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HomeMy WebLinkAbout1999-07-20; City Council; 15323; Acquisition Of Property 3363 Tyler Courtr., ‘I . - JOINT MEETING OF THE CITY OF CARLSBAD AND I HOUSING AND REDEVELOPMENT COMMISSION AGENDA BILL AB# 15.323 TITLE: ACQUISITION OF PROPERTY MTG. 3-20 -54 3363 TYLER COURT DEPT. H/RED RECOMMENDED ACTION: That the City Council ADOPT Resolution No. 99-A& “I , APPROVING certain actions and appropriating funds related to the Carlsbad Redevelopment Agency’s acquisition of property at 3363 Tyler Court for affordable housing purposes. That the Housing and Redevelopment Commission ADOPT Resolution No. 3/r-, APPROVING certain actions and appropriating funds related to the Redevelopment Agency’s acquisition of property at 3363 Tyler Court for affordable housing purposes. ITEM EXPLANATION: The property at 3363 Tyler Court is available for purchase from the current private property owners. The property offers 75 units of rental housing restricted to seniors only. The project was legally constructed in 1985 under the City’s Senior Housing Ordinance with approval of a Conditional Use Permit (CUP). The CUP for the project expired in 1995 with no attempt by the property owner to renew it. Ultimately, however, action must be taken by either the existing property owner or the Redevelopment Agency to correct the non-conforming status of the project. The subject project contains primarily one (1) bedroom, one (1) bath units. Currently, the project has approximately 50 households which are recipients of assistance through the City’s Section 8 Rental Assistance Program. However, the project has no required rent or income restrictions as of this date. The rents may be increased by a private property owner to any level which can be supported by the market. To create permanent affordable housing opportunities for very low income households, staff is recommending that the project be purchased by the Redevelopment Agency and that income limits and rent restrictions be subsequently placed on the property. The project is proposed to remain as a Senior only apartment complex. This action will provide for a substantial benefit in terms of the provision of affordable housing within the community. The Council/Commission previously authorized the Community Development Director and Housing and Redevelopment Director to complete negotiations and enter into an agreement to purchase the subject property for affordable housing purposes. City staff and representatives of the land owner prepared and executed a purchase contract with a negotiated price of $5,000,000. Escrow has been opened on the property based on the negotiated purchase contract. Staff and the land owner are now prepared to proceed with the transaction. Staff is recommending that the City Council and the Housing and Redevelopment Commission take action to authorize acquisition of the subject property with all of the individual actions described below, including appropriation of the required funding. ‘ , - - Page 2 of AB # Kev Points of the Purchase Aareement The following represents a summary of the key points of the purchase agreement: Purchase Price: $5,000,000. Refundable Deposit: $50,000 (to be applied towards price of property). 90 day escrow. Seller to provide Phase I environmental survey report, and any supplemental survey and reports recommended in the Phase I survey. Seller must remove any hazardous waste. Property is accepted by Buyer with expired CUP. Seller shall provide a written Wood Destroying Pests and Organisms inspection Report, and correct any conditions where infestation or infection is evident. The seller had requested a clause within the purchase agreement which would allow for liquidated damages if the Redevelopment Agency did not complete the purchase transaction for any reason beyond those which were already listed within the agreement as acceptable reasons to cancel the purchase contract. Staff was not willing to accept this clause. However, due to the concern of the property owner that substantial costs would be incurred by the owner during the escrow period which would be lost if the Redevelopment Agency did not subsequently close escrow on the property, staff added the following term to the purchase contract: “If the Redevelopment Agency/City does not proceed with the purchase of the subject property for a reason other than that which the Agency, as the buyer, has disapproval right per Paragraph 38b (of the purchase contract), a portion or all of the agreed upon $50,000 deposit may be used to reimburse the property owner for out-of-pocket expenses which may be incurred during the escrow period subject to prior approval by the