2010-075-RDA And Housing Trust Of SC CountyRESOLUTION 2010-075
RESOLUTION OF THE REDEVELOPMENT AGENCY
OF THE TOWN OF LOS GATOS
AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT
BETWEEN THE REDEVELOPMENT AGENCY
AND THE HOUSING TRUST OF SANTA CLARA COUNTY
FOR AN AFFORDABLE HOUSING CONTRIBUTION
WHEREAS; the Town of Los Gatos Town Council agreed to make a contribution to the
Housing Trust of Santa Clara County (HTSCC) for affordable housing on February 16, 2010 when
the Town Council adopted the mid-term 2009/10 Budget adjustments; and
WHEREAS, the provisions of the Redevelopment Law applicable to the establishment and
use of proceeds from the Housing Fund (Health and Safety Code Sections 333.34.2 and 33334.3)
expressly contemplate and permit the use of proceeds from the Housing Fund outside the
Redevelopment Proj ect Area (Prof ect Area) upon findings by the Town and the Agency that such use
will be of benefit to the Project Area; and
WHEREAS, the provision of affordable housing within the Town of Los Gatos by the
HTSCC will benefit the Project Area and serve major Implementation Plan goals and objectives by
increasing the amount of housing available at affordable costs in the community; and
WHEREAS, the General Plan Housing Element includes policies and implementing
strategies supporting this action; and
WHEREAS, this action is also supported by the Redevelopment Agency Five Year
Implementation Plan FY2009/10 through FY2013/14 (Implementation Plan); and
WHEREAS, there is a need for affordable housing in the Town and within the Central
Los Gatos Redevelopment Area; and
WHEREAS, the monies will be used to fund affordable housing projects within the
Town; and
WHEREAS, by the staff report accompanying this Resolution and .incorporated into this
Resolution by the reference, the .Agency has been provided with additional information upon
which the findings and actions set forth in this. Resolution are based; and
NOW, THEREFORE, BE IT RESOLVED THAT the Agency Board hereby finds and
determines that the above Recitals are true and correct and serve as the basis, in part, for the
findings and actions of the Agency set forth below.
BE IT FURTHER RESOLVED that, based on .information and analysis set forth in the
above Recitals and contained in the Staff Report, the Agency hereby finds and determines that
pursuant to Health and Safety Code Section 33334.2(8) that the use of moneys from the Housing
Fund to finance the acquisition, construction and operation of affordable rental or ownership
housing and loans to assist home ownership will be of benefit to the Project Area and the
program of redevelopment pursuant to the Implementation Plan.
BE IT FURTHER RESOLVED that the Agency hereby authorizes the Executive
Director to execute an Agreement between the Redevelopment Agency and the HTSCC (Draft
attached hereto as Exhibit A) to authorize affordable housing contributions in the amount of
$150,000 for two (2) consecutive years ($300,000 total contribution) from the Agency's Low and
Moderate Income Housing Fund.
BE IT FURTHER RESOLVED that the Agency authorized a budget adjustment for the
FY2009/10 budget in the amount of $150,000 from the fund balance in Program 9301 for the
first of two (2) installments to the HTSCC for their Phase III Campaign.
