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CC Resolution 8665 Resolution No. 8665 BEING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AUTHORIZING THE APPROVAL OF THE EXPENDITURE OF LOW AND MODERATE INCOME HOUSING FUNDS OUTSIDE THE REDEVELOPMENT PROJECT AREA FOR THE ACQUISITION AND MAINTENANCE OF AFFORDABLE VERY LOW AND LOW INCOME HOUSING UNITS AND MAKING CERTAIN FINDINGS UNDER THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW WHEREAS, the City Council of the City of Campbell (the "City Council") and the City of Campbell Redevelopment Agency (the" Agency") have identified the need for the acquisition and rehabilitation of certain very low income and low income multifamily housing units at San Tomas Gardens development project for reuse as a productive part of the community's supply of affordable housing in a manner consistent with the Housing Element of the City's General Plan; and WHEREAS, the City Council on July 20, 1993 approved the expenditure of $79,000 in CDBG funds for Catholic Charities to acquire San Tomas Gardens development project; and WHEREAS, there is a need for additional financial assistance from the Agency's Low and Moderate Income Housing Fund to complete the acquisition and rehabilitation of San Tomas Gardens Project by San Tomas/Charities Housing Corporation described below; WHEREAS, the City has adopted the Redevelopment Plan for the Central Campbell Redevelopment Project (the"Plan") by Ordinance No. 1461 dated June 21, 1983; and WHEREAS, the City has adopted the Redevelopment Plan and the California Community Redevelopment Law, Health and Safety Code Section 33000 ~. ~. (the "Redevelopment Law"), is the rehabilitation of existing structures to provide long-term affordable housing opportunities for low and moderate income households; and WHEREAS, in order (a) to serve this objective of the Plan and the Redevelopment Law, (b) to overcome any displacement of housing units from the community's housing stock due to past or future redevelopment actions, and (c) to expand the affordable housing stock in the community to meet the housing needs generated by the creation of employment opportunities through redevelopment actions, the City and the Agency seek to assist in the acquisition and financing of housing units suitable for the rehabilitation of affordable housing for low and moderate income households; and WHEREAS, the availability of such sites and housing units within the current Central Campbell Redevelopment Project Area (the "Project Area") is limited; and WHEREAS, the Agency has established a Low and Moderate Income Housing Fund (the "Fund") pursuant to Health and Safety Code Sections 33334.2 and 3334.3; and WHEREAS, the provisions of the Redevelopment Law applicable to the establishment and use of proceeds of the Fund (Health and Safety Code Section 33334.2) expressly contemplate and permit the use of proceeds from the Fund outside the Project Area upon a finding that such use will be of benefit to the Project Area; and WHEREAS, completion of the acquisition and rehabilitation of San Tomas Gardens located outside the Project Area would provide benefits to the Project Area and the entire community in the manner set forth in these recitals and the staff report accompanying the resolution; and WHEREAS, the City stands the risk of losing 100 units of affordable very low and low income multifamily units by April 1, 1995 to the general market unless purchased by an entity for the purpose of maintaining as affordable housing units. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby finds and determines that the use of moneys from the Low and Moderate Income Fund to assist in financing the acquisition and rehabilitation of San Tomas Gardens development project for reuse as affordable very low, low, and moderate income housing will be of benefit to the Central Campbell Redevelopment Project and the Project Area in that such use will serve the objectives of the Plan and the Redevelopment Law, will help to overcome any displacement of housing units from the community housing stock due to past or future redevelopment actions, and will help to expand and maintain the affordable housing stock in the community to meet the housing needs generated by the creation of employment opportunities through redevelopment actions. BE IT FURTHER RESOLVED that the City Council does hereby authorizes the expenditure of $500,000 from the Low and Moderate Housing Fund as a loan to San Tomas/Charities Housing Corporation for acquisition and rehabilitation of San Tomas Gardens. BE IT FURTHER RESOLVED that the City Council authorizes a Budget Adjustment appropriating Low and Moderate Income Housing Funds for the San Tomas/Charities loan. BE IT FURTHER RESOLVED that the City Council authorizes the Agency Executive Director or his designee to negotiate and execute loan agreements with San Tomas/Charities Housing Corporation for $579,000. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Campbell this 17th of May, 1994 by the following vote: AYES: COUNCILMEMBERS: Conant, Ashworth, Burr, Dougherty, .Watson NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ATTEST: ~c~ ~ - , CITY OF CAMPBELL REQUEST FOR BUDGET ADJUSTMENTS DEPARTMENT/PROGRAM DIVISION DATE REQUEST NO. City Manager's Office Redevelopment May 6, 1994 '1{,. DJ--f7. BUDGET TRANS:FER TO BE REDUCED: FUND ACCOUNT NUMBER DESCRIPTION AMOUNT 023 206.2290 loan to San Tomas/Charitie Housing Corporation $500,000 ~,,/~ ."......f"7 {), 4- - (' .. TO BE INCREASED: FUND ACCOUNT NUMBER DESCRIPTION AMOUNT 023 07.817.0000.4449 loan to San Tomas/Charities Housing Corporation $500,000 R...on for Requ..t (Be Spee~f~e): The Redevelopment Agency Board to approve on May 17, 1994 a 6.5%, 40 yr., $500,000 loan to San Tomas/Charities Housing Corporation to acquire and rehabilitate a 100 units of affordable multi-family housing at San Tomas Gardens. The loan funds to come from the Redevelopment Agency's Low & Moderate Income Housing Fund. DEPARTMENT HEAD FINANCE DIRECTOR REV 2/90