Housing and Redevelopment Commission and/or City Council and with written verification of the expenses.” The above clause will allow the property owner to request reimbursement of actual out-of-pocket expenses, such as those incurred for the environmental survey, termite inspection, and title report, E the Redevelopment Agency does not complete the transaction for a reason which is different than one of those listed within the agreement as acceptable. Any request for reimbursement will require separate approval by the Council or Commission, as appropriate. For information purposes, those reasons which are identified as acceptable within the agreement to terminate the purchase transaction include disapproved items related to the following: existing loan documents; the preliminary title report, geologic/seismic/flood/state fire zones/areas; earthquake guides; seller representation; personal property; structural modifications; governmental compliance; survey and plans; changes during escrow; rental agreements; income/expense statements; tenant estoppel certificates; environmental survey; engineering reports; building code inspections; and, zoning land use and feasibility analysis. Consistencv with the Goals and Objectives of the Villaae Master Plan and Desicm Manual The Vi//age Master P/an and Design Manual indicates that one of the goals for the Village Redevelopment Area is to “establish Carlsbad Village as a Quality Shopping, Working and Living Environment”. Affordable housing is needed to assist in the accomplishment of this goal. Although the subject property is actually located outside the boundaries of the Village Redevelopment Area, it is within easy walking distance of many of the service facilities, retail locations and other amenities offered within the Redevelopment Area. In fact, affordable housing located anywhere within the City of Carlsbad will provide a benefit to the Redevelopment Area and is therefore consistent with the Goals and Objectives of the Vi//age Master P/an and Design Manual. Page 3 of AB # The Carlsbad Redevelopment Agency’s 19952000 implementation Strategy includes an affordable housing production plan which indicates that the Redevelopment Agency intends to assist in the acquisition and/or rehabilitation of 187 units inside and/or outside the Redevelopment Area by the end of year 2000. Acquisition of the subject property will assist the Agency in meeting a portion (75 units) of this production goal. The subject Strategy also requires that covenants be placed on the property to ensure the long term maintenance and affordability of the designated affordable housing units for a minimum of thirty (30) years. For the proposed property, staff is recommending long term affordability requirements for the life of the project which is anticipated to be a minimum of thirty (30) years. Consistencv with Villaae Redevelooment Plan As required by Redevelopment Law, the Carlsbad Village Redevelopment Plan indicates that not less than 20% of all taxes allocated to the Agency have been pledged to increasing and improving the community supply of housing for persons with low and moderate income. These funds may be used inside or outside the project area upon a resolution of the Agency and the legislative body that the use will be of benefit to the project area. With approval of the attached Housing and Redevelopment Commission resolution, the acquisition and rehabilitation of the subject property is consistent with the Village Redevelopment Plan and related Redevelopment Law. ProDosed Income and Rent Restrictions If acquisition of the subject property by the Redevelopment Agency is approved and the purchase is completed, it is staffs recommendation that income and rent restrictions be placed on the project which require that no less than 50% of the units (38 units) be affordable to households at 30% of the Area Median Income and the remaining units be affordable to households at 50% of the Area Median Income. Based on the current Area Median Income (AMI) for San Diego County, these proposed restrictions would limit the incomes of those residing within the project to $11,050 to $12,600 for those at 30% of the AMI and $18,400 to $21,000 for those at 50% of the AMI. The rental rates would range from approximately $260 to $509 per month depending on income levels and household/bedroom size. At a later date, staff may recommend an interim plan for addressing situations in which existing tenants exceed the income limits noted above. During the escrow period, staff will be meeting with the existing tenants to obtain information on their income levels and make a determination if an interim plan is appropriate to prevent