HomeMy WebLinkAbout2007-03-20; Housing & Redevelopment Commission; Resolution 4351 RESOLUTION NO. 435
2 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT
COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, TO
3 APPROPRIATE REDEVELOPMENT AGENCY HOUSING SET-
4 ASIDE FUNDING IN THE AMOUNT OF $1,014,000 TO ASSIST IN
PROVIDING FINANCIAL ASSISTANCE TO CHELSEA
5 INVESTMENT CORPORATION FOR CONSTRUCTION OF
SEVENTY EIGHT (78) AFFORDABLE APARTMENT UNITS WITHIN
6 THE NORTHEAST QUADRANT OF THE CITY OF CARLSBAD AND
OUTSIDE THE REDEVELOPMENT PROJECT AREA(S).
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APPLICANT: CHELSEA INVESTMENT CORPORATION
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CASE NO: SDP 06-04
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10 WHEREAS, Chelsea Investment Corporation has proposed to construct 78 apartment units
11 affordable to lower and moderate income households on Cannon Road in the Northeast Quadrant of the
12 City of Carlsbad, which is located outside the boundaries of the Redevelopment Plan areas (Village and
13 South Carlsbad Coastal Redevelopment Project Areas); and
14 WHEREAS, Chelsea Investment Corporation has requested that the Carlsbad Redevelopment
15 Agency provide financial assistance in the form of a construction and/or permanent loan to assist in the
16 construction of said apartment units; and
17 WHEREAS, the Redevelopment Agency of the City of Carlsbad, hereinafter referred to as
18 "Agency", is a Community Redevelopment Agency organized and existing under the Community
19 Redevelopment Law, Health and Safety Code Section 33000, etc.seq., hereinafter referred to as the "Act",
20 and desires to assist in the financing of said project to be developed by Chelsea Investment Corporation;
21 and
22 WHEREAS, the Agency is authorized to implement the Redevelopment Plan for the Carlsbad
23 Village Redevelopment and South Carlsbad Coastal Redevelopment Project Areas; and
24 WHEREAS, Section 33334.2 of the Act requires that not 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
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1 WHEREAS, pursuant to Section 33334.2 of the Act, the Legislature declares its intent that the
2 Low and Moderate Income Housing Set-Aside Fund shall be used to improve and increase the supply of
3 affordable housing within the community; and
4 WHEREAS, to carry out the purposes of increasing and improving the community's supply of
5 low and moderate income housing, Section 33334.2(e) of the Act states that the Agency may exercise any
6 or all of its powers, including without limitations, acquiring land or building sites, improving land or
7 building sites with onsite or offsite improvements, donating land to private or public persons or entities,
8 constructing buildings or structures, acquiring buildings or structures, providing subsidies to, or for the
9 benefit of, very low income households, lower income households, or persons or families of low and
10 moderate income, or other powers to carry out the purposes of the Act; and
WHEREAS, pursuant to Section 33334.2(g) (1) of the Act, the Agency may use said funds
outside the project area(s) upon a resolution of the Agency and the Legislative body that the use will be of
1 •> benefit to the project area(s); and
WHEREAS, on the 11th day of January, 2007, City of Carlsbad Housing Commission did hold a
public meeting to consider a request for Agency financial assistance for the construction of said 78
affordable housing apartment units by the affordable housing developer, Chelsea Investment Corporation,
and subsequently recommended approval of the request for assistance; and
18 WHEREAS, the Housing and Redevelopment Commission did hold, on the date of this
19 resolution, a public meeting to consider said request for Agency financial assistance for the construction
20 of said 78 affordable housing apartment units by the affordable housing developer, Chelsea Investment
21 Corporation; and,
22 WHEREAS, at said public meeting, upon hearing and considering all testimony, if any, of all
23 persons desiring to be heard, said Housing and Redevelopment Commission considered all factors
24 relating to the application and request for financial assistance; and,
25 WHEREAS, the Housing and Redevelopment Commission approved the appropriation and
26 expenditure of $1,014,000 from the Low and Moderate Income Housing Set-Aside Fund outside the
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1 Redevelopment Project Areas for the purposes of providing loan proceeds to assist in the financing of
2 construction of 78 units of rental housing for very low, low and moderate income persons/families to
3 Chelsea Investment Corporation.
4 NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing and Redevelopment
5 Commission of the City of Carlsbad, California, as follows:
6 1. The above recitations are true and correct.
