2003-086 - Approving A Loan Of Redevelopment Housing Funds And Community Development Block Funds To Project Match For Acquisition And Rehabilitation Of Senior Housing And Making Related Required FindingsRESOLUTION 2003 - 86
CONCURRENT RESOLUTION OF THE TOWN COUNCIL AND REDEVELOPMENT
AGENCY OF THE TOWN OF LOS GATOS APPROVING A LOAN OF REDEVELOPMENT
HOUSING FUNDS AND COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS TO
PROJECT MATCH 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 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 sec,. (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, pursuant to Title I of the Housing and Community Development Act of
1974, as amended, the Town has received Community Development Block Grant funds ( "CDBG
Funds ") from the United States Department of Housing and Urban Development; and
WHEREAS, Project Match, Inc., a California nonprofit public benefit corporation, has
requested a loan of Housing Fund monies and CDBG Funds from the Agency and Town, to be
utilized to acquire a single family home in Los Gatos, which Project Match 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 to provide a Three Hundred Eighty -Eight
Thousand Eight Hundred One Dollar ($388,801) loan to the Developer, consisting of Two
Hundred Sixty -Two Thousand Dollars ($262,000) in Agency Housing Fund monies and One
Hundred Twenty -Six Thousand Eight Hundred One Dollars ($126,801) of Town CDBG Funds
(the "Loan "), to assist in financing the acquisition and rehabilitation of the Property by Project
Match; and
WHEREAS, the Town desires for the Agency to administer the Loan on behalf of the
Town and the Agency; and
WHEREAS, following approval of the Loan by the Town and the Agency, Project
Match will locate an appropriate property in the Town, subject to Agency approval, which it
anticipates will be 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 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 Project
Match will be consistent with the Agency's Implementation Plan (the "Implementation Plan ") for
the Project Area; and
WHEREAS, staff has prepared a loan agreement, promissory note, deed of trust, and
regulatory agreement (the "Agency Loan Documents ") setting forth the terms and conditions of
the Loan, including the requirement that Project Match operate the Property as affordable rental
housing for very low income senior citizens, which Agency Loan Documents are on file with the
Agency Secretary; and
WHEREAS, by staff report accompanying this Resolution and incorporated into this
Resolution by this reference (the "Staff Report "), the Agency 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 Loan and the acquisition and rehabilitation of
the Property is categorically exempt from 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 Report, the Town and the Agency hereby find and
determine 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.
BE IT FURTHER RESOLVED that the Town shall transfer One Hundred Twenty -Six
Thousand Eight Hundred One Dollars ($126,801) in CDBG Funds to the Agency so that the
Agency may utilize these funds, together with Agency Housing Fund monies, to make the Loan
to Project Match.
BE IT FURTHER RESOLVED that the Agency hereby allocates Two Hundred Sixty -
Two Thousand Dollars ($262,000) of Agency Housing Fund monies to fund the Loan, together
with the CDBG Funds transferred to the Agency by the Town for this purpose.
BE IT FURTHER RESOLVED that the Town and the Agency hereby approve the
Loan on the terms and conditions and with the affordability requirements set forth in the Staff
Report.
BE IT FURTHER RESOLVED that the Agency hereby approves the Agency Loan
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 Loan.
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 16`h day of
June, 2003, by the following vote:
COUNCIL /AGENCY MEMBERS:
AYES: Steve Glickman, Diane McNutt, Joe Pirzynski, Mike Wasserman,
Mayor Sandy Decker.
NAYS: None
ABSENT: None
ABSTAIN: None
SIGNED:
AYOR/CHAIR OFT HE REDEVELOPMENT
AGENCY OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
/� t44
CLERK/SECRETARY OF THE R D �VELOPMENT AGENCY
OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA