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HomeMy WebLinkAbout05 CITY MANAGER/THA EXECUTIVE DIRECTOR'S AUTHORITY TO EXECUTE AFFORDABLE HOUSING DOCUMENTSAgenda Item s Reviewed: AGENDA REPORT City Manager Finance Director _ A MEETING DATE: SEPTEMBER 18, 2012 TO: JEFFREY C. PARKER, CITY MANAGER AND HOUSING AUTHORITY EXECUTIVE DIRECTOR FROM: TUSTIN HOUSING AUTHORITY SUBJECT: REAFFIRM THE CITY MANAGER AND /OR HOUSING AUTHORITY EXECUTIVE DIRECTOR'S AUTHORITY TO EXECUTE AFFORDABLE HOUSING DOCUMENTS SUMMARY The Tustin Housing Authority is seeking to reaffirm the authority of the City Manager and /or Housing Authority Executive Director to execute affordable housing documents required for the refinancing or the sale of existing affordable housing units. RECOMMENDATION It is recommended the City Council take the following action: • Adopt City Council Resolution 12 -81, authorizing the City Manager and /or Executive Director of the Tustin Housing Authority, or their designee, to execute affordable housing documents required for the refinancing or the sale of affordable housing units. It is recommended the Tustin Housing Authority Commissioners take the following action: • Adopt Resolution HA No. 12 -04, authorizing the Executive Director of the Tustin Housing Authority and /or City Manager, or their designee, to execute affordable housing documents required for the refinancing or the sale of affordable housing units. FISCAL IMPACT None. BACKGROUND On January 17, 2012, the City of Tustin elected to decline the affordable housing assets Agenda Report September 18, 2012 Page 2 and functions previously performed by the Tustin Community Redevelopment Agency (the "Agency') and confirmed, effective February 1, 2012, the Tustin Housing Authority ( "Housing Authority ") would assume the housing assets and functions of the former Agency. On June 12, 2012, the Oversight Board of the Successor Agency to the Tustin Community Redevelopment Agency affirmed the transfer by operation of law of the former Agency's housing assets and functions to the Housing Authority. Pursuant to HSC Section 34176(a)(2), the Housing Authority was required to submit a list of all housing assets transferred between February 1, 2012 and August 1, 2012 to the Department of Finance ( "DoF "). On August 1, 2012, the Housing Authority submitted the list of all housing assets and, pursuant to HSC Section 34176, the DoF had up to 30 days to object to any of the assets identified on the list. Thirty days has expired since the date the DoF received the Housing Assets List. The list of assets includes three hundred five (305) affordable housing units. One function the Housing Authority assumed from the former Agency is responding to requests from affordable homeowners seeking to refinance or sell their affordable housing unit. These requests require staff to prepare affordable housing documents for the City Manager or the Housing Authority Executive Director's signature, depending upon which entity, the City or former Agency, entered into the original agreement with the affordable homeowner. The City Council has previously approved the housing developments associated with these affordable housing units and granted the City Manager or Agency Executive Director certain execution authorities. Staff is requesting reaffirmation of the City Manager or Executive Director's authority to execute all affordable housing documents assumed by the Housing Authority through the adoption of the attached Resolutions: Resolution No. 12 -81; and Resolution HA No. 12 -04. In the event of a default by the affordable homeowner(s), the Housing Authority is not requesting authority for the City Manager or Housing Authority Executive Director to execute contracts related to the option to purchase an affordable housing unit or cure a default as provided in the affordable housing documents. In accordance with February 1, 2011 City Council direction provided on the Affordable Housing Default Revolving Fund, these authorities will require City Council and /or Housing Authority approval specific to the affordable housing unit in default. Staff is available to answer any questions the City Council and Housing Authority may have. Jerry Craig Program Ma ger Tustin Ho i a AN Resolution No. 12 -81 Resolution HA No. 12 -04 RESOLUTION NO. 12 -81 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AUTHORIZING THE CITY MANAGER AND /OR THE TUSTIN HOUSING AUTHORITY EXECUTIVE DIRECTOR, OR THEIR DESIGNEE, TO EXECUTE ALL AFFORDABLE HOUSING DOCUMENTS ASSOCIATED WITH AFFORDABLE HOUSING DEVELOPMENTS PREVIOUSLY APPROVED BY THE CITY COUNCIL AND ASSUMED BY THE TUSTIN HOUSING AUTHORITY FROM THE FORMER TUSTIN COMMUNITY REDEVELOPMENT AGENCY PURSUANT TO HEALTH & SAFETY CODE SECTION 34176 The City Council of the City of Tustin hereby finds, determines and declares as follows: A. The City of Tustin is a municipal corporation of the State of California ( "City "); and B. Pursuant to California Housing Authorities Law (Health and Safety Code section 34200, et seq.), on March 15, 2011, the City Council of the City ( "City Council ") adopted Resolution No. 11 -20 establishing the Tustin Housing Authority ( "Housing Authority "); and C. The Former Tustin Community Redevelopment Agency ( "Agency ") was a community redevelopment agency organized and existing under the former California Community Redevelopment Law, Health and Safety Code Sections 33000, et seq. ( "CRL "), with the authority to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council of the City; and D. On December 29, 2011, in California Redevelopment Association v. Matosantos, Case No. S194861, the California Supreme Court upheld AB X1 26, which dissolves all of the redevelopment agencies in California, and invalidated AB X1 27 that had allowed redevelopment agencies to remain in existence if they opted in to the "Voluntary Alternative Redevelopment Program" ( "Program "); and E. Effective February 1, 2012, all California redevelopment agencies were dissolved as a result of the implementation of ABx1 26; and F. On January 17, 2012, City Council adopted Resolution No. 12 -08 declining to assume the housing assets and functions of the former Agency and stating the City's intention that the Housing Authority assume all rights, powers, assets. duties, and obligations associated with the Resolution 12 -81 housing activities of the former Agency; and G. Pursuant to Resolution No. 12 -08, the City Manager was authorized and directed to take such other and further actions, and sign such other and further documents, as are necessary and proper to implement Resolution No. 12 -08; and H. On January 17, 2012, the Housing Authority adopted Resolution HA No. 12 -01 agreeing to assume all rights, powers, assets, duties, liabilities, and obligations associated with the housing activities of the former Agency; and Pursuant to Resolution HA No. 12 -01, the Housing Authority Executive Director was authorized to take all actions necessary and proper in order to implement the assumption of assets and functions on behalf of the Housing Authority; and J. On August 1, 2012, pursuant to Health and Safety Code section 34176, adopted as part of Assembly Bill No. 1484, the Housing Authority submitted the Housing Assets List to the California Department of Finance ( "DOF "); and K. Pursuant to Health and Safety Code section 34176, the DOF has up to 30 days from the date of receipt of the Housing Assets List to object to any of the assets or transfers of assets identified on the list; and L. Thirty days has expired since the date the DOF received the Housing Assets List; and M. In order to fully assume all of the assets and functions of the former Agency, the City Council desires to reaffirm the authority of the City Manager and /or Housing Authority Executive Director to execute any and all affordable housing documents associated with the refinancing or the sale of existing affordable housing units. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF TUSTIN: Section 1. The above recitals are true and correct, are a substantive part of this Resolution, and are adopted as the findings of the City Council. Section 2. The City Manager and /or Housing Authority Executive Director, or their designee, is hereby authorized and directed to execute any and all affordable housing documents necessary to facilitate the refinancing or the sale of existing affordable housing units; however, this authority shall not include contracts related to the option to purchase an affordable housing unit or cure a default as provided in the Resolution 12 -81 877895.1 affordable housing documents in the event of a default by the owner(s) of an affordable housing unit. Section 3. This Resolution shall take effect immediately upon its adoption by the City Council of the City of Tustin, and the Clerk of the City Council shall attest to and certify the vote adopting this Resolution. PASSED AND ADOPTED by the City Council of the City of Tustin at a regular meeting on the 18th day of September, 2012. JOHN NIELSEN Mayor ATTEST: PAMELA STOKER City Clerk STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Pamela Stoker, City Clerk and ex- officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 12 -81 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 18th day of September, 2012, by the following vote: COUNCILMEMBERS AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSTAINED: COUNCILMEMBERS ABSENT: PAMELA STOKER City Clerk Resolution 12 -81 RESOLUTION HA NO. 12 -04 A RESOLUTION OF THE TUSTIN HOUSING AUTHORITY OF THE CITY OF TUSTIN, CALIFORNIA, AUTHORIZING THE HOUSING AUTHORITY EXECUTIVE DIRECTOR AND /OR CITY MANAGER, OR THEIR DESIGNEE, TO EXECUTE ALL AFFORDABLE HOUSING DOCUMENTS ASSOCIATED WITH AFFORDABLE HOUSING DEVELOPMENTS PREVIOUSLY APPROVED BY THE CITY COUNCIL AND ASSUMED FROM THE FORMER TUSTIN COMMUNITY REDEVELOPMENT AGENCY PURSUANT TO HEALTH & SAFETY CODE SECTION 34176 The Tustin Housing Authority hereby finds, determines and