HomeMy WebLinkAbout2010 CON CDC San Diego Habitat for Humanity - Amendment #2 DDA Affordable HousingSECOND AMENDMENT TO
DISPOSITION AND DEVELOPMENT AGREEMENT
(1441 Harding)
THIS SECOND AMENDMENT TO DISPOSITION AND DEVELOPMENT
AGREEMENT ("Amendment") is entered into as of this _9_ day of _November, 2010, by and
between the Community Development Commission of the City of National City, a public body,
corporate and politic ("CDC"), and San Diego Habitat for Humanity, Inc., a California nonprofit
corporation ("Developer").
RECITALS
A. Developer and the CDC entered into that certain Disposition and Development
Agreement, dated April 21, 2009 (the "DDA").
B. Developer and the CDC entered into an amendment (first) to the Disposition and
Development Agreement on April 6, 2010.
C. Developer and the CDC desire to revise and update the "Low Income I Iousehold"
definition to the DDA.
D. Unless otherwise defined herein, all capitalized terms used in this Amendment
shall have the meanings attributed to them in the Agreement.
Now, therefore, in consideration of the foregoing and other good and valuable
consideration, Developer and the CDC agree as follows:
1. Amend Section 100. Definitions. Amend "Low Income llousehold" definition as
follows: "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.
2. Confirmation of Obligations. Except as expressly amended or modified herein, the DDA
shall remain unmodified and in full force and effect. Except to the extent modified by this
Amendment, Developer hereby confirms each of the covenants, agreements and obligations of
Developer set forth in the DDA.
3. Counterparts. This Amendment may be executed in any number of counterparts and, as
so executed, the counterparts shall constitute one and the same instrument.
4. Exhibits and Recitals Incorporated. All exhibits referred to in this Amendment are
hereby incorporated in this Amendment by this reference, regardless of whether or not the
exhibits are actually attached to this Amendment. The Recitals to this Agreement are hereby
incorporated in this Agreement by this reference.
5. Authority to Sign. All individuals signing this Amendment for a party which is a
corporation, limited liability company, partnership or other legal entity, or signing under a power
of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the
CDC that they have the necessary capacity and authority to act for, sign and bind the respective
entity or principal on whose behalf they are signing.
IN WITNESS W'IIEREOF, the parties hereto have caused this Amendment to be
executed as of the day and year first above written.
DEVELOPER:
San Diego Habitat for Humanity, Inc, a California nonprofit public benefit corporation
By: .
Print Name: b2fStb1.12 2iAire%
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By:
Print Name:
Title:
CDC:
Conununity Development Commission of the City of National City
By:.
Printllame: Ron Morrison
Title: Chairman
roved a,to fru:
a dia G. S
City Attorney
RESOLUTION NO. 2010 — 245
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN
TO EXECUTE A SECOND AMENDMENT
TO THE DISPOSITION AND DEVELOPMENT AGREEMENT
WITH SAN DIEGO HABITAT FOR HUMANITY, INC., REVISING
THE "LOW INCOME HOUSEHOLD" DEFINITION TO MEAN PERSONS
AND FAMILIES WHOSE INCOME DOES NOT EXCEED EIGHTY
PERCENT (80%) OF THE THEN CURRENT AREA MEDIAN INCOME
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 1441 Harding Avenue
using $400,000 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 on October 17, 2006, by the CDC to develop said
property; and
WHEREAS, on December 19, 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 December 1, 2008, the National City Planning Commission
recommended approval of the Project; and
WHEREAS, on December 2, 2008, City Council allocated $272,119 in HOME
Investment Partnerships Program income funds; and
WHEREAS, on April 21, 2009, the CDC entered into a Development and
Disposition Agreement (DDA) with San Diego Habitat for Humanity to develop three for -sale
single-family units affordable to families earning 60-percent of the Area Median Income as
defined by the U.S. Department of Housing and Urban Development; and
WHEREAS, San Diego Habitat for Humanity has worked diligently to process
land use entitlements and permits for the project; and
WHEREAS, the CDC approved the First Amendment to the Disposition and
Development Agreement on April 6, 2010, to reflect that loans to eligible families be entirely
forgiven on the forty-fifth (45`) anniversary date that the Resale Restriction is recorded against
the restricted unit; and
WHEREAS, on June 29, 2010, San Diego Habitat for Humanity requested that
the CDC amend the DDA definition of "Low Income Household" to mean persons and families
whose income does not exceed eighty percent (80%) of the then current Area Median Income.
