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HomeMy WebLinkAbout03-02 RDA Resolution RESOLUTION NO. RDA 03-02 ' A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA REDEVELOPMENT AGENCY APPROVING A HOUSING REHABILITATION LOAN FOR THE RANCHO MEADOWS HOUSING PROJECT AND RELATED DOCUMENTS THE BOARD OF DIRECTORS OF THE TEMECULA REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Board of Directors of the Temecula Redevelopment Agency hereby finds, determines and declares that: A. The Temecula Redevelopment Agency ("Agency") is a community redevelopment agency duly organized and existing under the Community Redevelopment Law ("CRL"), Health and Safety Code Sections 33000 et seq. and has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council of the City of Temecula. B. On June 12, 1988, the Board of Supervisors of the County of Riverside adopted Ordinance No. 658 adopting and approving the "Redevelopment Plan for Riverside County Redevelopment Project No. 1988-1" (hereafter the "Plan") in accordance with the provisions of the CRL. On December 1, 1989, the City of Temecula ' was incorporated. The boundaries of the Project Area described in the Plan are entirely within the boundaries of the City of Temecula. On April 9, 1991, the City Council of the City of Temecula adopted Ordinances Nos. 91-08, 91-11, 91-14, and 91-15 establishing the Temecula Redevelopment Agency and transferring jurisdiction over the Plan from the County to the City. Pursuant to Ordinance Nos. 91-11 and 91-15, the City of Temecula and the Temecula Redevelopment Agency assumed jurisdiction over the Plan as of July 1, 1991. C. The Construction Loan Agreement and related documents ("Agreement") approved by this Resolution is intended to effectuate the Redevelopment Plan for the Agency's Redevelopment Project Area No. 1988-1, as amended, by (collectively the "Project"), to be sold exclusively to persons and families of low income as defined in Section 50093 of the California Health and Safety Code. D. The Agreement is also intended to effectuate the objectives of the Agency and the City of Temecula (the "City") in complying with their obligation to provide low and moderate income housing pursuant to the Health and Safety Code of California and the goals of the City's Housing Element to the Temecula General Plan. The Developer's development of the Project and the fulfillment generally of this Agreement are in the best interest of the City and the welfare of its residents, and in accordance with the public purposes and provisions of applicable federal, state, and local laws and requirements. ' E. The purpose of this Loan Agreement is to further the Agency's affordable housing goals in the City of Temecula (the "City") by facilitating the rehabilitation of the common areas of the Property and increasing and improving the supply of affordable housing in the City (the "Project"). R:/RDA Resos 2003/RDA 03-02 1 F. The Property is comprised of 146 units (each, a "Unit" and collectively, the "Units"). Many of the Units are inhabited by persons or families of moderate income as such term is defined by California Health and Safety Code Section 50093, as amended. G. The Agency desires to lend and the Borrower has agreed to borrow from the Agency the sum of (i) up to $730,000 ($5,000 per Unit), or (ii) 50% of the construction costs, whichever is less, for construction of the "Improvements"(as defined in the Agreement) that will be part of the Project described herein. H. The development of the Project as required by the Agreement will assist in the elimination of blight in the Project Area as identified in the proceedings establish- ing the Project Area in that development of Project on the Site will: (1) Establish development standards and the rehabilitation and improvement of obsolete, deteriorating, and inappropriate buildings and housing stock; (2); and (9) preserve, improve, and expand housing opportunities for low income residents. I. The Agreement is consistent with the Redevelopment Plan and the Implementation Plan adopted by the Agency for the Project Area adopted by the Agency. J. The redevelopment of the Project site as provided in the Agreement and is consistent with the City's General Plan. ' K. The Agency Board has duly considered all terms and conditions of the proposed Agreement and believes that such agreement is in the best interests of the Agency and 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. L. This Agreement pertains to and affects the ability of all parties to finance and carry out their statutory purposes and to accomplish the goals of the Plan and is intended to be a contract within the meaning of Government Code Section 53511. Section 2. The Board of Directors of the Temecula Redevelopment Agency hereby further finds, determines and declares that: A. Section 33334.2, et seq. of the CRL authorizes and directs the Agency to expend a certain percentage of all taxes which are allocated to the Agency pursuant to the CRL Section 33670 for the purposes of increasing, improving and preserving the community's supply of housing available at affordable housing costs to persons and families of low to moderate income, including lower income and very low income households. B. Pursuant to the CRL, the Agency has established a Low and Moderate Income Housing Fund (the "Housing Fund"). C. Pursuant to the CRL Section 33334.2(e), in carrying out its affordable housing activities, the Agency is authorized to provide subsidies to or for the benefit of very low and lower income households, or persons and families of low or moderate income to the extent those households cannot obtain housing at affordable costs on the open market. R:/RDA Resos 2003/RDA 03-02. 