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RES-2019-013 RESOLUTION NO. RES-201 9-013 A RESOLUTION OF THE CITY COUNCIL APPROVING A COOPERATION AGREEMENT FOR THE MANCHESTER AND ORANGEWOOD AFFORDABLE RENTAL HOUSING DEVELOPMENT BY AND BETWEEN THE CITY OF ANAHEIM AND THE ANAHEIM HOUSING AUTHORITY, SUBSTANTIALLY IN THE FORM ATTACHED HERETO; AND AUTHORIZE THE COMMUNITY AND ECONOMIC DEVELOPMENT DIRECTOR, OR HIS DESIGNEE, TO SUBMIT FOR AN AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES PROGRAM APPLICATION WITH JAMBOREE HOUSING CORPORATION AND ENTER INTO SUBSEQUENT AGREEMENTS NECESSARY TO IMPLEMENT THE GRANT IMPROVEMENTS DELINEATED IN THE AHSC PROGRAM APPLICATION. WHEREAS, the Anaheim Housing Authority ("Authority") is a California housing authority duly organized and existing under the California Housing Authorities Law, Part 2 of Division 24, Section 34200, et seq., of the Health and Safety Code ("HAL"), and has been authorized to transact business and exercise the power of a California housing authority pursuant to action of the City Council ("City Council") of the City of Anaheim; and WHEREAS, the City of Anaheim ("City") is a California municipal corporation and charter city; and WHEREAS, the City is a participating jurisdiction with the United States Department of Housing and Urban Development ("HUD") that has received funds ("HOME Funds") from HUD pursuant to Title II of the Cranston Gonzalez National Affordable Housing Act (42 U.S.C. 12701 12839) and the HOME Program regulations codified at 24 CFR Part 92, as amended by the "2013 HOME Final Rule" .at 24 CFR Part 92 (Complete Rule) http://www.ecfr.gov/cgi-bin/text- idx?tpl=/ecfrbrowse/Title24/24cfr92_main_02.tpl (together, "HOME Program"); and WHEREAS, HOME Program has, among its purposes, the strengthening of public-private partnerships to provide more affordable housing, and particularly to provide decent, safe, sanitary, and affordable housing, with primary attention to housing for very low income and lower income households in accordance with the HOME Program; and WHEREAS, the HOME Program funds are used by the Authority, as a participating jurisdiction, to carry out multi-year housing strategies through acquisition, rehabilitation, and new construction of housing for target income persons and families; and WHEREAS, the Authority additionally maintains a Low and Moderate Income Housing Asset Fund (the "Housing Asset Fund") pursuant to Health and Safety Code Section 34176 and 34176.1, which Housing Asset Funds are available to the Authority to assist in the development and operation of rental housing in the City that is affordable to persons and families of low, very low and extremely low income; and WHEREAS, Jamboree Housing Corporation ("Jamboree") has proposed to the Authority that Jamboree or an affiliate of Jamboree ("JHC") and the Authority negotiate and thereafter enter into a comprehensive affordable housing agreement ("AHA") concerning the development and operation of an affordable rental housing project consisting of approximately one hundred two (102) rental units (the "Project") to be located on an approximately 2.86 acre site consisting of Authority- owned land located at 2121 S. Manchester Avenue and 915 E. Orangewood Avenue (the "Site"). Substantial aspects of the Project and the AHA remain in progress and under negotiation; and WHEREAS, Jamboree is proposing that Authority or City make available for the Project certain amounts of the funds held by the City under the HOME Programs and, in addition, that the Authority make available for the Project certain moneys in the Authority's Housing Asset Fund; and WHEREAS, the City and Authority are prepared to consider execution of a Cooperation Agreement by and between City and Authority pursuant to which the City would agree to contribute HOME Funds to the Project; and WHEREAS, Jamboree and the staff of the Authority have proposed a letter in the form submitted herewith (the "Preliminary Award Letter")which sets forth certain aspects of the proposed Project, including the intention of the Jamboree to submit an Application for Tax Credits and Affordable Housing& Sustainable Communities (AHSC) funds; and WHEREAS, the State of California, the Strategic Growth Council (SGC) and the Department of Housing and Community Development (Department) has issued a Notice of Funding Availability dated November 1, 2018 (NOFA), under the Affordable Housing and Sustainable Communities (AHSC) Program established under Division 44, Part 1 of the Public Resources Code commencing with Section 75200; and WHEREAS, the City (as Applicant) desires to jointly apply for AHSC Program funds with Jamboree (Co-Applicant) and submit the Application Package released by the Department for the AHSC Program; and WHEREAS, the SGC is authorized to approve funding allocations for the AHSC Program, subject to the terms and conditions of the NOFA, Program Guidelines, Application Package, and Standard Agreement. The Department is authorized to administer the approved funding allocations of the AHSC Program; and WHEREAS, the AHSC Program funds will provide grant funding to conduct housing- related Infrastructure, sustainable transportation infrastructure, transit-related amenities or Program activities that will benefit the area; and WHEREAS, the City has identified public transit opportunities to provide new buses and install new bus stops in the area; and WHEREAS, the City awarded Anaheim Transportation Network (ATN), one of the City's primary transit providers, a franchise in 2004 for the operation of the Anaheim Resort Transportation (ART) system; and WHEREAS, the City, desires to arrange for the pass-through of AHSC grant funds to ATN by means of a sub-recipient agreement for the purchase of two electric buses and implement the necessary improvements to install three new bus stops to serve Anaheim residents; and WHEREAS, Jamboree is experienced in .the construction, development, operation and management of high quality housing which is affordable to persons and households of low, very low and extremely low income in Southern California, including without limitation dwelling units developed utilizing HOME Funds and Housing Asset Funds; and 2 WHEREAS, Jamboree or JHC (as "Applicant"to TCAC) intends to submit an application to TCAC ("Application") to obtain an allocation of federal four percent(4%) Low Income Housing Tax Credits ("Tax Credits")for the Project; and WHEREAS, by Authority's commitment of monies sourced in whole or in part from the Housing Asset Fund and/or HOME Funds for the