HomeMy WebLinkAbout2015-06-09 - RESOLUTIONS - NEWHALL AVENUE HOUSING PARTNER (2)RESOLUTION NO. 15-40
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,
CALIFORNIA, ACTING IN ITS ROLE AS HOUSING SUCCESSOR TO THE FORMER
REDEVELOPMENT AGENCY, APPROVING AND AUTHORIZING EXECUTION OF A
DISPOSITION AND DEVELOPMENT AGREEMENT WITH NATIONAL COMMUNITY
RENAISSANCE OF CALIFORNIA AND NEWHALL AVENUE HOUSING PARTNERS, L.P.
WHEREAS, in 2006, the City conducted a Request for Qualifications for developers
to assist in identifying a site and financing plan to construct a family affordable housing
development, and identified National Community Renaissance of California (CORE) and The
Related Companies of California, LLC, (Related) (together: the Developers) to assist in the
execution of the Redevelopment Plan through the development of affordable housing at 23610
Newhall Avenue (Site); and
WHEREAS, on November 23, 2010, the City and the Former Redevelopment Agency
entered into an Exclusive Negotiation Agreement (ENA) with the Developers for the negotiation
of a Disposition and Development Agreement (Agreement); and
WHEREAS, the City owns property located at the Site that was purchased with
Neighborhood Stabilization Program funds made available as part of the Housing and Economic
Recovery Act of 2008, and which the City wishes to use for the construction of an affordable
housing development; and
WHEREAS, on June 27, 2012, the California Legislature passed, and the Governor
signed, Assembly Bill 1484 (AB 1484), which, among other things, made certain revisions to
certain of the statutes added by Assembly Bill xl 26 (ABxI 26) (together with AB 1484: the
Dissolution Act). AB 1484 amended Health and Safety Code Section 34176, added by Part
1.85, by, among other things, adding subdivision (g) thereto, which sets forth a process by
which housing bond proceeds from bonds issued prior to January 1, 2011, for affordable
housing purposes, and backed by an agency's low- and moderate -income housing fund that
remains after satisfaction of enforceable obligations approved in a Recognized Obligation
Payment Schedule (BOPS) (Excess Housing Bond Proceeds), may be used by the Housing
Successor for affordable housing purposes, but which states that no such intended use or
commitment is valid and binding on the Housing Successor until the intended use and
commitment is included in an approved and valid ROPS; and
WHEREAS, the Successor Agency to the former Redevelopment Agency of the City
of Santa Clarita (Successor Agency) took to its Oversight Board on September 26, 2014, a
Transfer Agreement whereby the Oversight Board agreed that the Housing Successor could
utilize Excess Housing Bond Proceeds and report back to the Oversight Board rather than
having to place each expenditure of Excess Housing Bond Proceeds on the ROPS, and the
' transfer of Excess Housing Bond Proceeds, pursuant to the Transfer Agreement, was itself
placed on the appropriate ROPS, approved by the Oversight Board, and tacitly approved by the
California Department of Finance; and
WHEREAS, the Housing Successor will report the use of Excess Housing Bond I Proceeds to the Oversight Board via a resolution brought to it by the Successor Agency
consistent with the terms of the Transfer Agreement; and
WHEREAS, the Housing Successor has already utilized Excess Housing Bond
Proceeds to "buy out" certain Federal Neighborhood Stabilization Program funds that were
originally used to purchase the Site but which had to be refunded due to the lengthy delays in
Site disposition caused by the effects of the Dissolution Act; and
WHEREAS, The Related Companies of California, LLC, and National Community
Renaissance of California have formed Newhall Avenue Housing Partners, L.P., to construct,
own, and operate the affordable housing development at the Site (Project); and
WHEREAS, Newhall Avenue Housing Partners, L.P., is a single -purpose affiliate of
the Developers with whom the ENA was entered into and the City is willing to work with this
affiliate on the development of the Site; and
WHEREAS, Newhall Avenue Housing Partners, L.P., has proposed a project that
consists of a 30 -unit housing community, with 29 rental housing units and one manager's unit,
on approximately 1.62 acres, with eight (8) of the units being three-bedroom units and twenty-
two (22) being two-bedroom units, comprised predominantly of two-story townhomes over
single story three-bedroom flats; and
WHEREAS, the Project will feature at least seventy-five (75) on -grade and tuck- '
under resident and guest parking spaces distributed about the Site, as well as a recreational
amenity package including a tot -lot, landscaped open space, and a community center that will be
used for management, social services, and laundry facilities; and
WHEREAS, the Housing Successor, in exchange for its contribution of grant funds to
the Project, will require thirteen (13) of the twenty-nine (29) rental units to be restricted through
the use of affordable housing covenants, which covenants will operate to restrict the rent on the
units for a period of at least fifty-five (55) years from the issuance of the Certificate of
Occupancy, in compliance with the Community Redevelopment Law of the State of California;
and
WHEREAS, an Initial Study was prepared on the Project, in accordance with the
California Environmental Quality Act (CEQA), which included the publication of a Mitigated
Negative Declaration that was adopted along with the land use approvals for the Project; and
WHEREAS, an Environmental Assessment was prepared on the Project in
accordance with the National Environmental Policy Act (NEPA), including a Finding of No
Significant Impact.
NOW, THEREFORE, the City Council of the City of Santa Clarita, acting in its role as
I
Housing Successor to the former Redevelopment Agency, does hereby resolve as follows:
SECTION 1. The City Council hereby finds and determines that the Project is consistent
with the authority of the former Redevelopment Agency under Community Redevelopment Law,
as it will provide affordable housing within the Project Area. Further, that the Project, as
contemplated in the Agreement, is consistent with the Implementation Plan for the Project Area,
as the goals and programs in that plan provide for the production and rehabilitation of affordable
housing in a manner consistent with the affordable housing projects as set forth in the
Agreement.
SECTION 2. The City hereby finds and determines that the Project proposed by the
Agreement is exempt from the requirements of Article SIV of the California Constitution.
This exemption is based on the fact that, under the Agreement, only thirteen (13) of the thirty
(30) units (43 percent of the units) will be subject to affordability restrictions. Pursuant to
Section 37001 of the California Health and Safety Code, a project is not subject to Article
X3CYIV where no more than 49 percent of the units in the project are required to be occupied by
persons of low income.
SECTION 3. The City hereby approves the Agreement, and hereby authorizes and directs
the City Manager to execute the Agreement on behalf of the City, subject to any minor,
technical, or clarifying changes that may be approved by the City Attorney. The City Council
hereby further authorizes and directs the City Manager to take all actions and execute all
documents as necessary to carry out the Agreement and accomplish the Project, including, but
not limited to, execution of all subsequent documentation called for by the Agreement.
SECTION 4. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 9t' day of June 2015.
ATTEST:
CITY C ERK?
DATE: V '4 �� / ( S
STATE OF CALIFORNIA
)
COUNTY OF LOS ANGELES
) ss.
CITY OF SANTA CLARITA
)
I, Kevin Tonoian, City Clerk of the City of Santa Clarita, do hereby
foregoing Resolution was duly adopted by the City Council of the City of S
regular meeting thereof, held on the 9thI day of June 2015, by the following vote:
AYES: COUNCILMEMBERS: Kellar, Weste, McLean
NOES: COUNCILMEMBERS: Boydston
ABSENT: COUNCILMEMBERS: Acosta
certify that the
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