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HomeMy Public PortalAbout2009.022 - LRA (04-21-09)RESOLUTION NO. 2009.022 A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD APPROVING A FIRST AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE LYNWOOD REDEVELOPMENT AGENCY AND RAY PATEL FOR THE PROJECT COMMONLY REFERRED TO AS "REDWOOD ESTATES" WHEREAS, the Lynwood Redevelopment Agency ("Agency") is engaged in activities necessary to execute and implement -the Redevelopment Plan for '~ Redevelopment Project Area "A" ("Redevelopment Project") in the City of Lynwood; pursuant to which, the Agency .previously entered into that certain Disposition and Development Agreement dated November 11; 2003 (the "DDA") with Ray Patel ("Developer"); and -r - e WHEREAS, the DDA specifically, p"rovided for the construction of eight (8) single family residential units (the' "Project"); .pursuant to which, two (2) units were to be exclusively marketed, sold and occupied by low-income persons or families at affordable sales prices (the "Restricted Units"); and WHEREAS, on May 3, 2005 the Agency, through Resolution No. 2005.013 (the "Resolution") purportedly amended the DDA to increase both the number of Restricted Units of the Project from two to'three units and the purchase price payable by the Developer for the development site from $280,000 to $315;000. The Resolution also purportedly approved the payment of certain Housing and Urban Development (HUD) HOME Program funds in the amount of $657,000 (the "HOME Funds") to the Developer to be used for silent second' mortgage loans for each of the three Restricted Units in the specific amount of $219,000. However, despite the approval and adoption of the Resolution, no formal or written amendment to the DDA was ever prepared or executed by the Agency or the Developer to effectuate the provisions of the Resolution; and WHEREAS, in November 2005, an independent consultant advised the Agency that the affordability requirements imposed on the Project by the Agency no longer complied with the, requirements of the HOME Program due to an increase in property values causing the Agency to replace the Home'Funds with funds from the Agency's Low and Moderate Income Housing Trust Fund, (the "LMIHF Account"); and ~ ~ ' WHEREAS, upon a review of a "Grant Deed with Use, Affordable Restrictions and Resale Controls" conveying fee title one of the Restricted Units, it vvas determined by Agency Special Counsel that while the Grant Deed purportedly imposed the requisite affordability covenants and restrictions as a result of the use of LMIHF Account funding for the Project, it failed to appropriately do so consistent with the applicable statutory requirements of the Community Redevelopment Law (the "CRL") where proceeds from the LMIHF Account are used; and WHEREAS, due to this apparent failure and the need to take certain corrective actions, both Agency staff and the Developer propose the elimination of the affordability covenants and requirements for two (2) of the Restricted Units and' repayment of certain funds by the Developer to the Agency for deposit back into the LMIHF Account in accordance with certain terms and conditions established in a proposed First Amendment to Disposition and Development Agreement (the "First Amendment to DDA") acceptable to the Developer and submitted to the Agency for approval consideration; and WHEREAS, it has been determined by Agency staff that under the current set of circumstances the proposed elimination of the affordability restrictions on the two (2) Restricted Units as well as the repayment and deposit of funds into the LMIHF Account in accordance with the provisions of the proposed First Amendment to DDA are in the best interest of the Agency and the City of Lynwood, and would also better serve and further the goals and objectives of the Lynwood Redevelopment Agency to reduce blight in the Project Area; and WHEREAS, it is now the desire and intent of the parties that the proposed First Amendment to the DDA containing all of the corrective and necessary provisions, terms, conditions required to satisfy and comply with the requisite CRL affordability covenants and requirements concerning the use of funds from the LMIHF Account, be approved by the Agency. NOW, THEREFORE, IT IS RESOLVED by the Lynwood Redevelopment Agency as follows: Section 1. The Agency approves the First Amendment to DDA by and between the Agency and the Developer providing for the development of the Project and the elimination of the affordability covenants and restrictions of the DDA as specifically provided for in the First Amendment to DDA. Section 2. The Agency finds that the development of the Redwood Housing Project, as contemplated by the First Amendment to DDA, is in the best interests of the health, safety and welfare of the City, is in accordance with the Redevelopment Plan, and will be of benefit to the Project Area. Section 3. The Agency Chairperson is hereby authorized to execute the First Amendment to DDA. Section 4, The Executive Director of the Agency, or his designee, is hereby authorized to sign all documents necessary and appropriate to carry out and implement the First Amendment to DDA, and to administer and implement the Agency's obligations, responsibilities and duties to be performed under the First Amendment to DDA on the behalf of the Agency. PASSED, APPROVED AND ADOPTED this 215 day of April, 2009. Maria T. Santillian, Chairperson ___~ ATTEST: Maria Quinonez, Agency Secretary Roger Hale xecutive Director APPROVED AS TO FORM: APPROVED AS TO CONTENT: Hempe,-Assistant City Manager STATE OF CALIFORNIA ) SS. COUNTY OF LOS ANGELES ) I, the undersigned, Secretary of the Lynwood Redevelopment Agency, do hereby certify that the foregoing Resolution was passed and adopted by the Agency at its regular meeting held on the 215 day of April, 2009. AYES: MEMBER FLORES, MORTON, RODRIGUEZ, CASTRO AND SANTILLAN NOES: NONE ABSENT: NONE '''~, `: ', f ::•~.i'-,, ABSTAIN: NONE 1~~~~ ~ Maria Quinonez, Secretary STATE OF CALIFORNIA ) SS. "COUNTY OF LOS ANGELES ) I, the undersigned, Secretary of the Lynwood Redevelopment Agency, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. 2009.022 on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 215 day of April, 2009. Maria"Quinonez, Secretary