Resolution Number 00-11-7-2153
RESOLUTION NO. 00-11-7-2
APPROVAL OF APPLICATION FOR FUNDING -
HOME INVESTMENT PARTNERSHIP PROGRAM AND COMMITMENT
OF MATCHING FUNDS (ALIPAZ APARTMENTSNARKEL)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, AUTHORIZING THE SUBMITTAL OF AN
APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING
AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE HOME
INVESTMENT PARTNERSHIPS PROGRAM; THE EXECUTION OF A
STANDARD AGREEMENT, IF SELECTED FOR SUCH FUNDING ANDANY
AMENDMENTS THERETO; AND ANY RELATED DOCUMENTS
NECESSARY TO PARTICIPATE IN THE HOME INVESTMENT
PARTNERSHIPS PROGRAM, AND COMMITMENT OF MATCHING AND
LEVERAGE FUNDS TO THE NEW CONSTRUCTION PROJECT AT 32311
ALI PAZ STREET (ALIPAZ APARTMENTSNARKEL)
WHEREAS, the City of San Juan Capistrano, a political subdivision of the
State of California, wishes to apply for and receive an allocation of funds through the
HOME Investment Partnerships Program (hereinafter referred to as "HOME"); and,
WHEREAS, the California Department of Housing and Community
Development (hereinafter referred to as the "Department") has issued a Notice of Funding
Availability for the HOME program and is authorized to approve funding allocations which
will be made available directly through the U.S. Department of Housing and Urban
Development (HUD) to be used for the purposes set forth in Title II of the Cranston -
Gonzalez National Affordable Housing Act of 1990, the implementing regulations set forth
in Title 24 of the Code of Federal Regulations, Part 92, and Title 25 of the California Code
of Regulations commencing with Section 8200; and,
WHEREAS, the City of San Juan Capistrano wishes to submit an application
to obtain from the Department an allocation of HOME funds; and,
WHEREAS, the proposed program is consistent with the policies and
objectives of the San Juan Capistrano General Plan; and,
WHEREAS, the proposed program is consistent with the policies and
objectives of the San Juan Capistrano Housing Element.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
San Juan Capistrano as follows:
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The City of San Juan Capistrano shall submit to the Department an
application to participate in the HOME program in response to the Notice of Funding
Availability issued on August 28, 2000, as amended, which will request a funding allocation
for the following activity:
Rental New Construction Project (Alipaz Apartments) - The project
consists of providing permanent loan ("take-out") financing for a six -unit apartment complex
consisting of 3 -bedroom units located at 32311 Alipaz Street. A total of $778,682 is being
requested from the State of California Home Investment Partnership Program as follows:
$756,176 for permanent financing funds and an additional $22,506 in administrative funds.
follows:
All six units would be rent and income restricted for a period of 30 years as
Number of Units Maximum Income Maximum Rent
2 units 50% of AMI* $ 905**
4 units 80% of AMI* $1,142--
* AMI
1,142**
*AMI = Area Median Income for Orange County as published by HUD annually.
"Federal HOME Program published rents, as adjusted annually
The following summarizes the financing to be committed to the project:
Loan Amount: $756,176 (State HOME Program) plus $189,044
(City Match funds) = $945,220
Loan Interest Rate:* 3% simple interest for 10 years. Interest would be
forgiven after 10 years. *The interest rate is currently
being negotiated with the developer/owner.
Loan Term: 30 years
Name of Borrower: Snaier Varkel (developer/owner)
Project Address: 32311 Alipaz Street, San Juan Capistrano, CA 92675
2. If the application for funding is approved, the City of San Juan
Capistrano hereby agrees to use the HOME funds for eligible activities in the manner
presented in the application as approved by the Department and in accordance with
regulations cited above. It also may execute any and all other instruments necessary or
required by the Department or HUD for participation in the HOME program.
3. If the application for funding is approved, the City of San Juan
Capistrano hereby agrees to provide the following sources of match to the Alipaz
Apartment Project: (1) up to 25% of the State Home Investment Program activity funds not -
to -exceed $189,044 in Housing In -Lieu Fees.
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4. The City of San Juan Capistrano authorizes the City Manager and/or
Planning Director to execute in the name of the City of San Juan Capistrano, the
application, the Standard Agreement, and all other documents required by the Department
or HUD for participation in the HOME program, and any amendments thereto.
ATTEST:
CITY CLERK
PASSED, APPROVED, AND ADOPTED this 7th day of November, 2000.
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MAYOR
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STATE OF CALIFORNIA ]
COUNTY OF ORANGE ] ss
CITY OF SAN JUAN CAPISTRANO )
I, CHERYL JOHNSON, City Clerk of the City of San Juan Capistrano,
California, DO HEREBY CERTIFY that the foregoing is a true and correct copy of
Resolution No. 00-11-7-2, adopted by the City Council of the City of San Juan Capistrano,
California, at a regular meeting thereof held on the 7th day of November, 2000, by the
following vote:
AYES: Council Members Bathgate, Greiner, Hart, Swerdlin
and Mayor Campbell
NOES: Nome
ABSTAIN: None
ABSENT: None
(SEAL)
CHERYL JO O , CITY CLERK
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