HomeMy WebLinkAboutRDA Reso 03-2008
RESOLUTION NO. 03-2008
REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO,
STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING EXECUTION OF A LOAN
AGREEMENT WITH PENINSULA HABITAT FOR
HUMANITY AND ADOPTING FINDINGS IN CONNECTION
WHEREAS, the Redevelopn1ent Agency of the City of South San Francisco ("Agency")
is a redevelopl11ent agency existing pursuant to the Con1n1unity Redevelopn1ent Law, California
Health and Safety Code Section 33000, et seq. (the "CRL"), and pursuant to the authority
granted thereunder, has the responsibility to cany out the Redevelopl11ent Plan ("Redevelopn1ent
Plan") for the Downtown/Central Redevelopl11ent Project Area ("Project Area "); and
WHEREAS, in 2005, the Agency authorized by resolution No. 15-2005 (i) execution of a
Disposition and Developn1ent Agreel11ent with Peninsula Habitat for Hun1anity, a California
nonprofit public benefit corporation ("Developer"), pursuant to which Agency agreed to transfer
that celiain real property located near the Project Area at 440 Con1n1ercial Avenue in South San
Francisco (the "Property") to Developer for the developn1ent on the Property of four (4) single
fal11ily hOl11es affordable to very 10w-incol11e households (the "Project"); and (ii) provision of a
loan to Developer in the principal an10unt of $33,780 (the "Loan") to defray the costs of
constructing the Proj ect; and
WHEREAS, the Agency and Developer have since negotiated a Loan Agreement ("Loan
Agreen1ent") and a PrOl11issory Note ("Note") substantially in the fon11s on file with the Agency
Secretary; and
WHEREAS, the Loan Agreen1ent and the Note provide, al110ng other things, that (i)
disbursen1ent of the proceeds of the Loan to Developer is conditioned upon the sale of the 4
single fan1ily hOl11es con1prising the Project to very 10w-incol11e households and the recordation
of a Resale Restriction Agreen1ent and Option to Purchase ("Agency Resale Restriction
Agreen1ent") against each such hon1e which (a) requires that each hon1e rel11ain affordable to
very low-incon1e households for a period of 55 years; and (b) grants the Agency an option to
purchase each such hOl11e upon the occurrence of certain events; and (ii) that the Loan will be
forgiven upon satisfaction of the foregoing conditions; and
WHEREAS, the Loan will be funded with n10nies fron1 the Agency's Low and Moderate
InCOl11e Housing Fund ("Housing Fund") to facilitate developl11ent and construction of affordable
housing which will benefit the Project Area; and
WHEREAS, pursuant to Section 33334.2 of the CRL, the Agency n1ay use Housing Fund
n10nies outside of the Project Area provided that the Agency Board and the City Council find
that the use will be of benefit to the Project Area; and
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WHEREAS, the City Council has adopted a resolution finding that use of Housing Fund
1110nies to acquire the Property will be of benefit to the Project Area because the Project will
provide affordable housing; and
WHEREAS, the Developer will provide the purchasers of each hOl11e cOl11prising the
Project with a first n10rtgage loan; and
WHEREAS, Developer has requested the Agency to subordinate the Agency Resale
Restriction Agreel11ent; and
WHEREAS, Section 33334.14 of the CRL pen11its subordination of the Agency Resale
Restriction Agreel11ent provided that the Agency 111akes a finding that an econon1ically feasible
alternative n1ethod of assisting the Project on substantially con1parable tern1S and conditions
without subordination is not reasonably available.
NOW, THEREFORE, BE IT RESOLVED by the Redevelopn1ent Agency of the City of South
San Francisco that it hereby:
1. Finds that provision of the Loan to Developer frol11 the Housing Fund for the Proj ect
pursuant to the ten11S of the Loan Agreel11ent will benefit the Project Area because the Project
will provide affordable housing to very low-incon1e households.
2. Finds that an econOl11ically feasible alten1ative n1ethod of assisting the Project on
substantially cOl11parable ten11S and conditions without subordination is not reasonably available.
3. Approves the Loan Agreel11ent, the Pron1issory Note, and the Agency Resale Restriction
Agreen1ent substantially in the fon11s on file with the Agency Secretary.
4. Authorizes the Executive Director of the Agency (or his designee) to execute the Loan
Agreement and the Agency Resale Restriction Agreen1ent substantially in the fon11s on file with
the Agency Secretary; to n1ake revisions to the Loan Agreel11ent and Agency Resale Restriction
Agreen1ent, subject to the approval of counsel, which do not n1aterially or substantially increase
the Agency's obligations thereunder; to sign all docun1ents, to n1ake all approvals and take all
actions necessary or appropriate to carry out and in1plernent the intent of this Resolution.
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I hereby certify that the foregoing Resolution was regularly introduced and adopted by
the Redevelopl11ent Agency of the City of South San Francisco at a regular 111eeting held on the
13th day of February, 2008 by the following vote:
AYES:
Boardn1en1berts Mark N. Addiego, Richard A. Garbarino and IZevin Mullin,
Vice Chair Karyl Matsun10to and Chair Pedro Gonzalez
NOES:
ABSTAIN:
ABSENT: None
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