'a~c~;ed to the Project pursuant to Section
207 hereof. Spec3ca17~rase R-2 wrl~,~;constracted within the area
.~~'0'°' 7G ~{ "'~ 'C;~~~`•+~ >7 GG ~r ;~2 7> <4 >7 « 77 G< 77
identified on the Si>e;, ap ~as-~ ~)~;at2, Lot==: ~;. Lot A, Lot C, Lot D,
L4 77 r.;r. ~~,;..
::iz: :::; ......
-- -
(e} '''~ ~*~`Ifentat Porfao~a of the ~.i~~o ~~?' means~tlla~~portian of the Project that
~.~,::
.?"arc~rissts of tI~>Rental Unfs~~The Rental Portion of the Project consists of
sevez~;(7) lQ~€~~'s-i.~~ntified i~'t~~he Site Map and shall be constructed in two
;;_ ~ ;separat~~l~ases'(I?';~~e~t-l a%~Z?hase R-2).
of Clos%i~g>~- Settlement Agreement. Anew Subsection
204.2(o)~tl~e DDA is herel3~?added`vq~ch shall read as follows:
"(o) ;~eft~ement ~fgreement. Neither the Agency nor the
~;i, ~_
City shal~~~;e in default of the Settlement Agreement dated as
of April==1?4, 2011 entered into by the City, Agency,
~~~._ :_ r
Deyelope~='`and certain other parties, including Friends of
L;ac~~ioric Neighborhood, an unincorporated association."
6. Lot Merger. Section 303.2 of the DDA is hereby deleted and replaced in its entirety
and with the following:
"Lot Merger. On or prior to the dates of conveyance for Lot
1 (Phase R-1), and Lots 2 and 3 (in Phase R-2), respectively,
the Agency shall cause a lot merger(s) pursuant to Santa Ana
Municipal Code Sections 34-366 through 34-377 ox other
Subdivision Map Act compliance so as to combine all of the
applicable parcels of the applicable Lots into a single parcel."
2
Exhibit 3
3-20
DOCSO C/ 1481239v3/200272-0001
7. Number of Affordable Rental. Units. Section 401.1 of the DDA is hereby deleted
and replaced in its entirety and with the following:
"Number of Affordable Rental Units. Pursuant to this
Agreement and the Regulatory Agreement, the Developer
covenants and agrees to make available, restrict occupancy to,
and rent the Rental Units at an affordable rent pursuant to
Section 401.5 as follows:
(a) In Phase R-1, of seventy-four (74) newly constructed
Rental Units: {i) thirty-nine (39) of the=~~~vo (2) bedroom
Rental Units to Very Low Incom~~~ouseholds at an
Affordable Rent• a eleven 11 ;=~~te two 2 bedroom
Rental Units to Extremely Lov~~Ize'bm'e~=I~ouseholds at an
Affordable Rent; {iii) nineteen;;,{,1'9)t~ of the`~l~~ee (3) bedroom
Rental Units to Vety Ado>``~income Hotisekl~lds at an
Affordable Rent; and ~~~€oir 4 of the three'~~ 3,'-bedroom
Rental Units to Extrerriel,Zow Income Househ~l`~s ~,;,at an
Affordable Rent. _.......=.. ..,...r.__. _.:
{b) In Phase;; =~~,, of twenty=ff~ ~~ X2:5) newly construct~'d
Rental Units aud','~aft~a~aximately ~fc~t~t'teen {14) rehabilitated
Rental Units, 20~`erderit~tf„all unite`?kll be available for
Extremely Low Irie'~Ine IIaus~~olds ard`~he. remaining for
T~~ij ;ate, Income ~Iolaseholc~s~t'an;. Affor~ble Rent. With
respect ~ta,lumber o~bedr~ams, 'tle:~,~uaal'distribution of
.. ~s;:-~
Rental Units Ito Very Lc~t~:otne Households and Extremely
`a~~;Incom~auseholds~=~~a11 be subject to the approval of
For-Sale Units. Section 402.1 of the
DDA 5:~reby deleted aridreplaced~ri~ts entirety`a~d with the following:
"Num'iZ~,, Loca~an;,,and Quality of Affordable For-Sale
,::._,
Units. least ore=~(1) of the Housing Units developed on
each of t)ahree {3) separate lots constituting Phase FS, the
For-Sale :~tian of the Development, but up to a total of five
`O=~or,,~.I~'~ots, shall be sold to Moderate Income Households,
ati'~~t~~t~ces set forth in Section 402.2 hereof, i. e., the
Affo~~able For-Sale Units. The location of the Affordable
For-Sale Units within the For-Sale Portion of the Project will
be subject to the reasonable approval of the Agency Executive
Director pursuant to applicable laws and regulations. The
Developer covenants and agrees that the workmanship,
quality of materials, and costs of construction for and the
amenities, and physical features of each and all of the
Affordable For-Sale Units shall be equal to, and under no
circumstances or conditions less desirable than, all other
Housing Units in the For-Sale Portion of the Project.
