HomeMy WebLinkAbout2012-10-16; Housing Commission; Resolution 2012-0061 ^RESOLUTION-NO 2012^006
2 A RESOLUTION OF THE HOUSING COMMISSION OF THE CITY
OF CARLSBAD, CALIFORNIA, TO RECOMMEND CITY COUNCIL
3 APPROVAL OF A RESIDUAL RECEIPTS LOAN AND
APPROPRIATION OF HOUSING TRUST FUNDS IN THE AMOUNT
OF $7,408,000 TO PROVIDE FINANCIAL ASSISTANCE TO THE
PARTNERSHIP OF C&C DEVELOPMENT AND IRVINE HOUSING
OPPORTUNITIES FOR THE ACQUISITION AND
6 REHABILITATION OF FORTY-TWO (42) RENTAL UNITS TO BE
RESTRICTED FOR 'LOW INCOME AFFORDABLE HOUSING
7 WITHIN THE NORTHWEST QUADRANT OF THE CITY OF
CARLSBAD
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10 WHEREAS, C&C Development and Irvine Housing Opportunities (IHO) have partnered
1 ^ and have proposed to acquire and substantially rehabilitate 2\ duplex (42 total) rental residential
'2 units and convert them to rent restricted affordable housing for lower income households on
Harding Street Carol Place and Magnolia Avenue in the historic Barno neighborhood of the
Village Area within the Northwest Quadrant of the City of Carlsbad and
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APPLICANT C&C DEVELOPMENT AND IRVINE HOUSING OPPORTUNITIES
WHEREAS, C&C Development and IHO have requested that the City of Carlsbad
provide financial assistance in the form of an acquisition and rehabilitation/construction loan that
will convert to a residual receipts permanent loan to assist in the development of a new
J 9 affordable housing rental complex within Carlsbad and
20 WHEREAS the public benefits of the proposed project include physical enhancement of
21 a deteriorating neighborhood in the historic Bamo neighborhood of the Village area
22 rehabilitation of existmg dwelling units to improve livability for the residents diversity of
housing opportunities for lower income households and additional units to count for affordable
housing development for the City of Carlsbad s Housing Element and
WHEREAS, the proposed acquisition and rehabilitation project will also encourage
future new development and upgrading of the neighborhood further as well as providing for
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public meeting to consider the request for City financial assistance for the acquisition and
substantial rehabilitation of said 42 lower income restricted affordable housing apartment units
by the affordable housmg developer partnership of C&C Development and IHO and
WHEREAS at said public meeting upon hearmg and considering all testimony if any
of all persons desiring to be heard, said Housing Commission considered all factors relating to
desirable amenities to support economic development (micro enterpnse loans to residents for
2 new businesses) and encouraging a sustainable community (community garden)
3 WHEREAS on the 16th day of October, 2012 the Housing Commission did hold a
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IQ the request for financial assistance and
11 WHEREAS the Housing Commission has approved a recommendation to the City
12 Council to approve a residual receipts loan and the appropriation and expenditure of $7 408 000
from the Housing Trust Fund for the purposes of providing loan proceeds to assist in the
acquisition and substantial rehabilitation of 42 low income senior-restricted units of rental
housing for very low and low income persons/families to the partnership of C&C Development
and IHO
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council ofthe City
of Carlsbad, California as follows
1 The above recitations are true and correct
21 2 The request for City financial assistance is consistent with the goals and objectives of
the City of Carlsbad s Housing Element Consolidated Plan and the Carlsbad General
22 Plan
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3 The request for City financial assistance will assist the affordable housing developer
24 to acquire and rehabilitate a total of 42 two bedroom low income restricted affordable
apartment units The project therefore, has the ability to effectively serve the City s
25 housing needs and priorities as expressed in the Housing Element and the
Consolidated Plan
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1 4 That the Housm^g=CommjSSionjecommends=thatJheXity Council authorize the City
Manager or designee including the Housing and Neighborhood Services Director m
2 coordination with the City Attomey to negotiate and prepare for City Manager
2 execution all loan documents related to provision of the City financial assistance to
fund the subject residual receipts acquisition/rehabilitation/permanent loan to the
4 partnership of C&C Development and Irvine Housing Opportunities for development
--^—=of the subject-low^mcome-restncted-affordable-housmg-project through acquisition
5 and rehabilitation
6 5 That the Housing Commission recommends that the City Council authorize the City
Manager or designee to execute subsequent subordination agreement(s)
^ subordinating the City s Regulatory Agreement and Deed of Trust to the Deed of
g Trust for acquisition and rehabilitation/construction and permanent lenders as
required subject to review and approval by the City Attomey and subject to the City
9 Manager finding that no other financing that does not require subordination is
reasonably available
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That the Housing Commission recommends that the City Council authorize the
^ I „J: Finance Director to appropriate and expend the loan proceeds as set forth within this
approval in the total amount of $7 408 000 and appropriately account for the residual
receipts construction/permanent loan to the partnership of C&C Development and
12 Irvine Housing Opportunities for the subject affordable housing project and as set
forth in the approved loan documents
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1 PASSED, APPROVED, AND ADOPTED at a specialjneeting of the Housing
2 Commission of the City of Carlsbad California held on the 16th day of October 2012 by the
3 following vote to wit
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ATTEST
5 AYES Smith Kirk Igoe, Bradwell
6 NOES None
7 ABSENT Andrews
8 ABSTAIN None
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-15 Debbie Fountain Housing and Neighborhood Services Director
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19 (SEAL)
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