HomeMy Public PortalAbout2013.157 (12-17-13) RESOLUTION NO. 2013.157
.A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AND
THE LYNWOOD HOUSING AUTHORITY APPROVING A SECOND AMENDMENT TO
THE AMENDED AND RESTATED DISPOSITION AND DEVELOPMENT
AGREEMENT BETWEEN THE LYNWOOD REDEVELOPMENT AGENCY AND
AMCAL PARK PLACE FUND, L.P. PROVIDING CONSENT TO AMCAL TO
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PROCEED WITH HUD/FHA PERMANENT MORTGAGE AND CONSENTING TO A
HUD SUBORDINATION AGREEMENT AND AMENDMENT TO RESTRICTIVE. •
COVENANTS AS PART OF THE COMPLETED AFFORDABLE RENTAL HOUSING
UNITS AT ATLANTIC AVENUE AND CARLIN AVENUE
WHEREAS, in accordance with the California Community Redevelopment Law
Health & Safety Code § 33000, et seq., the City Council of the City of Lynwood adopted
the Redevelopment Plan for the Redevelopment Project Area "A" in the City of Lynwood
on July 10, 1973, as established by Ordinance No. 945 of the City Council, and as
amended from time to time; and
WHEREAS, on March 16, 2010, to effectuate the Redevelopment Plan, the
Agency approved a Disposition and Development Agreement ("DDA") with AMCAL Park
Place Fund, LP ("Developer ") for the disposition of approximately 4.26 acres of land
owned by the Agency at the northeast corner of Atlantic Avenue and Carlin Avenue, as
more specifically described in the DDA ("Site"), from Agency to Developer to allow
Developer to construct a ninety-nine unit affordable housing project with ninety-eight
apartments to be restricted to rent to very low- and low-income households for a period
of 55 years; and
WHEREAS, on May 18, 2010, the City Council approved a HOME Funds
Reservation and Commitment Agreement for the use of $191,711 of HOME Investment
Partnership Program funds ("HOME Funds") received from the United States
Department of Housing and Urban Development ("HUD") to be used to supplement the
funding for the Project pursuant to an Amended and Restated DDA and toward the
development of an assisted income rental unit in the Project in accordance with HUD
rules for the use of HOME Investment Partnership Program funds ("HOME Funds");
WHEREAS, On July 1, 2010, pursuant to an Amended and. Restated DDA, the
City Council approved a HOME Funds Reservation and Commitment Agreement for the
use of $191,711 of HOME Funds received from HUD to be used to supplement the
funding for the Project in accordance with HUD rules; and
WHEREAS, on March 15, 2011, the Agency Board and City Council conducted
and concluded a duly noticed joint public hearing pursuant to Section 33433 of the CRL
considering the First Amendment to the Amended and Restated DDA to address
additional changes to financial terms of the DDA; and
WHEREAS, although initially acquired by the Agency using the former Low and
Moderate Income Housing Fund ("LMIHF"), after approval of the DDA for development
of the project, a California State Supreme Court ruling on the constitutional validity of
two 2011 legislative budget trailer bills, ABX1 26 (Chapter 5', Statutes of 2011) and
ABX1 27 (Chapter 6, Statutes of.2011), resulted in the outright elimination of all 425
redevelopment agencies in the State of California;
WHEREAS, the dissolution procedures under ABX1 26 include a process'for'the
disposition and/or transfer of assets, including .`property holdings of former
redevelopment agencies. Subsequent legislation, AB 1484 (Chapter 26, Statutes,of
2012), which was passed, signed, and enacted on June 28, 2012,made significant
changes to the provisions of ABX1 26, including the process for asset
management/disposition/transfers;
WHEREAS, under AB 1484, the DDA and related agreements; assets and rights
are considered a "housing asset" and, as such, on February 1, 2012 (the effective,date
of the Agency's dissolution), the DDA and related agreements, assets and rights, by
operation of law, were effectively transferred to the Authority, as approved by the State
Department of Finance ("DOF") is in concurrence. , As such, the ,Lynwood Housing;
Authority ("Authority") is the contract party for the disposition and development of the
Site, which include the Agency Parcels;
WHEREAS, Developer has now indicated that it experienced some unexpected
and sizable cost overruns during construction, which were attributed to a combination of
factors including unanticipated site work expenses and an environment of.-increasing;
construction costs industry-wide, but Developer nevertheless remained on schedule and '
deferred its general contractor fees in an amount equal to approximately $1.O million,
and covered approximately $1.5 million;
WHEREAS, to resolve the cost overruns, Developer identified a loan-program
through the HUD 223(f) program as an alternate source of permanent financing that will
restore the financial health of the project, which, is sized using generous underwriting
terms including a 35 year amortization schedule, 85% Loan to Value, and approximately
5.00% interest rate ("New Loan");
WHEREAS, on December 17th, 2013 the Authority Board and City Council'.
conducted and concluded a duly,noticed joint public hearing concerning the Second
Amendment to the First Amended and Restated DDA in accordance.with applicable law
to allow for the approval of the New Loan; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have
occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD AND
LHA BOARD DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
Section 1. The above recitals are all true and correct and are hereby adopted as
findings.
Section 2. That a Mitigated Negative Declaration analyzing the potential impacts
of the development of the project contemplated in the DDA meeting all of the
requirements of the California Environmental Quality Act was ("CEQA") adopted and
approved by the Lynwood Planning Commission on February 9, 2010 and there is no
potential for any environmental impact as a result of the approval of the subordination
agreements hereunder and thus do not require further CEQA analysis.
Section 3. The Housing Authority Board of Directors and the City Council hereby
approve the Second Amendment to the Amended and Restated DDA and the
instruments referenced therein, a copy of which are on file in the office of the pity Clerk.
The Second Amendment to the Amended and Restated DDA authorizes Developer to
proceed with HUD/FHA permanent mortgage, as further described in such Second
Amendment, and the related subordination agreement and amendments to restrictive
covenants as part of the completed affordable rental housing units at Atlantic and Carlin
Avenue.
Section 4. The Authority Chair and Executive Director and Mayor and City
Manager are authorized and directed to take such actions and execute such documents
as may be necessary to implement and effect this Resolution and the Second
Amendment to the Amended and Restated DDA on behalf of the Authority and City,
including authorized to implement any non-substantive changes to same.
Section 5. The Authority Secretary and City Clerk shall certify to the passage
and adoption hereof.
PASSED, APPROVED and ADOPTED this 17th day of December, 2013.
Aide Castro, Mayor
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ATTEST:
LL lit_/i.A��
Maria Quinonez, City Clerk ' •
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
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Fred G\alante, City Attorney S t` iC'E
-Ieterim City Manager
Sara ithers, Director
Community Development
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STATE OF CALIFORNIA
) SS.
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the
foregoing Resolution was passed and adopted by the City Council of the City of
Lynwood at a regular meeting held on the 17th day of December, 2013. "
AYES: COUNCIL MEMBERS ALATORRE, SANTILLAN-BEAS, SOLACHE
HERNANDEZ AND CASTRO
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
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Maria Quinonez, City Clerk
STATE OF CALIFORNIA )
) SS.
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City
Council of said City, do hereby certify that the above foregoing is a full, true and correct
copy of Resolution No. 2013.157 on file in my office and that said Resolution was
adopted on the date and by the vote therein stated. Dated this 17th day of December,
2013. .
Maria Quinonez, City Clerk