3 3-21
Exhibit 3
DOCSOC/148123 9v3/200272-0001
(a) The Developer will be constructing
several models, plans, or types of Housing Units in the For-
Sale Portion of the Project. All of the Affordable For-Sale
Units will be (3) three-bedroom Housing Units. The exact
units to be designated as affordable will be subject to Agency
approval. The Developer covenants and agrees that all
Affordable Far-Sale Units in all respects shall be the
same/comparable in teams of quality of construction,
amenities, materials, design, etc. as the Housing Units of the
same size and model that are designed, con~ttucted, and sold
on the open market. „~_-_~~;
(b) The Age
buyer of a market Housing Unit
upgrades or improvements tl~a~?;
purchase price for a Hous~!fr
and thus not necessarily~~~~~~e
Affordable For-Sale Unit;€~tit,ni
acknowledgment modifies ~tr
obligation to ~xgvide first qual~ti
as described al~o~;";:,.
y,.,~1~wledges that a
~el~ec~~ ;~ pay for
`'riot inci~~1°@~l:;in the
of the same~sze:and model
m a corres
~in~ in the
eioper~s
For-Sale
9. DI)A Uther-rvise U'nc
conditions of the DDA shall remain in
4
Exhibit 3
as expres_s~y set forth herein, all terms and
..,..:..,r.
_et, unchanged by this First Amendment.
3-22
IaOCSOC/1481239v3/20~~212~•OO~ 1
IN WITNESS WAEREOF, the parties hexeto have signed this First Amendment to the
Dispositiotl and Development Agreement as of the date set forth above.
COMMUNITY REDEVELOPMENT AGENCY
ATTEST: OF TAE CITY OF SANTA ANA, a public body,
corporate a.nd politic
By: By:
Maria D. Huizar Nancy Edvr~~ds
Secretary Interim~~eutive Director
APPROVED AS TO FORIVI:
By:
Lisa E. Storck
Assistant General Counsel
TATIQN DISTRICT, LLC,
~d.liablity company
The undersigned~a~nsents to at~cl~arees to be
bound by tl~e fore~'c~r:~g::, .~'.... ,
C][TY VENTURES, LL`s
a Delaware limited liabili
By:
Its:
~ 3-23
Exhibit 3
DOCSOC/ 1481239v3/200272-0001
I•aXHIBIT 1
[Insert new Scope of Development)
EXHIBIT 1-1 ~ _ 24
DOCSC>' ' 1.4t31239v3/200272-0001
EXHIBIT 2
[Insert new Site Map]
E~~IT ~~l 3 - 25
DOCSOC/ 1481239v3/200272-0001
SCOPE OF DE'VELOPIV.IEl~IT
P]FTASE FS:
Project Description
Phase FS consists of approximately 24 for-sale single family homes including a combination of
attached row homes and single family detached homes. The development will be constructed on
appxoxirnately 1,57 acres on three scattered sites identified on the Site Map as "Lot B," "Lot F,"
and "Lot 4." Up to five units total with a minimum of one uzllt on each of Lots B, F and will be
reserved to be affordable to a Moderate Income homebuyer. The Moderate Income units will be
deed restricted for affordability to qualified homebuyers.