declares as follows: A. The City of Tustin is a municipal corporation of the State of California ( "City "); and B. Pursuant to California Housing Authorities Law (Health and Safety Code section 34200, et seq.), on March 15, 2011, the City Council of the City ( "City Council ") adopted Resolution No. 11 -20 establishing the Tustin Housing Authority ( "Housing Authority "); and C. The Former Tustin Community Redevelopment Agency ( "Agency") was a community redevelopment agency organized and existing under the former California Community Redevelopment Law, Health and Safety Code Sections 33000, et seq. ( "CRL "), with the authority to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council of the City; and D. On December 29, 2011, in California Redevelopment Association v. Matosantos, Case No. S194861, the California Supreme Court upheld AB X1 26, which dissolves all of the redevelopment agencies in California, and invalidated AB X1 27 that had allowed redevelopment agencies to remain in existence if they opted in to the "Voluntary Alternative Redevelopment Program" ( "Program "); and E. Effective February 1, 2012, all California redevelopment agencies were dissolved as a result of the implementation of ABx1 26; and F. On January 17, 2012, City Council adopted Resolution No. 12 -08 declining to assume the housing assets and functions of the former Agency and stating the City's intention that the Housing Authority assume all rights, powers, assets. duties, and obligations associated with the Resolution HA No. 12 -04 housing activities of the former Agency; and G. Pursuant to Resolution No. 12 -08, the City Manager was authorized and directed to take such other and further actions, and sign such other and further documents, as are necessary and proper to implement Resolution No. 12 -08; and H. On January 17, 2012, the Housing Authority adopted Resolution HA No. 12 -01 agreeing to assume all rights, powers, assets, duties, liabilities, and obligations associated with the housing activities of the former Agency; and Pursuant to Resolution HA No. 12 -01, the Housing Authority Executive Director was authorized and directed to take all actions necessary and proper in order to implement the assumption of assets and functions on behalf of the Housing Authority; and J. On August 1, 2012, pursuant to Health and Safety Code section 34176, adopted as part of Assembly Bill No. 1484, the Housing Authority submitted the Housing Assets List to the California Department of Finance ( "DOF "); and K. Pursuant to Health and Safety Code section 34176, the DOF has up to 30 days from the date of receipt of the Housing Assets List to object to any of the assets or transfers of assets identified on the list; and L. Thirty days has expired since the date the DOF received the Housing Assets List; and M. In order to fully assume all of the assets and functions of the former Agency, the Housing Authority desires to reaffirm the authority of the Housing Authority Executive Director and /or City Manager, or their designee, to execute any and all affordable housing documents associated with the refinancing or the sale of existing affordable housing units. NOW, THEREFORE, BE IT RESOLVED BY THE TUSTIN HOUSING AUTHORITY: Section 1. The above recitals are true and correct, are a substantive part of this Resolution, and are adopted as the findings of the Housing Authority. Section 2. The Housing Authority Executive Director and /or City Manager, or their designee, is hereby authorized and directed to execute any and all affordable housing documents necessary to facilitate the refinancing or the sale of existing affordable housing units; however, this authority shall not include contracts related to the option to purchase an affordable housing unit or cure a default as provided in the Resolution HA No. 12 -04 977888.1 affordable housing documents in the event of a default by the owner(s) of an affordable housing unit. Section 3. This Resolution shall take effect immediately upon its adoption by the Housing Authority, and the Recording Secretary of the Housing Authority shall attest to and certify the vote adopting this Resolution. PASSED AND ADOPTED by the Tustin Housing Authority at a meeting on the 18`h day of September, 2012. JOHN NIELSEN Chairman ATTEST: PATRICIA ESTRELLA Secretary STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Patricia Estrella, City Clerk Services Supervisor of the City of Tustin and ex- officio Recording Secretary of the Tustin Housing Authority of the City of Tustin, California, do hereby certify that the whole number of the Commissioners of the Tustin Housing Authority is five; that the above and foregoing Resolution HA No. 12 -04 was duly passed and adopted at a regular meeting of the Tustin Housing Authority, held on the 18th day of September, 2012, by the following vote: COMMISSIONERS AYES: COMMISSIONERS NOES: COMMISSIONERS ABSTAINED: COMMISSIONERS ABSENT: PATRICIA ESTRELLA City Clerk Services Supervisor Resolution HA No. 12 -04