requirements to relocate existing tenants. Propertv Ownership and General Plan Consistencv: At this time, staff is proposing that the Redevelopment Agency retain ownership of the subject property for affordable housing purposes. If so desired, at a later date, a decision may be made to allow an affordable housing developer to purchase the property from the Redevelopment Agency and maintain the noted covenants for affordable housing purposes. As long as the project is under ownership of the Redevelopment Agency, it is the intent of staff to contract with a non-profit organization to maintain and manage the property on a daily basis. The non-profit organization serving as the management company will be responsible for collecting the rent payments, maintaining the property, and for all other activities related to day-to-day operations of the rental project. Within the attached Housing and Redevelopment Commission Resolution, staff has requested authorization to proceed with efforts to identify and select an appropriate management company through a request for proposal (RFP) process. Acquisition of the subject property by the Redevelopment Agency is consistent with the Housing Element of the General Plan which requires that affordable housing opportunities be provided for all income levels within the community. The primary focus of the City’s efforts is on the provision of 3 Page 4 of AB # affordable housing for lower income households. Affordable housing for very low households is a high priority both within the City’s Housing Element and the City’s Consolidated Plan. Prior to close of escrow on the subject property, staff will process a request for a formal Planning Commission determination that the proposed acquisition of the subject property for affordable housing purposes is consistent with the City of Carlsbad’s General Plan. Citv Council Action Recommendations Staff is recommending that the City Council take the following actions as related to the acquisition of property at 3363 Tyler Court by the Carlsbad Redevelopment Agency for affordable housing purposes: 1) authorize the Finance Director to appropriate and expend a maximum amount of $1,000,000 in Housing Trust Funds for the acquisition of the subject property by the Redevelopment Agency; 2) authorize the Housing and Redevelopment Director to process a request to the County of San Diego for a reallocation of $200,000 in previously approved federal HOME Funds, and subsequent appropriation and expenditure of those funds by the Finance Director, to assist with the Redevelopment Agency’s acquisition of the subject property; 3) authorize the City Manager, or his/her designee, to execute an agreement to allow the City of Carlsbad to loan the Redevelopment Agency a maximum of $948,923 to assist in the Agency’s acquisition of the subject property, subject to approval by the City Attorney; and 4) authorize staff to proceed with appropriate efforts to process a new Conditional Use Permit or Site Development Plan for the subject project, or otherwise initiate corrective action to address the non-conforming land use status of the existing project on the subject property. Approval of the attached City Council Resolution shall authorize the above actions. Separate action will be required by the Housing and Redevelopment Commission on related actions for the acquisition. Housina and RedeveloDment Commission Action Recommendations Staff is recommending that the Housing and Redevelopment Commission take the following actions as related to the acquisition of property at 3363 Tyler Court by the Carlsbad Redevelopment Agency for affordable housing purposes: 1) make findings of benefit and authorize the Finance Director to appropriate and expend Low and Moderate Income Housing Funds in the maximum amount of $1,600,000 for the subject affordable housing project which is located outside the boundaries of the Redevelopment Area; 2) authorize the Finance Director to amend the City’s 1999-2000 Capital Improvement budget to appropriate, and subsequently expend, $367,000 in unappropriated interest earnings from the 1993 Redevelopment Bond proceeds for the Tyler Court acquisition, and to delete the Roosevelt Block CIP Project and reappropriate the $251,077 in bond proceeds for the Tyler Court acquisition; 3) authorize the Finance Director to amend the City’s 1999-2000 Capital Improvement budget to reduce the amount of funding appropriated to the Village Public Parking Enhancement Program to $242,000, and reappropriate the remaining $658,000 in Redevelopment Bond Funds to the Tyler Court acquisition; 4) authorize the Executive Director of the Redevelopment Agency to enter into an agreement within the City