HomeMy WebLinkAboutCC RESO 2021-05RESOLUTION NO. 2021 - 05
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, (1) APPROVING AN AFFORDABLE HOUSING DENSITY BONUS
AGREEMENT WITH KIMBALL APARTMENTS, LLC, A CALIFORNIA LIMITED
LIABILITY COMPANY, RESTRICTING THE RENT AND OCCUPANCY OF FIVE (5)
UNITS TO MODERATE INCOME HOUSEHOLDS IN EXCHANGE FOR ONE DENSITY
BONUS CONCESSION PURSUANT TO CALIFORNIA GOVERNMENT CODE
SECTIONS 65915 - 65918 FOR THE DEVELOPMENT OF FIFTY-TWO(52)-HOUSING
UNITS LOCATED AT 1126 E 8111 STREET IN NATIONAL CITY; AND=(2) APPROVING
A SUBORDINATION AND INTERCREDITOR AGREEMENT WITH CITIZENS
BUSINESS BANK SUBORDINATING THE DEED OF TRUST SECURING THE
PERFORMANCE OF SAID AFFORDABLE HOUSING DENSITYBO_NUS AGREEMENT
WHEREAS, Kimball Apartments, LLC, a California -Limited ttability Company
("Developer") is developing the property located at _%26- East48_th Street, in the City of
National City, County of San Diego, California; ands=
WHEREAS, the the current zoning allows -for th_e=con:struction of Fifty -Two (52) units
by right; and
WHEREAS, the Developer wilkrestr ct't e_rent and occupancy of five (5) units to
a moderate -income household (below 12O% f area median income) in exchange for a
reduction in parking from eighty-six (86)_spacesto sixty-seven (67) spaces, mandated by
California Government Code Sections 659 5--=65918; and
WHEREAS, the Affordable_ Density=Housing Bonus Agreement ("Agreement") will
serve to memorialize _the Developer's obligation to provide the five (5) affordable units
and the restriction bribe affordable_units by the recordation of this Agreement assuring
affordability for a fotal of=fifty-five (55) years; and
WHEREAS, -a5Performance Deed of Trust will also be recorded to secure the
Agreement atil the property, and the Subordination Agreement establishes the City of
National City a=s=a Junior Lienholder of that Deed in Trust.
NOV!tHEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS
FOLLOWS_=
Section 1: That the City Council hereby approves an Affordable Housing
Density Bonus Agreement with Kimball Apartments, LLC, a California Limited Liability
Company, restricting the rent and occupancy of five (5) units to moderate -income
households in exchange for one density bonus concession pursuant to California
Government Code Sections 65915 — 65918 for the development of fifty-two (52) housing
units located at 1126 E 8th Street in the City of National City, County of San Diego,
California.
Resolution No. 2021 — 05
Page Two
Section 2: That the City Council of the City of National City hereby approves a
Subordination and Intercreditor Agreement with Citizens Business Bank subordinating
the Deed of Trust securing the performance of said Affordable Housing Density Bonus
Agreement.
Section 3: That the City of National City will record a Performance Deed of Trust
securing the timely performance of the Affordable Housing Density Bonus Agreement.
After being recorded in the County of San Diego, a copy of said Deed of Trust will be on
file in the Office of the City Clerk.
Section 4: That the City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original Resolutions.
PASSED and ADOPTED this 2nd day of February 2021.
Alejandra Sotelo-Solis, Mayor
ATTEST:
Luz Molina, City Clerk
APPROVED AS TO FORM:
Charles E. Bell Jr., City Attorney