AHA, neither Authority (or Successor Agency or City) nor Jamboree intends in any manner to waive any constitutional and/or legal rights under the Dissolution Act or any other applicable laws; therefore, Authority (and Successor Agency and City) and each of JHC and Jamboree expressly and intentionally reserve all rights under any and all applicable laws to challenge the validity of any or all provisions of the Dissolution Act in any legal manner or proceeding, including challenging determinations made by the Oversight Board and/or California Department of Finance, without prejudice to the City or Successor Agency or Authority or Jamboree; and WHEREAS, it is contemplated that under an AHA, as hereafter negotiated and proposed, JHC would ground lease the Site from Authority and develop and operate the Site and shall cause the Site to be maintained and managed in accordance with the AHA, including a ground lease with respect to the Site ("Ground Lease") and other instruments to be approved by Authority and JHC with respect to the Project, throughout a period of not less than fifty-five years as hereinafter designated by the Authority (the "Affordability Period"); and WHEREAS, the Project is vital to and in the best interest of the City and the health, safety and welfare of its residents, and is in accordance with the public purposes of applicable state and local laws and requirements; and WHEREAS, the Authority has prepared such notices, plans and reports as may be required prior to consideration of this matter and has made available for public inspection all such matters prior to the public consideration of this matter; and WHEREAS, the Authority held a public hearing to consider the transaction contemplated therein in accordance with the Housing Authorities Law, the California Community Redevelopment Law, Health and Safety Code Section 33000, et seq., and the Dissolution Act; and WHEREAS, the City Council has duly considered all terms and conditions of the proposed Agreement, including all attachments thereto, and believes that the Project is in the best interests of the City of Anaheim and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANAHEIM: Section 1. The City Council finds and determines that the foregoing recitals are true and correct and are a substantive part of this Resolution. Section 2. The City Council hereby finds and determines, based on all documentation, testimony and other evidence in the record before it, that (a) the proposed sale and development of the Site will assist in the elimination of blight by allowing a parcel (the Site) land constrained with infrastructure deficiencies developed with a new, approximately 102 unit affordable rental housing project and (b) the consideration being paid to the Authority is not less than the fair reuse value at the use and with the covenants and conditions and development costs to be set forth in the AHA. 3 Section 3. The City is hereby authorized and directed to apply for and submit a joint application with Co-Applicant, to the Department the AHSC Program Application as detailed in the NOFA dated November 1, 2018, for Round 4 in a total amount not to exceed $7,000,000 in the form of a grant for Housing-Related Infrastructure (HRI), Sustainable Transportation Infrastructure (STI), Transit-Related Amenities (TRA) or Program (PGM) activities ("AHSC Grant") as defined the AHSC Program Guidelines adopted by SGC on October 29, 2018. Co-Applicant will apply for a loan for an Affordable Housing Development(AHD), ("AHSC Loan") not to exceed$13,000,000. Section 4. If the application is approved, the City is hereby authorized and directed to enter into, execute, and deliver a State of California Standard Agreement (Standard Agreement) in a total amount not to exceed $7,000,000, and any and all other documents required or deemed necessary or appropriate to secure the AHSC Program funds from the Department, and all amendments thereto (collectively, the "AHSC Documents"). Section 5. Any and all activities funded, information provided, and timelines represented in the application are enforceable through the Standard Agreement. The City hereby agrees to use the funds for eligible capital asset(s) in the manner presented in the application as approved by the Department and in accordance with the NOFA and Program Guidelines and Application Package. Section 6. The Community and Economic Development Director or his designee, is authorized to execute in the name of City the AHSC Program Application Package and the AHSC Program Documents as required by the Department for participation in the AHSC Program. Section 7. The Community and Economic Development Director or his designee is authorized to negotiate and execute an agreement with Developer to allocate responsibilities and liabilities between both entities in the event the grant and loan are awarded to the City and Developer as Co-Applicants. Section 8. The Community and Economic Development Director, or designee, is authorized and directed to accept the Grant Amount for and on behalf of the City. The City acknowledges that if the application for AHSC funding is approved, the City of Anaheim Public Works Department will participate in completing the AHSC grant improvements to be delineated in the AHSC Program Application. Section 9. The Community and Economic Development Director, or designee, is authorized to enter into a sub-recipient agreement with ATN to pass-through the AHSC grant funds for the purchase of the proposed electric bused and the installation of new bus stops. Section 10. The City Clerk shall certify to the adoption of this Resolution. • 4 THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ANAHEIM THIS (29 tn) DAY OF January ,2019 ,BY THE FOLLOWING ROLL CALL VOTE: AYES: Mayor Sidhu and Council Members Kring, Barnes,Brandman, Moreno, Faessel, and O'Neil NOES: None ABSTAIN: None ABSENT: None CITY OF : NAHEIM By: / I Al fry o r ei-TTEST= City Clerk Acting(wo 5 CLERK'S CERTIFICATE STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF ANAHEIM ) I, THERESA BASS, Acting City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original Resolution No. RES-2019-013 adopted at a regular meeting provided by law, of the Anaheim City Council held on the 29th day of January, 2019 by the following vote of the members thereof: AYES: Mayor Sidhu and Council Members Kring, Barnes, Brandman, Moreno, Faessel, and O'Neil NOES: None ABSTAIN: None ABSENT: None IN WITNESS WHEREOF, I have hereunto set my hand this 31st day of January, 2019. ING CI CLERK OF THE CITY OF ANAHEIM (SEAL)