HomeMy WebLinkAbout2009 CC RESO 2009-205 CDCRESOLUTION NO. 2009 - 205
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL CITY
APPROVING A GAP LOAN TO CASA FAMILIAR,
INCORPORATED FOR $835,000 TO COMPLETE
THE ACQUISITION AND REHABILITATION OF
THE CASA QUINTA APARTMENTS LOCATED AT
304 EAST FIFTH, NATIONAL CITY FUNDED BY AND
SUBJECT TO AFFORDABILITY REQUIREMENTS OF
THE HOME INVESTMENT PARTNERSHIPS PROGRAM
WHEREAS, the Community Development Commission of the City of
National City (CDC) administers the HOME Investment Partnerships (HOME) Program
for the City of National City (City); and
WHEREAS, the City and the CDC have established a need for affordable
housing; and,
WHEREAS, the City and the CDC have established the rehabilitation of
National City's housing stock as a priority; 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, the CDC has identified $835,000 of HOME funds to finance
affordable housing from FY2007-2008 and FY2008-2009 available for reallocation; and
WHEREAS, on May 26, 2009, Casa Familiar entered into a contract to
purchase said property for $1,075,000;
WHEREAS, Casa Familiar will assume an existing loan of $685,000 from
the current lender and requires the CDC's loan to complete the purchase of said
property, and finance $275,800 in rehabilitation hard costs, a deferred developer fee of
$108,600 and other costs; and
WHEREAS, two housing units of said property will restricted to rents
affordable to households at or below 50% of Area Median Income (AMI) for a period of
fifteen years; and
WHEREAS, four housing units of said property will be restricted to rents
affordable to households at or below 60% AMI for a period of fifteen years.
NOW THEREFORE BE IT RESOLVED by the Community Development
Commission of the City Of National City as follows:
A. The CDC hereby approves gap financing through a HOME Program
loan in an amount of $835,000 utilizing HOME Investment Partnership
Program funds.
Resolution No. 205
August 18, 2009
Page 2
B. The funding of the $835,000 gap loan will originate from a reallocation
of the said amount of HOME funds from Account 505-445-462-650-
9023 to Account 505-445-462-650-9024.
C. The Executive Director of the CDC is hereby authorized to sign any
necessary documents for the financing of the project, including loan
agreements, amendments thereto, deeds and subordination
agreements.
PASSED AND ADOPTED this 18th day of August, 2009, by the following
roll call vote: s� . AN-c^cHEo c4,-c.c‘cn-c‘ov.1
Ayes: Councilmembers
Nays: Councilmembers
Abstain: Councilmembers
n Morrison, Chairman
APPROVED AS TO FORM:
George H. iser, III
Legal Counsel
Passed and adopted by the Community Development Commission of the City of
National City, California, on August 18, 2009, by the following vote, to -wit:
Ayes: Commissioners Morrison, Sotelo-Solis, Van Deventer, Zarate.
Nays: None.
Absent: None.
Abstain: Commissioner Parra.
AUTHENTICATED BY: RON MORRISON
Chairman, Community Development Commission
Secretary, Comer rn#r Development Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2009-205 of the Community Development Commission of the City
of National City, California, passed and adopted on August 18, 2009.
Secretary, Community Development Commission
By:
Deputy