of Carlsbad for a loan in the maximum amount of $948,923, and for the Finance Director to appropriate and expend those loan proceeds, for the Tyler Court acquisition; 5) authorize the Executive Director, or his/her designee, to execute all appropriate acquisition documents subject to approval by the City Attorney; and, 6) authorize the City Clerk to execute the Certificate of Acceptance of the Deed for the subject property on behalf of the Redevelopment Agency. Approval of the attached Housing and Redevelopment Commission resolution shall authorize the above actions. Page 5 of AB # Environmental Review The action to acquire the subject property is exempt from environmental review under CEQA. The acquisition will result in a continuation of an existing facility involving no expansion of use and is therefore exempt from environmental review pursuant to Section 15301 of the State CEQA Guidelines. Any future expansion, change in use, or the discretionary permit process to address the non-conforming status issue could require separate environmental review. FISCAL IMPACT: The negotiated price for the property is $5,000,000. With taxes, escrow fees, recording fees and other related closing expenses, the total cost of the acquisition is estimated to be $ 5,025,OOO. The property is being purchased under no threat of condemnation. If approved by the City Council and Housing and Redevelopment Commission, funding for the acquisition is to be provided as follows: Low and Moderate Income Housing (LMIHF) $1,6OO,OOC Housing Trust Fund $1 ,ooo,ooc Federal HOME Funds $ 2oo,ooc Redevelopment Bonds Proceeds $1,276,077 General Fund Loan Proceeds (to Agency) $ 948,923 Total $5,025,0Or, It is staffs recommendation that the general fund loan be repaid from future appropriations to the Redevelopment Agency’s Low and Moderate Income Housing Fund (LMIHF). Currently, deposits to the LMIHF are equal to approximately $300,000 per year. If it is determined at a later date that it would be appropriate to sell the property to an affordable housing developer for long-term ownership and operation, proceeds from the sale of the property could also be used to repay the subject loan. The Housing Trust Fund has a current balance of approximately $2.3 million. Adequate funds will remain to finance affordable housing projects or programs which have been recently approved or received a preliminary commitment of approval for financial assistance from the City to date. There is currently a balance of approximately $600,000 in federal HOME funds which have been allocated to the City, but remain unexpended. These funds were originally appropriated to be used for the City’s Single Family Rehabilitation Loan Program. As of this date, the City has approximately 20 households on the waiting list or in process to receive assistance through the Rehabilitation Program. At this time, staff does not know if all of the subject households will ultimately qualify for assistance. However, to fund these households at the maximum loan amount of $20,000 each, the City will need to retain at least $400,000 within this program to assist those on the waiting list. The remaining $200,000 can be reallocated to an alternate project, such as the proposed property acquisition for affordable housing purposes. Staff is recommending that action be taken to process this request for reallocation of the $200,000 in HOME funds through the County of San Diego. Several actions have been requested which require the appropriation or reappropriation of 1993 Redevelopment Bond Funds for the purposes of purchasing the subject property. Staff estimates that there is approximately $367,000 in interest earnings (on the bond proceeds) which may be appropriated to a project. Staff is recommending that these funds be appropriated for the purposes of acquiring the Tyler Court Apartment Project for affordable housing purposes. 5 Page 6 of AB # In addition, staff is recommending at this time that 1993 Redevelopment Bond funds be reappropriated from the previously approved redevelopment projects known as the Roosevelt Block Projecf and the Vi//age Public Parking Enhancement Program for the purposes of acquiring the Tyler Court Apartments. Tax law requires that bond proceeds be expended within three years of issuance or as soon as possible thereafter. The proceeds on hand are currently yield restricted and should be spent on a qualifying project as soon as possible. Since the timing for expenditures on the Roosevelt Block Project and the Village Public Parking Enhancement Program is uncertain at this time, staff recommends transferring some of the prior appropriations. Staff is recommending that the 1999-2000 CIP budget