Loading...
HomeMy WebLinkAboutResolution No. 15-299-Affordable Housing-Property Disposition Agreement w-Partnership Housing Inc. and the Sale of Certain Real PropertyWHEREAS, the Community Development Commission of the City of Downey ( "Commission ") was activated by action duly taken by the City Council of the City of Downey ( "City Council ") to function as the housing authority and redevelopment agency acting within the territorial limits of the City of Downey ( "City "); and, WHEREAS, the California State Legislature enacted Assembly Bill 1 X 26 to dissolve all redevelopment agencies in the State of California; and, WHEREAS, pursuant to Health and Safety Code Section 34176(b)(3), the City Council adopted Resolution No. 12-7317, electing to not retain the housing assets and functions of the dissolved redevelopment agency component of the Commission, and designating the Commission as the local housing authority to which the housing assets of the dissolved redevelopment agency component of the Commission would be transferred; and, WHEREAS, the Commission owns a parcel of real property within the City, consisting of approximately .42 acres or 18,583 square feet with the street address of 9303 -09 Elm Vista Drive, and identified as Assessor Parcel Number 6284- 020 -900 ( "Commission Property "); and, WHEREAS, the Commission and Partnership Housing, Inc. ( "Developer ") have negotiated the terms of an agreement entitled Affordable Housing and Property Disposition Agreement ( "Agreement ") providing for, among other things, the sale by the Commission of the Commission Property to Developer and Developer's redevelopment of the Property as seven (7) residential units for low income homebuyers ( "Project "); and, WHEREAS, the Commission has determined that implementation of the Agreement: (1) is in best interests of the City and the Commission and the health, safety and welfare of the City's taxpayers and residents and is in accordance with the public purposes set forth in the California Community Redevelopment Law (California Health and Safety Code Section 33000 et (the °CRL "); (2) strengthens the City's land use and social structure; and (3) will assist in eliminating physical and economic blight in the City; and, WHEREAS, the Commission desires to further the development of the Project by providing financial assistance in the form of a subordinate financing loan in the amount not to exceed Seven Hundred Fifty Thousand Dollars ($750,000), which is the current appraised market value of the Commission Property ( "Commission Loan "); and, WHEREAS, the Developer's construction and resale of the Project units are not financially feasible without the Commission's land sale inclusive of: (1) the transfer of the Commission Property to Developer; (2) the provision of the Commission Loan from Commission to Developer; and, (3) the recordation of a restrictive covenant to run with the land for forty -five (45) years providing that at all seven of the housing units shall be made available to qualified low income households; and, PAGE 2 WHEREAS, the Commission intends to apply the housing units, to be developed pursuant to this Agreement, towards satisfaction of the statutorily mandated affordable housing production requirements for the under CRL Section 33413 (b)(2); and, WHEREAS, pursuant to CRL Section 33433 the Commission's Governing Board must, following a public hearing, make certain findings and determinations in connection with Commission's sale of the Commission Property that was acquired with Commission tax increment revenue; and, WHEREAS, pursuant to CRL Section 33433, the Commission has prepared, and the Commission's Governing Board has reviewed and considered, a Summary Report setting forth: (1) the cost of the Agreement to the Commission; (2) the estimated value of the interest in the Commission Property to be conveyed, with the covenants, conditions, and requirements of the Agreement; (3) an explanation of how the conveyance of the Commission Property will assist in the elimination of blight and provision of workforce housing for lower income persons; and (4) a copy of the Agreement. The Commission has made the Summary Report available for public inspection in accordance with CRL Section 33433; and, WHEREAS, pursuant to the California Environmental Quality Act, Public Resources Code Sections 21000 et sec.. ("CEQA"), and the State's CEQA Guidelines (Title14 California Code of Regulations Sections 15000, et. seq.), the City is the lead Agency concerning the Project and has filed a Notice of Exemption for the Project because it is categorically exempt from CEQA, pursuant to CEQA Guidelines Section 15194, Affordable Housing Exemption; and, WHEREAS, pursuant to Government Code Section 65402, the City has determined that the sale of the Commission Property, and the location, purpose, extent and development of the Project on the Commission Property are in conformance with the City's General Plan; and, WHEREAS, pursuant to CRL Sections 33431 and 33433, on June 26 and July 3, 2015 the Commission caused notice of thew joint public hearing of the City Council and the Commission's Governing Board to be published in a newspaper of general circulation within the City; and, WHEREAS, pursuant to CRL Sections 33431 and 33433, on July 14, 2015 the City Council and the Commission's Governing Board held a duly noticed joint public hearing regarding the proposed Agreement; and, WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF DOWNEY DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The recitals of facts set forth above are true and correct and are incorporated into this Resolution by this reference. SECTION 2. The Commission finds and determines, based on the information made available in the Summary Report, the staff report accompanying this Resolution, the oral presentation of staff, and the other written and oral evidence presented to the Commission at or prior to the public hearing regarding the Agreement, that, pursuant to CRL Section 33433: F a I V i VATYW PAGE 3 (i) The sale of the Commission Property by the Commission to the Developer will assist in the elimination of blight by redeveloping the property with an efficient residential density development and increasing the supply of affordable homebuyer housing units in the city for low income households; and (ii) The disposition of the Commission Property is consistent with the implementation plan adopted by the Commission pursuant to Health and Safety Code section 33490; and (iii) The consideration to the Commission for the transfer of the Commission Property to the Developer is not less than the market value of the Commission Property. SECTION 3. There have been no changes in the Project following the City's filing a Notice of Exemption that would require any additional environmental review under CEQA. SECTION 4. The Agreement, a copy of which is on file with the Commission Secretary, is hereby approved. The Executive Director and Commission counsel are hereby authorized and directed to make final modifications to the Agreement that are consistent with the substantive terms of the Agreement approved hereby, and to thereafter sign the Agreement on behalf of the Commission. SECTION 5.The Executive Director is hereby authorized and directed to (i) sign such other and further documents, including but not limited to escrow instructions that require the Commission's signature, and (ii) take such other and further actions, as may be necessary and proper to carry out the terms of the Agreement. APPROVED AND ADOPTED this 14th day of July, 2015 LUIS H. MARQUE , hJia r'