ARA1993-08RESOLUTION NO. ARA9 3-8
A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY
APPROVING AN AFFORDABLE HOUSING AGREEMENT BY AND
BETWEEN THE ANAHEIM REDEVELOPMENT AGENCY AND HELPING
OUR MENTALLY ILL EXPERIENCE SUCCESS, INC.
WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6 (all
section references herein are to the Health and Safety Code unless otherwise specified) authorize
and direct the Anaheim Redevelopment Agency (the "Agency") to expend a certain percentage of
all taxes which are allocated to the Agency pursuant to Section 33670 for the purposes of
increasing, improving and preserving the community's supply of low and moderate income
housing available at affordable housing cost to persons and families of low- and
moderate-income, lower income, and very low income; and
WHEREAS, pursuant to applicable law the Agency has established a Low and
Moderate Income Housing Fund (the "Housing Fund"); and
WHEREAS, pursuant to Section 33334.2(e), in carrying out its affordable housing
activities, the Agency is authorized to rehabilitate buildings and to provide subsidies to or for the
benefit of very low income and lower income households, or persons and families of low or
moderate income, to the extent those households cannot obtain housing at affordable costs on the
open market; and
WHEREAS, in order to carry out and implement the Redevelopment Plan for the
Agency's Project Alpha and the affordable housing requirements thereof, the Agency proposes to
enter into an Affordable Housing Agreement (the 'Agreement#) with Helping our Mentally Ill
Experience Success, Inc. to rehabilitate and operate a rental housing project affordable to persons
of very low income (the #Project#); and
WHEREAS, the Agency is authorized to make expenditures from the Housing Fund
outside of its redevelopment project areas upon a resolution of the Agency and the City Council
that such use will be of benefit to a redevelopment project area; and
WHEREAS, the Project is located outside of the boundaries of Project Alpha, but is
located near Project Alpha, and the residents of the Project will use services located in Project
Alpha and may be employed within Project Alpha; and
WHEREAS, the covenants or restrictions imposed by the Agency pursuant to
subdivision (e) of Section 33334.3 may be subordinated to a lien, encumbrance, or regulatory
agreement of a lender providing financing of the Project where the Agency makes a finding that
an economically feasible alternative method of financing, refinancing, or assisting the units on
substantially comparable terms and conditions, but without subordination, is not reasonably
available, and where the Agency obtains written commitments reasonably designed to protect the
Agency's investment in the event of default; and
WHEREAS, ITT Federal Bank, the lender providing financing to the Project, has
required that the Agency's covenants be subordinated to the lien of its deed of trust as a condition
of financing the Project, and the Agency staff has reported that no other financing is available on
terms substantially comparable to those of the ITT Federal Bank loan but without subordination;
and
WI-IEREAS, the Agency has obtained certain written commitments reasonably designed
to protect the Agency's investment in the event of a default; and
WHEREAS, pursuant to Article XXXIV of the California Constitution voter approval
is required prior to the Agency developing, constructing or acquiring a *low rent housing
project '; and
WHEREAS, the Project is not a 'low rent housing projecff because it consists of the
replacement of six dwelling units previously or currently occupied by very low income
households located in the Cypress Street neighborhood of Project Alpha, some of which have
been demolished in 1992 and some of which will be demolished in 1993, as set forth in Health
and Safety Code Section 37001(0; and
WHEREAS, the Agency has duly considered all terms and conditions of the proposed
Agreement and believes that the development of the Project pursuant to the Agreement is in the
best interests of the City and the health, safety, and welfare of its residents, and in accord with
the public purposes and provisions of applicable State and local law requirements; and
WHEREAS, the Agency has considered the report of Agency staff on the proposed
development to be carried out pursuant to the Agreement.
NOW, THEREFORE, THE ANAHEIM REDEVELOPMENT AGENCY DOES
RESOLVE AS FOLLOWS:
Section 1. The Notice of Exemption prepared with respect to the development
proposed by the Agreement indicates that the proposed Agreement is categorically exempt from
the California Environmental Quality Act pursuant to 14 Cal. Code of Regulations 15303. The
Agency finds that the Project site is not environmentally sensitive, that it will not result in
cumulative significant impacts on the environment, and that there are no unusual circumstances
creating the reasonable possibility of significant impacts on the environment. The Agency hereby
approves the Notice of Exemption and directs the Secretary of the Agency to file the Notice of
Exemption with the County Clerk of the County of Orange.
Section 2. The Agency finds and determines that expenditures from the Housing Fund
as contemplated by the Agreement will directly and specifically benefit, improve, and preserve
the community's supply of low and moderate income housing within the meaning of Sections
33334.2 and 33334.6.
Section 3. The Agency finds and determines that expenditures from the Housing Fund
as contemplated by the Agreement will be of benefit to Project Alpha.
POBL:357_II3191B2621.48 2
Section 4. The Agency finds and determines that an economically feasible alternative
method of financing, refinancing, or assisting the units or parcels on substantially comparable
terms and conditions to the ITT Federal Bank loan, but without subordination, is not reasonably
available.
Section 5. The Agreement is hereby approved. The Chairman of the Agency is
hereby authorized to execute the Agreement on behalf of the Agency. A copy of the Agreement
when executed by the Agency shall be placed on file in the office of the Secretary of the Agency.
Section 6. The Executive Director of the Agency (or her designee), is hereby
authorized, on behalf of the Agency, to sign all documents necessary and appropriate to carry out
and implement the Agreement and to administer the Agency's obligations, responsibilities and
duties to be performed under the Agreement and related documents.
ANAHEIM REDEVELOPMENT AGENCY
By'
I hereby certify that the foregoing Resolution was duly and regularly adopted by the
Anaheim Redevelopment Agency at a meeting thereof held on the 18th day of May, 1993, by the
following vote:
AYES:
Hunter, Pickler, Simpson, Daly
NOES' None
ABSENT: Feldhaus
ABSTAIN: None
AGENCY SECRETARY
PU~L:357_l 13191 B2621.48 3
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LEONORA N. SOHL, Secretary of the Anaheim Redevelopment Agency, do hereby certify that the foregoing
Resolution No. ARA93-8 was passed and adopted at a regular meeting of the Anaheim Redevelopment Agency held
on the 18th day of May, 1993, by the following vote of the members thereof:
AYES: AGENCY MEMBERS: Hunter, Pickler, Simpson, Daly
NOES: AGENCY MEMBERS: None
ABSENT: AGENCY MEMBERS: Feldhaus
AND I FURTHER CERTIFY that the Chairman of the Anaheim Redevelopment Agency signed said Resolution
No. ARA93-8 on the 19th day of May, 1993.
IN WITNESS WHEREOF, I have hereunto set my hand and seal this 19th day of May, 1993.
SECRETARY OF THE ANAHEIM REDEVELOPMENT AGENCY
(SEAL)