HomeMy WebLinkAboutResolution - 08-08 STATE OF CALIFORNIA ) RESOLUTION NO. RDA 08-08
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY
OF SAN JACINTO, CALIFORNIA, APPROVING AN OWNER
PARTICIPATION AND CONTRIBUTION AGREEMENT AMONGST THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO, LINC
HOUSING CORPORATION AND LINC-TERRACINA APARTMENTS
HOUSING INVESTORS, L.P., CONCERNING THE PROVISION OF
FINANCIAL ASSISTANCE BY THE AGENCY FOR THE PURCHASE
AND DEVELOPMENT OF IMPROVEMENTS ON THE PROPERTY
LOCATED AT 1826 SOUTH SANTA FE AVENUE IN THE CITY OF SAN
JACINTO
WHEREAS, pursuant to the provisions of California Community Redevelopment
Law (California Health and Safety Code Section 33000 et seq.) ("CRL"), the City
Council ("City Council") of the City of San Jacinto ("City") approved and adopted a
redevelopment plan CRedevelopment Plan")for the San Jacinto Redevelopment Project
Area ("Project Area"); and
WHEREAS, the Redevelopment Agency of the City ("Agency") is engaged in
activities necessary to execute and implement the Redevelopment Plan for the Project
Area; and
WHEREAS, the LINC-Terracina Apartments Housing Investors, L.P. ("Owner")
intends to acquire that certain real property situated within the Agency's Project Area
and, generally, located at 1825 South Santa Fe Avenue in the City of San Jacinto (the
"Property"); and
WHEREAS, LINC Housing Corporation ("LINC") is the general partner of Owner,
and
WHEREAS, the Property is currently improved with a fifty-six (56) unit multifamily
apartment complex comprised of thirty-three (33) two-bedroom Units and twenty-three
(23) three-bedroom Units, including a manager's unit, a pool, children's playground and
an on-site laundry facility; and
WHEREAS, Owner intends to purchase the Property and to rehabilitate the
existing building improvements on the Property, including the conversion of one existing
two (2) bedroom dwelling unit into a community room and the implementation of energy
efficient upgrades (the"Project"); and
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WHEREAS, LING has requested that the Agency provide financial assistance for
the Project in exchange for the recordation of affordability covenants against the
Property pursuant to a regulatory agreement; and
WHEREAS, the regulatory agreement, among other things, restricts all units in
the Project to affordable rent at or below sixty percent (60%) of the area median income
for a term of sixty nine years ("Regulatory Agreement');
WHEREAS, the Agency desires to provide financial assistance to LING in the
form of a grant in the total amount of$1,820,200 (°Agency Grant"), to be used by LING
as a capital contribution to Owner for the Project; and
WHEREAS, the Agency Grant is proposed to be funded from the proceeds of the
Agency's 2005 Tax Exempt Bond Refinance; and
WHEREAS, completion of the Project on the Property will improve and preserve
the supply of affordable housing in the Project Area; and
WHEREAS, additional Project financing includes a $3,500,000 tax exempt bond
loan from California Statewide Communities Development Authority; tax credit financing
in the amount of $1,809,000 through the State of California Tax Credit Allocation
Committee; and assumption of an existing loan from the California Department of
Housing and Community Development in the amount of $1,748,685 ("Additional Project
Financing'). The balance of funds $408,429 will be provided through deferral of owner
equity.
WHEREAS, Owner has asked that the Agency agree to subordinate the
Agreement and the Regulatory Agreement, as may be required, to the Additional
Project Financing, as an economically feasible method of financing construction of the
Project would not be available without such subordination.
WHEREAS, Agency agrees that an economically feasible method of financing
construction of the Project would be available without such subordination.
WHEREAS, a copy of the Agreement and the Regulatory Agreement are on file
at the Agency Secretary's office and available for review during normal business hours
of the Agency.
WHEREAS, Agency staff has determined that the Project is categorically exempt
from the requirements of the California Environmental Quality Act ("CEQA"), pursuant to
State CEQA Guidelines Section 15301.
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
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NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the San
Jacinto Redevelopment Agency as follows:
Section 1. The recitals set forth above are true and correct and are
incorporated into this Resolution as though fully set forth herein.
Section 2. The Agency Board approves the Agreement and the Regulatory
Agreement in substantially the form on file with the Agency Secretary.
Section 3. The Executive Director is hereby authorized to execute the
Agreement and the Regulatory Agreement on behalf of the Agency, together with such
changes and amendments as may be approved by both the Executive Director and
Agency Counsel. The Executive Director is further authorized to take any actions and
execute any and all necessary documents to implement the Agreement.
Section 4. The Finance Director is authorized to transfer $1,820,000 of the
2005 Tax Exempt Bond Refinance Low and Moderate Income Housing funds into an
escrow for funding of the Project, as set forth in the Agreement and as directed by
escrow instructions approved by Agency Counsel.
Section 5. The Agency Board directs staff to file a Notice of Exemption with
the Riverside County Clerk's Office within five (5) working days of the adoption of this
Resolution.
Section 6. This Resolution shall take effect immediately upon its adoption.
APPROVED and ADOPTED, this 1 M day of June, 2008, by the following vote:
Ayes: Carlson, Mansperger, Stubblefield, Ayres
Nays: None
Absent: Ritchie
Abstain: None
San Jacinto R evelopment Agency
Ay hairman
W.
ATTEST:
A Al"
D rothy L. h uinard, Agency Secretary
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APPROVED AS TO FORM:
BEST BEST& KRIEGER LLP
Jeffrey S. Ballinger, Agency Counsel
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