Res 11-002RESOLUTION NO. 11 -002
A RESOLUTION OF THE POWAY CITY COUNCIL APPROVING ADDITIONAL
FUNDING, AUTHORIZING EXECUTION OF AMENDED AND RESTATED LOAN
DOCUMENTS, APPROVING A RELOCATION PLAN, AND MAKING SPECIFIED
FINDINGS IN CONNECTION WITH THE REHABILITATION OF THE ORANGE
GARDENS DEVELOPMENT
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 Section 33334.2 of the Redevelopment Law; and
WHEREAS, the Agency has established a Housing Special Program Fund (the
"HSP Fund ") in compliance with a 1995 judgment in the case Smith et al v All Persons
Interested and
WHEREAS, to assist in implementing the Redevelopment Plan, the Agency on
December 15, 2009 adopted a five -year implementation plan (the "Implementation
Plan ") pursuant to Section 33490 of the Redevelopment Law and Section 11.6 of the
Implementation Plan lists among the goals and objectives to eliminate blight the
following activities: (i) the rehabilitation of the existing housing stock where appropriate
and for the provision, improvement, and (ii) preservation of low- and moderate - income
housing as is required to satisfy the needs and desires of the various age and income
groups in the community, and
WHEREAS, Section 33334.2(g) of the Redevelopment Law authorizes
expenditure of Housing Fund monies outside of a project area from which the funds
originate upon findings by the Agency and the City Council that such use will be of
benefit to such project area; and
WHEREAS, in order to carry out and implement the Redevelopment Plan and
Implementation Plan, and under the authority of Section 33334.2(g), the Agency and
Foundation for Affordable Housing V, Inc., a California nonprofit public benefit
corporation (the "Foundation ") entered into that certain Agency Loan Agreement
executed on December 22, 2009 (the "Original Agency Loan Agreement'), pursuant to
which the Agency loaned the Foundation an amount up to $1,296,000 (the "Original
Agency Loan ") consisting of $646,000 of Agency Housing Fund monies and $650,000
Resolution No. 11 -002
Page 2
of HSP Fund monies, to fund the acquisition of the Property (as defined below) and to
fund certain specified predevelopment activities. The Foundation subsequently
assigned its rights, duties and obligations under the Original Agency Loan Agreement to
the limited partnership called Poway Family Housing Partners, L.P. (the "Developer "),
for which Foundation serves as the Managing General Partner and for which Affirmed
Housing Group, Inc., a Delaware corporation serves as the Administrative General
Partner; and
WHEREAS, the Developer, using proceeds from the Original Agency Loan,
acquired the property located at 12510 Oak Knoll Road, in the City of Poway, County of
San Diego, State of California, that is described in Exhibit A of the Agency Loan
Agreement, incorporated herein by this reference, (the "Property ") and performed
specified predevelopment activities, and now intends to rehabilitate the fifty -two (52)-
unit multifamily rental housing development and to construct a community building
thereon (the "Development "); and
WHEREAS, Section 33413(b)(2)(B) of the Redevelopment Law provides for
affordable housing production credit for the Agency for the purchase of long -term
affordability covenants on multifamily rental dwelling units that restrict the cost of renting
those units that are not presently available at affordable housing costs to low or very low
income households; and
WHEREAS, the Original Agency Loan is subject to the terms and conditions of a
Regulatory Agreement and Declaration of Restrictive Covenants (the "Original
Regulatory Agreement ") by and between the Agency and the Developer restricting the
occupancy and rent levels of the Development dated December 22, 2009 and recorded
against the Property, under which, the Agency is imposing occupancy and affordability
restrictions on the Development in order to (i) meet low and moderate income housing
production requirements applicable to the Redevelopment Area pursuant to Section
33413(b)(2)(A)(ii) of the Redevelopment Law and (ii) to meet its adequate sites
inventory as required under Government Code Section 65583.1(c); and
WHEREAS, in satisfaction of Section 33413(b)(2)(B) of the Redevelopment Law,
the Original Regulatory Agreement, as amended and restated, will continue to restrict
the cost of renting units in the Development that are not presently available at affordable
housing costs to low or very low income households; and
WHEREAS, the Agency and the Developer desire to increase the Agency Loan
by an amount not to exceed Seven Million Five Hundred Fifty Thousand Dollars
($7,550,000) of Low and Moderate Income Housing Fund monies (the "Additional Loan
Funds "), for a total Agency Loan (the "New Agency Loan ") of up to Eight Million Eight
Hundred Forty -Six Thousand Dollars ($8,846,000) (the "New Agency Loan Amount ") to
fund the rehabilitation of the Development and to acquire the affordability covenants
under 33413(b)(2)(B); and
WHEREAS, the New Agency Loan is consistent with the Agency's
Implementation Plan.