be amended to cancel the Roosevelt Block Project (property acquisition) and reappropriate the $?51,077 from that account to the Tyler Court Apartments acquisition. Staff is also recommending that the 1999-2000 CIP budget be amended to reduce the appropriation to the Village Public Parking Enhancement Program from $900,000 to $242,000, and appropriate the balance of $658,000 to the Tyler Court Apartments acquisition. At a future date, as rental revenue is received from operation of the Tyler Court Apartments, or upon sale of the project, the Roosevelt Block Project could be reinstated and the Public Parking Enhancement Program could receive a reappropriation up to, or in excess of, the originally approved amount. A refundable deposit of $50,000 has been previously made to the escrow account opened for the subject acquisition. The remaining acquisition funds will be deposited in escrow prior to closing. EXHIBITS: City Council Resolution No. $9 -26 4 authorizing certain actions and appropriating funds for the Carlsbad Redevelopment Agency’s acquisition of property at 3363 Tyler Court. Housing and Redevelopment Commission Resolution No. 31% authorizing certain actions and appropriating funds for the Agency’s acquisition of property’at 3363 Tyler Court. 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CITY COUNCIL RESOLUTION NO. 9 g-2 64 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING CERTAIN ACTIONS AND APPROPRIATING FUNDING FOR ACQUSITION OF RESIDENTIAL RENTAL PROPERTY AT 3363 TYLER COURT BY THE REDEVELOPMENT AGENCY OF THE CITY OF CARLSBAD FOR LOWER INCOME AFFORDABLE HOUSING PURPOSES WHEREAS, the City of Carlsbad has a significant need for affordable housing throughout the community as set forth in both its Housing Element of the General Plan and the City’s federally-required Consolidated Plan; and, WHEREAS, the provision of affordable housing at any location within the City of Carlsbad will have a substantial benefit to the Redevelopment Project Area, as well as the remainder of the community; and WHEREAS, the City Council, acting as the Housing and Redevelopment Commission, previously authorized Redevelopment Agency Staff to enter into negotiations and execute a contract to purchase property at 3363 Tyler Court for affordable housing purposes; and WEIEREAS, Redevelopment Agency Staff has completed negotiations with the current property owners to acquire the property (Tyler Court Senior Apartments) at 3363 Tyler Court, outside the Village Redevelopment Area, under no threat of condemnation and at a fair market value, for the purposes of increasing affordable housing opportunities for very low income senior households; and WHEREAS, based on the facts presented to the City Council, the Council has determined that the acquisition of the subject property is consistent with the goals and objectives of the Housing Element of the City of Carlsbad’s General Plan and the City’s Consolidated Plan; and WHEREAS, the acquisition of the subject site will increase affordable housing inventory within the City of Carlsbad through the provision of seventy-five units of income and rent restricted apartment units for seniors only; and WHEREAS, per Section 15301 of the State CEQA Guidelines, the acquisition of the property is exempt from environmental review under CEQA because the acquisition will result in the continuation of an existing facility involving no expansion of use; and WHEREAS, the proposed project is consistent with the requirements of Section 1 of Article XXXIV of the California Constitution as related to a low rent housing project acquired by a state public body as a result of voter approval of Proposition X on November 4, 1980 which allows for a total of 250 units of senior low-income housing which has not yet been provided by the City. NOW, THEREFORE, BE IT HEREBY RESOLVED, by the City Council of the City of Carlsbad, California, as follows: If/J I/// /IfI 1. The above recitations are true and correct. CC Resolution No. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. The City Council, acting as the Housing and Redevelopment Commission, previously authorized the Housing and Redevelopment Director and the Community Development to negotiate and execute a purchase agreement for the property at 3363 Tyler Court for the purposes of providing affordable housing opportunities to lower senior households within the community. 3. The City Council hereby APPROVES the acquisition of the property at 3363 Tyler Court by the Carlsbad Redevelopment Agency in the amount of five million dollars ($5,000,000) for the purposes of providing affordable housing to seventy-five (75) very low income senior households, subject to all terms and conditions set forth in the previously executed purchase agreement and related escrow instructions. 