HomeMy WebLinkAboutCC RESO 2012-217RESOLUTION NO. 2012 — 217
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
APPROVING THE TERMS AND CONDITIONS OF THE SAN DIEGO HABITAT
FOR HUMANITY ACQUISITION -REHABILITATION FOR HOMEOWNERSHIP
PROGRAM, AND AUTHORIZING THE MAYOR TO EXECUTE A HOME
COMMUNITY HOUSING DEVELOPMENT ORGANIZATION ("CHDO") FUNDING
AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND SAN DIEGO
HABITAT FOR HUMANITY COMMUNITY HOUSING CORPORATION, INC.
FOR THE CONSTRUCTION AND/ OR REHABILITATION OF
SINGLE-FAMILY RESIDENTIAL HOUSING IN THE CITY OF NATIONAL CITY
WHEREAS, the City of National City is a recipient of funds from the United
States Department of Housing and Urban Development ("HUD"), pursuant to Title II of the
National Affordable Housing Act of 1990 (42 U.S.C. 12701 et seq.) as amended; and
WHEREAS, the City desires to plan for the new construction or rehabilitation of
existing housing to create affordable residential developments for the benefit of low- and
moderate- households, including certain pre -development activities as allowed under HOME
regulations; and
WHEREAS, San Diego Habitat for Humanity Community Housing Corporation,
Inc. ("SD-HFH"), has demonstrated development experience in National City and is qualified to
develop or rehabilitate and subsequently sell affordable single-family residential housing and
perform the other services as specified in HOME Community Housing Development
Organization ("CHDO") Funding Agreement ("Agreement"); and
WHEREAS, SD-HFH has been certified by the City as an eligible CHDO
pursuant to the definition of such organizations contained in 24 CFR 92.2; and
WHEREAS, both parties to this Agreement, SD-HFH and the City, agree that
they are subject to the federal restrictions and qualifications listed in Title 24 of the Code of
Federal Regulations, Part 92 (''24 CFR 92"); and
WHEREAS, the CITY allocated $650,000 of federal HOME funds on May 2,
2012, that may be used for the construction and/or substantial rehabilitation of as yet not
identified six single-family (6) HOME assisted housing units ("Assisted Units") for Eligible
Households earning 80% of the Area Median Income for San Diego County or less; and
WHEREAS, in an effort to establish a continuous source of housing development
funding capacity for SD-HFH, the City has elected to permit SD-HFH to retain all net proceeds
from the sale of the rehabilitated units ("CHDO Proceeds"). As a further condition of the
Agreement, SD-HFH must use and restrict any and all CHDO Proceeds for the production of
additional units until six (6) Assisted Units are completed and sold and the balance of CHDO
Proceeds remaining after the completion of six units is committed to developing affordable
housing in National City. Upon cycling the balance once, any other CHDO Proceeds will be
unrestricted and not subject to HOME requirements; and
WHEREAS, the CITY has also elected for SD-HFH to income qualify
households, originate and process second mortgages for each qualifying household and
prepare loan documents including but not limited to a HOME regulatory agreement, deed of
trust, and promissory note to be executed with the City as the Beneficiary of each mortgage.
Resolution No. 2012 — 217
Page Two
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby approves the terms and conditions of the San Diego Habitat for Humanity
Acquisition -Rehabilitation for Homeownership Program as specified in the HOME CHDO
Funding Agreement.
BE IT FURTHER RESOLVED that the City Council of the City of National City
authorizes the Mayor to execute a HOME Community Housing Development Organization
Funding Agreement between the City of National City and San Diego Habitat for Humanity, Inc.,
for the construction and/or rehabilitation of single family residential housing in the City of
National City.
BE IT FURTHER RESOLVED that the City Council of the City of National City
authorizes the City Manager of the City of National City to execute in the name of the City of
National City any loan document or agreement required for the full implementation of the
activities specified under said Agreement.
PASSED and ADOPTED this 30th day of October, . 012.
on Morrison, Mayor
ATTEST:
Mich: el R. Dal a, f'ity Clerk
Pr?PROVED AS TO FORM:
Claudia Ga
City Attorne
Passed and adopted by the Council of the City of National City, California, on October
30, 2012 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
eletelti NCityrk of the City bf National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2012-217 of the City of National City, California, passed and
adopted by the Council of said City on October 30, 2012.
City Clerk of the City of National City, California
By:
Deputy