Resolution No. 11 -002
Page 3
WHEREAS, the City Council has previously made findings of benefit required
under Section 33334.2(g) of the Redevelopment Law with respect to the use of the
Agency's Housing Fund to fund the Original Agency Loan, and the New Agency Loan
will continue to provide benefits to the Project Area by assisting in the development of
affordable housing for persons living and /or working in the Project Area, and will
continue to serve major goals and objectives of the Redevelopment Plan by increasing
the amount of multifamily rental housing available at affordable housing costs in the
community, thereby decreasing the market pressure on the supply of affordable housing
in the community and the Project Area; and
WHEREAS, the rehabilitation of the Property will entail relocation of some of the
existing residents of the Property; and
WHEREAS, the Agency and the Developer and their consultants have prepared,
and the City Council has been provided and has received, a draft relocation plan (the
"Relocation Plan ") in accordance with Section 6038 of the California Department of
Housing and Community Development Relocation Regulations (the "Relocation
Regulations "); and
WHEREAS, timely general notice of the Relocation Plan designed to reach the
occupants of the property was made in accordance with the provisions of paragraph
6046(a)(3) and subsection 6046(b) of the Relocation Regulations, as required by
Section 6038(e)(2) of the Relocation Regulations; and
WHEREAS, the Relocation Plan is consistent with the Housing Element of the
City of Poway General Plan; and
WHEREAS, the following materials (collectively, the "Supporting Documents ")
have been presented to and considered by the City Council in support of the findings
and approvals set forth in this Resolution: (i) the staff report of January 18, 2011
accompanying this Resolution; (ii) the Relocation Plan, and (iii) the loan documents for
the New Agency Loan. The Supporting Documents are hereby incorporated by
reference in this Resolution and, together with the above recitals (the "Recitals "), form
the evidentiary basis and establish the analytical route for reaching the ultimate findings
and conclusions contained in this Resolution; and
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 as the project consists of the
restoration or rehabilitation of deteriorated structures; and
NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby finds that
the above Recitals are true and correct and have served, together with the Supporting
Documents, as the basis for the approvals and findings listed below.
Resolution No. 11 -002
Page 4
BE IT FURTHER RESOLVED, that the City Council hereby finds and determines
pursuant to Section 33334.2(g) of the Redevelopment Law, that the use of moneys from
the Housing Fund to fund the New Agency Loan will continue to be of benefit to the
Project Area and the program of redevelopment pursuant to the Redevelopment Plan.
BE IT FURTHER RESOLVED, that the City Council hereby approves the New
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 up to $7,550,000 of
the Agency's Housing Fund monies to fund the Additional Loan Funds, and authorizes
the Agency to execute all necessary documents to effectuate the New Agency Loan.
BE IT FURTHER RESOLVED, that the City Council hereby approves the
Relocation Plan and authorizes the Agency's Executive Director, or the Executive
Director's designee, to take such steps as deemed necessary to facilitate the
implementation of the Relocation Plan.
BE IT FURTHER RESOLVED, that the City Manager, or her designee, is hereby
authorized and directed to file a Notice of Exemption with the San Diego County Clerk
with respect to the actions taken pursuant to this Resolution, in accordance with 14 Cal.
Code of Regulations Section 15062.
BE IT FURTHER RESOLVED, that this Resolution shall take immediate effect
from and after its passage.
PASSED, ADOPTED AND APPROVED, by the Poway City Council at a regular
meeting thereof this 18th day of January 2011.
Don Higginson, May r
Resolution No. 11 -002
Page 5
STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO )
I, Linda A. Troyan, MMC, Clerk of the Poway City Council, do hereby certify
under penalty of perjury that the foregoing Resolution No. 11 -002 was dully adopted by
the City Council at a meeting of said City Council on the 18th day of January 2011, and
that it was so adopted by the following vote:
AYES: BOYACK, GROSCH, MULLIN, CUNNINGHAM, HIGGINSON
NOES: NONE
ABSENT: NONE
DISQUALIFIED: NONE
'A. Troyan, MMC, Clerk
y City Council