Res 08-012
RESOLUTION NO 08-012
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY,
CALIFORNIA APPROVING EXECUTION OF AN AGENCY ACQUISITION
AND REHABILITATION LOAN AGREEMENT WITH OAK KNOLL
HOUSING ASSOCIATES, L.P, TO FINANCE A PORTION OF THE
ACQUISITION AND REHABILITATION OF THE OAK KNOLL VILLAS
AND MAKING FINDINGS AND APPROVALS IN CONNECTION
THEREWITH
WHEREAS, the City Council (the "City Council") of the City of Poway (the "City")
has adopted and amended, from time to time, the Redevelopment Plan for the Paguay
Redevelopment Project, (the "Redevelopment Plan") which sets forth a plan for
redevelopment of the Paguay Redevelopment Project Area (the "Project Area");
WHEREAS, the Poway Redevelopment Agency ("Agency") is responsible for
administering the Redevelopment Plan to cause redevelopment of the Project Area,
including the provision of housing available at affordable housing cost to low and
moderate income households,
WHEREAS, the Agency has established a Low and Moderate Income Housing
Fund (the "Housing Fund") pursuant to Health and Safety Code Section 33334.2;
WHEREAS, the Agency has adopted an Implementation Plan pursuant to Health
and Safety Code Section 33490, which specifically identifies the intent of the Agency to
provide for the development of affordable housing for low and moderate income
households ("Implementation Plan"), and
WHEREAS, in order to carry out and implement such Redevelopment Plan the
Agency proposes to enter into that certain Agency Loan Agreement ("Loan
Agreement") with Oak Knoll Housing Associates, L.P , ("Borrower") for the acquisition
and rehabilitation by Borrower of that certain real property generally located at 12509
Oak Knoll Road in the City of Poway ("Property"),
WHEREAS, the Borrower intends to substantially rehabilitate, pursuant to Health
and Safety Code Section 33413(b)(2)(A)(iv), the fifty-two (52) apartment units
comprising the Development and intends to make fifty-one (51) of those units available
for rental to very-low and lower income households;
WHEREAS, the Agency desires to provide up to Seven Million Three Hundred
Twenty-Nine Thousand Dollar ($7,329,000) loan to Borrower from the Agency's Housing
Fund (the "Agency Loan") to assist in financing the acquisition, rehabilitation, and
completion of the Development by Borrower;
WHEREAS, the staff report accompanying this resolution (the "Staff Report")
provides additional background and information concerning the Development and the
Agency Loan, including the specific terms of the proposed Agency Loan and the
proposed requirement that fifty-one (51) of the fifty-two (52) units in the Development be
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Resolution No 08-012
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restricted for rental at affordable housing costs to very low income and lower income
households,
WHEREAS, Health and Safety Code Section 33334.2(g) authorizes expenditure
of Housing Fund monies outside the Project Area from which the funds originated upon
findings by the Agency and the City Council that such use will be of benefit to such
Project Area,
WHEREAS, the Health and Safety Code Section 33413(b)(2)(A)(iv) authorizes
expenditures of Housing Fund monies for the substantial rehabilitation of multifamily
rented dwelling units
WHEREAS, the Agency Loan will provide benefit to all the Project Area, by
assisting in the development of affordable housing for persons living and/or working in
the Project Area, and serve major goals and objectives of the Redevelopment Plan by
increasing the amount of housing available at affordable housing cost in the community,
thereby decreasing the market pressure on the supply of affordable housing in the
community and the Project Area,
WHEREAS, the City Council is required to make a finding of benefit for the
purpose of compliance with Health and Safety Code Section 33334.2(g) with respect to
the use of the Agency's Housing Fund to fund the Agency Loan;
WHEREAS, the Agency is imposing occupancy and affordability restrictions on
the Development in order to meet replacement housing requirements applicable to the
Redevelopment Area pursuant to Health and Safety Code Section 33413(a) and low
and moderate income housing production requirements pursuant to Health and Safety
Code Section 33413(b)(2}(A)(ii),
WHEREAS, the Agency is imposing occupancy and affordability restrictions on
the Development in order to meet its adequate sites inventory pursuant to Government
Code Section 65583 1 (c), as approved by the California Department of Housing and
Community Development;
WHEREAS, for the purpose of compliance with the California Environmental
Quality Act ("CEQA"), the Agency has determined that, pursuant to California Code of
Regulations Section 15301, the making of the Agency Loan and the rehabilitation of the
Development are categorically exempt from CEQA,
WHEREAS, the Borrower has submitted to the Agency and the City Council
copies of the Agreements in substantially the form to be executed by the Borrower and
the Agency;
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Resolution No 08-012
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NOW, THEREFORE, BE IT RESOLVED by the Poway City Council that
Section 1 The City Council hereby finds and determines that the above recitals are
true and correct.
Section 2. The City Council finds that the Agency Loan is consistent with the
Agency's Implementation Plan.
Section 3 Based on information and analysis set forth in the above Recitals and
contained in the Staff Report, the City Council hereby finds and determines pursuant to
Health and Safety Code Section 33334.2(g) that the use of moneys from the Housing
Fund to fund the Agency Loan will be of benefit to the Project Area and the program of
redevelopment pursuant to the Redevelopment Plan.
Section 4 The City Council hereby approves the Agency Loan on the terms and
conditions and with the affordability requirements set forth in the Staff Report and
approves the Agency's allocation of Seven Million Three Hundred Twenty-Nine
Thousand Dollar ($7,329,000) of Housing Fund monies to fund the Agency Loan, and
authorizes the Agency to execute all necessary documents to effectuate the Agency
Loan.
Section 5 This Resolution shall take effect from and after its date of adoption.
ADOPTED, SIGNED AND APPROVED this 11th day Clf March, 2008
Mi'h'~:':
ATTEST l
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Resolution No 08-012
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STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO)
I, L. Diane Shea, City Clerk of the City of Poway, do hereby certify the foregoing
Resolution No 08-012 was duly adopted by the City Council at a meeting of said
Council held on the 11th day of March, 2008, and that it was so adopted by the
following vote.
AYES BOYACK, EMERY, HIGGINSON, REXFORD, CAFAGNA
NOES NONE
ABSENT NONE
DISQUALIFIED' NONE
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City of Poway
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