Phase FS is generally designed as 2 story row homes using at-grade wood frame construction
with all parking provided on site in detached garage sinictares and 2 story single family detached
homes using at-grade wood flame construction with all parking provided on site ui detached
garage structures. Parking is provided to satisfy requirements of the Transit Zoning Coda.
Additional Properties
911 Brown, 604, and 602 E. Fifth, 409 and 411 Minter, and 812 E. Santa Ana have been
identified as Additional Properties with respect to Phase FS. Should the Agency acquire or gain
control of any or all of these parcels within the timeframe contemplated by the Agreement,
development would be expanded to include up to an additional 17 residential units {including
code required parking) on by expanding the Phase FS design concept to the Additional
Properties.
Sins
A11 signage on the premises s1ia11 be designed to meet applicable zol>ing codes.
Landscapin
Project landscaping shall be designed to maximize opportzznities for on-site storm water
detention in areas not utilized for buildings, driveways and parking. Landscape elements may
include planters, terraces, trees, decorative walls, screezungs and paving elements. Planted areas
will be equipped with permanent r~vater sprinkler systems to ensure proper maintenance. In
addition to landscaping, common open space is to include amenities such as barbeques, benches
and/or enhanced paving, where physically feasible. Final landscape plan is subject to Agency
review and approval.
3-26
Utilities/Public ~mnrovements
Developer shall be responsible for utility relocation or installation on the premises and hookups
to sewers, drains, water and gas distribution lines, electi~c, telephone and CATV lines, and for
hookup to all other public utility lines. Phase FS will include curb, gutter and sidewalk
replacement around the periphery of the project site where needed and all necessary dedications
and improvements to establish 17" x 17" corner cutoffs and wheelchair ramps at street
intersections. Phase FS shall also include installation of any needed water laterals as well as
sewer improvements as required by the Land Ilse Approvals.
Sustainability
Phase FS shall be designed to achieve a Certified LEED level of design and eonstn~ction as
established by the US Green Building Council LEED for Homes program.
The LEED for Home program will insure: Indoor Environmental Quality -the homes are
designed to maximize fresh air indoors and minimize exposure to toxins and pollutants; Energy
Efficiency -the homes will use less energy through the life of a house; Water Efficiency -
homes will use innovative strategies to reduce a home's water use and to find creative ways to
reuse water; Site Selection -the homes are close to schools, shopping, work and transit; Site
Development -homes will avoid destructive constriction practices and have landscaping and
other elements that protect the land where the home sits; Materials Selection -Names will use
responsibly obtained materials everywhere possible; Residents' Awareness -- homes will stands
as an example to the colrununity of a well-built home and encourages others to live the same;
and Imiovation -innovations will be used to increase a home's performance, taping into aecoiult
local and regional needs and promoting durability for along-lasting, comfortable home.
Included Features
® Stainless steel under-counter l~itehen sink
~ Tile kitchen countertops
Kitchen ® Delta faucet or equal
® Phone line
® 1/3 hp garbage disposal
Appliances ® Whirlpool Stainless SteellBlack package
3-27
® Standard HVAC system
Schlage interior chrome hardware or equal
Throughout ® Dual glazed Low-E windows
® Standard craftsmen style maple cabinets throughout or equal
® 12x12 the at entry
® .Energy-e£~cient water heater
Garage /Exterior ® Rain gutters at front
® Standard garage door openers with remotes
Family Room ® Phone /data & cable lines
Secondary Bedrooms ® Phone /data & cable lines
Bath ~ Fiberglass tub/shower combo
® Cultl~re marble in vanity
3-28
PHASE R-1:
Protect Description
Phase R-1 consists of 74 multi-family residential twits designed to provide affordable rental
housing for families, with one unit reserved for a full-time, on-site property manager. The
development will be constilzcted on approximately 2.44 acres on the block bounded by Santa
Ana Boulevard, Lacy Street, Sixth Street, and Minter Street. All units in Phase R-1 will have
long tei7n affordability covenants restricting tenancy to qualifying households.
In addition to the residential units, the project includes on-site management offices, interior
resident community space and ground floor retail on the corner of Lacy and Sixth Streets. A
Portion of the community space may be made available for child care facilities consistent with
Section 305.3 of the Agreement.
The project is designed with an interior, at-grade parking poditun that is wrapped with two-story
townhomes along the majority of the street frontage, Additional townhome units are arranged
atop the podium around interior courtyard spaces.
The project will include 23 3-Bedroom and S1 2-Bedroom units. Residential parking will be
located within the at-grade podium. Guest and retail parking is provided on site at grade along
Sixth Street. All parking is provided on site in ratios that satisfy the requirements of the Transit
Zoning Code.
Segura Parcels/Additional Pro erty
The Segura Parcels have been inchided in the Phase R-1 Conceptual Site Plan. The only
Additional Property in Phase R-1 is identified as 607 E. Sixth Street. Should the Agency acquire
this parcel within the tizneframe contemplated by the Agreement, the parking and site
landscaping may be reconfig~ired to integrate such Additional Property into the Site Plan.
Overall development program and parking ratios would not be affected by this reconfiguration.
S~,s
All signage on the premises shall be designed to meet applicable zoning codes.
Landscauing
Project landscaping shall be designed to maximize opportunities for on-site stormwater detention
in areas not utilized for bzuldings, driveways and parking. Landscape elements may include
planters, terraces, trees, decorative walls, screenings, barbeques, benches, and paving elements.
Planted areas will be equipped with permanent water sprinkler systems. Final landscape/outdoor
amenity plan will be subject to Agency review and approval.
3-29
LTtilities/Public Imuravements
Phase R-1 will include utility connections and hookups to sewers, drains, water and gas
distribution lines, electric and telephone lines. The project will include curb, gutter and sidewalk
replacement around the periphery of the project site where needed and all necessary dedications
and improvements to establish 17" x 17" corner cutoffs and wheelchair ramps at street
intersections. Phase R-1 may also include sewer, street, and water main improvements as
required by prof ect Land Use Entitlements.
Amenities
Phase R-1 will have an on-site resident manager and property management offices on site. Tt
will include a community room and on-site laundry facilities. Multiple coiutyard areas will be
provided as common outdoor space atop the parking podium. Ground floor units will have
stoop/porch areas oriented to the street.
Public Art -- See Section 305.2.
Child Care Facilities -- See Section 305.3.
Retail Spaces --See Section 305.4.
Sustainability
Phase R-1 will include several key sustainability features to ensure efficient use of natural
resources. These may include use of water efficient fixhires in bathrooms and kitchens, use of
low or no-VOC primers, sealants and adhesives, use of natural ventilation where feasible and/or
use of recycled building materials.
3-30
PHAS11 R-2:
Proiect Descriutiou
Phase R-2 consists of approximately 39 residential units including approximately 25 new
constriction zmifs and approxunately 14 units which will be rehabilitated from existing strictures
either currently located or to be relocated on to the project sites. Phase R-2 will be designed to
provide affordable rental housing for families, with one unit reserved for afull-time, on-site
property manager. The unit mix for the 25 new construction units includes 15 2-bedroom and 10
3-bedroom units. The units to be rehabilitated include a range of 1-4 Bedroom units which may
either be rehabilitated with existing floorplans or reconfigured into alternate unit types.
Phase R-2 will be constructed on approximately 2.49 acres~on six scattered sites identified on the
Site Map as "Lot 2," "Lot 3," "Lot A," "Lot C," "Lot D," and "Lot E." All units in Phase R-2
will have long term affordability covenants restricting tenancy to qualifying households.
The new construction component of Phase R-2 is designed as at-grade wood frame construction
includuig a mix of two-story attached townhomes and single story flats. Parking for the new
consh~iction component of R-2 is provided in a combination of detached and "tuck under"
garages in ratios that satisfy the requirements of the Transit Zoning Cade. The rehabilitation
component of Phase R-2 will include rehabilitation of existing single family and multifamily
residential structures and will provide either open parl~ing or at grade parking garages as space
permits on site and/or per niiuucipal code standards, as applicable.