Resolution No. 2010 — 245
Page 2
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission of the City of National City hereby authorizes the Chairman to execute a Second
Amendment to the Disposition and Development Agreement with San Diego Habitat for
Humanity to amend the DDA definition of "Low Income Household" to mean persons and
families whose income does not exceed eighty percent (80%) of the then current Area Median
Income.
PASSED and ADOPTED this 9th day of Nove . 1 10.
on Mornson, Chairman
,••
JI. As
adia G I a
ROVED AS TO FORM:
City Atto ey
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
Secre
Development Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2010-245 of the Community Development Commission of the City
of National City, Califomia, passed and adopted on November 9, 2010.
Secretary, Community Development Commission
By:
Deputy
SVIEETING DATE:
CITY OF NATIONAL CITY, CALIFORNIA
COMMUNITY DEVELOPMENT COMMISSION
COUNCIL AGENDA STATEMENT
November 9, 2010
caoo6•19 (/7)
AGENDA ITEM NO.26
ITEM TITLE:
Resolution of the Community Development Commission of the City of National City approving a second
amendment to the Disposition and Development Agreement with San Diego Habitat for Humanity. Incorporated,
revising the "I,ow income Household" definition to mean persons and families whose income dots not exceed
eighty percent (80%) of the then current Area Median Income. (Community Development)
PREPARED BY: Alfredo Yba
PHONE: 619 336-4279
DEPARTMENT: Community Development
APPROVED BY:
EXPLANATION:
On April 21, 2009, the City Council authorized the Chairman to execute a Disposition and Development Agreement ("DDA`)
for the development of three (3) single family units consisting of two — 2 story units and one — 1 story unit. The 8.625 parcel
is located on the northeast corner of 14th and Harding Avenue. Currently, one unit has sold and the other two are ready for
sale.
The original DDA required that each unit be sold to families earning at or below 60-percent Area Median Income ("AMI").
Due to economic conditions. Habitat for Humanity is experiencing difficulty finding an applicant under the 60% AMI that can
qualify for an amortized loan. In addition, Habitat for Humanity has received an application from a family who is currently at
65.2% of the AMI. This family, besides exceeding 60% of the AMI, would otherwise qualify for a Habitat home.
Habitat for Humanity is requesting that the Community Development Commission amend the definition of Low Income
Household" in the DDA to mean persons and families whose income does not exceed eighty percent (80%) of the then
current Area Median Income.
FINANCIAL STATEMENT: APPROVED:
ACCOUNT NO. APPROVED:
Not applicable
ENVIRONMENTAL REVIEW:
Not applicable
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
Finance
MIS
STAFF RECOMMENDATION:
Community Development Commission adopt resolution
BOARD / COMMISSION RECOMMENDATION:
Not Applicable
ATTACHMENTS:
1. Letter from San Diego Habitat for Humanity requesting DDA amendment
2. Second Amendment to Disposition and Development Agreement (1441 Harding)
P:ESO�'J�\C�1 ' o 'dl`\C - d`�:
N ONO -
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_-- INCORPORATED
November 15, 2010
Ms. Cheryl Keenan
San Diego Habitat for Humanity, Inc.
10222 San Diego Mission Road
San Diego, CA 92108
Dear Ms. Keenan,
OFFICE OF THE CITY CLERK
1243 National City Blvd.
National City, California 91950
Michael R. Dalla, CMC - City Clerk
619-336-4228 phone • 619-336-4229 fax
On November 9th, 2010, Resolution No. 2010-245 was passed and adopted by
the Community Development Commission of the City of National City, authorizing
execution of Amendment #2 to the Disposition and Development Agreement with
San Diego Habitat for Humanity.
We are enclosing for your records a certified copy of the above Resolution and a
fully executed original Amendment.
Sincerely,
Michael R. Dalla, CMC
City Clerk
Enclosures
cc: Community Development Commission