HomeMy WebLinkAbout96-08 RDA Resolution RESOLUTION NO. RDA 96-08
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY
OF TEMECULA APPROVING A REGULATORY AGREEMENT AND
AN ASSIGNMENT AND ASSUMPTION AGREEMENT WITH
COACHELLA VALLEY HOUSING COALITION, A SUBORDINATION
AGREEMENT WITH BANK OF AMIERICA AND MAKING FINDINGS
IN CONNECTION THEREWITH PURSUANT TO HEALTH AND
SAFETY CODE SECTION 33334.14
THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA
DOES RESOLVE AS FOLLOWS:
Section 1. The Redevelopment Agency does hereby find, determine and declare
that:
a. The Agency is a party to that certain purchase and sale agreement dated
September 28, 1996 with Resolution Trust Corporation in its capacity as Receiver for
Gibraltar Savings, F.A. (the "Purchase Agreement") for the purchase of certain real
property in the City of Temecula generally known as the "Rancho West Apartments"
located at 4220 Main Street (the "Property"). The development of the Rancho West
Apartments as affordable housing shall also be referred to as the "Project."
b. Agency has agreed to assign its rights and obligations in the Purchase
Agreement to CVHC and to assist CVHC in the purchase and operation of the Rancho
West Apartments in exchange for CVHC's commitment to operate the Rancho West
Apartments as a 100% affordable housing project for a period of 30 years from the date
of conveyance of the Property to CVHC. The assignment is set forth in that certain
document entitled "Amendment No. 1 and Assignment and Assumption of Purchase
and Sale Agreement and Joint Escrow Instructions" by and between the RTC, Agency
and CVHC dated September 28, 1996.
C. Agency is required by California Health and Safety Code Section
33334.2, tt =., to expend a certain percentage of property taxes allocated to it for the
purpose of increasing, improving, and preserving the City of Temecula's supply of
low- and moderate-income housing available at affordable housing costs.
d. Completion of the Project will assist the Agency in fulfilling its
obligation to increase, improve and preserve low and moderate income housing within
the City of Temecula. The Project is consistent with the terms and requirements of
Temecula Redevelopment Project No. I -- 1988 and the Implementation Plan for the
Project adopted by the Agency.
Resos.Rda\96-08
e.The Agency will be issuing Multifamily Rental Housing Bonds, 1996
Series A, to finance the Project pursuant to Chapter 7.5, commencing with Section
33740, of Part 1 of Division 24 of the Health and Safety Code of the State of
California. In connection with such bond issue the bondholder, Bank of America, has
requested the Agency to subordinate its interests in the Regulatory Agreement to the
Senior Deed of Trust and Senior Note of CVHC and the Loan Agreement and
Supplemental Loan Agreement between CVHC and the bondholder pursuant to the
Subordination Agreement between Bank of America and the Agency. In accordance
with the provisions of Health and Safety Code Section 33334.14, the Agency hereby
finds, determines and declares that an economically feasible alternative method of
financing, refinancing, or assisting the units on substantially comparable terms and
conditions, but without subordination, is not reasonably available, and that the Agency
has obtained terms in the Regulatory Agreement and the Subordination Agreement
which are reasonably designed to protect the Agency's investment in the project in the
event of default.
The Agency entered into a HOME Program agreement with the County
of Riverside on December 5, 1995 whereby the County agreed to provide Agency with
a grant of $150,000 in federal HOME Program Funds for the Rancho West Apartment
Project. Since the funds may only be used for the Rancho West Project, it is the desire
of the County to transfer the funds directed to CVHC for the Project and, therefore, the
Assignment and Assumption Agreement is necessary to accomplish this purpose.
9- The acquisition of the Property and the units thereon is exempt from the
provisions of the California Environmental Quality Act pursuant to 14 Cal. Admin.
Code 15326. Moreover, the EIR approving the Plan addressed the impacts of housing
development in the area of the Property.
h.The agreements described in this Resolution pertain to and affect the
ability of the Agency to finance its statutory obligations and for all parties to finance
and carry out the purposes of this Agreement and 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 approves those certain agreements entitled (1) "Regulatory Agreement
Providing for Affordable Housing By and Between the Redevelopment Agency of the City of
Temecula and Coachella Valley Housing Coalition," (2) an "Assignment and Assumption
Agreement," by and between the Redevelopment Agency of the City of Temecula and
Coachella Valley Housing Coalition, and (3) a "Subordination Agreement" by and between the
Agency and Bank of America, and authorizes the Chairperson to execute said agreements on
behalf of the Agency in substantially the form attached hereto as Exhibits A, B and C, with
such other changes or additions thereto as are recommended and approved by the Executive
Director and General Counsel as necessary or convenient to effectuate the terms of said
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agreements or the financing described herein. In connection with the purchase of the Property
by CVHC and the Agency's contributions to the Project as described in the Agency Regulatory
Agreement, the Executive Director is hereby authorized and directed to execute escrow
instructions and similar documents necessary or convenient to implement the terms of the
agreements described above and the purchase of the Property by CVHC. This Resolution
terminates and supersedes the Agency's approval of the Regulatory Agreement on August 8,
1995.
Section 3. The Secretary shall certify the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of
the City of Temecula on April 9, 1996.
4lq
Patricia H. Birdsall
Chairperson
ATREST:
J n" S) Greek, CMC/City Clerk
Agency Secretary
[SEAL]
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ss
CITY OF TEMECULA
I, June S. Greek, Secretary of the Redevelopment Agency of the City of Temecula, do
hereby certify that the Resolution No. RDA 96-08 was duly and regularly adopted by the
Redevelopment Agency of the City of Temecula at a regular meeting thereof, held on April 9,
1996, by the following vote, to wit:
AYES: 3 AGENCY MEMBERS: Ford, Roberts, Lindemans
NOES: 0 AGENCY MEMBERS: None
ABSENT: 2 AGENCY MEMBERS: Birdsall, Stone
Ju@. Oireek, CMC/ City Clerk
Agency Secretary
Resos.Rda\96-08
EXHIBIT A
"Regulatory Agreement Providing for Affordable Housing By
and Between the Redevelopment Agency of the City of
Temecula and Coachella Valley Housing Coalition"
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EXHIBIT B
"Assignment and Assumption Agreement," by and between
the Redevelopment Agency of the City of Temecula and
Coachella Valley Housing Coalition
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EXHIBIT C
"Subordination Agreement" by and between the Agency and
Bank of America
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