Additional Pra erties
609 E. Fifth Street has been identified as an Additional Property with respect to Phase R-2.
Suns
All signage on the premises shall be designed to meet applicable zoning codes.
Landscanin~
Project landscaping shall be designed to maximize opport~ulities for on-site stormwater detention
in areas not utilized for buildings, driveways and parking. Landscape elements may include
planters, terraces, trees, decorative walls, screenings, barbeques, benches, and paving elements.
Planted areas will be equipped with permanent water sprinkler systems to ensure proper
maintenance. Final landscape/outdoor amenity plan will be subject to Agency review and
approval.
Utilities/Public Improvements
Proj ect will inchtde utility connections and hookups to sewers, drains, water and gas distribution
Lines, electric and telephone lines. The project will include curb, gutter and sidewalk
replacement around the periphery of the project site where needed and all necessary dedications
3-31
and improvements to establish 17" x 17" corner cutoffs and wheelchair ramps at street
intersections. Phase R-2 may also include sewer, street, and water main improvements as
required by project Land Use Approvals.
Amenities
The new construction component of Phase R-2 will contain two on-site laundry facilities (one for
each of the two new construction sites}, and individual porches/patios for private open space as
well as landscaped and hndscaped common open space areas on each of the three sites. All
Phase R-2 residents will have access to the community room and any programming and services
provided in Phase R-1. The rehabilitated units will be provided with either individual or shared
washer/dryer units subject to Agency staff s approval. The properties to be rehabilitated will be
landscaped and provided with patios/porches, as space and/or miulicipal standards permit,
subject to plans to be approved by the City and Agency. Public art will be provided either on
site or off site consistent with the terms in the Agreement.
Sustainability
The project will include several key sustainability features to ensure efficient use of nattrral
resources. These may include use of water efficient fixtures in bathrooms and kitchens, use of
low or no-HOC primers, sealants and adhesives, use of natural ventilation where feasible and/or
use of recycled building materials.
3-32
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`f`wt~=i~ `~~="-'i`ce For Sale
®° Station District
3-33
THIS PAGE LEFT BLANK INTENTIONALLY
3-34
LACY HOUSING FUND PROGRAM
The Community Redevelopment Agency of the City of Santa Ana (Agency) has designed
the Lacy Housing Fund (Program) to assist owners of rental properties and owner
occupants of detached single family homes to keep their homes attractive and well
maintained. In addition, funds may be used for payment of fees associated with
nomination to the California Register of Historical Resources (CRHR) or the Santa Ana
Register of Historic Properties (SARHP) and Mills Act Property Tax Abatement Program.
This Program is designed and implemented in accordance with the State laws that
govern its funding source. Should those laws change, the Program may be modified so
as to insure continued compliance with the law. Continued operation of the Program is
dependent upon availability of funds. The maximum loan amount is $25,000. The
amount eligible for the grant funds will be in addition to the maximum loan. Funding
will be prioritized on a fiscal year by 75% to be expended for homes 50 years and older
and 25% for homes less than 50 years old.
Eligibility Requirements
Borrowers must be the owners of detached single family homes located within the Lacy
Neighborhood (Attachment 1) in the City of Santa Ana. These properties may be either
owner occupied or renter occupied. All owners of record must have a credit score of at
least 580, and must be current on all loans and taxes related to the property. Owners
must not have had a bankruptcy or foreclosure within the last two years.
Total debt on the property, including the exterior rehabilitation loan, cannot exceed 95
percent of its appraised, after rehabilitation value. There can be no more than one loan
superior to the Agency's rehabilitation loan. Only one loan and grant will be provided to
a property under this program.
Borrowers must agree to conform to all applicable Federal and State lead-based paint
and asbestos regulations. All Notices of Violation issued by the City must be corrected
by the time the Agency approved repairs are completed.