4. The City Council authorizes the Finance Director to appropriate and expend Housing Trust Funds in the maximum amount of one million dollars ($l,OOO,OOO) for acquisition of the subject seventy-five (75) senior apartment units and related property located at 3363 Tyler Court. 5. The City Council authorizes the Housing and Redevelopment Director to process a request to the County of San Diego for a reallocation of two hundred thousand dollars ($200,000) in previously approved federal HOME funds, and subsequent appropriation and expenditure of those funds by the Finance Director, to assist with the Redevelopment Agency’s acquisition of the property located at 3363 Tyler Court. 6. The City Council authorizes the City Manager, or designee, to enter into an agreement with the Carlsbad Redevelopment Agency for a loan in the maximum amount of nine hundred forty-eight thousand nine hundred twenty three dollars ($948,923), and authorizes the Finance Director to appropriate and expend those loan proceeds to assist in the acquisition of the subject senior apartment units by the Redevelopment Agency. The subject loan shall be repaid through future appropriations to the Redevelopment Agency Low and Moderate Income Housing Fund annually, as indicated within the noted agreement and as appropriated by the City Council. 7. The City of Carlsbad Housing Trust Funds, Federal Home Investment Partnership Program Funds (HOME) and the City of Carisbad Loan proceeds will be used by the Redevelopment Agency in combination with Low and Moderate Income Housing Funds and Redevelopment Bond Proceeds to finance the acquisition of the subject property for very low income affordable housing purposes. 8. The City Council authorizes the City Manager, or designee, to execute all appropriate acquisition documents as deemed appropriate and subject to prior approval of the City Attorney. /Ii/ l//l Ill/ /If/ CC Resolution No. 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 9. The City Council authorizes the City Clerk to execute the Certificate of Acceptance of the Deed for the subject property, upon preparation by the Escrow Officer and on behalf of the Redevelopment Agency. 10. The City Council authorizes staff to proceed with appropriate efforts to process a new Conditional Use Permit or Site Development Plan for the subject project, or otherwise initiate corrective action to address the non-conforming land use status of the existing project on the subject property. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California held on the 20th day of July, 1999, by the following vote, to wit: AYES: Lewis, Finnila, Nygaard, Kulchin NOES: None. ABSENT: Hall ABSTAIN: None Attest: ALETHA L. RAUT&KRANZ, City Clerk \ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HOUSING AND REDEVELOPMENT COMMISSION RESOLUTION NO. 3 12 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING CERTAIN ACTIONS AND APPROPRIATING FUNDING FOR ACQUSITION OF RESIDENTIAL RENTAL PROPERTY AT 3363 TYLER COURT OUTSIDE THE BOUNDARIES OF THE VILLAGE REDEVELOPMENT AREA FOR LOWER INCOME AFFORDABLE HOUSING PURPOSES WHEREAS, the Redevelopment Agency of the City of Carlsbad, hereinafter referred to as “Agency”, is a Community Redevelopment Agency organized and existing under the Community Redevelopment Law, Health and Safety Code Section 33000, et. Seq., hereinafter referred to as the “Act”; and WHEREAS, the Agency is authorized to implement the Redevelopment Plan for the Carlsbad Village Redevelopment Project Area; and WHEREAS, Section 33334.2 of the Act requires that no less than twenty percent (20%) of all taxes which are allocated to the Agency be used for purposes of increasing and improving the community’s supply of low and moderate income housing; and WHEREAS, pursuant to Section 33334.2(g) of the Act, the Agency may use these funds inside or outside the project area upon a resolution of the Agency and the legislative body that the use will be of benefit to the project. This determination shall be final and conclusive as the issue of benefit to the project area; and WHEREAS, to carry out the purposes of increasing and improving the community’s supply of low and moderate income housing, Section 33334.2(e) of the Act states that the Agency may exercise any or all of its powers, including without limitations, acquiring land or building sites, improving land or building sites with onsite or offsite improvements, donating land to private or public persons or entities, constructing buildings or structures, acquiring buildings or structures, providing subsidies to, or for the benefit of, very