HomeMy WebLinkAboutCC RESO 2011-159•
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RESOLUTION NO. 2011 — 159
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
APPROVING A RESIDUAL RECEIPTS LOAN OF $717,500 FROM
HOME INVESTMENT PARTNERSHIPS PROGRAM FUNDS TO
T&T COMMUNITY PROPERTIES, LLC, FOR THE ACQUISITION AND
REHABILITATION OF AN EIGHT -UNIT APARTMENT COMPLEX LOCATED
AT 138 NORTON AVE, NATIONAL CITY AND REQUIRING AFFORDABLE
RENT RESTRICTIONS ON SEVEN UNITS FOR A PERIOD OF 55 YEARS
WHEREAS, the City of National City administers the HOME Investment
Partnerships (HOME) Program; and
WHEREAS, the City has established a need for affordable housing, and has
established the rehabilitation of the City's housing stock as a priority; and
WHEREAS, the City has identified $717,500 of HOME funds to finance
affordable housing from FY2005-2006 and FY 2010-2011 that are available for allocation; and
WHEREAS, on May 11, 2011, T & T Community Properties, LLC, entered into a
contract to purchase said property for $810,500; and
WHEREAS, T & T Community Properties, LLC, will obtain a new loan of
$565,000 from Clearinghouse CDFI and requires the City's loan to complete the purchase of
said property, and finance $305,300 in rehabilitation hard costs, a deferred developer fee of
$57,000 and other costs; and
WHEREAS, three housing units of said property will restricted rents
t be r�.J lrii�u to
affordable to households at or below 50% of the Area Median Income (AMI) for a period of 15
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 55 years.
WHEREAS, one housing unit of said property will be restricted to rents affordable
to households at or below 80% AMI for a period of 55 years.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby y approves gap financing through a HOME Program loan in the amount of
$717,500, utilizing HOME Investment Partnership Program funds.
BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute
any necessary documents for the financing of the project, including loan agreements,
amendments thereto, deeds and subordination agreements, subject to review by legal counsel.
--- Signature Page to Follow ---
Resolution No. 2011 — 159
Page Two
PASSED and ADOPTED this 19th day of July, 2011
Rdrh Morrison, Mayor
A ROVED AS TO FORM:
Passed and adopted by the Council of the City of National City, California, on July 19,
2011 by the following vote, to -wit:
Ayes: Councilmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
ational City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2011-159 of the City of National City, California, passed and
adopted by the Council of said City on July 19, 2011.
City Clerk of the City of National City, California
By:
Deputy