HomeMy WebLinkAboutResolution No. 15-7573-Affordable Housing and Property Disposition AgreementWHEREAS, 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 1X 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 Commission Property
as seven (7) residential units for low income homebuyers ( "Project "); and,
WHEREAS, the City 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 seg.) (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 assist in 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 property ( "Commission Loan "); and,
WHEREAS, the Developer's construction and resale of the Project units are not
financially feasible without the Commission's 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 all seven of the housing units shall be available to qualified low income
households; and,
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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 Project Area under CRL Section 33413 (b)(2); and,
WHEREAS, pursuant to CRL Section 33433 the City Council of the City (acting as the
City's legislative body) 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
City Council 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 seg. ("CEQA"), and the State's CEQA Guidelines (Titlel4 California Code of
Regulations Sections 15000, et. seg.), 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 the a 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 CITY COUNCIL 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 City Council 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 City Council at or
prior to the public hearing regarding the Agreement, that, pursuant to CRL Section 33433:
RESOLUTION NO.
PAGE 3
(i) The sale and conveyance 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
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 City Clerk, is hereby
approved. The City Council consents to the Commission's authorization and direction to its
Executive Director and Commission counsel 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 City Council consents to the Commission's authorization and direction
to its Executive Director 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.
SECTION 6. This Resolution shall take effect immediately upon its adoption.
APPROVED AND ADOPTED this 14th day of July, 2015
JZ- //, Ze
LUIS H. MARQUEZ, yon
ATTEST:
;MA-9-JIMEN , Z CM
City Clerk
I HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council of
the City of Downey at a regular meeting held on the 14th day of July, 2015, by the following vote,
to wit: