2009-058 - Authorizing The Executive Director To Approve An Amendment To The Grant Agreement With Senior Housing Solutions Increasing The Commitment Of Redevelopment Housing Funds To $922,700 For Acquisition And Development Of Five Units Of Very Low - IncRESOLUTION 2009 -058
RESOLUTION OF THE RE DEVELOPMENTAGENCY OF THE TOWN OF LOS GATOS
AUTHORIZING THE EXECUTIVE DIRE'CTOR'TO APPROVE AN AMENDMENT TO
THE GRANT AGREEMENT WITH SENIOR HOUSING SOLUTIONS INCREASING THE
COMMITMENT OF REDEVELOPMENT HOUSING FUNDS TO $922,700 FOR
ACQUISITION AND DEVELOPMENT OF FIVE UNITS OF VERY LOW- INCOME
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 Area (the "Project Area "); and
WHEREAS, the Redevelopment Agency of the Town of Los Gatos (the "Agency ") is
responsible 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 33000 et seq. (The
"Redevelopment Law "), is the creation of new housing to provide long -term 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 "), 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, on May 19, 2008 the Agency approved an 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
WHER E AS, the Developer requested an additional Ninety Thousand Dollars ($90,000) be
added to the Grant to the Developer that the Agency approved on May 19, 2008 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 (IIealth and Safety Code Sections 33334.2 and
33334.3) expressly contemplate and permit the use of proceeds from 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
33334.30)) 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, on May 19, 200 the Agency approved a Revocable Grant Agreement, Deed
of Trust, and Regulatory Agreement (the "Agency Grant Documents ") setting forth the terms 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 from CEQA.
NOW, THEREFORE, BE IT RESOLVED THAT 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(8) that the use of additional
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 33334.30) 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 FURTHER RESOLVED that the Agency hereby allocates an additional Ninety
Thousand Dollars ($90,000) of Agency Housing Fund monies to the Grant to the Developer that the
Agency approved on May 19, 2008, 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
amended Grant on the terms and conditions and with the affordability requirements set forth in
the Grant Documents approved on May 19, 2008.
BE IT FURTHER RESOLVED that the Agency hereby approves the amended
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 1 st day of
June, 2009, by the following vote:
COUNCIL:
AYES: Joe Pirzynski, Steve Rice, Barbara Spector, and Mayor Mike Wasserman
NAYS: ..
ABSENT:
ABSTAIN: Diane McNutt
TTEST:
CLULF THE TOWN OF LOS GATOS
LOS GATOS, CALIFO:r<NIA
SIGNED:
MAYOR OF TIIE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA