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HomeMy WebLinkAboutCC Res 4992 2002-03-25 RESOLUTION NUMBER M:L A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH FINDING THAT THE USE OF TAXES FROM THE RIVERFRONT REDEVELOPMENT PROJECT AREA FOR THE RENOV AnON OF AN APARTMENT COMPLEX LOCATED AT 1119 OCEAN A VENUE AND THE PROVISION OF LOW- AND MODERATE-INCOME HOUSING OUTSIDE THE BOUNDARIES OF THE RIVERFRONT REDEVELOPMENT PROJECT AREA WILL BE OF BENEFIT TO THE RIVERFRONT REDEVELOPMENT PROJECT AREA I THE CITY COUNCIL OF THE CITY OF SEAL BEACH HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section I. The Redevelopment Plan for the Riverfront Redevelopment Project (the "Project Area") of the Redevelopment Agcncy of the City of Seal Beach (the "Agency'') was approved and adopted by Ordinance No. 780 of the City Council of the City of Seal Beach (the "City Council") on March 3, 1969, and has been amended from time to time. I Section 2. California Health and Safety Code Section 33334.2 requires that a redevelopment agency use a minimum of twenty percent (20%) of all taxes which are allocated to the agency pursuant to Section 33670 for the purposes of increasing, improving, and preserving the community's supply of low- and moderate-income housing available at affordable housing cost to persons and families of very low, lower and moderate income, as those tenns are defined in the Community Redevelopment Law (Health and Safety Codc Section 33000, et sca.). The Agency is therefore obligated by law to spend at least 20% of its tax increment monies to increase, improve, and preserve the supply of affordable housing within its community. Section 3. The Agency has received a letter proposal from a local developer to requesting financial assistance from the Agency in connection with the rehabilitation and rental subsidy program for three units in an existing four-unit apartment building located at 1119 Ocean Avenue, Seal Beach, California (the "Property"), which is currently in a state of disrepair. The proposal consists of both rehabilitation assistance and rental assistance, in an amount not to exceed $400,000.00, to be provided to the developer from the Agency's Housing Set-Aside Funds for the Project Area. An amount not exceeding $150,000.00 will be used to rcimburse the developer for the costs of renovating the three units to be restricted as affordable rental housing. The remaining amount, not to exceed $250,000.00, will be used for rental assistance in the form of rent subsidies to be granted by the Agency directly to the owncr/landlord of the Property, on a monthly basis, over a minimum period of twenty-five (25) ycars. In exchange for Agency assistance, the Developer will cause onc of thc apartment units to remain available to lower income persons and two of the apartment units to remain available to low or moderate income persons at an affordable rent for a period of at least 55 years. 1 Section 4. The rehabilitation of the 4-unit apartment complex located on the Property, the conversion of 3 of these units into affordable housing units, one of which is to be restricted to persons and families of lower income and two of which are to Resolution NUmber ~..l. be restricted to persons and families of low or modm:ate income, and the provision of rental assistance in the form of rent subsidies (collectively, the "Project") qualifies as a project eligible to receive assistance trom the Agency's Low and Moderate Income Housing Fund because the developer's renovation of the Property will serve to increase and improve the supply of affordable rental housing within the City of Seal Beach. 1 Section 5. As the Property is located outside of the Project Area, certain findings must be made by both the Agency and the City Council of the City of Seal Beach (the "City Council"). California Health and Safety Code Section 33334.2(g) allows a redevelopment agency to use monies from its Low and Moderate Income Housing Fund outside the redevelopment project area only if both the Agency and the City Council adopt a resolution which makes a determination that the affordable housing project in question will benefit the project area. Therefore, the Agency and the City Council must each adopt a resolution making a finding that the renovation of the Property by the developer will benefit the Project Area. Section 6. The Agency has previously adopted a resolution approving the Project and authorizing and directing its Executive Director to negotiate and execute, on behalf of the Agency, redevelopment loan agreements in an amount not to exceed $400,000.00, in order to facilitate the Project. The Agency's resolution also makes the determination that the Project, although involving the redevelopment of Property located outside the boundaries ofthe Project Area, will benefit the Project Area. 1 Section 7. The renovation of the Property will constitute a benefit to the Project Area, as there are no currently existing multi-family rental housing located within the Project Arca, other than the Oakwood Apartments building which is not in need of rehabilitation assistance. Because there are no othcr multi-family developments within the Project Area, it is not possible to provide multi-family residcntial rehabilitation programs within this project area. The Property is located in an area immediately adjacent to the Project Area and is within walking distance of the Project Area. Due to the proximity of the Property to the Project Area, the rehabilitation of the apartment building on the Property by the developer will serve to increase the supply of affordable housing to residents of the Project Area and in this manner will benefit the Project Area as well as the surrounding 'Seal Beach community as a whole. PASSED, APPROVED, AND ADOPTED by the City C:2~he City of Seal Beach ~~ thereof held on the _ day of , 2002 by the following vote: Councilmemb ~ r AYES: NOES: Councilmember ABSENT: ABSTAIN: I ~~r-, Resolution NUmber ~~ STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Joanne M. Yeo, City Clerk of Seal Beach, California, do hereby certify that the foregoing resolution is the original copy ofRcsolution Number J/9tf:l. on file in the office of the City C erk, passed, approved, and adopted by the City Council of the 9!Y. of Seal Beach, at a mec' g thereof held on the ,,2 ~ ~ day of 2002. I I I