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HomeMy WebLinkAbout2017-1671 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2017-167 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING A SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2016-2017 ANNUAL ACTION PLAN TO ADD THE GOLDEN APARTMENTS PROJECT AND THE EXECUTION OF A HOME INVESTMENT PARTNERSHIPS ACT LOAN AGREEMENT WITH GOLDEN APARTMENTS SAN BERNARDINO, LP AND RELATED DOCUMENTS AND ACTIONS WHEREAS, prior to 2015, the City of San Bernardino was a recipient of, HOME Investment Partnerships Act (HOME) funds from the United States Department of Housing and Urban Development ("HUD") pursuant to the Cranston -Gonzalez National Housing Act of 1990. The HOME funds must be used by the City in accordance with 24 C.F.R. Part 92; and WHEREAS, the HOME Program is designed exclusively to create affordable housing for low-income households and may be used to fund a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people; and WHEREAS, the City maintains a balance of Pre -2015 HOME dollars in its federal line of credit to use for the development of affordable housing; WHEREAS, the City has identified an opportunity to partner with the County of San Bernardino to develop an existing twenty-one (21) unit apartment complex, located at 2312, 2324, and 2336 North Golden Avenue (project site) in the city of San Bernardino, into thirty- eight units of permanent housing with on-site support services for homeless veterans; and WHEREAS, the total estimated cost to acquire and redevelop the project site is approximately $4,038,308; and WHEREAS, The City of San Bernardino desires to invest EIGHT HUNDRED EIGHTY THOUSAND DOLLARS ($880,000) of HOME funds in the form of a loan to the project developer to assist in the acquisition of the project site for development into thirty- eight (3 8) residential apartments, one (1) resident manager unit and 1,208 square feet of office space with support services for homeless veterans; and WHEREAS, if left unspent, these funds will to be returned to the U.S. Treasury and will not be available to the City to reprogram to other eligible HOME activities; WHEREAS, the County's developer, Housing Partners 1, Inc. (HPI), which will develop the project through its affiliate, Golden Apartments San Bernardino, LP, is a certified Community Housing Development Organization ("CHDO") under the HOME Final Rule and is an experienced non-profit developer dedicated to developing, rehabilitating, owning, and managing affordable housing for low and moderate income people in the County of San Bernardino; and 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, Golden Apartments San Bernardino, LP will comply with the terms and conditions set forth in the HOME Loan Agreement and will deliver to the City among other items, a "Deed of Trust", a "Promissory Note", and a "Housing Affordability Covenant", as defined in the HOME Loan Agreement; and WHEREAS, this project is subject to environmental review under 14 California Code of Regulations (CCR) sections 15192 and 15194 of the regulations implementing the California Environmental Quality Act (CEQA) and 24 Code of Federal Regulations (CFR) section 58.36 of the regulations implementing the National Environmental Protection Act (NEPA); and WHEREAS, after such environmental review, the City Planning Commission found that the project is categorically exempt from CEQA under 14 CCR section 15332 (infill development), and the County determined that the project is categorically excluded from NEPA under 24 CFR section 58.35(a) (rehabilitation of buildings and improvements). BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA AS FOLLOWS: SECTION 1. The Mayor and City Council do hereby authorize the City Manager or his or her designee to enter into a HOME Loan Agreement with Golden Apartments San Bernardino, LP to reconstruct 2312, 2324, and 2336 North Golden Avenue (a.k.a. Golden Apartments), San Bernardino, in substantially the form attached to this Resolution as Exhibit A, and in connection therewith, to enter into a Promissory Note, Deed of Trust, and Housing Affordability Covenant to secure the loan and ensure the affordability of the housing to be created by the project. SECTION 2. The City Manager or his or her designee is authorized to administratively make minor modifications to the HOME Loan Agreement and the related documents identified in Section 2 above, and to execute such further documents and take such further actions as are necessary to effectively implement the reconstruction of 2312, 2324, and 2336 North Golden Avenue (a.k.a. Golden Apartments), San Bernardino. SECTION 3. The Mayor and City Council find that the project is categorically exempt from CEQA under 14 CCR section 15332 (infill development), and is categorically excluded from NEPA under 24 CFR section 58.35(a) (rehabilitation of buildings and improvements). 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2016-2017 ANNUAL ACTION PLAN TO ADD THE GOLDEN APARTMENTS PROJECT AND THE EXECUTION OF A HOME INVESTMENT PARTNERSHIPS ACT LOAN AGREEMENT WITH GOLDEN APARTMENTS SAN BERNARDINO, LP AND RELATED DOCUMENTS AND ACTIONS I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City Council of the City of San Bernardino at a Joint Adjourned Regular Meeting thereof, held on the 21St day of August 2017, by the following vote, to wit: Council Members: AYES NAYS ABSTAIN ABSENT MARQUEZ X(M) BARRIOS X VALDIVIA SHORETT NICKEL RICHARD X MULVIHILL X(S) X X Georgea Hanna, C C, City Clerk The foregoing Resolution is hereby approved this 21St day of August 2017... P �4�4 R. Carey Dav s, Mayor City of San�ernardino Approved as to form: Gary D. Saenz, City Attorney �0 3