For owner occupants, total annual income of the household, meaning all persons using
the home as their primary residence, cannot exceed 120 percent of the area median
income as determined by the California Department of Housing and Community
Development. The following table was effective as of June 17, 2010:
Household Size Maximum
Income Household
Size Maximum
Income
1 Person $73,250 5 Persons $113,000
2 Persons $83,700 6 Persons $121,400
3 Persons $94,200 7 Persons $129,750
4 Persons $104,650 8 Persons $138,150
Page 1 of 3 ~ ~ 3 5
Exhibit 4
For rental properties, owners must demonstrate by means of evidence acceptable to
the Agency that at the time of the owner's application, all tenant households had
annual incomes at or below 120 percent of the area median income. All new tenants
must be income certified prior to move-in. Rental units must not be over-crowded. For
purposes of determining over-crowded there should be no more than 2 persons per
bedroom plus 1 (eg. 2 bedroom unit cannot have more than 5 occupants).
Owners must agree to restrict rents to those affordable to low income households (80%
AMI), and to do so for a period of ten years commencing with the loan date. As of
June 17, 2010 allowable rents were as follows:
Bedroom Size Allowable Rent
Studio 916
One Bedroom $981
Two Bedrooms 1 178
Three Bedrooms $1,308
Four Bedrooms $1,413
For owners who choose to rent their homes after the loan has been approved and
recorded, the ten years will still commence with the loan date.
Owners must agree to comply with all applicable Federal and State anti-discrimination
laws.
Use of Loan Proceeds
Allowable repairs and improvements include the following:
• Removal and/or replacement of non-conforming fences that are visible from the
street
• Necessary improvements to front yard landscaping, including repair or
installation of a new irrigation system
• Replacement or repair of damaged or deteriorated roof
• Replacement of damaged or deteriorated flashing, sheathing, eaves, rafter tails,
fascia board, gutters and downspouts
• Installation of new gutters and downspouts if necessary to protect the home
• Repair and painting for exterior walls, trim, exterior doors, screens and windows.
Color coat stucco surfaces.
• Window replacement for energy efficiency
• Repair or replacement of damaged or deteriorated
of garage door openers.
• Repair or replacement of damaged or deteriorated
• Repair or replacement of damaged or deteriorated
• Installation of new security lighting.
Page 2 of 3
Exhibit 4
garage doors, and installation
driveways and walkways
exterior lighting
3-36
All work must be performed by licensed general contractors who meet the City's
licensing and insurance requirements, and who have not been debarred by the U.S.
Department of Housing and Urban Development. All work must be performed in
accordance with applicable federal, state and local requirements.
In addition to repairs, loan proceeds may be used to pay for certain costs normally
associated with the loan process. These include but are not necessarily limited to the
cost of appraisals, title reports, credit checks, flood certificates, underwriting fees,
document preparation, and warehousing.
The funds may also be used for the payment of fees associated with nomination of a
property in the Lacy Neighborhood for listing on either the CRHR or the SARHP. An
owner may apply for funding from the Lacy Improvement Program to finance payment
of the nomination fees. If applying for such funding, the owner will be subject to all
requirements of the Lacy Housing Fund.
Funds may also be used to pay for fees associated with the application for Mills Act
Property Tax Abatement Program. An owner may apply for funding from the Lacy
Housing Fund to finance payment of the application fees. If applying for such funding,
the owner would be subject to all requirements of the Lacy Housing Fund.
Interest Rates and Repayment
Exterior repair loans will have a zero percent interest rate, and payments will be
deferred for thirty years or until the property is sold. The loans will be due and payable
at the end of the thirty years, but payment may be deferred for borrowers who are
unable to pay them off. These exterior repair loans are not assumable.
Rental property owners who fail to comply with the ten year affordability requirement or
to abide by all applicable Federal and State anti-discrimination laws will be immediately
required to repay the loan. Owners must correct all Notices of Violation prior to the
time the Agency loan is secured.
Funds used for paying fees associated with nomination of their property for listing on
the CRHR or the SARHP will be a grant. In addition, the fees associated with the
application for Mills Act Property Tax Abatement Program will be a grant. Grant funds
under this program will be payable directly from the Agency to the City for an approved
application.
Page 3 of 3 ~ ~ •
Exhibit 4