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HomeMy WebLinkAbout06-49 - Redevelopment Agency and Affordable Housing and Home Investment Partnership AgreementRESOLUTION NO. 06-49 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA APPROVING A COOPERATION AGREEMENT BETWEEN THE CITY AND COSTA MESA REDEVELOPMENT AGENCY, CITY OF COSTA MESA, CALIFORNIA, AND CONSENTING TO THE AFFORDABLE HOUSING AND HOME INVESTMENT PARTNERSHIP AGREEMENT BETWEEN THE AGENCY AND ST. JOHN'S MANOR, LP AND MAKING CERTAIN OTHER FINDINGS WHEREAS, the City of Costa Mesa ("City") is a California municipal corporation; and WHEREAS, the City has received funds from the United States Department of Housing and Urban Development pursuant to the Community Development Block Grant program, including rental rehabilitation funds, and the HOME Investment Partnerships Act and HOME Investment Partnerships Program, 42 U.S.C. Section 12701, at seq., and the implementing regulations thereto set forth in 24 CFR § 92.1, at seq. (together, "HOME Program") for the purposes of strengthening public-private partnerships to provide more affordable housing, and particularly to provide decent, safe, sanitary, and affordable housing for very low income and lower income citizens of Costa Mesa in accordance with the HOME Program and CDBG program; and WHEREAS, EHACHDO is a qualified "Community Housing Development Organization' ("CHDO") as defined in 24 CFR § 92.2 of the HOME Program; and WHEREAS, the City is currently implementing a coordinated multi-year strategy for affordable housing as approved in the 2005-2009 City of Costa Mesa Consolidated Plan ("Consolidated Plan"), and a program of acquisition and rehabilitation of existing multi -family rental housing, including senior housing, in certain target areas in the community ("Program"); and WHEREAS, the Program provides financial assistance to qualified CHDOs, such as the Partnership, to acquire, rehabilitate, and operate affordable housing, including senior housing; and WHEREAS, the City and Agency entered into that certain Negotiation and Fund Reservation/Commitment Agreement dated February 14, 2006 among City, Agency, and the Partnership relating to negotiation of the terms and conditions of the Agreement to implement the Project; and WHEREAS, Agency staff and the Partnership have negotiated the terms and conditions for the acquisition, rehabilitation, and operation of St. John's Manor, an existing 36 -unit senior housing project as set forth in the Affordable Housing and HOME Investment Partnership Agreement ("Agreement"); and WHEREAS, capitalized terms in this Resolution are defined in the Agreement, unless otherwise defined in this Resolution; and WHEREAS, pursuant to the Agreement the Partnership will (i) acquire the Property at 2031 Orange Avenue, Costa Mesa; (it) rehabilitate the 36 -Housing Units, common areas, and appurtenant improvements, and (iii) assure the long term occupancy, affordability, and the proper maintenance, management, and operation of the Housing Units for Eligible Senior Citizen Very Low Income Households and Eligible Senior Citizen Low Income Households for not less than fifty-five (55) years; and WHEREAS, pursuant to the Agreement Agency (and City through the Cooperation Agreement) will provide financial assistance to the Partnership to acquire and rehabilitate the Property through a residual receipts/surplus cash loan of One Million Five Hundred Forty -Two Thousand Five Hundred and Fifty -Four Dollars ($1,542,554.00), of which approximately $886,554 will be funded from the HOME Program, $117,000 will be funded from federal rental rehabilitation monies, and $539,000 will be funded from the Agency's Housing Fund, or as much as is disbursed in accordance with the Agreement, and the Partnership will acquire, rehabilitate, and covenant the Property and all 36 Housing Units, and thereafter manage and operate the Project; and WHEREAS, seven (7) Housing Units will be covenanted for and occupied by Very Low Income Senior Citizen Households at an Affordable Rent and twenty-nine (29) Housing Units will be covenanted for and occupied by Very Low Income Senior Citizen Households at an Affordable Rent for the fifty five year Affordability Period; and WHEREAS, City desires pursuant to a Cooperation Agreement between City and Agency to transfer HOME Program and federal rental rehabilitation funds to Agency for the Project ("Cooperation Agreement"); and WHEREAS, in addition to and concurrent with its action consenting to the Agreement, City Council desires to approve the