NOW, THEREFORE, BE IT RESOLVED, AND IT IS HEREBY RESOLVED, by the
Redevelopment Agency of the Town of Los Gatos, County of Santa Clara, State of California, that
the Redevelopment Agency authorizes the executive to execute an Agreement between the
Redevelopment. Agency and the Housing Trust of Santa Clara County (attached hereto as Exhibit A)
for an affordable housing contribution,
PASSED AND ADOPTED at a regular meeting of the_Town of Los Gatos Redevelopment
.Agency held on the 21st day of June., 2010, by the following vote:
REDEVELOPMENT AGENCY MEMBERS:
AYES: Joe Pirzynski, Steve Rice, Barbara Spector and Mike Wasserman
NAYS:
ABSENT:
ABSTAIN: Diane McNutt
SIGNED:
~«~ ~~~~~
CHAIR OF THE REDEVELOPMENT AGENCY
TOWN OF LOS GATOS, CALIFORNIA
ATTEST:
C°~
S' C ` ARY OF THE REDEVELOPMENT AGENCY
TOV OF LOS GATOS, CALIFORNIA
AGREEMENT BETWEEN '
THE REDEVELOPMENT AGENCY OF THE TOWN Op' LOS GATOS
AND
TI=IE IIOUSING'I'RUST OF SANTA CLARA COUNTY
. REGARDING A •CONTRIBU'I'ION TO TI-IE
HOUSING TRUST FUND OE SANTA CLARA COUNTY
THIS AGREEMENT is made and entered into as of , 2010, by and between
"THE REDEVELOPMENT AGENCY OF '['HE TOWN OF LOS GATOS ("Agency") and
HOUSING TRUST OF SANTA CLARA COUNTY{"Trust"), a California corporation.
RECITAi..S
A. The housing Trust. ~is an investment pool fund in which private corporations and public
agencies participate. It has been created by the Trust for the purpose of establishing a
revolving loan fund and grant-making program to address the issue of affordable, available
housing in Santa Clara County.
B. Pursuant to the Cona7nunity Redevelopment Law ofthe State of California, Section.~3~Q0 et
seq. of the California Health and Safety Code (the "Redevelopment Law"), the T'ovvn
Council ofthe Town of Los Gatos has approved and adapted the Redevelopment Plan for the
Central Los Gatos Redeveloplx~:ent Project {"Redevelopment Project"). ~ '
C. Pursuant to the Eedevelopment Law, not less thau. 20% of the tax- .increment revenues
allocated to the Agency that are derived from the Redevelopment Project must be set aside in
the Ag.ency's. Low and Moderate Income housing-Fund (the Agency's housixag Funds), to be
used to increase, improve or pxeserve affordable Dousing for persons and families of low and
moderate income in the Town of Los Gatos.
D, The Agency desires to increase, improve or preserve affordable lxousing far persons and
families of low and moderate income in .tlae Town of Los Gatos, by participating in the Trust,
as specified in this agreement.
E. The purpose of this Agreement is to set forth the mutual agreement of the Agency and the
Trust regarding the use of the Agency's Housing Funds for the Phase IV Cai~npaign.
In view of the above, the parties agree as follows:
SECTION 1 AUTHORITY AND STATLJS OF TRUST
Trust represents and warrants that the information contained in dais Agreement is true and accurate to
the best of its lcraowledge, and that it is a duly organized, validly, existing nonprofit corporation in
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Attachment 2
good standirxg under tlae laws of its place of incorporation; that its signatory to this Agreement is
authorized by resolL~tion, bylaws or constitution of the non-profit corporation, currently, in full force
and effect, to execute this Agreement on Trust's behalf
SECTION 2 DEPOSIT Op' AGENCY' S FUNDS INTO HOUSING TRUST OF SANTA CLARA
COUNTY FOR THE PHASE N CAMPAIGN FUND
Agency agrees to deposit the sum of $300,000 into the Trust for the Phase IV Caml7aigu as follows:
$150.,000 on March, 2010 and $150,000 in July, 2010.
SECTION 3 USE OF AGENCY'S HOUSING FUNDS BY TRUST
3.1 The Trust agrees that no fees will be charged to Agency's Housing Fund's on deposit in the
Trust for administrative or overhead costs, including but not limited. to fundraising expenses.
The. sole administrative expenses which maybe charged to Agency's Housing Funds on
deposit in the Trust shall be as set forth in section 6.
3,2 The Trust shall serve as the fiscal agent. Subject to this Section 3.2, the Agency's Housing
Funds .may be disbursed either as loan or grant funds. The- initial disbursement of the
' Agency's Housing Funds from the Trust shall be used exclusively for one or more projects
that meet all of the following criteria:
3.2.1 Atay such project must increase, improve, or preserve affordable housing in the
Los Gatos Redevelopment Project Area.
