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HomeMy WebLinkAbout06 REAFFIRM THE CITY MANAGER AND OR HOUSING AUTHORITY EXECUTIVE DIRECTOR’S AUTHORITY TO EXECUTEDocusign Envelope ID: 7B5985FB-4931-40EC-BD13-D7C13E1D8F93 MEETING DATE TO FROM JANUARY 7, 2025 ALDO E. SCHINDLER, CITY MANAGER 6 Agenda Item Reviewed. City Manager Initial aS Finance Director N/A JUSTINA WILLKOM, DIRECTOR OF COMMUNITY DEVELOPMENT 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 new or existing affordable housing units. RECOMMENDATION: It is recommended the Tustin Housing Authority Commissioners take the following actions: • Adopt Tustin Housing Authority Resolution No. 25-01 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. It is recommended the Tustin City Council take the following actions: • Adopt City Council Resolution 25-01 authorizing the City Manager and/or the 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. FISCAL IMPACT: There is no fiscal impact associated with this item. CORRELATION TO THE STRATEGIC PLAN: The refinancing and sale of affordable housing units contributes to the City's Strategic Plan Goal A: Economic and Neighborhood Development, Strategy 15; Create affordable and workforce housing options. Docusign Envelope ID: 7B5985FB-4931-40EC-BD13-D7C13E1D8F93 City Council Agenda Report Execute Affordable Housing Documents January 7, 2025 Page 2 BACKGROUND AND DISCUSSION: On January 17, 2012, the City of Tustin elected to decline the affordable housing assets 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 did not object to any of the assets identified on the list. On September 18, 2012, the City Council reaffirmed the City Manager and/or the Executive Director's authority to execute affordable housing documents for the existing affordable housing inventory. The inventory currently stands at two hundred seventy-nine (279) affordable housing ownership units. The Housing Authority's inventory will increase with two (2) very -low income ownership units at The Jessup and as additional affordable ownership units are developed. The Housing Authority is responsible for 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. With additional affordable ownership units being added to the Housing Authority's inventory, staff is requesting reaffirmation of the City Manager or Executive Director's authority to execute all affordable housing documents, including all new and future affordable ownership units through the adoption of the attached Resolutions: City Council Resolution No. 25-01; and Tustin Housing Authority Resolution No. 25-01. 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. Authority to purchase or cure a default will require City Council and/or Housing Authority approval specific to the affordable housing unit in default. Docusign Envelope ID: 7B5985FB-4931-40EC-BD13-D7C13E1D8F93 City Council Agenda Report Execute Affordable Housing Documents January 7, 2025 Page 3 Signed by: O Justlna . Mom Director of Community Development Tustin Housing Authority riocuSigned by: Janine eOrono andez Senior Management Assistant Tustin Housing Authority Attachments: 1. City Council Resolution No. 25-01 2. Tustin Housing Authority Resolution No. 25-01 Docusign Envelope ID: 7B5985FB-4931-40EC-BD13-D7C13E1D8F93 RESOLUTION NO. 25-01 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 AGREEMENTS REQUIRED FOR THE REFINANCING OR THE SALE OF AFFORDABLE HOUSING UNITS 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 Community Redevelopment Agency ("Agency") was a community redevelopment agency organized and existing under the 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 the 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 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 Resolution 25-01 Page 1 of 3 Docusign Envelope ID: 7B5985FB-4931-40EC-BD13-D7C13E1D8F93 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 DOF approved the List; and K. On September 18, 2012, the City Council adopted Resolution No. 12-81, authorizing the City Manager and/or the Tustin Housing Authority, or their designee, to execute all affordable housing agreements required for the refinancing or the sale of affordable housing units; and L. The authority was limited to the Housing Authority's existing affordable housing inventory and the inventory is increasing with the addition of two (2) very -low income ownership units at The Jessup and as additional affordable ownership units are developed; and M. In order to fully perform the functions of the Housing Authority, the City Council desires to reaffirm and extend the authority of the City Manager and/or Housing Authority Executive Director, or their designee, to execute any and all affordable housing documents associated with the refinancing or the sale of existing and future 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 to execute any and all affordable housing documents necessary to facilitate the refinancing or the sale of existing and future 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 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 Resolution 25-01 Page 2 of 3 Docusign Envelope ID: 7B5985FB-4931-40EC-BD13-D7C13E1D8F93 certify the vote adopting this Resolution. APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Tustin on the 7t" day of January 2025. AUSTIN LUMBARD, Mayor ATTEST: ERICA N. YASUDA, City Clerk APPROVED AS TO FORM: DocuSigned by: 7 Z'79 DA 8EF3XDEI`kDIG, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Yasuda, 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. 25-01 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 7t" day of January, 2025, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: COUNCILMEMBER RECUSED: ERICA N. YASUDA, City Clerk Resolution 25-01 Page 3 of 3 Docusign Envelope ID: 7B5985FB-4931-40EC-BD13-D7C13E1D8F93 TUSTIN HOUSING AUTHORITY RESOLUTION NO. 25-01 A RESOLUTION OF THE TUSTIN HOUSING AUTHORITY OF THE CITY OF TUSTIN, CALIFORNIA, AUTHORIZING THE TUSTIN HOUSING AUTHORITY EXECUTIVE DIRECTOR AND/OR CITY MANAGER, OR THEIR DESIGNEE, TO EXECUTE ALL AFFORDABLE HOUSING AGREEMENTS REQUIRED FOR THE REFINANCING OR THE SALE OF AFFORDABLE HOUSING UNITS 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 Community Redevelopment Agency ("Agency") was a community redevelopment agency organized and existing under the 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 the 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 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 Tustin Housing Authority Resolution 25-01 Page 1 of 3 Docusign Envelope ID: 7B5985FB-4931-40EC-BD13-D7C13E1D8F93 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 DOF approved the List; and K. On September 18, 2012, the Housing Authority adopted Resolution HA No. 12-04, authorizing the Tustin Housing Authority Executive Director and/or the City Manager, or their designee, to execute all affordable housing documents required for the refinancing or the sale of affordable housing units; and L. The authority was limited to the Housing Authority's existing affordable housing inventory and the inventory is increasing with the addition of two (2) very -low income ownership units at The Jessup and as additional affordable ownership units are developed; and M. In order to fully perform the functions of the Housing Authority, the Housing Authority desires to reaffirm and extend 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 and future 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 to execute any and all affordable housing documents necessary to facilitate the refinancing or the sale of existing and future 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 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 Tustin Housing Authority Resolution No. 25-01 Page 2of3 Docusign Envelope ID: 7B5985FB-4931-40EC-BD13-D7C13E1D8F93 the Housing Authority, and the Recording Secretary of the Housing Authority shall attest to and certify the vote adopting this Resolution. APPROVED AND ADOPTED at a regular meeting of the Tustin Housing Authority on the 7t" day of January 2025. AUSTIN LUMBARD, Chairman ATTEST: ERICA N. YASUDA, Secretary APPROVED AS TO FORM: DocuSigned by: DA 8FF3XENDIG, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Yasuda, Secretary of the Tustin Housing of the City of Tustin, California, do hereby certify that the whole number of Commissioners of the Tustin Housing Authority is five; that the above and foregoing Resolution No. 25-01 was duly passed and adopted at a regular meeting of the Tustin Housing Authority, held on the 7t" day of January, 2025, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: COUNCILMEMBER RECUSED: ERICA N. YASUDA City Clerk Tustin Housing Authority Resolution 25-01 Page 3 of 3