HomeMy WebLinkAbout2008 CC RESO 2008-171 CDCRESOLUTION NO. 2008 — 171
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL CITY
APPROVING UP TO $1,597,534 FOR A BRIDGE LOAN UTILIZING
LOW MODERATE TAX INCREMENT HOUSING SET -ASIDE
FUNDS FOR THE CASA FAMILIAR, INCORPORATED
ACQUISITION AND REHABILITATION PROJECT
WHEREAS, the City of National City has a great need for affordable housing,
and has established the rehabilitation of the City's housing stock as a priority; and
WHEREAS, the Community Development Commission of National City ("CDC")
desires to support an affordable housing project, and
WHEREAS, Casa Familiar, Incorporated is a nonprofit public benefit corporation
under the provisions of the Internal Revenue Code Section 501(c)(3); and
WHEREAS, Casa Familiar intends to acquire and rehabilitate the properties
located at 1111 "D" Avenue consisting of eight, two (2) bedroom, one (1) bath, units; and 1101-
1119 "E" Avenue consisting of ten, one (1) bedroom, one (1) bath, units; and
WHEREAS, on April 1, 2008, the City approved a loan for $182,466 to Casa
Familiar, Incorporated of HOME Investment Partnership Program Funds to assist in this
acquisition and rehabilitation project; and
WHEREAS, on July 1, 2008, the City adopted Resolution 2008-133, which
approved the issuance of multifamily revenue bonds to partially fund the project; and
WHEREAS, Casa Familiar, Incorporated has applied for additional financing from
the CDC, and it has been proposed that said additional funding be provided through a CDC
bridge loan in an amount not to exceed $1,597,534.
NOW, THEREFORE, BE IT RESOLVED by the Community Development
Commission of the City Of National City, as follows:
Section 1. The CDC hereby approves the bridge financing through a Community
Development Commission loan in an amount not to exceed $1,597,534 to assist in the
acquisition and rehabilitation of the properties located at 1111 D Avenue and 1101-1119 E
Avenue, National City.
Section 2. The bridge loan shall be made to the project from the CDC Low Moderate
Tax Increment Housing Fund.
Section 3. The bridge loan shall be made for a period of one (1) year with no payments
at three percent simple interest.
Section 4. Prior to repayment of the bridge loan, the Executive Director is hereby
authorized, in the Executive Director's sole discretion, to cause this matter to be brought back to
the CDC in order that the CDC may decide to make a long-term permanent financing loan to
pay-off the bridge loan, on substantially the same terms as the bridge loan, utilizing HOME
Investment Partnership Program Funds and/or City of National City Low Moderate Tax
Increment Housing Funds.
Resolution No. 2008 — 171
August 19, 2008
Page 2
Section 5. The Executive Director is hereby authorized and directed to sign any
necessary documents for the financing of the project, including loan agreements, amendments,
deeds and subordination agreements.
PASSED and ADOPTED this 19th day of August, 2008.
APPROVED AS TO FORM:
ins.' ilr
George H. Eiser, III
Legal Counsel
Morrison, Chairman
Passed and adopted by the Community Development Commission of the City of
National City, California, on August 19, 2008, by the following vote, to -wit:
Ayes: Commissioners Morrison, Natividad, Parra, Ungab, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman, Community Development Commission
Secretary, Covelopment Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2008-171 of the Community Development Commission of the City
of National City, California, passed and adopted on August 19, 2008.
Secretary, Community Development Commission
By:
Deputy