3.2.2 Sueh 1lousing must be affordable to persons and families of-low or,moderate
iiacoine, or very low income, or 'very law income households, as those teens are
defined.in Sections 50052.5, 50053., 50079.5, 50093 and S010S ofthe California
Health and Safety Code Sections, as applicable. ,
.3.2.3 The Trust shall use the A.gency's I-lousing Funds to increase,. improve or preserve
affordable housing for laomeless individuals and families, affordable rental
housing and/or provide first-time home buyers assistance programs for persons
and families of low and moderate income or very low income households, by
methods of providing financial assistance that include, but are not limited to, the
methods. set forth in Califon~ia Health and Safety Code Section 33334.2 (e).
3..2.4 Notwithstanding the foregoing, the Trust may use the Agency's Housing Funds
to provide afirst-time Home buyers assistance programs for first-trine home
buyers. to purchase any home, which may be resold at market rate.
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3.2.5 Any new or substantially rehabilitated housing that is developed, financed or
assisted, in whole or in-part, with the Agency's Funds.shall remain available at
affordable housing costs to persons .and families of lots or moderate income, or
very low income households, as the case may be, for t11e longest feasible time,
but not less than (a).fifty (50) years for xental units, or (b) thirty (30) years for
owner-occupied units, subject to California I-~ealth and Safety Code Section
33334.3(f)(1). The Trust slaall require the recording in the office of the County
Recordex of covenants or restrictions implementing this Section 3.2.4 for each
parcel ox uiait of zeal property subject to this Section 3..2.4, which covenants ox
restrictions shall run with the. land acid shall be enforceable, against the original
owner and successor in interest, by the Agency or the Trust.
'3.2.6 Thexe shallbe no discrimination against or segregation of any person; or group of
persons, on account of race, color, religion, national .origin, ancestry, sex; or
.marital status in the sale, lease, sublease, transfer, use, occupancy, tenure, or
enjoyment of any such project, or a~ay part thereof, nor shall any recipient ofthe
;Agency's HousingFunds, or any person claimixag under or through such practice
or practices of discrimination or :segregation with xeferezace~to the selection,.
.location, number use or occupancy of tenants, lessees, subtenants, sub-lessees, or
vendees of any such project.
3.2.7 Subject to California law, tlae restrictions of this Section 3.2 sha•11 apply only to
the initial use of the Agency's Housing Funds by the Tn~st. After the initial use
of the Agency's Dousing :Funds by the Trust, reinvestment of funds that are
repaid to or otherwise recaptured by the Trust shall not ~be subj ect to this Section
3.2, but shall otherwise assist affordable housing projects through tlae Trust's
Articles ~of Incorporation or Bylaws.
3.2.8 The'I'rust shall xefund to the Agency anyportion of the Agency's Housing Funds
that have not been disbursed or contractually committed to be disbursed in
accordance with this Section 3,2 by the date that is twenty four (24) months after
the date'of this Agreement. .
3.3 All disbursements by the Trust shall be made with the advice axed suggestion of the Trust
Steering comxriittee which has been formed by the Trust Board of Directors in accordance
with the Trust's. Articles of Incorporation or Bylaws, The Trust shall follow the
recoixunendationsregardingdisbursement rendered by the Trust Program Coalanaittee unless
to do so would be a violation of law, this Agreement, or floe Trust's Articles of Incorporation
or Bylaws.
SECTION 4 .INVESTMENT OF THE FUND
The Trust shall hold, .manage, invest and reinvest the Trust in accordance with the ".reasonably
prudent person" standard.
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SECTION 5 FTNANCTAL REPORTS
5.1 The Trust sha11 establish and maintain, in accordance with .generally accepted accounting
principles, a complete recoxd of all financial transactions related to the Trust's funds.
