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HomeMy WebLinkAbout2018-1801 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. 2018-180 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A CONDITIONAL FUNDING COMMITMENT FOR PHASE TWO OF THE ARROWHEAD GROVE PROJECT WHEREAS, on December 20, 2017 the Mayor and City Council of the City of San Bernardino, California, approved a Conditional Use Permit and Revised Subdivision to allow the development, establishment and operation of the Arrowhead Grove project to be comprised of 411 residential units, approximately 194,200 square feet of commercial/mixed uses, two (2) private community centers, one (1) public community center, and two (2) detention basins, on a site comprised of four (4) parcels containing a total of approximately 39.36 acres (the "Project"); and WHEREAS, on January 3, 2018 the Mayor and City Council of the City of San Bernardino, California, approved a Conditional Funding Commitment for Phases Two and Three for the Arrowhead Grove Housing Project to Arrowhead Grove Partners 2, a California limited partnership (the "Developer"), of which National Community Renaissance of California is the Managing General Partner, and to the Housing Authority of the County of San Bernardino, the owner of the Project (the "Owner"), and WHEREAS, under the Conditional Funding Commitment approved on January 3, 2018, Neighborhood Stabilization Program (NSP) funds in the amount of One Million Five Hundred Thousand Dollars ($1,500,000) (the "City Loan") will be committed in support of a State of California Affordable Housing and Sustainable Communities (AHSC) application, to develop 184 units for the second and third phases of the Project in order to provide increased affordable housing opportunities by making available additional very low-income, low-income and market rate units in the City; 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, the City committed to pledge $179,723 of Community Development Block Grant (CDBG) funds in a future Action Plan upon the Developer successfully obtaining all funding sources for the Project; and WHEREAS, the Developer submitted an application for AHSC funding on January 16, 2018 and successful applicants will be announced in the summer of 2018; and WHEREAS, in the event the Developer and Owner are not awarded AHSC funding, they have requested the City to commit Low -Moderate Income Housing Funds in the amount of Eight Hundred and Eighty -Three Thousand Dollars ($883,000), and Neighborhood Stabilization Program (NSP) funds in the amount of One Million Five Hundred Thousand Dollars ($1,500,000), for a total of Two Million Three Hundred and Eighty Three Thousand Dollars (the "City Loan") to develop either 120 or 136 units for the second phase of the Project in order to provide increased affordable housing opportunities by making available additional very -low income and low-income units in the City; and, WHEREAS, the Tax Credit Allocation Committee ("TCAC") administers the federal and State Low -Income Housing Tax Credits ("LIHTC") applications for competitive allocations of tax credits to providers of housing units for low-income households; and WHEREAS, in connection with applications for an allocation of 9% LIHTC tax credits, the TCAC requires financial commitments from local agencies that proposed projects will receive additional financial assistance and that they meet specific housing objectives; and WHEREAS, the Developer will apply for 9% LIHTC tax credits July 2"d, 2018 with expected allocations to be announced in November 2018, at which time all funding sources for Project construction must be identified and committed for the Developer's respective funding round; and, WHEREAS, subject to Mayor and City Council approval, the City will participate 1 in the funding for this Project and City staff will work to bring back a formal Loan 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 Agreement ("Agreement") that will add the Developer to the Loan Agreement, set forth the conditions for disbursement of the City Loan, and document Project compliance with the NSP and Low -Moderate Income Housing program regulations to ensure consistency with the housing needs identified in the Consolidated Plan. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Provided that the terms and conditions of the NSP program requirements are met, and a Loan Agreement is approved in the future between the Developer and Owner and the City, the City commits to provide up to $1,500,000 in NSP funds for the development of the Project. SECTION 2. SECTION 2. Provided that the terms and conditions of the Low -Moderate Income Housing Fund requirements are met, and a Loan Agreement is approved in the future between the Developer and Owner and the City, the City commits to provide up to $883,000 in Low -Moderate Income Housing funds for the development of the Project. SECTION 4. The City Manager or her designee is authorized to prepare issue and execute a commitment letter for the City Loan in a form consistent with this Resolution and acceptable to the City Attorney. SECTION 5. The City Manager, or her designee is authorized to execute any other form of document required by any lender, investor, regulator or other third party involved in the transaction to confirm the City's commitment to provide funding on the terms set forth in Sections 1, 2, and 3, provided the City Manager and City Attorney determine that the substance of such document does not materially conflict with the substance and intent of this Resolution. SECTION 6. This Resolution shall terminate if the Developer is denied an award of 9% LIHTC funding in the 2018 round, and shall thereafter have no force or effect. 3 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, APPROVING A CONDITIONAL FUNDING COMMITMENT FOR PHASE TWO OF THE ARROWHEAD GROVE PROJECT 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 Regular Meeting thereof, held on the 20`h day of June 2018, by the following vote, to wit: Council Members: AYES MARQUEZ k BARRIOS XCS� VALDIVIA irk SHORETT NICKEL RICHARD MULVIHILL NAYS ABSTAIN ABSENT Georgeamu A anna, C ,City Clerk The foregoing Resolution is hereby approved this 20a' day of June 2018. J R. Carey Davis. ayor City of San B ardino Approved as to form: Gary D. Saenz, City Attorney By.