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HomeMy WebLinkAbout1996-05-09; Housing Commission; Resolution 96-0051 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 COMMISSION RESOLUTION NO. 96-005 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA TO RECOMMEND TO THE CITY COUNCIL THE APPROVAL OF AN APPROPRIATION OF $200,000 FROM THE HOUSING TRUST FUND TO PROVIDE FINANCIAL ASSISTANCE TO THE AFFORDABLE HOUSING PROJECT KNOWN AS THE LAUREL TREE APARTMENTS PROJECT WHEREAS, on June 28, 1994, the Housing and Redevelopment Commission approved a financial commitment of $500,000 of redevelopment housing set-aside funds to the Laurel Tree Apartment project conditioned upon the project receiving the necessary land use approvals and other financing; and WHEREAS, on December 1 1 , 1995, the Laurel Tree Apartment project received necessary local entitlements from the City of Carlsbad; and WHEREAS, on April 11, 1996, the Laurel Tree Apartment project received necessary land use approvals from the California Coastal Commission; and WHEREAS, the Laurel Tree Development Team is preparing to apply for a Low-Income Housing Tax Credit to finance the Laurel Tree Apartment project; and WHEREAS, to be highly competitive in the application process to obtain the Low-Income Housing Tax Credit necessary to finance the Laurel Tree Apartment project, the Laurel Tree Development Team must take actions to enhance the affordability of the subject project; and WHEREAS, to improve the affordability of the Laurel Tree Apartment project, the project will require an additional cash infusion of $1 million; and WHEREAS, the Laurel Tree Development Team has obtained an additional commitment of financing in the amount of $500,000 from private developers and $300,000 from the Tax Credit Investor; and 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, the Laurel Tree Development Team has an additional need for $200,000 in financial assistance and is requesting this assistance from the City of Carlsbad; and WHEREAS, the Laurel Tree Development Team has offered to convey the property for the Laurel Tree Apartment project to the City of Carlsbad as a condition of the financial assistance agreement between the City and the Laurel Tree Development Team and then lease the property back from the City for the purposes of project operations; and WHEREAS, the Housing Commission believes that the City's financial participation in the Laurel Tree Apartment project will be a sound investment based on the high leverage of City funds to private funds in producing 138 units of affordable housing for the City of Carlsbad. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1. The above recitations are true and correct. 2. That the use of $200,000 from the Housing Trust Fund, together with the previously approved, commitment of $500,000 from the Redevelopment Housing Set-Aside Fund, will promote the City of Carlsbad's housing goals through the production of 138 affordable apartment units within the Laurel Tree Apartment project. 3. That any commitment of City financial assistance is conditioned on the Laurel Tree project obtaining all other necessary financing and approvals. 4. The Housing Commission recommends to the City Council that the City Manager, or his designee, upon consultation with the City Attorney to execute documents required for the appropriation of $200,000 from Housing Trust Fund, as well as the previously approved $500,000 from the Redevelopment Housing Set-Aside Fund, to the Laurel Tree HC RES0 NO. 96-005 -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 Apartment project to financially assist in the production of 138 affordable housing units and to convey the property for the Laurel Tree Apartments to the City of Carlsbad which will then be leased back to the Laurel Tree Development Team. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing Commission of the City of Carlsbad, California, held on the 9th day of May, 1996, by the following vote, to wit: AYES: Chairperson Calverley, Commissioners: Michael Schlehuber, Ofelia Escobedo, Bailey Noble, Bob Rose, Cheri Sat0 and Kathleen Wellman. NOES: None. ABSENT: Commissioner ABSTAIN: None. ATTEST: EVAN E. BECKER Housing and Redevelopment Director HC RES0 NO. 96-005 Scarpelli. -3-