Cooperation Agreement by this Resolution; and WHEREAS, the City's financial participation in the Project will be in the public interest in that it will increase affordable housing and implement the Agency's Implementation Plan and Inclusionary Plan and will meet goals and objectives of the City's Consolidated Plan; and WHEREAS, the City Council has duly considered all terms and conditions of the proposed Cooperation Agreement and has reviewed the Affordable Housing and HOME Investment Partnership Agreement and believes the Project and these agreements are in the best interests of the City and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable Federal, State and local law requirements; and WHEREAS, on June 20, 2006 the City Council considered the Cooperation Agreement and the Agreement at an open public meeting and desires by this Resolution to approve the Cooperation Agreement and consent to the Agreement and make certain other findings. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows: Section 1. Pursuant to the California Environmental Quality Act, California Public Resources Code Section 21000 et seq. ("CEQA"), with the City as a responsible agency the City Council finds: (i) the Rehabilitation contemplated by the Agreement is categorically exempt, Class 3, pursuant to Section 15301, Existing Facilities, of the CEQA Guidelines; further, (ii) the Agreement is a financing tool to carry out the Project and is also exempt pursuant to Section 15378(b)(4) of the CEQA Guidelines; and further, (iii) all applicable requirements of the National Environmental Policy Act of 1969 associated with the Project have been satisfied. The environmental assessment of the Project has been undertaken by Agency and City pursuant to a preliminary environmental description prepared in connection with the application for the Rehabilitation of the Property and review of the Agreement. On that basis the City, as a responsible agency, and through the City Council, approves a Notice of Exemption and directs the City Clerk, or her designee, to file a Notice of Exemption with the County Clerk of the County of Orange within five (5) days of the adoption of this Resolution. Section 2. City Council approves the Cooperation Agreement between the City and Agency, with such changes mutually agreed upon by the City Manager (or his designee), the Agency Executive Director, and legal counsel as are minor and in substantial conformance with the form of the Cooperation Agreement that has been submitted with this Resolution. The Mayor and City Clerk are authorized to execute and attest the Cooperation Agreement, including implementing documents, on behalf of City. In such regard, the City Manager (or his designee) is authorized to cause the Mayor and City Clerk to sign the final version of the Cooperation Agreement after completion of such non substantive, minor revisions, if any. Copies of the final form of the Cooperation Agreement, when duly executed and attested, shall be placed on file in the office of the City Clerk. Further, the City Manager (or his designee) is authorized to implement the Cooperation Agreement and take all further actions necessary to carry out the Cooperation Agreement. The City Manager (or his designee) is authorized to the extent necessary during the implementation of the Cooperation Agreement to make technical or minor changes after execution, as necessary to properly implement and carry out the Cooperation Agreement, provided the changes shall not in any manner materially affect the rights and obligations of the City. Section 3. City Council consents to the Affordable Housing and HOME Investment Partnership Agreement between the Costa Mesa Redevelopment Agency, City of Costa Mesa, California and St. John's Manor, LP. Section 4. The City Clerk shall certify to the adoption of this Resolution. APPROVED AND ADOPTED this 201" day of June, 2006. ATTEST: �--8-!r� i/ 2 CityClerk CITY F ST MESA Mayor, City of Costa Mesa APPROVED AS TO FORM City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, JULIE FOLCIK, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that foregoing is the original of Resolution No. 06-49 and was duly passed and adopted b� the City Council of the City of Costa Mesa at a regular meeting held on the 20 day of June, 2006, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: Mansoor, Bever, Dixon, Foley, Monahan. NOES: COUNCIL MEMBERS: None. ABSENT: COUNCIL MEMBERS: None. IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 218` day of June, 2006. JULIE F LCIK, CITY CLERK (SEAL)