Resolution Number CRA 95-9-19-2207
RESOLUTION NO. CRA 95-9-19-2
A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY, APPROVING AN OWNER
PARTICIPATION AGREEMENT WITH THE SAN JUAN CAPISTRANO
HOUSING INVESTORS, L.P. AND MAKING CERTAIN FINDINGS
WHEREAS, the San Juan Capistrano Redevelopment Agency ("Agency") under the
provisions of the California Community Redevelopment Law (Health & Safety Code Sections 33000
et seq.) (the "Law"), is engaged in activities necessary for the implementation of the Redevelopment
Plan for the San Juan Capistrano Central Redevelopment Project Area (hereinafter referred to as the
"Project Area"); and,
WHEREAS, San Juan Capistrano Housing Investors, L.P. a California limited
partnership ("Developer") has entered into an agreement for the acquisition of certain unimproved
real property located in the Project Area (the 'Property"); and,
WHEREAS, Developer proposes to complete the acquisition of the Property and
develop a one hundred twelve (112) unit senior housing project with not less than ninety-two (92)
of the units to be maintained available at affordable rent to Very Low Income and Qualified Lower
Income Households for a period of fifty-seven (57) years, as more fully set forth in an Owner
Participation Agreement (the "Agreement") in the form submitted herewith; and,
WHEREAS, the Agreement provides for the imposition of long-term affordability
covenants, and contemplates the use of varied sources of private financing in connection with the
acquisition and development of the Property by the Developer; and,
WHEREAS, while the Developer has attempted to obtain private financing on
favorable terms which would not require the subordination of long-term affordability covenants, all
of those lenders who have expressed an interest in providing financing for the proposed acquisition
and development have indicated that they will require that the lien securing repayment of their loan
must be superior to any long-term affordability covenants in favor of the Agency; and,
WHEREAS, based upon the foregoing, as well as the past experience of the
Developer in connection with obtaining permanent financing, it is anticipated that it will be necessary
as a condition to obtaining private funding for the acquisition and development of the Property by the
Developer that the Agency subordinate its affordability covenants; and,
WHEREAS, Section 33334.14 of the Law provides, in part, that affordability
covenants of an Agency may be subordinated "where the agency makes a finding that an economically
feasible alternative method of financing, refinancing, or assisting the units or parcels on substantially
comparable terms and conditions, but without subordination, is not reasonably available, and where
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208
the agency obtains written commitments reasonably designed to protect the Agency's investment in
the event of default; and,
WHEREAS, based upon representations to the Agency, there is not an economically
feasible alternative method of financing available on substantially comparable terms; and,
WHEREAS, in the event the Agency subordinates its affordability covenants, the
Agency shall have certain rights to notice and cure in the event of default under such loan as to which
the Agency subordinates its affordability covenants; and,
WHEREAS, the governing board of the Agency has duly considered all terms and
conditions of the Agreement and believes that the activities described in the Agreement are in accord
with the public purposes and provisions of applicable State and local law requirements, and that such
activities promote the affordable housing objectives of the Community Redevelopment Law as well
as the Redevelopment Plan for the San Juan Capistrano Central Redevelopment Project.
NOW, THEREFORE, BE IT RESOLVED, that the San Juan Capistrano
Community Redevelopment Agency Board of Directors, City of San Juan Capistrano, California, do
hereby find, determine, order and resolve as follows:
SECTION 1.
The Agency finds and determines that an economically feasible alternative method of
financing, refinancing, or assisting the units or parcels on substantially comparable terms and
conditions, but without subordination, is not reasonably available, and the Agency shall obtain written
commitments reasonably designed to protect the Agency's investment in the event of default.
SECTION 2.
The Agency approves the Owner Participation Agreement, on file in the office of the
Agency Secretary and attached hereto by reference, and authorizes and directs the Executive Director
to execute the Agreement and to take all steps and sign all documents and instruments including, but
not limited to agreements and escrow instructions to carry out the Agreement on behalf of the
Agency, and agreements or other instruments as may be necessary or convenient to effectuate the
subordination of affordability covenants unless it is hereafter determined by the Executive Director
or the Agency that such subordination is not necessary.
PASSED, APPROVED, AND ADOPTED this
September 11995.
ATTEST:
AGENCY SJ2CRETARY
ZZF '�..
DAVID SWEkDLIN, CHAIRMAN
-2-
19th
day of
20S
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF SAN JUAN CAPISTRANO )
I, CHERYL JOHNSON, Agency Secretary of the San Juan Capistrano Community
Redevelopment Agency, DO HEREBY CERTIFY that the foregoing is a true and correct copy of
Resolution No. CRA 95-9-19-2 adopted by the San Juan Capistrano Community
Redevelopment Agency Board of Directors at a regular meeting thereof held on the 19th day
of September , 1995, by the following vote:
AYES: Directors Jones, Hart, Nash and Campbell
NOES: Chairman Swerdlin
ABSTAIN: None
ABSENT: None
(SEAL)
CHERYL JO ON GENCYSECRETARY
210
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss AFFIDAVIT OF POSTING
CITY OF SAN JUAN CAPISTRANO )
I, CHERYL JOHNSON, declare as follows:
That I am the duly appointed and qualified Secretary of the San Juan Capistrano
Community Redevelopment Agency;
That in compliance with State laws of the State of California and in further compliance
with CRA Resolution No. CRA 83-12-20-1 and on the 21st day of September
1995, I caused to be posted:
RESOLUTION NO. CRA 95-9-19-2 , being
RV41W R1,1741101201111111 !1'. 11,
�_ 1 / 1► I� L _ 1
A RESOLUTION OF THE SAN JUAN CAPISTRANO COMMUNITY
REDEVELOPMENT AGENCY, APPROVING AN OWNER
PARTICIPATION AGREEMENT WITH THE SAN JUAN CAPISTRANO
HOUSING INVESTORS, L.P. AND MAKING CERTAIN FINDINGS
in three (3) public places in the City of San Juan Capistrano, to wit: City Hall; Old Fire Station
Recreation Complex; Orange County Public Library.
CHECK LIST
RES. NO. CRA 9.5 'Y-/`T—y
Chairman has signed
Secretary has signed
�r Agency Seal stamped
All blanks typed in
"Absent"
"Noes" G61g i
"Abstain"
Copies sent to amaill
dcertified
s,•z.
Legal Publicationordered to be published
(date)
No. Printed copies required
Remarks
Cheryl Johnsc6, A ncy Secretary
San Juan Capistrano Community
Redevelopment Agency
San Juan Capistrano, California