HomeMy WebLinkAboutRDA Res 02-1 2002-03-25
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RESOLUTION NUMBER t?r2 - /
A RESOLUTION OF THE REDEVELOPMENT
AGENCY OF THE CITY OF SEAL BEACH
AUTHORIZING THE EXECUTIVE DIRECTOR
TO NEGOTIATE AGREEMENTS IN AN
AMOUNT NOT TO EXCEED $400,000.00 TO
FACILITATE THE RENOVATION OF A FOUR-
UNIT APARTMENT BUILDING, AT 1119
OCEAN AVENUE; ESTABLISHING THREE OF
THE UNITS AS AFFORDABLE HOUSING; AND
FINDING THAT THE REHABILITATION OF
THE PROPERTY BENEFITS THE RIVERFRONT
REDEVELOPMENT PROJECT AREA
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THE REDEVELOPMENT AGENCY OF THE CITY OF
SEAL BEACH HEREBY FINDS, DETERMINES, RESOLVES AND
ORDERS AS FOLLOWS:
Section I. The Redevelopment Plan for the Riverfront Redevclopment
Project (the "Project Area") of the Redevelopment Agency 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.
Section 2. Califomia Health and Safety Code Section 33334.2 requires
that a redevelopment agency use a minimum of twcnty percent (20%) of all taxes which
are allocated to fue agency pursuant to Section 33670 for the purposes of increasing,
improving, and preserving fue 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 fue Community Redevelopment Law
(Health and Safety Code Section 33000, et sell.). The Agcncy is therefore obligated by law
to spend at least 20% of its tax incremcnt monies to increase, improve, and preservc fue
supply of affordable housing wifuin its community.
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Section 3. Thc Agency has received a letter proposal from a local
developer to requesting financial assistance from fue Agency in connection with the
rehabilitation and rental subsidy program for three units in an existing four-unit
apartment building located at 1119 Ocean Avenuc, Seal Beach, California (fue
"Property"), which is currently in a state of disrepair. The proposal consists of bofu
rehabilitation assistance and rental assistance from the Agency in an amount not to
exceed $400,000.00, to be provided to the devcloper from the Agency's Housing Set-
Aside Funds for the Project Area. An amount not exceeding $150,000.00, as a forgivable
loan, will be used to rcimburse the developer for thc costs of renovating the three units to
be restricted as affordable rental housing. The remaining amount, not to excecd
$250,000.00, will bc used for rental assistance in fue fonn of rent subsidies to be granted
by the Agency directly to tile owner/landlord of fue Property, on a monthly basis, over a
minimum period oftwcnty-five (25) years.
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Section 4. The rehabilitation of the 4-unit apartment complex located on
the Propcrty, the conversion of 3 of these units into aflordable housing units, one of
which is to be restricted to persons and families of lower income and two of which are to
be restricted to persons and families of low or moderate income, and the provision of
rental assistance in thc fOlm of rent subsidies qualifies as a project eligible to reccivc
assistance from fue Agcncy's Low and Moderate Income Housing Fund because - fue
developer's renovation of the Property will serve to increase and improve the supply of
affordable rental housing within the City of Seal Beach.
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Resolution Number 11.2-/
Section 5. Califomia Healtll and Safety Code Section 33334.2(e)(8)
allows a redevelopment agcncy, in carrying out its obligation to spend at least 20% of its
tax increment monies to increase, improve, and preservc the supply of affordable housing
within its community, to provide subsidies to or for the bcnefit of very low, lower and
moderate income households to the extent those households cannot obtain housing at
affordable costs on tile open market. As noted in tile provisions of tIIc housing clement
of tile City's General Plan, it is very difficult and impractical to obtain housing at
affordable costs on the open market in tile City of Seal Beach.
Scction 6. As the Property is located outside of tile Project Area, certain
findings must be made by both the Agency and the City Council. Califomia Healtll and
Safety Code Section 33334.2(g) allows a redevelopment agency to use monies from its
. Low and Moderate Income Housing Fund outside tile redevelopment project area only if
both the Agency and the City Council adopt a resolution which makes a detennination
tIIat the affordable housing project in question will benefit the project area. Therefore,
the Agency and tile City Council must each adopt a rcsolution making a finding that tile
rCl1ovation of the Property by the developer will benefit the Projcct Area.
Section 7. The renovation of the Property will constitute a benefit to thc
Project Area, as t1lere arc no currently existing multi-family rcntal housing located witllin
the Project Area, otller tIIan the Oakwood Apartmcnts building -which is not in need of
rehabilitation assistance. Because tIIere are no otllcr multi-family developments witllin
the Project Area, it is not possible to provide multi-family residential rehabilitation
programs witllin this project area. The Property is located in an arca immediately
adjacent to the Project Area and is witJlin walking distancc of the Project Area. Due to
thc proximity of the Propcrty to t1IC Project Area, tile rehabilitation of the apartmcnt
building on tile Property by the devcloper will serve to increase the supply of affordable
housing to residents of the Projcct Area and in tIIis manncr will benefit tile Projcct Area
as well as tile surrounding Seal Bcach community as a whole.
Scction 8. The Executive Director of the Agency is autllorized and
directed to ncgotiatc and execute, on behalf of tile Agency, agreements that will
implement botll rehabilitation assistance and rental assistance, in an amount not to exceed
$400,000.00, to be provided to the developer from tile Agency's Housing Set-Asidc
Funds for tIIc Project Area. . An amount not exceeding $150,000.00 will be used to
reimburse the developer for tIIc costs of rcnovating tile tIIree units to be restricted as
affordable rental housing on thc Property. The remaining amount, not to exceed
$250,000.00, will be used for rental assistance in thc fonn of rent subsidies to bc granted
by thc Agency dircctly to tile owner/landlord of the Property, on a montllly basis, over a
minimum period of twenty-five (25) years to provide three units of affordable rental
housing on tile Propelty.
Section 9. The Executive Director and/or any oUler autllorized officers
are further directed to take such actions, perform such dceds, and execute, acknowledge
and deliver such instruments and documents as it deems nccessary in connection
therewith, witll such changes therein as may be nccessary and as the Exccutive Director
may approve, in his or her discretion, as being in tile best interests of tile City, such
approval to be conclusively evidenced by the exccution and delivery tIIereof, in order to
effcctuate tile rehabilitation and redevelopment of the Property as dcscribed herein, and
to take such actions, perfonn such deeds, and exccute, acknowledge and deliver such
instruments and documents as it deems necessary in connection tIIerewith.
PASSED APPROVED AND ADOPTED by the RedevelopmllJ}t AgencY'oftlle City
of Seal B a meetin thereof held on tile ~'(!o day
of 2002, by tile following vote:
Resolution Number ()~... J
AYES:
Agencymem
NOES:
ABSENT:
ABSTAIN: Agencymembc
r
Chainnan
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Joanne M. Yeo, City Clerk ofSca1 Beach, California, do hereby certifY that the foregoing
resolution is the original copy of Resolution Number tJ.!1" / on file in the office of
the C't Clerk, passed, approved, and adopted by the Redevelopment A'iflCY of the City of
Seal a h, at a regular mceting thereof held on the a25 _ day of
,2002.
eM. Yeo, City Cler ecretary
c Bcach Redevelopment Agency
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