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HomeMy WebLinkAboutResolution - HA 15-02 STATE OF CALIFORNIA ) RESOLUTION NO. No HA 15-02 COUNTY OF RIVERSIDE ) ss CITY OF SAN JACINTO ) A RESOLUTION OF THE SAN JACINTO HOUSING AUTHORITY AUTHORIZING THE RELEASE OF A REGULATORY AGREEMENT ENCUMBERING 600 PORTERFIELD DRIVE AS A RESULT OF A REHABILITATION LOAN PROVIDED TO THE OWNER OF THE PROPERTY, THE RELEASE OF A DEED OF TRUST MADE BY OWNER OF SAID PROPERTY IN FAVOR OF THE CITY OF SAN JACINTO REDEVELOPMENT AGENCY, AND THE RELEASE OF A PROMISSORY NOTE SECURING SAID DEED OF TRUST WHEREAS, the former San Jacinto Redevelopment Agency ("Redevelopment Agency") granted a rehabilitation loan ("Agency Loan") in the amount of Twenty Five Thousand Dollars ($25,000.00) on May 1, 2007 for the purpose of assisting Edward T. Lopez and Theresa E. Lopez ("Owners") to finance the rehabilitation of their residential property located at 600 Porterfield Drive, San Jacinto, California 92582 (APN 434-321-019 ) ("Subject Property"); and WHEREAS, the former Redevelopment Agency agreed to make the Agency Loan to the Owners for the Subject Property conditioned on, and induced by, Owners' agreement to restrict the use of the Subject Property for 45 years to owner-occupancy for low and moderate income individuals ("Regulatory Agreement"); and WHEREAS, the purpose of the Regulatory Agreement was to increase the supply of low and moderate income housing available at an affordable housing cost in accordance with the affordability requirements of the former Community Redevelopment Law; and WHEREAS, in addition to the Regulatory Agreement, a deed of trust, dated May 1, 2007, was made by Owners with reference to the Regulatory Agreement and for the benefit of the former Redevelopment Agency ("Deed of Trust") and was executed to secure that certain Promissory Note Secured by Deed of Trust, dated May 1, 2007, in a principal amount of not to exceed Twenty Five Thousand Dollars ($25,000.00), plus interest thereon as provided by said promissory note ("Promissory Note"); and WHEREAS, the City of San Jacinto formed the San Jacinto Housing Authority ("Housing Authority") on March 15, 2011; and WHEREAS, pursuant to Health and Safety Code section 34172, the former Redevelopment Agency was dissolved as of February 1, 2012; and WHEREAS, the City of San Jacinto is the successor agency of the former Redevelopment Agency ("Successor Agency"); and WHEREAS, on January 27, 2012, the City of San Jacinto pursuant to Resolution No. 3410 elected to not retain the former Redevelopment Agency's housing assets and functions and designated the Housing Authority as the entity to assume the former Redevelopment Agency's housing assets and functions; and WHEREAS, on April 6, 2012, the Oversight Board of the Successor Agency to the San Jacinto Redevelopment Agency approved a resolution transferring the housing assets to the Housing Authority; and WHEREAS, in a letter dated May 1, 2015, the Owners, a low-income elderly couple who are no longer able to live alone in their home, gave notice to the Housing Authority of their desire to sell and transfer the Property, the funds from which would help offset their cost of care as they live with one of their children; and WHEREAS, Section 2 of the Regulatory Agreement prohibits the transfer of the Property to anyone other than a qualified person or family of low or moderate income; and WHEREAS, Owners have informed the Housing Authority that there is no equity in the Property and that Fannie Mae would not provide financing to a prospective buyer of the Property due to the age of the mobile home on the Property, which was built in 1975 before the required Federal Manufactured Home Construction and Safety Standards were established on June 15, 1976; and WHEREAS, due to the inability to obtain financing due to the age of the mobile home, a buyer would need to have cash in the amount of the purchase price and closing costs in order to enact a sale and transfer of the Property. With such assets on hand, the buyer would not qualify as low or moderate income buyer, which gravely hinders the Owners' ability, through no fault of their own, to find a buyer that meets the requirements under Section 2 of the Regulatory Agreement; and WHEREAS, requiring Owners to repay the full amount of the Agency Loan under these circumstances would be a significant hardship and would be inconsistent with the public purpose under the California Redevelopment Law; and WHEREAS, due to the unique circumstances and hardships faced by the Owners, the Housing Authority has negotiated with the Owners to have them repay Five Thousand Dollars ($5,000.00) of the Agency Loan in exchange for the Housing Authority's release of the Regulatory Agreement, Deed of Trust, and Promissory Note, including the forgiveness of the remaining Twenty Thousand Dollars ($20,000.00) of the Agency Loan, plus interest thereon as provided by the Promissory Note; and WHEREAS, the Housing Authority seeks to release the Regulatory Agreement, Deed of Trust, and Promissory Note, including the forgiveness of the remaining Twenty Thousand Dollars ($20,000.00) of the Agency Loan, plus interest thereon as provided by the Promissory Note, which is in the public interest of the Housing Authority and the City. NOW, THEREFORE, BE IT RESOLVED, ordered, and determined by the Housing Authority as follows: Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference. Release of Regulatory Agreement, Deed of Trust, and Promissory Note and Forgiveness of Agency Loan. The Regulatory Agreement, Deed of Trust, and Promissory Note for the Subject Property, on file at the offices of the Housing Authority and available for review, shall be released and the balance of the Agency Loan shall be forgiven in its entirety. Authorization to Sign Release Documents. The Housing Authority hereby authorizes and directs the Executive Director to sign a release, in the form attached hereto as Exhibit "A", and to take any other actions necessary in order to facilitate the sale and transfer of the Subject Property. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Board of Directors declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. PASSED, APPROVED AND ADOPTED at a special meeting of the San Jacinto Housing Authority, on the 1st day of December, 2015, by the following vote: AYES: Bartel, Ledezma, Miller, Ruiz, Kotyuk NAYS: None ABSENT: None ABSTAIN: None San Jacinto Housing Authority Andrew Kotyuk, Chairperson ATTEST: Richard Miller, Authority Secretary CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF SAN JACINTO ) I, Richard Miller, hereby certify that the foregoing is a true copy of Resolution No. HA 15-02 was adopted by the Board of Directors of the San Jacinto Housing Authority at a special meeting thereof held the 1st day of December, 2015. WITNESS my hand this 15t day of December, 2015. Richard Miller, Authority Secretary 11 1