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HomeMy WebLinkAboutCC RESO 92-128RESOLUTION NO. 92-128 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF NATIONAL CITY. THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND THE METROPOLITAN AREA ADVISORY COMMITTEE FOR HOUSING PRODUCTION SERVICES WITHIN THE CITY OF NATIONAL CITY This Resolution was not adopted at the City Council Meeting of July 14. 1992 DATE: July 15. 1992 (1 on Anne Peoples City Clerk RESOLUTION NO. 9 2-12 8 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF NATIONAL CITY, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND THE METROPOLITAN AREA ADVISORY COMMITTEE FOR HOUSING PRODUCTION SERVICES WITHIN THE CITY OF NATIONAL CITY 0 WHEREAS, the City of National City (City), the Community Development Commission of the City of National City (CDC) and the Metropolitan Area Advisory Committee (MAAC), are pursuing a program of housing production for first time homebuyers and a program of rental housing for very large, very low income families with the assistance of the U.S. Department of Housing and Urban Development (HUD) and the California Housing Finance Agency (CHFA); and WHEREAS, MAAC is a multipurpose social service agency with administrative offices at 140 W. 16th Street, National City and MAAC has served National City and the South Bay for 26 years and current services include employment, housing, health, education and social services; and WHEREAS, MAAC housing services presently include emergency housing assistance, rent and mortgage assistance, mortgage default prevention, landlord tenant mediation, housing referral and residential weatherization; and WHEREAS, MAAC wishes to assist National City in housing production with administrative services in the production of housing and has formed a Community Housing Development Organization (CHDO), a sub non-profit 501(c) corporation, to operate within National City with at least one third of the Board Members being lower income National City residents and two thirds of the Board Members being individuals acting in a private capacity and not controlled by any public body; and WHEREAS, the Cranston -Gonzales Housing Act of 1990 HOME Program promotes and encourages the participation of non-profit organizations by requiring that at least 15% of grant funds each year must be invested in housing owned, sponsored or developed by a CHDO; and Continued on Page Two Resolution No. 92-128 Page Two of Three WHEREAS, the City and the CDC have approved a program of housing in their Comprehensive Housing Affordability Strategy (CHAS), adopted March 17, 1992, including the $750,000 HOME Program, 1991-1992 ($576,000 Federal funds and $174,000 State Funds) and have allocated $187,500 of CDC tax increment funds 1991- 1992 and each fiscal year thereafter for a total of five years to assist first time homebuyers; and WHEREAS, the CDC proposes to apply to the CHFA for approximately $1.7 million for first mortgages for 12 first time homebuyers and approximately $1.0 million for first mortgages for eight homes for very large, very low income families to be owned, operated, managed and maintained by the MAAC CHDO for 30 years; and WHEREAS, the CDC included $3.5 million for the Housing Development Fund in its Downtown Redevelopment Project Tax Allocation Bonds and the $3.5 million will be used to buy City owned land and to build houses which are suitable for first time homebuyers and to build houses for very large, very low income families with CDC Section 8 Existing Housing Rental Assistance; and WHEREAS, MAAC proposes through its CHDO to be the developer of the 20 housing units utilizing the $3.5 million CDC Housing Development Fund for a fee of 5 % of the total development cost, estimated to be $3.5 million, or for a fee estimated at $175,000 (Development cost includes land, civil engineering, architecture, administrative costs, and all permits, fees and construction costs, complete); and WHEREAS, HUD allows administrative costs under the HOME Program of up to 7%, but such fees may not be charged against the HOME Program and although such fees may be charged against the CDBG Program National City does not propose to charge such fees against the Block Grant Program and such fees shall not be charged against the Block Grant Program; and WHEREAS, MAAC will need an advance from the CDC of $100,000 from the CDC's Housing Development Fund to do the work of the Housing Development Program with payment of the balance to be paid 50% when the houses are under construction and 50% when the houses are completed; and Continued on Page Three Resolution No. 92-128 Page Three of Three WHEREAS, the City Council wishes to enter into an Agreement for housing production services; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute an Agreement entitled, "Agreement between the City of Naitonal City, the Community Development Commission of the City of National City and the Metropolitan Area Advisory Committee for Housing Production Services within the City of National City". Said Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 14th day of July, 1992. GEORGE H WA 1'ERS, MAYOR ATTEST: Lori Anne Peoples, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorneys AGREEMENT BETWEEN THE CITY OF NATIONAL CITY, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND THE METROPOLITAN AREA ADVISORY COMMITTEE FOR HOUSING PRODUCTION SERVICES WITHIN THE CITY OF NATIONAL CITY WHEREAS, the City of National City (City), the Community Development Commission of the City of National City (CDC) and the Metropolitan Area Advisory Committee (MAAC), are pursuing a program of housing production for first time homebuyers and a program of rental housing for very large, very low income families with the assistance of the U.S. Department of Housing and Urban Development (HUD) and the California Housing Finance Agency (CHFAh and WHEREAS, MAAC is a multipurpose social service agency with administrative offices at 140 W. 16th Street, National City and MAAC has served National City and the South Bay for 26 years and current services include employment, housing, health, education and social services; and WHEREAS, MAAC housing services presently include emergency housing assistance, rent and mortgage assistance, mortgage default prevention, landlord tenant mediation, housing referral and residential wetherization; and WHEREAS, MAAC wishes to assist National City in housing production with administrative services in the production of housing and has formed a Community Housing Development Organizaton (CHDO), a sub non-profit 501(c) corporation, to operate within National City with at least one third of the Board Members being 'lower income National City residents and two thirds of the Board Members being individuals acting in a private capacity andnot controlled by any public body; and WHEREAS, the Cranston -Gonzales Housing Act of 1990 HOME Program promotes and encourages the participation of non-profit organizations by requiring that at least 15% of grant funds each year must be invested in housing owned, sponsored or developed by a CHDO; and WHEREAS, the City and the CDC have approved a program of housing in their Comprehensive Housing Affordability Strategy (CHAS), adopted March 17, 1992, including the $750,000 HOME Program, 1991-1992 ($576,000 Federal funds and $174,000 State funds) and have allocated $187,500 of CDC tax increment funds 1991- 1992 and each fiscal year thereafter for a total of five years to assist first time homebuyers; and WHEREAS, the CDC proposes to apply to the CHFA for approximately $1.7 million for first mortgages for 12 first time homebuyers and approximately $1.0 million for first mortgages for eight homes for very large, very low income families to be owned, operated, managed and maintained by the MAAC CHDO for 30 years; and WHEREAS, the CDC included $3.5 million for the Housing Development Fund in its Downtown Redevelopment Project Tax Allocation Bonds and the $3.5 million will be used to buy City owned land and to build houses which are suitable for first time homebuyers and to build houses for very large, very low income families with CDC Section 8 Existing Housing Rental Assistance; and WHEREAS, MAAC proposes through its CHDO to be the developer of the 20 housing units utilizing the $3.5 million CDC Housing Development Fund for a fee of 5% of the total development cost, estimated to be $3.5 million, or for a fee estimated at $175,000 (Development cost includes land, civil engineering, architecture, administrative costs, and all permits, fees and construction costs, complete); and WHEREAS. HUD allows administrative costs under the HOME Program of up to 7%, but such fees may not be charged against the HOME Program and although such fees may be charged against the CDBG Program National City does not propose to charge such fees against the Block Grant Program and such fees shall not be charged against the Block Grant Program; and WHEREAS, MAAC will need an advance from the CDC of $100,000 from the CDC's Housing Development Fund to do the work of the Housing Development Program with payment of the balance to be paid 50% when the houses are under construction and 50% when the houses are completed; and WHEREAS, the City, the CDC and MAAC wish to enter into an Agreement for housing production services; Agreement between the City, the CDC and MAAC Page -2- NOW, THEREFORE, the City, the CDC and MAAC agree as follows: 1. The CDC will make available, for housing development purposes, $3.5 million of its $4.5 million Housing Fund. 2. The CDC will proceed expeditiously to buy parcels numbered 11, 12, 13, 21, 31, 33, 41, 44, 51, 52, 53 and 54 on the list of City owned real properties for $652,400 pursuant to CDC Resolution No. 92-16 (Housing) adopted May 5, 1992 and City Council Resolution No. 92-85 adopted May 19, 1992. 3. The CDC will advance $100,000 from its Housing Development Fund to MAAC for use by the MAAC CHDO for administrative expenses in doing the work of producing approximately 12 houses for first time homebuyers to be selected by the CDC Board and 8 houses for very large, very low income families to be selected from the CDC's Section 8 Existing Housing waiting list. 4. The estimated total cost of the Housing Development Program consisting of approximately 20 houses is $3.5 million including land, civil engineering, architecture, construction of the houses and related appurtenances, and including offsite improvements and all permits and fees. The total fee to be paid to the MAAC Project CHDO is 5% times the total cost of the Housing Development Program. 5% times the currently estimated total cost of $3.5 million is $175,000. 5. MAAC shall carry out the Housing Development Program in an expeditious manner utilizing the CDC $3.5 million Housing Development Fund and the CHFA Single Family First Time Homebuyer Program in the approximate amount of $1.7 million and utilizing the CHFA Multifamily Program for MAAC CHDO owned houses for very large, very low income families in the approximate amount of $1 million. 6. It is understood and agreed by the CDC, the City and MAAC that the units developed pursuant to the Program must first be constructed using the $3.5 million Housing Development Fund before CHFA guaranteed financing or any alternative financing can be obtained for the estimated 20 houses. 7. Funds obtained upon sale of the First Time Homebuyer Houses shall be returned to the Housing Development Fund. Funds obtained from CHFA loans obtained for the houses for very large, very low income families shall also be returned to the Housing Development Fund. The total estimate of funds to be returned to the Housing Development Fund is $2.7 million. 8. The City, the CDC and MAAC each pledge their mutual aid and assistance and their full cooperation to secure completion of the estimated 20 houses at the earliest feasible date. The goal for completion and occupancy of the houses is 18 months from the date of execution of this Agreement. AGREED this 14th day of July, 1992. CITY OF NATIONAL CITY METROPOLITAN AREA ADVISORY COMMITTEE 7_ i6-: 92 _ e.-st .e _, Date George H. Waters, Mayor Date Roger Cazares, Executive Director Attest: Lori Anne Peoples, City Clerk COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY 7-/592, ee .c� - Attest: Date George It Waters, Chairman Arnold A. Peterson, Secretary