2008-057-Concurrent Resolution Of The Town Council And Redevelopment Agency Of The Town Of Los Gatos Approving Documents For The Grant Of Redevelopment Housing Funds To Senior Housing Solutions For Acquisition And Rehabilitation Of Senior Housing And MakiRESOLUTION 2008-057
CONCURRENT RESOLUTION OF THE TOWN COUNCIL AND REDEVELOPMENT
AGENCY OF THE TOWN OF LOS GATOS APPROVING DOCUMENTS FOR THE GRANT OF
REDEVELOPMENT HOUSING FUNDS TO SENIOR HOUSING SOLUTIONS FOR ACQUISITION AND
REHABILITATION OF SENIOR HOUSING AND MAKING RELATED REQUIRED FINDINGS
WHEREAS, the Town Council (the "Town Council") of the Town of Los Gatos (the "Town") adopted the
Redevelopment Plan for the Central Los Gatos Redevelopment Project by Ordinance No. 1882, adopted on
November 25, 1991, as amended by Ordinance No. 1992, adopted on December 5, 1994 (the "Redevelopment
Plan"), setting forth the plan for redevelopment of the Central Los Gatos Redevelopment Project At•ea (the "Project
Area"); and
WHEREAS, the Redevelopment Agency of the Town of Los Gatos (the "Agency") is t•esponsible for
implementation of the Redevelopment Plan; and
WHEREAS, a central objective of the Redevelopment Plan and'the California Community Redevelopment
Law, Health and Safety Code Section 3.3000 et seq. (The "Redevelopment Law"), is the creation of new housing to
provide long-tet•m affordable housing opportunities for low and moderate income households; and
WHEREAS, the Agency has established a Low and Moderate Income Housing Fund (the "Housing
Fund") pursuant to Health and Safety Code Section 33334,2; and
WHEREAS, Senior Housing Solutions, a California nonprofit public benefit corporation (the "Developer"),
has requested a grant of Housing Fund monies from the Agency, to be utilized to acquire a single family home in the
Town, which .Developer intends to rehabilitate and operate as five units of affordable rental housing for very low
income senior citizens {the "Property"); and
WHEREAS, the Agency and the Town desire that the Agency provide a Eight Hundred Thirty-Two
Thousand Seven Hundred Dollar ($832,700) grant (the "Grant") to the Developer to assist in financing the
acquisition and rehabilitation of the Property; and
WHEREAS, the property is located outside of the Project Area, and
WHEREAS, the provisions of the Redevelopment Law applicable to the establishment and use of proceeds
of the Housing Fund (Health and Safety Code Sections 33334.2 and 33334.3) expressly contemplate and permit the
use of proceeds fi•om the Housing Fund outside the Project Area upon findings by the Town and the Agency that
such use will be of benefit to the Project Area; and
WHEREAS, the acquisition and rehabilitation of the Property as affordable senior housing will benefit the
Project Area and serve major Redevelopment Plan goals and objectives by increasing the amount of housing available
at affordable housing cost in the community; and
WHEREAS, the acquisition, rehabilitation, and operation of the Property by Developer will be consistent
with the Agency's Implementation Plan (the "Implementation Plan") for the Project Area; and
WHEREAS, provisions of Redevelopment Law (Health and Safety Code Section 33334,3(j)) expressly
allows for the use of Housing Fund monies to finance more than fifty percent (50%) of the cost of a project if the use
of the funds is necessary when commercial or private financing is unavailable to finance the units at the level of
affordability and quantity; and
WHEREAS, no alternate private or commercial financing is available with terms similar to those proposed
in this Grant that would allow Developer to provide five units of very low-income housing for seniors at affordable
rents; and
WHEREAS, staff has prepared a Revocable Grant Agreement, Deed of Trust, and Regulatory Agreement
(the "Agency Grant Documents") setting forth the tertns and conditions of the Grant, including the requirement that
Developer operate the Property as affordable rental housing for very low income senior citizens, which Agency Grant
Documents are on file with the Agency Secretary; and
WHEREAS, by staff reports accompanying this Resolution and incorporated into this Resolution by this
reference (the "Staff Reports"), the Agency and the Town has been provided with additional information upon which
the findings and actions set forth in this Resolution are based; and.
WHEREAS, for the purpose of compliance with the California Environmental Quality Act ("CEQA"), the
Town and the Agency have determined that, pursuant to the California Code of Regulations Section 15301, the
making of the Grant and the acquisition and rehabilitation of the Property is categorically exempt fi•om CEQA.
NOW, THEREFORE, BE IT RESOLVED THAT the Town Council and the Agency Board hereby find
and determine that the above Recitals are true and correct and serve as the basis, in part, for the findings and actions
of the Town and 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 Reports, the Town and the Agency hereby find and determine: (i) pursuant to Health and
Safety Code Section 33334.2(g) that the use of moneys from the Housing Fund to fund the acquisition, rehabilitation,
and operation of the Property will be of benefit to the Project Area and the program of redevelopment pursuant to the
Redevelopment Plan, and (ii) pursuant to Health and Safety Code Section 3.3334.3 (j) that the use of the Grant is
necessary because the Developer has made a good faith attempt, but has been unable to obtain commercial or private
means of financing the units at the same level of affordability and quantity.
BE IT FURTHERRESOLVED that the Agency hereby allocates Eight Hundred Thuty-Two Thousand Seven
Hundred Dollars ($832,700) of Agency Housing Fund monies to fund the Grant, and hereby amends the Agency's
budget to the extent necessary to provide for such allocation.
BE IT FURTHER RESOLVED that the Town and the Agency hereby approve the Grant on the terms and
conditions and with the affordability requirements set forth in the Grant Documents.
BE IT FURTHER RESOLVED that the Agency hereby approves the Agency Grant Documents and
authorizes the Agency Executive Director to execute the documents in substantially the form on file with the
Agency Secretary, with such minor revisions as are deemed necessary and appropriate by the Agency Executive
Director, subject to Agency Counsel's approval, and to take all actions necessary to provide and implement the
Grant.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos and the
Redevelopment Agency of the Town of Los Gatos held on the 19th day of May, 2008, by the following vote:
REDEVELOPMENT AGENCY MEMBERS:
AYES: Steve Glickman, , Joe Pirzynski, Mike Wasserman, and Mayor Barbara Spector
NAYS: None
ABSENT:
ABSTAIN: Diane McNutt
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CHAIR
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