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HomeMy WebLinkAbout2017-006 Purchase of Real Property for Affordable HousingRESOLUTION NO. 2017-006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ACTING AS SUCCESSOR TO THE HOUSING ASSETS AND FUNCTIONS OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE UNDER HEALTH & SAFETY CODE SECTION 34176(a)(1), APPROVING A PURCHASE AND SALE AGREEMENT FOR THE PURCHASE OF REAL PROPERTY FOR AFFORDABLE HOUSING PURPOSES FROM THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGEN CY OF THE CITY OF LAKE ELSINORE Whereas, the City of Lake Elsinore (City) is a municipal corporation organized and operating under the laws of the State of California; and, Whereas, the Successor Agency to the Redevelopment Agency of the City of Lake Elsinore (Successor Agency) is a public body corporate and politic, organized and operating under Parts 1.8 and 1.85 of Division 24 of the California Health and Safety Code (HSC), and the successor to the former Redevelopment Agency of the City of Lake Elsinore (former Agency) that was previously a community redevelopment agency organized and existing pursuant to the Community Redevelopment Law, Health and Safety Code Section 33000, et seq. (CRL); and, Whereas, Assembly Bill xl 26 (AB xl 26) added Parts 1.8 and 1.85 to Division 24 of the California Health & Safety Code and which laws were modified, in part, and determined constitutional by the California Supreme Court in the petition California Redevelopment Association. et al. v. Ana Matosantos, et al., Case No. S194861 (Matosantos Decision), which laws and court opinion caused the dissolution of all redevelopment agencies and winding down of the affairs of former redevelopment agencies: thereafter, such laws were amended further by Assembly Bill 1484 (AB 1484) (together AB xl 26, the Matosantos Decision, and AB 1484, as amended to date, referred to as the “Dissolution Law”); and, Whereas, as of February 1, 2012, the former Agency was dissolved pursuant to the Dissolution Law and as a separate public entity, the Successor Agency administers the enforceable obligations of the former Agency and otherwise unwinds the former Agency’s affairs, all subject to the review and approval of a seven-member Oversight Board (Board); and, Whereas, as of February 1, 2012, the City elected to act as the successor to the housing assets and functions of the former Agency in accordance with HSC Section 34176.1(a)(3)(A) (Housing Successor); and, Whereas, the Successor Agency completed the Due Diligence Reviews (DDRs) required under HSC Section 34179.5 and submitted them for approval to the Oversight Board and the California Department of Finance (DOF); and, Whereas, the Board and the DOF reviewed and approved the DDRs; and, Whereas, as a result of the approval of the DDRs and resulting payments of funds to the county auditor-controller, DOF issued the Successor Agency a “Finding of Completion” as described in HSC Section 34179.7; and, CC Reso. No. 2017 - 006 Page 2 of 5 Whereas, as a result of its receipt of Finding of Completion, the Successor Agency was required to (i) prepare a “Long Range Property Management Plan” (LRPMP) meeting the requirements of HSC Section 34191.5(c), and (ii) submit the LRPMP to the Board and the DOF for approval within six months of the date of the Finding of Completion; and, Whereas, the Successor Agency prepared its LRPMP in accordance with HSC Section 34191.5(c) and submitted it to the Board for approval; and, Whereas, the Board approved the LRPMP and directed that it be submitted to the DOF for approval in accordance with HSC Section 34191.5(c); and, Whereas, notwithstanding the timely approval and submission of the LRPMP by the Oversight Board, DOF did not approve the LRPMP by December 31, 2015; and, Whereas, as a result, the statutory requirements for disposition of real property set forth in HSC Sections 34181(a) and 34177(e) currently apply to the disposition of property by the Successor Agency; and, Whereas, the Successor Agency has proposed to sell to the City, in its capacity as Housing Successor, certain properties owned by the Successor Agency identified as Assessor’s Parcel Numbers 374-062-005; 374-062-006; 374-062-015; [374-062-020]; 374-162-039; 374-162-041; 374-162-043; 374-162-045; 374-162-047; 374-162-049; 374-162-051; 374-162-053; 374-162- 055; 374-162-057; 374-162-059; 374-162-061 (collectively, the “Properties”) for affordable housing purposes; and, Whereas, the Successor Agency and its Board, after being provided with appraisals for the Disposition Properties and a form of Purchase and Sale Agreement between the City and the Successor Agency, approved the sale of the Properties to the City for consideration equal to fair market value, and the DOF subsequently approved the Board resolution approving the sale and the form of Purchase and Sale Agreement; and, Whereas, the Properties have an aggregate fair market value of not less than $720,000, as determined by an appraisal prepared by a third party, licensed appraiser, which constitutes the purchase price set forth in the form of Purchase and Sale Agreement; and, Whereas, in accordance with the Dissolution Law, the Housing Successor has established a Low and Moderate Income Housing Asset Fund (LMIHAF), the proceeds of which can only be used for affordable housing purposes; and, Whereas, there are sufficient funds in the LMIHAF to purchase the Properties in accordance with the Purchase and Sale Agreement; and, Whereas, the City has been allocated 1,196 very low income units, 801 low income units and 897 moderate income units as part of its regional housing allocation for the current Housing Element period (2014 – 2021); and, Whereas, the existing developments for low income households in the City are not likely to meet the projected need for low income housing in the Lake Elsinore community; and, CC Reso. No. 2017 - 006 Page 3 of 5 Whereas, purchase of the Properties for affordable housing purposes serves the common benefit by assisting