HomeMy WebLinkAboutCC RESO 12,345RESOLTUION NO. 12,345
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL
CITY, CALIFORNIA FINDING AND DETERMINING THAT CERTAIN
TAX ALLOCATION FUNDS FROM THE SOUTH BAY TOWN & COUNTRY
PROJECT ACCOUNT AND THE E. J. CHRISTMAN BUSINESS &
INDUSTRIAL PARK I PROJECT ACCOUNT MAY BE USED BY THE
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL
CITY FOR CERTAIN SENIORS HOUSING PURPOSES FOR PERSONS
OF LOW AND MODERATE INCOME
WHEREAS, the California Community Redevelopment Law, as amended
during the 1976 Legislative Session, at Section 33334.2, encourages the
use of taxes allocated pursuant to a Redevelopment Project pursuant to
Section 33670 of said Law to assist persons of low and moderate income
with their housing needs, including, among other forms of such assistance,
the provision of new housing for persons of low and moderate income
including elderly and handicapped persons, whether such housing is proposed
to be built within, or outside the Project from which taxes are allocated,
including when the Project to which taxes are allocated was approved prior
to the adoption of said Section 33334.2; and
WHEREAS, the Community Development Commission of the City of
National City, California, hereinafter called "CDC" applied to the U. S.
Department of Housing & Urban Development, Los Angeles, California, hereinafter
called "HUD" on March 11, 1976, for 150 units of Section 8 Housing Assistance
Payments for new housing for the elderly; and
WHEREAS, HUD, on January 18, 1977, gave tentative approval to said
Application; and
WHEREAS, the CDC, on February 10, 1977, applied to the U. S. Depart-
ment of Housing & Urban Development, Federal Housing Administration Insuring
Office, San Diego, California, hereinafter called "FHA", for mortgage
insurance for the 150 unit Seniors High Rise Project to be located between
14th Street, 15th Street, D Avenue and E Avenue within the City of National
City; and
WHEREAS, on April 1, 1977 FHA officials and CDC officials met and
reached certain understandings about Project mortgage insurance financing
based upon information supplied by the FHA officials; and
WHEREAS, FHA requires, as a condition of mortgage insurance approval,
the deposit of 2% of the mortgage insurance amount ($5,000,000) or $100,000
and the FHA will not insure financing of movable kitchen and dining room
fixtures and equipment which is estimated to cost $25,000; and
WHEREAS, the CDC, sponsor of the Project needs at this time $100,000
of the $125,000 to be deposited in a separate fund to be entitled "Senior
Housing Facility Construction Trust Fund"; and
WHEREAS, the CDC will request the City of National City to budget in
its 1977-1978 fiscal year $25,000 for such movable kitchen and dining room
fixtures and equipment; and
WHEREAS, said $100,000 portion of the Construction Trust Fund and
interest derived thereon, after completion and occupancy of the Seniors Housing
Facility, willbe converted by the CDC into a "Seniors Housing Facility Food
Service Trust Fund", to be used solely, exclusively, and only if and when
necessary to finance any deficits in said Food Service Operation.
WHEREAS, the CDC will replace with tax increment funds from the
Center City Project, a Redevelopment Project approved by City Council Ordinance
No. 1505, adopted April 13, 1976, any part of said $100,000 portion of said
trust fund actually used for building construction so as to maintain said
$100,000 amount, which amount and interest derived therefrom are needed as a
financial guarantee to assure the separation, autonomy, integrity and functional
and financial independence of the food service operation consisting of a
mandatory one noon meal per day, each and every day, in order to insure
adequate nutrition for the residents of the Seniors Housing Facility;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
National City that the Community Development Commission of the City of National
City may use $50,000 of the E. J. Christman Redevelopment Project Tax Allocation
fund for deposit in a fund to be called "Seniors Housing Facility Construction
Trust Fund" and the use of said funds for housing of senior citizens of low
and moderate income is hereby found and determined to be of benefit to the E. J.
Christman Redevelopment Project; and
BE IT FURTHER RESOLVED that the Community Development Commission of the
City of National City may use $50,000 of the South Bay Town & Country Project
Tax Allocation due during May, 1977 for deposit in said Seniors Housing
Facility Construction Trust Fund and the use of said funds for housing of
senior citizens of low and moderate income is hereby found and determined to be
of benefit to the South Bay Town & Country Redevelopment Project; and
BE IT FINALLY RESOLVED that if any part of said $100,000 portion of
said Construction Trust Fund is actually utilized for construction of said
building, that such amount may be reimbursed by the Community Development
Commission from its allocations of taxes in connection with the Center City
Redevelopment Project into said Trust Fund in order to maintain said fund at
the level of $100,000 when the Community Development Commission, after completion
and occupancy of said building, converts said Fund into a fund to be called
"Seniors Housing Facility Food Service Trust Fund".
ATTEST:
PASSED and ADOPTED this 3rd day of May, 1977.
77
e Campbell, Ciy � Clerk
Ion
Kile Morgan,