HomeMy WebLinkAbout2014-10-21; City Council; Resolution 2014-243RESOLUTION NO. 2014-243
1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A GRANT OF FEDERAL COMMUNITY
2 DEVELOPMENT BLOCK GRANT FUNDS OF $454,000 AND A LOAN
OF $2,646,000 TO ACQUIRE AN EXISTING 16-UNIT APARTMENT
COMPLEX AT 945 CHESTNUT AVENUE, FOR THE PURPOSE OF
4 PROVIDING LOWER INCOME AFFORDABLE HOUSING TO
HOMELESS FAMILIES.
5 APPLICANT: SOLUTIONS FOR CHANGE
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WHEREAS, Solutions for Change (non-profit organization) has proposed to
acquire and rehabilitate 16 rental apartment homes and convert them to rent-restricted
affordable housing for lower income households at 945 Chestnut Avenue in the historic Barrio
neighborhood of the Village Area within the northwest quadrant of the City of Carlsbad as a
11 voluntary transaction and with no threat of condemnation; and
12 WHEREAS, Solutions for Change has requested that the City of CaHsbad provide
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financial assistance in the form of an acquisition grant and/or loan up to $3.1 million to assist in
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the acquisition and rehabilitation of an existing apartment complex within the City of Carisbad
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that will be converted to a rent-restricted development affordable to lower income households
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YJ to accommodate homeless families that graduate from the Solutions for Change University,
18 assisting in the effort to provide a permanent solution to family homelessness; and
1^ WHEREAS, the public benefits of the proposed project include: a) physical
enhancement of an aesthetically declining apartment complex within the historic Barrio
neighborhood ofthe Village area; b) interior rehabilitation of existing rental homes to improve
livability for lower income residents; c) diversity of housing opportunities for lower income
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24 households and more specifically homeless families; d) additional 16 units to count as
25 affordable housing within the city for lower income households; and e) meet a program goal
within the City of Carlsbad's Housing Element and Consolidated Plan (for the CDBG program) by
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1 providing permanent housing and services to a special needs population - homeless families;
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and
WHEREAS, on the 11th day of September, 2014 the City of Carisbad Housing
Commission did hold a public meeting to consider the request from Solutions for Change for
city financial assistance for the acquisition of said existing apartment complex which provides
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7 for 16 rental apartment homes to be converted to permanent affordable housing for homeless
8 families graduating from the Solutions for Change University, and subsequently recommended
^ approval of the request for financial assistance to the City Council; and
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WHEREAS, the City Council did hold, on the date of this resolution, a public
meeting to consider said request from Solutions for Change for city financial assistance for the
acquisition of the existing 16 home rental apartment complex at 945 Chestnut Avenue for
14 lower income affordable housing purposes for homeless families graduating from the Solutions
15 University; and
•1^ WHEREAS, at said public meeting, upon hearing and considering all testimony, ff
any, of all persons desiring to be heard, said City Council considered all factors relating to the
request for financial assistance; and
WHEREAS, the City Council hereby approves financial assistance to Solutions for
21 Change in the form of a grant in the total amount of $454,000 in federal Community
22 Development Block Grant funds and a loan in the total amount of $2,646,000 from the city's
Housing Trust Fund for the purposes of purchasing an existing 16 apartment complex located at
945 Chestnut Avenue within the historic Barrio neighborhood ofthe Village Area within the City
of Carisbad to provide for permanent affordable housing for homeless families graduating from
1 Solutions University and thereby helping to solve family homelessness in the northern San
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Diego County area.
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
1. The above recitations are true and correct.
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7 2. The request for city financial assistance will assist Solutions for Change to
8 acquire an existing apartment complex providing for a total of 16 one and two bedroom rental
^ homes located at 945 Chestnut Avenue for the purpose of providing permanent affordable
homes for homeless families who have graduated from Solutions University. The project,
therefore, has the ability to uniquely and effectively serve the city's housing needs and
priorities as expressed in the Housing Element and the Consolidated Plan. The property will be
14 acquired by Solutions for Change through a voluntary private transaction, and under no threat
15 of condemnation
3. That the City Council authorizes the City Manager and Housing and
Neighborhood Services Director, in coordination with the City Attorney, to prepare all grant and
loan documents related to provision ofthe city financial assistance in the form of a grant in the
amount of $454,000 of federal Community Development Block Grant funds and a loan in the
21 amount of $2,646,000 to fund the acquisition of the apartment complex at 945 Chestnut
22 Avenue by Solutions for Change to provide permanent affordable housing for homeless families
in Carisbad and North San Diego County.
4. That the City Council authorizes the City Manager, or designee, to
execute the grant and loan documents as well as subsequent agreement(s) subordinating the
1 city's Regulatory Agreement and Deed of Trust to the Deed of Trust for acquisition and
2 rehabilitation and permanent lenders, as required, subject to review and approval by the City
Attorney, and subject to the City Manager finding that no other financing that does not require
subordination is reasonably available.
5. That the City Council authorizes the Housing and Neighborhood Services
7 Department to complete the Request for Release of Funds process, \f necessary and
8 appropriate, as set forth by the US Department of Housing and Urban Development for the
^ CDBG funds to be used for the acquisition of the subject property by Solutions for Change, and
the Administrative Services Director to appropriate and disburse the grant and loan proceeds
(from the CDBG Fund and Housing Trust Fund) as set forth within this approval in the total
amount of $3,100,000, and appropriately account for the grant and the loan to Solutions for
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14 Change for the subject affordable housing project, and as set forth in the approved grant and
15 loan documents.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 21st day of October 2014, by the following vote to wit:
AYES: Council Members Hall, Schumacher, Blackburn.
NOES: Council Member Packard.
ABSENT: Council Member Wood.
r2i :4t
MATT HALL, Mayor
ATTEST:
BARBARA ENGLESON erk
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