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HomeMy WebLinkAbout09-07 RDA ResolutionRESOLUTION NO. RDA 09-07 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING "AN OWNER PARTICIPATION AGREEMENT AND LOAN AGREEMENT" BETWEEN THE AGENCY AND SUMMERHOUSE HOUSING ASSOCIATES L.P. THE BOARD OF DIRECTORS OF THE TEMECULA REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Board of Directors of the Redevelopment Agency of the City of Temecula hereby finds, determines and declares that: A. The Redevelopment Agency of the City of Temecula ("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 Redevelopment Agency of the City of Temecula 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 Redevelopment Agency of the City of Temecula assumed jurisdiction over the Plan as of July 1, 1991. C. The Owner Participation Agreement and Loan Agreement ("Agreement") approved by this Resolution is intended to effectuate the Redevelopment Plan for the Agency's Redevelopment Project Area No. 1988-1, as amended. The specific purpose of the Agreement is to further the Agency's affordable housing goals in the City of Temecula (the "City") by: (i) providing a conditional commitment to Summerhouse Housing L.P. to fund a permanent loan that will be used to pay part of the purchase price of land for a housing development consisting of, and a construction loan for the construction of certain affordable housing units (as designated in the Agreement), and thereby increase the supply of affordable housing in the City (the "Project"). R:/RDA Resos 20091RDA 09-07 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 income housing pursuant to the CRL 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 these Agreements 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. On September 22, 2009, the Agency considered the approval of the proposed Owner Participation and Loan Agreement with Developer at a noticed public hearing and carefully considered the public comments made on the proposed Owner Participation and Loan Agreement. F. 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 establishing 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) consolidate irregular parcels into a site appropriate for development; (3) encourage and provide for development of vacant properties in accordance with the Plan; and (4) preserve, improve, and expand housing opportunities for low income residents. G. The Agreement is consistent with the Redevelopment Plan and the Implementation Plan adopted by the Agency for the Project Area adopted by the Agency. H. The redevelopment of the land as provided in the Agreement is consistent with the City's General Plan. 1. The Agency Board has duly considered all terms and conditions of the proposed Agreement and believes that the 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. J. The 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 Redevelopment Agency of the City of Temecula 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, R:/RDA Resos 2009/RDA 09-07 2 improving and preserving the community's supply of housing available at afford- able housing costs to persons and families of low and very low income, including low 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 persons and families of low and very low income to the extent those households cannot obtain housing at affordable costs on the open market. D. No other reasonable means of private or commercial financing for the low income units of the Project is reasonably available to the Agency or the Owner at the same level of affordability and quantity provided by the Agreement. Additionally, the Agency finds, based on substantial evidence in the record, that the Agency and the Owner have made a good faith attempt but have been unable to obtain commercial or private means of financing the units at the same level of affordability and quantity as provided for the Project. E. Developer 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 and very ' low income households. F. 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. G. The expenditures from the Housing Fund as contemplated by the Agreements approved by this Resolution will directly and specifically increase, improve, and preserve the community's supply of low and very low 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 low and very low income households. H. Pursuant to the requirements of Health and Safety Code Section 33334.4, the Agency has determined that over the duration of the Implementation Plan, the Agency has expended the moneys in the Low and Moderate Income Housing Fund to assist housing that is available to all persons regardless of age in at least the same proportion as the number of low-income households with a member under age 65 years bears to the total number of low- income households of the community as reported in the most recent census of the United States Census Bureau and in accordance with Section 33334.4. i R:/RDA Resos 2009/RDA 09-07 3 ' Section 3. 