5.2 The Trust shall provide Agency with quarterly reports which shall set forCh in detail all
financial transactions related to the Trust's funds. The Trust shall .also provide Agency with
a copy of its audited report, prepal•ed by independent certified- public accountants,
S.3 The Trust shall provide Agency with a written. report on the initial expenditure of the
Agency's Housing Funds, including,. at a minimum, for each project assisted with Agency's
Plousing Fund assisted prof ect(s); number of units; xent or sale price income restrictions; .and
terms of restrictions.
SECTION 6. ADMINISTRATIVE FEES.
The Trust may charge an annual administrative fee equal to one percent (1 %) of the Agency's Funds
contributed to the Trust in any fiscal year. The Trust shall report tlae fees charged against the Trust
in its quarterly and annual reports.
SECTION 7 NOTICES
Any communication or a~otice which either pai~y is requixed to send to tlze.other or which either party
desires to sexed to the other, shall be in writing and shall be either personally delivered or X~nailed in
the United States mail, postage prepaid, to the respective parties addressed as follows: '
Agency; Redevelopment Agency
Town of Los Gatos
PO Box 949
Los Gatos, CA 95031
Trust; Housing Txust of Santa Clara County
9S S, Market St., Suite 550
San Jose, CA 95112
Either party may change 'its address by sending notice of the new address to the other party pursuant
to this section.
SECTION 8. COMPLIANCE ~WiTH ALL LAWS
The Trust. shall comply with all applicable laws, oxdinances, codes and regulations of the federal, ~
state and local .governments.
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SECTION 9. MISCELLANEOUS I'ROVTSIONS
A: The parties agree that this Agreement shall be governed and constnted in accordance with the
laws of the State of California. In the event that suit shall be bought by either party to this
. Agreement, the parties agree•that venue shall be exclusively vested in the state courts of the
County of Santa Clara, or where otherwise appropriate, exclusively in the United States
District Court, Northern District of California, San Iose, California..
B. The headings of the sections and subsections ofthis Agreement are inserted for convenience
only. They do not constitute a part of this Agreement and shall not be used in its
construction.
C•. The waiver by any party to this .Agreement of a breacl~'of any provisions ofthis Agxeenaeazt
shall. notbe deemed a continuing waiver or a waiver of any subsequent breach of that or any
other provisions of this Agreement.
D. Any and all exhibits which are xeferred to in this Agreement are incorporated herein by
reference and are deerrzed apart ofthis Agreement. This Agreement may only be amended
•by formal written agreement executed by both parties.
E. If a court of competent jurisdiction adjudges any provisions of this Agreement as void or
unenfarceable,theremeining provisions shall .not be affected hereby and shall remain in full
force and effect; provided that construction of the agreement without the invalid or
uneriforceable provisions does not depxive the parties of the benefit of their bargain.
p'. The Trust shall provide an accounting of how it intends to provide matching funds for all
costs in.curxed pursuant to Section 3.2 of this Agreement. In addition, Trust shall ~arovide an
accounting of'liow it intends-to leverage on a 10;1 basis (ten times the Agency contribution)
the funds provided by the Agency pursuant to Section •3.2 ofthis Agreement.
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Where this agreelnent refers to Agelley a11d Lio Officer of t11e. Agell.cy is rlalned, the Agency
Executive Director shall have the authority to act o11 the Agency's behalf.
THE REDEVELOPMENT .A.GENCY Off' fIOUSING TRUST OF SANTA CLARA
TIIE TOWN OF LOS GATOS COUNTY-
Greg Larson
Executive Director
APPROVED AS TO FORM & LEGALITY
Michael Maltelio
Inteliln Agency Attorney
ATTEST:
7aclcie Rose
Clerk Adlniliistrator
N,\DEV\Ag~•eements\I~ousing Trust 6-14-1-0.doe
I~eVl11 ZW1ClC
Executive Director
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