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HomeMy WebLinkAboutRA004-2011 Affordable Housing-24 Unitsa,D I I -fig FINANCING CONTRACT PRODUCTION OF 24 AFFORDABLE HOUSING UNITS THIS FINANCING CONTRACT ("Contract") is made and entered into this 14th day of January, 2011 by and between the CITY OF ATASCADERO, a general law city and municipal corporation ("City") and the COMMUNITY REDEVELOPMENT AGENCY OF ATASCADERO, a public body, corporate and politic ("Agency") Hereinafter, City and Agency shall be referred to collectively as the "Parties" and singularly as the "Party " RECITALS WHEREAS, the City Council previously adopted a Redevelopment Plan (the "Redevelopment Plan") for a redevelopment project area (the "Project Area"), and, WHEREAS, the Agency is vested with responsibility pursuant to the Community Redevelopment Law (Part 1 of Division 24 of Health and Safety Code of the State of California) (the "Law") to implement the Redevelopment Plan both within and without the Project Area, and, WHEREAS, Sections 33000 et. seq of the Law states that one of the fundamental purposes of redevelopment is to increase and improve the community's supply of low and moderate income housing, and, WHEREAS, the Law requires that 20% of the tax increment revenues received by the Agency be placed in a Low and Moderate Income Housing Fund ("LMIHF") The LMIHF funds are to be used to increase, improve and preserve the supply of low and moderate income housing in the Project Area and within City limits (H&S 33334.2), and, WHEREAS, The Agency must replace low and moderate income housing that is removed as a result of a redevelopment project (the replacement rule, H&S 33413(a)), and, WHEREAS, 15% of all housing constructed in a redevelopment project area must be affordable to low and moderate -income persons and families (the inclusionary rule, H&S 33413(b)), and, WHEREAS, the Law requires that each redevelopment agency shall adopt a Housing Production Plan, in conjunction with its Implementation Plan, which is consistent with the governing General Plan Housing Element. In addition, Sections 33413 5 and 33334 5 require replacement housing plans for any units that will be demolished within the Project Area, and, WHEREAS, since the Housing Production Plan's adoption, 183 market rate residential dwelling units have been constructed within the Redevelopment Agency Project Area, which requires that 28 low to moderate income units be provided (11 very low income units and 17 low / moderate income units), and, WHEREAS, the Agency has sponsored the production of four (4) very low income units within the Project Area, which leaves a remaining obligation to produce twenty-four (24) additional affordable housing units (the "Project"), and, WHEREAS, the Project conforms to the General Plan of the City; and, WHEREAS, the Agency is authorized by the California Redevelopment Law to enter into a binding contract with the City pursuant to which the Agency will irrevocably commit the LMIHF funds to the Project and due to the Agency's previous commitment to the Project the Agency intends to provide funding in the amount of $5,543,800 00 ("the LMIHF Funds") to assist the City with the cost of the Project because the Project will directly benefit the Project Area, and, WHEREAS, the City provides a full staff of planning, construction and finance professionals, who are experienced in the planning, financing and construction of affordable housing projects, and, WHEREAS, pursuant to Section 33334 3 of the Law, the Agency may use LMIHF funds to pay for services provided through interagency agreements, including usual indirect costs related thereto for the purpose of producing affordable housing units, and, WHEREAS, a duly noticed public meeting of the Agency was held on January 14, 2011 wherein the Agency adopted Resolution No RA 2011-004 making all required findings for the use of the LMIHF Funds for the Project pursuant to Section 33445 NOW, THEREFORE, the Parties hereto state and agree as follows 1 The purpose of this Contract is to set forth the understanding and agreement of the Parties with respect to the Agency's commitment to fund the Project through reimbursement of the City's share of Project costs, up to a defined amount. The contents of this Contract are intended to be as comprehensive as possible with respect to the Agency's commitment of LMIHF Funds (as defined in paragraph 3 of this contract) to the Project yet not exhaustive with respect to additional issues and expenses that may arise relative to the development of the Project. In the event that issues and expenses occur that are not identified in this Contract, the Parties agree to work together in good faith to resolve each matter 2 The Agency anticipates that the Project will address the goals and objectives of the Redevelopment Plan for the Project Area and will be of benefit to the Project Area by increase, improving and preserving the supply of low and moderate income housing in the Project Area and within City limits The Agency has agreed to commit a total sum of five million five hundred forty-three thousand eight hundred dollars and no cents ($5,543,800 00) ("LMIHF Funds") to the Project to pay for the Project's direct benefit to the Project Area. 3 Within thirty (30) business days of the Parties executing this Contract, Agency shall segregate the sum of five million five hundred forty-three thousand eight hundred dollars and no cents ($5,543,800 00) within the Agency's accounts to be held in a separate account ("LMIHF Account") to pay the Project costs. The Agency Funds shall be held in the LMIHF Account until 2 months from the latest of the date the project is completed or the date of the final invoice The City shall request reimbursement from the Agency for Project costs actually incurred and the Agency shall reimburse the City from the LMIHF Funds from the LMIHF Account. 2 4 In contemplation of the provisions of Section 895.2 of the California Government Code imposing certain tort liability jointly upon public entities solely by reason of such entities being Parties to an agreement as defined in Section 895 of said code, the Parties hereto, as between themselves pursuant to the authorization contained in Sections 895.2 and 895 6 of said code, will each assume the full liability imposed upon it or any of its officers, agents or employees by law for personal injury, property damage or loss to third Parties caused by a negligent or wrongful act or omission of that party occurring in the performance of the Contract. To achieve the above stated purpose, each party indemnifies and holds harmless the other party for any damage, loss, cost or expense arising out of its own negligent or wrongful acts or omissions 5 These obligations, as set forth herein, are binding on the successors, assigns or heirs, including any private or public entities, of both parties. 6 This Contract shall be governed by the laws of California and represents the entire agreement of the Parties as to the subject matter of this Contract. IN WITNESS WHEREOF, the City and Agency have approved the foregoing FINANCING CONTRACT effective January 14, 2011, and caused the same to be executed by their duly authorized officers as set forth below AGENCY Ic BY C' %�WW Wade G McKinney Executive Director ATTEST By•LRPI A Marcia McClure Torgerson, C.M.C. Board Secretary Date 1 —� Community Redevelopment Agency of Atascadero By - Brian A. Pierik, Agency General Counsel CITY n 61- 4By' UJ�J�- Wade G McKinney City Manager ATTEST By- (�-- �/'/ LU te t /T111— Marcia McClure Torgerson, C.M.0 City Clerk Date j J —% APPROVED AS TO FORM City of Atascadero -4- 1&'11 Brian A. Pierik, City Attorney