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. The Agency determines that the Project is not a "low-rent housing project," as defined in Section 1 of Article XXXIV of the California Constitution, because the Project is composed of urban dwellings, apartments, or other living accommodations, that meet the following criteria: (1) The Project is privately owned housing, receiving no ad valorem property tax exemption, other than exemptions granted pursuant to subdivision (f) or (g) of Section 214 of the Revenue and Taxation Code not fully reimbursed to all taxing entities; and (2) not more than forty nine percent (49%) of the dwellings, apartments, or other living accommodations of the Project are restricted by the Agreement to persons of low income. Section 4. The Agency hereby finds and determines that the Deed of Trust and Regulatory Agreement 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 I subordination, is not reasonably available. Section 5. California Environmental Quality Act findings. A. The approval of the Agreement by the Agency constitutes an action by the Agency to implement its Implementation Plan adopted by the Agency that includes a Housing Assistance Plan by acquiring interests in housing units to assure they are affordable to persons of low and very low 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). B. On May 17, 2006, the Planning Commission of the City of Temecula approved Planning Application No. PA05-0235 by Resolution No. 06- 42 for a 110 unit senior condominium project. The proposed Project being funded by the proposed Owner Participation and Loan Agreement (the "Project") is the same project as approved by PA05-0235 except that the Project is restricted to rents affordable to persons and families of low and moderate income rather than to seniors. C. As part of the process of approving PA05-235, a Mitigated Negative Declaration was prepared which analyzed the impact of PA05-0235 upon the ' environment. A new Negative Declaration or a subsequent or supplement EIR for the Project is not required as the findings requiring further review under Sections 15162 or 15163 of the CEQA Guidelines are not present. An Initial R:/RDA Resos 2009/RDA 09-07 4 ' Study of the Project was prepared by Staff to determine if further environmental review of the Project was required. D. The Agency Board further finds and determines that based on the Initial Study, the prior environmental review specified in the Initial Study and Mitigated Negative Declaration for PA05-0235 is sufficient and does not require further environmental review based on the following findings: (1) No substantial changes are proposed in the Project which will require major revisions of the previous Mitigated Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; (2) No substantial changes have occurred with respect to the circumstances under which the Project is undertaken which will require major revisions of the previous Mitigated Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or (3) No new information of substantial importance, which was not known and could not have been known with the exercise of reasonable ' diligence at the time the previous Mitigated Negative Declaration was adopted, shows any of the following: (a) The project will have one or more significant effects not discussed in the previous Mitigated Negative Declarations; (b) Significant effects previously examined will be substantially more severe than shown in the previous Mitigated Negative Declaration; (c) No mitigation measures or alternatives previously found not to be feasible would in fact be feasible, or would substantially reduce one or more significant effects of the Project; or (d) No mitigation measures or alternatives which are considerably different from those analyzed in the previous Mitigated Negative Declaration would substantially reduce one or more significant effects on the environment. E. The Mitigation Monitoring Program for PA05-0235 shall be implemented for the Project. RJRDA Resos 20091RDA 09-07 5 ' Section 6. The Board of Directors of the Redevelopment Agency of the City of Temecula hereby approves that certain agreement entitled "Owner Participation and Loan Agreement" by and between Temecula Redevelopment Agency and Summerhouse Housing Associates L.P. ("Agreement") with such changes in such document as may be mutually agreed upon by the Developer and the Agency Executive Director as is in substantial conformance with the form of such Agreement on file in the Office of the Agency Secretary. The Chairperson of the Agency is hereby authorized to execute the Agreement on behalf of the Agency in said form. A copy of the final Agreement 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 approval and execution on behalf of the Agency of 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 of the City of Temecula this 22nd day of September, 2009. C3 ar :S~ Ron Robefts, Chairperson ATTEST: 1 Susan ones, MMC C rk/ rd Secr ary [SEAL] R:/RDA Resos 2009/RDA 09-07 6 STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF TEMECULA I, Susan W. Jo Redevelopment Agency Resolution No. RDA 09-0 Temecula Redevelopmen the 22nd day of Septembe AYES: 5 BOAR NOES: 0 BOAR ABSENT: 0 BOAR ABSTAIN: 0 BOAR 1 ss nes, MMC, City Clerk/Board Secretary of the Temecula of the City of Temecula, do hereby certify that the foregoing 7 was duly and regularly adopted by the Board of Directors of the t Agency of the City of Temecula at a meeting thereof held on r, 2009, by the following vote: D MEMBERS: Comerchero, Edwards, Naggar, Washington, Roberts D MEMBERS: None D MEMBERS: None D MEMBERS: None R:/RDA Resos 2009/RDA 09-07 7 Jones, MMC ird Secretary