low income households, lower income households, or persons or families of low and moderate income, or other powers to carry out the purposes of the Act; and WHEREAS, the City of Carlsbad has a significant need for affordable housing throughout the community as set forth in both its Housing Element of the General Plan and the federally-required Consolidated Plan; and, WHEREAS, the provision of affordable housing either inside or outside the Redevelopment Project Area will have a substantial benefit to the Project Area; and WHEREAS, the Housing and Redevelopment Commission previously authorized Redevelopment Agency Staff to enter into negotiations to purchase property at 3363 Tyler Court for affordable housing purposes; and WHEREAS, Redevelopment Agency Staff has completed negotiations with the current property owners to acquire the property (Tyler Court Senior Apartments) at 3363 Tyler Court, outside the Village Redevelopment Area, under no threat of condemnation and at a fair market value, for the purposes of increasing affordable housing opportunities for very low income senior households; and I . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, based on the facts presented to the Commission, the Commission has determined that the acquisition of the subject property is consistent with the goals and objectives of the Carlsbad Village Redevelopment Plan, the Village Master Plan and Design Manual, the 1995-2000 Village Redevelopment Area Implementation Plan and the Housing Element of the City of Carlsbad’s General Plan; and WHEREAS, the acquisition of the subject site will increase affordable housing inventory within the City of Carlsbad, and for the benefit of the Village Redevelopment Area, through the provision of seventy-five units of income and rent restricted apartment units for seniors only; and WHEREAS, per Section 15301 of the State CEQA Guidelines, the acquisition of the property is exempt from environmental review under CEQA because the acquisition will result in the continuation of an existing facility involving no expansion of use; and WHEREAS, the proposed project is consistent with the requirements of Section 1 of Article XXXIV of the California Constitution as related to a low rent housing project acquired by a state public body as a result of voter approval of Proposition X on November 4, 1980 which allows for a total of 250 units of senior low-income housing which has not yet been provided by the City; and WHEREAS, the Commission approves the expenditure of funds from the Carlsbad Redevelopment Agency’s Low and Moderate Income Housing Set-Aside Fund outside the Redevelopment Project Area for the purposes of acquiring seventy-five senior apartment units to create new affordable housing opportunities for the City of Carlsbad. NOW, THEREFORE, BE IT HEREBY RESOLVED, by the Housing and Redevelopment Commission of the City of Carlsbad, California, as follows: 1. 2. 3. 4. 5. The above recitations are true and correct. The Housing and Redevelopment Commission previously authorized the Housing and Redevelopment Director and the Community Development to negotiate and execute a purchase agreement for the property at 3363 Tyler Court for the purposes of providing affordable housing opportunities to lower senior households within the community. The Housing and Redevelopment Commission hereby APPROVES the acquisition of the property at 3363 Tyler Court by the Carlsbad Redevelopment Agency in the amount of five million dollars ($5,000,000) for the purposes of providing affordable housing to seventy-five (75) very low income senior households, subject to all terms and conditions set forth in the previously executed purchase agreement and related escrow instructions. The Housing and Redevelopment Commission hereby approves the expenditure of monies from the Carlsbad Redevelopment Agency’s Low and Moderate Income Housing Fund for the purposes of acquiring seventy-five units of rental housing to create new affordable housing opportunities for very low income senior households outside the Redevelopment Project Area, in which such funds are generated, and hereby finds that such expenditure for affordable housing purposes is and will be of benefit to the respective Project Area. The Housing and Redevelopment Commission authorizes the Redevelopment Agency’s Finance Director to appropriate and expend Low and Moderate Income Housing Funds in the maximum amount of one million six hundred thousand dollars ($1,600,000) for acquisition of the subject seventy-five (75) senior apartment units and related property located at 3363 Tyler Court. 