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HomeMy WebLinkAbout06-82 - Agreement between City and Redevelopment Agency; Affordable Housing & Home Investment Partnership AgreementRESOLUTION NO. 06-82 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA APPROVING AN AMENDED AND RESTATED COOPERATION AGREEMENT BETWEEN THE CITY AND COSTA MESA REDEVELOPMENT AGENCY, CITY OF COSTA MESA, CALIFORNIA; CONSENTING TO THE AMENDED AND RESTATED AFFORDABLE HOUSING AND HOME INVESTMENT PARTNERSHIP AGREEMENT NO. UOG-060846/UOG-00002 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, 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, et seq., and the implementing regulations thereto set forth in 24 CFR § 92.1, et 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, 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, 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 Original Agreement to implement the Project; and WHEREAS, Agency and Partnership entered into that certain Affordable Housing and HOME Investment Partnership Agreement No. UOG-060846/UOG-00002 dated as of June 20, 2006 ("Original Agreement") and approved by Agency resolution and consented to by City Council resolution; and WHEREAS, Agency and City entered into that certain Cooperation Agreement dated as of June 20, 2006 to transfer HOME Program and federal rental rehabilitation funds to Agency for the Project under the Original Agreement ("Original Cooperation Agreement"); and WHEREAS, Agency and the Partnership desire to amend and restate in full the Original Agreement due to changes in phasing of the Project, increased costs of the Rehabilitation, modified schedule, restructure and revised amount of the Bonds and the Tax Credits, and other changes in the business terms; provided however, under the Amended and Restated Affordable Housing Agreement No. UOG 060846/UOG 00002 described and defined in the next recital there is and will be no increase or other change in the principal amount of the Agency Loan and there is no change in the description and definition of the Project under the ARAHA; and WHEREAS, Agency and City desire to amend and restate in full the Original Cooperation Agreement by an Amended and Restated Cooperation Agreement to confirm the amount of and allocations for transfer of HOME Program and federal rental rehabilitation funds to Agency for the Project under the ARAHA as defined and described herein ("Amended and Restated Cooperation Agreement"); and WHEREAS, Agency staff and the Partnership have completed negotiations for the restatement of the Project, including the acquisition, Rehabilitation and operation of St. John's Manor, an existing 36-unit senior housing project, as set forth in the Amended and Restated Affordable Housing and HOME Investment Partnership Agreement No. UOG-060846/UOG-00002 ("ARAHA"); and WHEREAS, capitalized terms in this Resolution are defined in the ARAHA, unless otherwise defined in this Resolution; and WHEREAS, by this Resolution City desires to consent to the ARAHA and to consider, take action, and approve the Amended and Restated Cooperation Agreement; and WHEREAS, pursuant to the ARAHA the Partnership will (i) acquire the Property at 2031 Orange Avenue, Costa Mesa; (ii) 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 ARAHA Agency (and City through the Amended and Restated 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-Three Dollars ($1,542,553.00), of which approximately $986,530 will be funded from the HOME Program, $117,622 will be funded from federal rental rehabilitation monies, and $438,401 will be funded from the Agency's Housing Fund, or as much as is disbursed in accordance with the ARAHA, 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, 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 Amended and Restated Cooperation Agreement and has reviewed the ARAHA 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 October 10, 2006 the City Council considered the Amended and Restated Cooperation Agreement and the ARAHA at an open public meeting and desires by this Resolution to approve the Amended and Restated Cooperation Agreement and consent to the ARAHA and make certain other findings. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa Mesa as follows: Section 1. The Project described in the Original Agreement and as described and defined in the ARAHA as the Project remains the same. In connection with consideration and action on the Original Agreement and pursuant to the California Environmental Quality Act, California Public Resources Code Section 21000, et seq. ("CEQA") the City Council made specific findings and determinations and approved a Notice of Exemption, which was thereafter timely filed and posted with the County Clerk, County of Orange, State of California pursuant to and in compliance with CEQA, including Guidelines Sections 15301, 15378(b)(4) and applicable requirements of the National Environmental Policy Act of 1969. No further CEQA findings or determination are necessary as to the Project and/or the ARAHA, and the City Council designates the Notice of Exemption considered, approved, and filed as the proper and adequate CEQA documentation for the ARAHA and Project described and defined therein. Section 2. City Council approves the Amended and Restated Cooperation Agreement between 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 Amended and Restated Cooperation Agreement that has been submitted with this Resolution. The Mayor and City Clerk are authorized to execute and attest the Amended and Restated 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 Amended and Restated Cooperation Agreement after completion of such non -substantive, minor revisions, if any. Copies of the final form of the Amended and Restated 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 Amended and Restated Cooperation Agreement and take all further actions necessary to carry out the Amended and Restated Cooperation Agreement. The City Manager (or his designee) is authorized to the extent necessary during the implementation of the Amended and Restated Cooperation Agreement to make technical or minor changes after execution, as necessary to properly implement and carry out the Amended and Restated 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 ARAHA 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 10t' day of October, 2006. CITY OF COSTA MESA Mayor, City of Costa Mesa ATTEST: I ft -I WE r4 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. 06-82 and introduced and adopted at a special meeting of the City Council of the City of Costa Mesa held on the 10`^ day of October, 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 I I" day of October, 2006. JUU6q FOLCIK, CITY CLERK (SEAL)