7 2. The request for Agency financial assistance is consistent with the goals and objectives of
the City of Carlsbad's Housing Element and Consolidated Plan, the Carlsbad General
8 Plan, and the Redevelopment Plans for the Village Area and South Carlsbad Coastal
Redevelopment Project Areas.
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3. The request for Agency financial assistance will assist the affordable housing developer
10 to construct a total of 78, one, two and three bedroom affordable apartment units. The
project, therefore, has the ability to effectively serve the City's housing needs and
11 priorities as expressed in the Housing Element and the Consolidated Plan as well as meet
the housing needs for the Redevelopment Project Areas in the City of Carlsbad.
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4. That the expenditure of monies from the Low and Moderate Income Housing Fund for
13 the purposes of funding a construction and/or permanent loan to Chelsea Investment
Corporation, for an affordable housing project containing 78 rental units outside the
14 Redevelopment Project Area(s), in which such funds are generated, are and will be of
benefit to the respective Project Area(s) based on the following findings:
1 , a. The Village Redevelopment Area currently consists of a number of restaurants,
hotels, time-share projects and small retail operations which depend on and offer
-. 7 employment at low to moderate income wages. The proposed housing project offers
affordable housing opportunities with restricted rents affordable to moderate, low and
-, Q very low income households. These type of restricted rental housing units will be
beneficial to the employees working within the Village Redevelopment Area.
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20 b. The South Carlsbad Coastal Redevelopment Area is proposed to have several new
restaurants, hotels, time-share projects and small retail operations which will also
21 depend on and offer employment at low to moderate income wages. The proposed
housing project will assist in providing affordable housing opportunities for those
22 employees and ultimately benefit the project area by providing an employee pool
which is located in close proximity to the project area.
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24 c. The proposed project is located on bus routes and connects to major transportation
corridors which will allow direct access to the Village and South Carlsbad Coastal
25 Redevelopment Project Areas. The households residing within the proposed project
will be able to take advantage of the public transportation systems which will allow
26 them to work and shop in the Village Redevelopment Area and ultimately in the
South Carlsbad Coastal Redevelopment Area as well. This will have a significant
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1 impact on the Redevelopment Agency's efforts to revitalize the both the Village and
South Carlsbad Coastal Redevelopment Project Areas.
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5. That the Low and Moderate Income Housing Set-Aside Funds will promote the City of
3 Carlsbad's housing goals and satisfies specific requirements of the Community Redevelopment
Law to expend a portion of its tax increment to produce affordable housing opportunities for low
4 and moderate income persons.
5 6. That the expenditure of the subject Low and Moderate Income Housing Set-Aside Funds to
provide financial assistance to the subject project in the form of a residual receipts loan in the
6 total amount of $1,014,000 is consistent with the Village and South Carlsbad Coastal
Redevelopment Areas Low and Moderate Income Housing Set-Aside Spending Strategy/Plans.
_ 7. That the Housing and Redevelopment Commission authorizes the Agency's Executive Director
or his/her designee to execute all documents related to provision of the Agency assistance to fund
Q the subject residual receipts construction/permanent loan to Chelsea Investment Corporation for
development of the subject affordable housing project.
10 8. That the Housing and Redevelopment Commission authorizes the Agency's Executive Director
j 1 or his/her designee to execute subsequent subordination agreement(s) subordinating the Agency's
Regulatory Agreement and Deed of Trust to the Deed of Trust for construction and permanent
12 lenders, as required, subject to review and approval by the Agency's General Counsel and/or
Special Legal Counsel, and subject to the Executive Director's finding that no other financing
13 that does not require subordination is reasonably available.
14 9. That the Housing and Redevelopment Commission authorizes the Finance Director to appropriate
and expend the funds set forth within this approval to provide the proceeds ($1,014,000) for the
15 residual receipts construction/permanent loan to Chelsea Investment Corporation for the subject
affordable housing project, and as set forth in the approved loan documents.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the Housing and
Redevelopment Commission of the City of Carlsbad on the 20th day of March, 2007, by
the following vote:
AYES: Commission Members Lewis, Hall, Packard
NOES: None.
ABSENT: Commission Member Kulchin
, Chairman
ATTEST:
RAYMOND R. PATCHETT, secretary
(SEAL)
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