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6. The Housing and Redevelopment Commission authorizes the Finance Director to amend the City’s 1999-2000 Capital Improvement Program budget to appropriate, and subsequently expend, three hundred sixty-seven thousand dollars ($367,000) in unappropriated interest earnings (for the 1993 Redevelopment Bond proceeds) for the Tyler Court Apartments acquisition. 7. The Housing and Redevelopment Commission authorizes the Finance Director to amend the City’s 1999-2000 Capital Improvement Program budget to delete the Redevelopment Roosevelt Block Project and reappropriate the previously approved funds in the amount of two hundred fifty-one thousand and seventy-seven dollars ($25 1,077) to the Tyler Court Apartment acquisition. The Redevelopment Roosevelt Block Project shall be re-established at a later date with a reappropriation of funds up to the originally approved amount of $25 1,077 from revenue generated as a result of annual operations of the Tyler Court Apartments or otherwise. 8. The Housing and Redevelopment Commission authorizes the Finance Director to amend the City’s 1999-2000 Capital Improvement Program budget to reduce the amount of funding appropriated to the Village Public Parking Enhancement Program to two hundred forty-two thousand dollars ($242,000) and reappropriate the remaining six hundred fifty-eight thousand dollars ($658,000) in Redevelopment Bond Funds to the Tyler Court acquisition. The Village Public Parking Enhancement Program shall be reimbursed funds up to a maximum of the originally approved amount of $900,000 through future appropriations of revenue generated as a result of annual operations of the Tyler Court Apartments or otherwise. 9. The Housing and Redevelopment Commission authorizes the Redevelopment Agency’s Executive Director, or designee, to enter into an agreement with the City of Carlsbad for a loan in the maximum amount of nine hundred forty-eight thousand nine hundred twenty three dollars ($948,923), and authorizes the Finance Director to appropriate and expend those loan proceeds for the acquisition of the subject senior apartment units by the Redevelopment Agency. 10. The Housing and Redevelopment Commission authorizes the Agency’s Executive Director to establish a repayment plan for the loan set forth in #9 above which approves the use of, all or a portion of, future deposits to the Low and Moderate Income Housing Fund and/or proceeds from the future sale of the proposed project to an affordable housing developer/manager, if deemed appropriate at a later date. 11. The Low and Moderate Income Housing Funds, the Redevelopment Bond Proceeds and the City of Carlsbad Loan proceeds will be used in combination with Federal Home Investment Partnership Program Funds (HOME) and City of Carlsbad Housing Trust Funds to finance the acquisition of the subject property for very low income affordable housing purposes. 12. The Housing and Redevelopment Commission authorizes the Redevelopment Agency’s Executive Director, or designee, to execute all appropriate acquisition documents subject to prior approval of the City Attorney. 13. The Housing and Redevelopment Commission authorizes the City Clerk of the City of Carlsbad to execute the Certificate of Acceptance of the Deed for the subject property, upon preparation by the Escrow Officer and on behalf of the Redevelopment Agency. 3 7 8 9 10 11 12 13 14 15 16 17 18 23 24 25 26 27 28 14. Upon completion of the purchase transaction, the Redevelopment Agency shall own the subject property until such time as subsequent action is taken by the Housing and Redevelopment Commission to approve a change in ownership, if determined to be appropriate for long-term operation of the subject project. The Redevelopment Agency is authorized to immediately solicit proposals for contract management of the subject property by a non-profit organization. 15. Upon the date on which the Redevelopment Agency assumes ownership of the subject property, the Housing and Redevelopment Commission approves limitations on future operation of the apartment project with restrictions on incomes and rental rates. The Commission shall require that no less than 50% of the units be affordable to households at 30% or less of the Area Median Income and the remaining units shall be affordable to households at 50% or less of the Area Median Income. These restrictions shall remain on the property for the life of the project which shall be a minimum of thirty (30) years. PASSED, APPROVED AND ADOPTED at a regular meeting of the Housing and Redevelopment Commission of the City of Carlsbad, California held on the 20th day of July, 1999, by the following vote, to wit: AYES: Lewis, Finnila, Nygaard, Kulchin NOES: None ABSENT: Hall ABSTAIN: None West: 4