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Home My WebLink AboutRDA O2 HOUSING - HELP 02-20-01 RDA NO. 02 AGENDA REPORT .. MEETING DATE: FEBRUARY 20, 2001 TO' WILLIAM A. HUSTON, EXECUTIVE DIRECTOR FROM' REDEVELOPMENT AGENCY STAFF SUBJECT' APPROVAL OF AGREEMENT FOR HOUSING ENABLED BY LOCAL PARTNERSHIPS (HELP) PROGRAM FUNDING AND AUTHORIZATION TO INCUR INDEBTEDNESS FOR HELP PROGRAM LOAN FUNDS SUMMARY Agency approval is requested for an agreement for the allocation of Housing Enabled by Local Partnerships (HELP) Program funds from California Housing Finance Authority. RECOMMENDATION Staff recommends the Redevelopment Agency take the following actions: 1. Adopt Resolution RDA 01-2 approving the Agreement between the Agency and the California Housing Finance Agency ("CHFA") for the allocation of $1,150,000 in Housing Enabled by Local Partnerships ("HELP") funds. 2. Authorize the Community Redevelopment Agency to incur the HELP Program loan indebtedness. FISCAL IMPACT This action will create indebtedness in an amount of up to $1,150,000 for the Housing Set-Aside Fund for South Central Redevelopment Project Area when such funds are disbursed from CHFA. BACKGROUND/DISCUSSION On October 2, 2000 the Agency authorized staff to prepare an application to the California Housing Finance Agency for an allocation of funds under the Housing Enabled by. Local Partnerships Program ("HELP" Program). The HELP Program is used as a flexible tool to help facilitate a more comprehensive development and revitalization effort that includes the upgrading and/or addition of both single family ownership and multifamily rental housin~ in target communities. The program funds must be used to provide housing units that are affordable for at least 10 years, with "affordable" being defined in the context of the unmet housing needs and priorities of the locality. Eligible activities under the program include acquisition, rehabilitation, in-fill, predeveiopment, development, construction, code enforcement and other housing-related development and revitalization efforts. William A. Huston Approval of Agreement for HELP Program February 20, 2001 Page 2 The Tustin Community Redevelopment Agency was awarded an allocation of $1,150,000 in loan funds through the HELP Program to provide funding assistance for affordable housing oppor[unities in the South Central Redevelopment Project Area. The program provides funds as an unsecured loan from CHFA for up to ten (10) years at three percent (3%) simple interest per annum with certain minimal restrictions and conditions. The program uses a Loan-to-Lender format where the local government entity contracts to repay CHFA and re-lend or otherwise utilizes the funds for its stated purpose. The program stipulates that the repayment of such loans is required no later than ten (10) years from the date a commitment/loan agreement is signed between CHFA and a government entity. The Redevelopment Agency is not required to provide property or other resources as collateral. The disbursement of HELP Program funds requires that the Redevelopment Agency agree to use the funds for eligible activities in the manner presented in the application as approved by CHFA, to commit resources to implement projects under the program, and to take other actions necessary to facilitate projects under the program guidelines. The Agreement with CHFA is not a project for purposes of CEQA (Public Resources Code Section 21151). At this point, the Agency has not identified any funding recipients under the HELP Program, so there is no causal link between the Agreement and the potential impact on the physical environment. Staff will be available at the Agency meeting to answer any questions the AgencY may have. Christine A Sh~ng Assistant City Manager Attachment 10 14 2o 2.?. 23 24 25 2? 29 RESOLUTION NO. RDA 01-2 A RESOLUTION OF THE TUSTIN COMMUNITY REDEVELOPMENT AGENCY, AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT WITH THE CALIFORNIA HOUSING FINANCE AGENCY THE HOUSING ENABLED BY LOCAL PARTNERSHIPS PROGRAM ("HELP") FOR THE REHABILITATION, CONVERSION OR 'CONSTRUCTION OF AFFORDABLE HOUSING UNITS AND TO INCUR THE HELP PROGRAM LOAN INDEBTEDNESS. The Tustin Community Redevelopment Agency DOES HEREBY RESOLVE follows' !. The Tustin Community Redevelopment Agency finds and determines as follows: Ao Pursuant to the California Community Redevelopment Law (Health and Safety code Section 33000 et seq.), the Tustin Community Redevelopment Agency is engaged in activities necessary to execute and implement a redevelopment plan; and B, The California Housing Finance Agency ("CHFA") has initiated the Housing Enabled by Local Partnerships Program ("HELP" Program) to provide affordable housing opportunities through program partnerships w. ith local government entities consistent with affordable housing priorities of the locality; Co The HELP Program provides funds to local government entities as an unsecured loan from CHFA for up to ten (10) years at three percent (3%) simple interest per annum with certain minimal restrictions and conditions; D, The HELP Program stipulates that the repayment of such loans is required no later than ten (10) years from the date a commitment/loan agreement is signed between CHFA and a government entity; E, The HELP Program funds' must be used by local government entities for current unmet affordable housing needs and priorities as determined by each participating locality through Housing Elements, Consolidated Plans and other documentation as required by the HELP Program; Fo Participating local jurisdictions must have general housing elements that conform with requirements of Article 10.6 of Chapter 3 of Division ! of Title 7' of the Government Code (Government Code 65580 et seq.); and G, The Tustin Community Redevelopment Agency was awarded an allocation of $1,150,000 in loan funds through the HELP Program as a tool to facilitate more comprehensive revitalization and construction efforts that includes conversion and construction of family ownership housing and special needs housing opportunities. Resolution No. RDA 01-2 Page 2 NOW THEREFORE, BE IT RESOLVED that the Tustin Community Redevelopment Agency: 1. Approve an agreement with the California HoUsing Finance Agency for $1,150,000 in Housing Enabled by Local Partnerships Program (HELP) funds. The Executive Director is authorized to execute the Agreement and related documents necessary to meet the requirements of the HELP Program. 2. Authorize the Community Redevelopment Agency to incur the HELP Program Loan indebtedness. ~ 2. The Community Redevelopment Agency agrees to use the HELP Program funds for eligible activities in the manner presented in the application as approved by ~0 CHFA, to commit resources to implement projects under the Program, and to take other actions necessary to facilitate projects under the Program guidelines 11 ' PASSED AND ADOPTED at a regular meeting of the Tustin Community Redevelopment Agency held on the 20th day of February, 2001. 1.3 14 16 17 20 2! 22 23 :>4 25 26 27 28 29 Tracy Wills Worley, Chair Tustin Community Redevelopment Agency PAMELA STOKER Recording Secretary STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CiTY OF TUSTIN ) SS RESOLUTION NO. RDA 01-2 Pamela Stoker, Recording Secretary of the Tustin Community Redevelopment Agency of the City of Tustin, California, does hereby certify that the whole number of the members of the Tustin Community Redevelopment Agency is five; that the above and foregoing resolution was passed and adopted at a regular meeting of the Tustin Community Redevelopment Agency held on the 20th day of February, 2001, by the following vote' AGENCY MEMBER AYES' AGENCY MEMBER NOES' AGENCY MEMBER ABSTAINED: AGENCY MEMBER ABSENT: Pamela Stoker, Recording Secretary