the City in meeting the State mandate to provide very low income, low income and moderate income housing; and, Whereas, the City Council of the City has duly considered all of the terms and conditions of the Purchase and Sale Agreement, as set forth in the agenda report presented to it and as attached hereto and any testimony received at the meeting at which this matter was considered, and believes that the acquisition of the Properties is in the best interests of the City and the health, safety, morals and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local law requirements; and, Whereas, by authorizing acquisition of the Properties, the City Council hereby finds and determines that it is not committing itself to or agreeing to undertake any other acts or activities requiring the subsequent independent exercise of discretion by the City Council or any representative or department thereof. Any disposition of the Properties or future use thereof shall be preceded by, and is conditional and contingent upon, environmental assessment and review under, and in compliance with, the California Environmental Quality Act (CEQA); and, Whereas, the City, in its capacity as Housing Successor, desires to approve a Purchase and Sale Agreement substantially in the form attached hereto to be entered into by the City and Successor Agency for the purchase and sale of the Properties for an aggregate purchase price of $720,000; and, Whereas, the City in its capacity as Housing Successor, proposes to purchase the Properties utilizing funds from the LMIHAF; and, Whereas, the City, in its capacity as Housing Successor, proposes to purchase the Properties for affordable housing purposes in accordance with applicable sections of the Dissolution Law; and, Whereas, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS SUCCESSOR TO THE HOUSING ASSETS AND FUNCTIONS OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, UNDER HEALTH & SAFETY CODE SECTION 34176(a)(1), DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The Recitals set forth above are true and correct and incorporated herein by reference. Section 2. The City, in its capacity as Housing Successor, hereby approves the purchase of the Properties for an aggregate purchase price of $720,000. The terms and provisions of the Purchase and Sale Agreement between the City and Successor Agency with respect to the acquisition of the Properties in the form attached hereto is hereby approved, with such changes as may be mutually agreed upon by the City Manager (or his duly authorized representative), in consultation with the City Attorney, as are minor and in substantial conformance with the form of the Purchase and Sale Agreement submitted herewith. CC Reso. No. 2017 - 006 Page 4 of 5 Section 3. The City, in its capacity as successor to the housing assets and functions of the former Agency under Health & Safety Code Section 34176(a)(1), hereby appropriates funds from the LMIHAF to fund the purchase price for the Properties and other costs as set forth in the Purchase and Sale Agreement. Section 4. The acquisition of the Property by the City pursuant to the Purchase and Sale Agreement is exempt from the provisions of CEQA under Section 15004(b)(2)(A) of the State CEQA Guidelines because any subsequent disposition or action taken by the City Council with respect to the future use of the Properties shall be preceded by, and is conditional and contingent upon, environmental assessment and review under, and in compliance with, CEQA. Section 5. The City Manager is hereby authorized and directed to execute, and the City Clerk is hereby authorized and directed to attest, the Purchase and Sale Agreement on behalf of the City, including the acceptance in the name and on behalf of the City of a grant deed conveying to this City the above-described interest in the Properties. In such regard, the City Manager is authorized to sign the final version of the Purchase and Sale Agreement after completion of any such non-substantive, minor revisions. Copies of the final form of the Agreement, when duly executed and attested, shall be placed on file in the office of the City Clerk. Section 6. In addition, the City Manager is authorized and directed to do any and all things, and to execute any and all additional documents, which he may deem necessary or advisable to effectuate this Resolution, including all escrow instructions and documents, which in consultation with the City Attorney, he may deem necessary or advisable in order to carry out and implement the Purchase and Sale Agreement and otherwise effectuate the purposes of this Resolution and to administer the City’s obligations, responsibilities and duties to be performed under the Purchase and Sale Agreement. The City Manager is further authorized and directed to do any and all things, and to execute any and all documents, to insure that the Properties shall be utilized by the City in accordance with the Community Redevelopment Law (Part 1(commencing with Section 33000)), as amended by HSC Section 34176.1, and, in particular, for the development of affordable housing in accordance with HSC Section 34176.1(a)(3)(A). Any previously-taken acts or previously-executed documents in furtherance of the subject matter hereof are hereby ratified. Section 7. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. Section 8. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions. Section 9. This Resolution shall take effect immediately upon its adoption. Passed and Adopted this 24th day of January, 2017. Robert E. Magee Robert E. Magee, Mayor CC Reso. No. 2017 - 006 Page 5 of 5 ATTEST: Susan M. Domen Susan M. Domen, MMC City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2017-006 was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of January 24, 2017, and that the same was adopted by the following vote: AYES: Council Members Hickman, Manos and Tisdale; Mayor Pro Tem Johnson and Mayor Magee NOES: None ABSENT: None ABSTAIN: None Susan M. Domen Susan M. Domen, MMC City Clerk