Res 09-068
RESOLUTION NO. 09-068
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA,
APPROVING AN AGENCY ACQUISITION AND PREDEVELOPMENT LOAN TO
FOUNDATION FOR AFFORDABLE HOUSING V, INC., TO FINANCE A PORTION OF
THE ACQUISITION AND PREDEVELOPMENT COSTS OF ORANGE GARDENS AND
MAKING SPECIFIED FINDINGS
WHEREAS, pursuant to the California Community Redevelopment Law (Health
and Safety Code Section 33000 et seq.; the "Redevelopment Law"), the City Council
(the "City Council") of the City of Poway (the "City") has adopted, and the Poway
Redevelopment Agency (the "Agency") is responsible for implementing the Amended
and Restated Redevelopment Plan for the Paguay Redevelopment Project Area
adopted by the City Council of the City of Poway by Ordinance No. 117 on January 12,
1984, as amended by Ordinance No. 414 on July 14, 1993, as amended by Ordinance
No. 439 on January 13, 1995, as amended by Ordinance No. 593 on January 1, 2004,
as amended by Ordinance No. 605 on September 16, 2004, as amended by Ordinance
No. 611 on November 25, 2004, as amended by Ordinance No. 641 on August 17,
2006, and as further amended by Ordinance No. 657 on July 12, 2007 (as amended
from time to time, the "Redevelopment Plan"); and
WHEREAS, the Agency has established a Low and Moderate Income Housing
Fund (the "Housing Fund") pursuant to Health and Safety Code Section 33334.2; and
WHEREAS, the Agency has established a Housing Special Program Fund (the
"HSP Fund") in compliance with a 1995 judgment in the case Srnith et al v All Persons
Interested; and
WHEREAS, to assist in implementing the Redevelopment Plan, the Agency on
December 16, 2004 adopted a five-year implementation plan (the "Implementation
Plan") pursuant to Section 33490 of the Redevelopment Law; and
WHEREAS, in order to carry out and implement the Redevelopment Plan the
Agency proposes to make a loan to Foundation for Affordable Housing V, Inc., a
California nonprofit public benefit corporation ("Foundation"), in an amount up to
$1,296,000 consisting of $646,000 of Agency Housing Fund monies and $650,000 of
HSP Fund monies (the "Agency Loan") Foundation will use the proceeds of the
Agency Loan to finance a portion of the acquisition and predevelopment costs of the
Orange Gardens apartment complex, located at 12510 Oak Knoll Road in the City of
Poway;
WHEREAS, Foundation intends to join with Affirmed Housing Group, Inc., a
Delaware corporation, to form a limited partnership called, Poway Family Housing
Partners, L.P. to purchase and rehabilitate the fifty-two (52)-unit Orange Gardens
apartment complex and intends to make fifty-one (51) of those units available for rental
to very-low and low income households; and
Resolution No. 09-068
Page 2
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
restricted for rental at affordable housing costs to low and very-low income households;
WHEREAS, the Redevelopment Agency, by resolution adopted concurrently
herewith, has made the finding of benefit required by 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 low and moderate income housing production
requirements applicable to the Redevelopment Area 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 for the pursuant to
Government Code Section 65583.1 (c), contingent on approval 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;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Poway, as follows:
Section 1. The foregoing recitals are true and correct and the City Council so
finds and determines.
Section 2. Based on the 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 3. The City Council finds and determines that the Agency Loan is
consistent with the Agency's Implementation Plan.
Section 4. The City Council herby 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 $646,000 of Agency Housing Fund monies and
$650,000 of HSP Fund monies to fund the Agency Loan, and authorizes the Agency to
execute all necessary documents to effectuate the Agency Loan.
Section 5. That this Resolution shall take immediate effect from and after its
passage.
Resolution No. 09-068
Page 3
PASSED, ADOPTED AND APPROVED, by the Poway City Council at a regular
meeting thereof this 1 st day of December, 2009.
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Don Higginson, May r
ATTEST:
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Resolution No. 09-068
Page 4
STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO )
I, Linda A. Troyan, MMC, Clerk of the City of Poway, do hereby certify under
penalty of perjury that the foregoing Resolution No. 09-068 was dully adopted by the
City Council at a meeting of said Council on the 1st day of December 2009, and that it
was so adopted by the following vote:
AYES: BOYACK, CUNNINGHAM, REXFORD, KRUSE, HIGGINSON
NOES: NONE
ABSENT: NONE
DISQUALIFIED NONE
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