2 D. Borrower proposes, with the assistance of the Agency, to develop the ' Project and upon completion to make available for the longest feasible period of time all of the housing units in the Project at affordable rents to low to moderate income households. E. Pursuant to Sections 33132, 33133, and 33600 of the CRL, the Agency may accept financial or other assistance from any public or private source, for the Agency's activities, powers, and duties, and expend any funds so received for any of the purposes of the CRL. F. The expenditures from the Housing Fund as contemplated by the Agreement approved by this Resolution will directly and specifically increase, improve, and preserve the community's supply of low and moderate income housing within the meaning of Health and Safety Code Section 33334.2 and will be of benefit to the Project Area by providing new housing which restricted so as to be affordable for occupancy by very low income, lower income and median income households. G. The California Legislature declares in Health and Safety Code Section 37000, et seq., that new forms of cooperation with the private sector, such as leased housing, disposition of real property acquired through redevelopment, development approvals, and other forms of housing assistance may involve close participation with the private sector in meeting housing needs, without amounting to development, construction or acquisition of low rent housing projects as contemplated under Article XXXIV of the State Constitution and that the Agreement approved hereby is not subject ' to the provisions of said Article XXXIV. Section 3. The Agency hereby finds and determines that the lien of the covenants required pursuant to the Agreement may be subordinated to financing for the Project because an economically feasible alternative method of financing the Project on substantially comparable terms and conditions, but without subordination, is not reasonably available. Section 4. While the Agency determines that participation in the feasibility analysis, financing, and development of the Project does not constitute development, construction or acquisition of a low-rent housing project within the meaning of Article XXXIV of the State Constitution, this Resolution is hereby deemed to constitute approval within the meaning of Health and Safety Code Section 37001.5 of a proposal which may result in housing assistance benefiting persons of low income. Section 5. The approval of this Agreement by the Agency constitutes an action by the Agency to implement an adopted Housing Assistance Plan by acquiring interests in housing units to assure they are affordable to persons of low and moderate income. Therefore, the Project is exempt from the provisions of the California Environmental Quality Act pursuant to Section 15326 of the CEQA Guidelines (Title 14 of the California Code of Regulations). The Executive Director of the Agency is directed to file a Notice of Exemption of this action as required by CEQA and the CEQA Guidelines. Section 6. The Board of Directors of the Temecula Redevelopment Agency hereby ' approves that certain agreement entitled "Construction Loan Agreement" between the Temecula Redevelopment Agency and Rancho Meadows Homeowner's Association as well as the "Restrictive Covenant and Regulatory Agreement" and the "Security Agreement" referred to therein, along with such changes in each such document as may be mutually agreed upon by R:/RDA Resos 2003/RDA 03-02 3 the Developer and the Agency Executive Director as are in substantial conformance with the form of such Agreement which on file in the Office of the Agency Secretary. The Chairperson of the Agency is hereby authorized to execute the Construction Loan Agreement, Restrictive Covenant and Regulatory Agreement, and Security Agreement, including related exhibits and attachments on behalf of the Agency. A copy of said Agreements when executed by the Agency Chairperson shall be placed on file in the Office of the Secretary of the Agency. Section 7. The Executive Director of the Agency (or his designee), is hereby authorized, on behalf of the Agency, to take all actions necessary and appropriate to carry out and implement the Agreement and to administer the Agency's obligations, responsibilities and duties to be performed under the Agreement and related documents, including but not limited to the Promissory Note, Deed of Trust, Regulatory Agreement, acceptances, escrow instructions, certificates of completion and such other implementing agreements and documents as contemplated or described in the Agreement. Section 8. The Secretary of the Agency shall certify the adoption of this Resolution. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Temecula Redevelopment Agency at a regular meeting held on the 111" day of February, 2003. (3 L� Ron Robe s, Chairperson ATTEST: Susan . Jones, CMC =City Cl Agency Secreta L] R:/RDA Resos 2003/RDA 03-02 4 COUNTY OF RIVERSIDE ) ss ' CITY OF TEMECULA ) I, Susan Jones, CMC, Secretary of the Temecula Redevelopment Agency, do hereby certify that Resolution No. RDA 03-02 was duly and regularly adopted by the Board of Directors of the Temecula Redevelopment Agency at a regular meeting thereof, held on the 11'" day of February, 2003, by the following vote, to wit: AYES: 4 BOARDMEMBERS: Comerchero, Naggar, Pratt, Stone NOES: 0 BOARDMEMBERS: None ABSENT: 1 BOARDMEMBERS: Roberts ABSTAIN: 0 BOARDMEMBERS: None Susan W. nes, CMC I Clerk/Agen y Secretary R:/RDA Resos 20031RDA 03-02 5