HomeMy WebLinkAbout2010 CC RESO 2010-246 CDCRESOLUTION NO. 2010 — 246
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY (CDC) APPROVING AN AMENDMENT
TO THE DISPOSITION AND DEVELOPMENT AGREEMENT WITH
SAN DIEGO HABITAT FOR HUMANITY, INCORPORATED,
ALLOWING FOR FIRST-TIME HOMEBUYER PROMISSORY NOTES
TO BE FORGIVEN ON THE FORTY-FIFTH ANNIVERSARY DATE
OF PURCHASE, AMENDING DEFINITION OF LOW INCOME
HOUSEHOLD, AND REVISING DEVELOPMENT SCHEDULE
WHEREAS, the Community Development Commission of the City of National
City ("CDC") is implementing the Redevelopment Plan for the National City Redevelopment
Project; and
WHEREAS, the CDC acquired the property located at 1820 G Avenue using
$875,000 in federal HOME funds to develop an affordable housing project; and
WHEREAS, San Diego Habitat for Humanity, Inc., is a certified Community
Housing Development Organization qualified to develop an affordable housing project utilizing
federal HOME funds, and was selected by the CDC to develop said property; and
WHEREAS, on November 21, 2006, the CDC entered into an Exclusive
Negotiations Agreement (ENA) with Habitat for Humanity to prepare plans for the development
of affordable housing on the site; and
WHEREAS, on October 7, 2008, the CDC entered into a Development and
Disposition Agreement (DDA) with San Diego Habitat for Humanity to develop eight for -sale
townhome units affordable to families earning 60-percent of the Area Median Income as defined
by the U.S. Department of Housing and Urban Development
WHEREAS, San Diego Habitat for Humanity has worked diligently to process
land use entitlements and permits for the project; and
WHEREAS, San Diego Habitat for Humanity is requesting that the CDC amend
the DDA to reflect that 1) loans to eligible families be entirely forgiven on the forty-fifth (45`h)
anniversary date that the Resale Restriction is recorded against the restricted unit, 2) revise the
Low Income Definition to the DDA and any related documents, and 3) replace Attachment 5 with
a revised performance schedule.
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission of the City of National City hereby authorizes the Chairman to execute an
Amendment to the Disposition and Development Agreement with San Diego Habitat for
Humanity including:
1. Amend Section 402. Add Section 402.7 with Exhibit "A" attached
hereto.
2. Amend Section 100. Definition. "Low Income Household"
definition is hereby deleted in its entirety from the DDA, and any related documents, and
replaced with Exhibit "B" attached hereto.
Resolution No. 2010 — 246
Page 2
3. Replacement of Attachment 5. Attachment No. 5 Schedule of
Performance" to the DDA is hereby deleted in its entirety and replaced with Exhibit "C" attached
hereto.
PASSED and ADOPTED this 9th day of November, 10.
on Morrison, Chairman
APROVED AS TO FORM:
sel
Exhibit A
402.7. Upon the timely completion of the Affordable Units in accordance
with this Agreement, the Developer Note will be partially forgiven and the
remaining balance will convert to first-time homebuyer loans to Low -Income
Households to assist those Low -Income Households with the purchase of
Affordable Units, as provided in more detail herein. A portion of the Developer
Note will be assumed by each eligible low income purchaser of an Affordable
Unit, concurrently with the purchase of an Affordable Unit. At such time the
purchaser of the Affordable Unit shall execute a promissory note in favor of the
CDC (the "First -Time Homebuyer Note"), in an amount to be determined as set
forth in this Agreement. The Affordable Units shall also be subject to a Resale
Restriction in the form set forth herein as Attachment 10, secured by a deed of
trust. The First -Time Homebuyer Notes shall not require monthly payments and
will be due and owing only upon sale, transfer, further encumbrance, refinancing,
the failure of the Low -Income Households to occupy the Affordable Unit, or other
transfer, as defined in the First -Time Homebuyer Note and Resale Restrictions.
The CDC Note shall be deemed satisfied on the forty-fifth (45th) anniversary of
the date this Resale Restriction is recorded against the Restricted Unit, provided
that the Owner and its successors in interest to the Restricted Unit remained in
compliance with the terms of this Resale Restriction throughout the Affordability
Period. The initial sale price of the Affordable Units shall not exceed the
Maximum Purchase Price, as defined below.
Exhibit B
"Low Income Household" means persons and families whose income does not
exceed Eighty percent (80%) of the then current Area Median Income, provided
that such persons or families meet the additional requirements set forth in
Section 4 of the Agreement Affecting Real Property.
Exhibit C
Attachment 5
Schedule of Performance
ITEM
Completion of Phase 1
Close on Phase 1 homes
Commencement of Phase 2
Completion of Phase 2
Close on Phase 2 homes
COMPLETION DATE
December 2010
January 2011
January 2011
September 2011
Passed and adopted by the Community Development Commission of the City of
National City, California, on November 9, 2010, by the following vote, to -wit:
Ayes: Commissioners Morrison, Sotelo-Solis, Van Deventer, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman, Community Development Commission
Secretary,
evelopment Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2010-246 of the Community Development Commission of the City
of National City, California, passed and adopted on November 9, 2010.
Secretary, Community Development Commission
By:
Deputy