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RES-2011-158 RESOLUTION NO. 2011 -158 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM (1) AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR FUNDING UNDER THE BEGIN PROGRAM FOR THE AFFORDABLE HOUSING PROJECT LOCATED AT 500 -510 S. ATCHISON STREET, (2) IF SELECTED FOR SUCH FUNDING, AUTHORIZING THE EXECUTION OF A STANDARD AGREEMENT, ANY AMENDMENTS THERETO AND ANY RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE BEGIN PROGRAM, AND (3) IF SELECTED FOR SUCH FUNDING, AMENDING THE BUDGET FOR FISCAL YEAR 2011 -12 ACCORDINGLY WHEREAS, the California Department of Housing and Community Development ( "HCD ") has issued a Notice of Funding Availability ( "NOFA ") for the Building Equity and Growth in Neighborhoods Program (the "BEGIN Program "), which is codified in Sections 50860 through 50866 of the California Health and Safety Code (the "Statute "). The BEGIN Program is a homeownership program that provides grants to qualifying cities, counties, and city and county entities for the provision of down - payment assistance in the form of a loan to qualifying low- and moderate - income first -time homebuyers who purchase newly constructed homes in a BEGIN Program project; and WHEREAS, pursuant to the Statute, HCD is authorized to approve funding allocations utilizing monies made available by the State Legislature to the BEGIN Program, subject to the terms and conditions of the Statute and HCD's BEGIN Program Guidelines (the `BEGIN Program Guidelines "); and WHEREAS, funding made available under the NOFA for the BEGIN Program (the "BEGIN Program Funding ") could be used to provide down payment assistance to first -time homebuyers in Anaheim with household incomes that do not exceed one hundred twenty percent (120 %) of area median income; and WHEREAS, the Anaheim Redevelopment Agency and Brookfield Olive Street III LLC are parties to that certain Disposition and Development Agreement (Colony Park Phase IV) dated as of February 15, 2011 which provides for the development of an approximately two hundred twenty -six (226) unit housing development, of which fifty -seven units will be made available for sale to low- and moderate - income households (the "Affordable Housing Development ") at 500 -510 S. Atchison Street; and WHEREAS, the City of Anaheim, a municipal corporation and charter city (the "City "), desires to submit an application to HCD for Three Million Eight Hundred Thousand Dollars ($3,800,000) of BEGIN Program Funding to be used to provide down payment assistance in the form of loans of up to twenty percent (20 %) of the sales price to eligible first -time homebuyers (i) who acquire homes in the Affordable Housing Development, and (ii) have household incomes that do not exceed one hundred twenty percent (120 %) of area median income (the "Application "). NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The foregoing recitals are incorporated into this Resolution by this reference, and constitute a material part of this Resolution. Section 2. Authority to Prepare, Execute and Submit Application. The Acting Executive Director of the City's Community Development Department (or his designee) is hereby authorized and directed, as agent of the City, to prepare, execute and submit the Application to HCD. Section 3. Authority to Execute Documents and Take Further Actions. The Acting Executive Director of the City's Community Development Department (or his designee) is hereby further authorized and directed, if the City is selected by HCD to receive BEGIN Program Funding, to take such other actions as are consistent with the Application, including the execution of the Standard Agreement prepared by HCD and all other documents and amendments required by HCD for participation in the BEGIN Program and deemed necessary and appropriate by the Acting Executive Director to consummate the transaction contemplated by the adoption of this Resolution and to administer the City's obligations, responsibilities and duties to be performed hereunder and under any agreement entered into with HCD in connection with the BEGIN Program. Section 4. Agreement to Utilize BEGIN Program Funding in a Manner Consistent with the Application and the BEGIN Program Guidelines. The City hereby agrees to use BEGIN Program Funding for eligible activities in the manner presented in the Application as approved by HCD and in accordance with the BEGIN Program Guidelines, if selected by HCD to receive such funding. Section 5. Amendment of Budget. Contingent upon the award of a grant and the receipt of funds based upon the Application, the annual budget of the Community Development Department of the City for Fiscal Year 2011 -12 shall be amended by increasing the appropriations and authorized expenditures in the amount equal to the amount of grant funds received by the City. Section 6. This Resolution shall be effective immediately upon adoption. [Remainder of page intentionally left blank.] 2 THE FOREGOING RESOLUTION is approved and adopted by the City Council of the City of Anaheim this 15th day of November , 2011, by the following roll call vote: AYES: Mayor Tait, Council Members Sidhu, Eastman and Murray NOES: None ABSENT: Council Member Galloway ABSTAIN: None CITY O AHEIM Agra MA OR OF THE ITY OF ANAHEIM ATTEST: LIL 11iiv CIT CLERK OF T CITY OF ANAHEIM 86786 3