HomeMy WebLinkAbout23846 RESOLUTION NO. 23846
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, ACTING SOLELY IN ITS CAPACITY AS
HOUSING SUCCESSOR AGENCY, APPROVING
REPAYMENTS TOWARD A LOAN MADE BY THE CITY OF
PALM SPRINGS IN THE AMOUNT OF $1,500,000.
The City Council of the City of Palm Springs, acting solely in its capacity as
Housing Successor Agency, finds:
A. On June 15, 2011, the Community Redevelopment Agency of the City of
Palm Springs (Redevelopment Agency) approved an Owner Participation Agreement
(OPA) with an affordable housing developer (Developer) for the development of 23 low
and moderate income housing units with rents between 30% and 60% of area median
income (Housing Project).
B. The approval of the OPA included approval of a related loan (Developer
Loan), including a Promissory Note, Deed of Trust, and a Regulatory Agreement.
C. The funds used were on deposit in the Low and Moderate Income
Housing Fund (Housing Fund) to make the Developer Loan on August 3, 2011 to
coincide with the closing of escrow for the Housing Project.
D. The Housing Project was and is a qualified expenditure of low- and
moderate-income housing fund moneys under the Health and Safety Code having been
approved prior to the effective date of the Dissolution Act.
E. The City is the successor entity relating to the Redevelopment Agency's
former low- and moderate-income housing functions (Housing Successor) funded by
amounts deposited into the former Housing Fund.
F. The City approved a loan of $1,500,000 (Loan) to the Successor Agency
on November 20, 2013 for the purpose of funding the required DDR payment as it
specifically relates to the Housing Project.
G. The City considers the $1,500,000 Loan as an advance of funds for the
purpose of funding the Housing Project and now desires that the Housing Successor
reimburse it for such advance, which was used for a legitimate low- and moderate-
income housing activity.
H. The Developer Loan at all times was a proper expense of the former
Housing Fund for a qualified low- and moderate-income housing project and would be a
proper expense of the Housing Successor under the California Health and safety Code.
Resolution No. 23846
Page 2
NOW, THEREFORE, the City Council, acting solely in its capacity as Housing
Successor Agency, resolves:
SECTION 1. Recitals. The Recitals set forth above are true and correct and are
incorporated into this Resolution by this reference.
SECTION 2. Reimbursement to General Fund. The Housing Successor shall
reimburse the General Fund for the advance of funds in the amount of $600,000 during
Fiscal Year 2014-15 and $900,000 and all accrued interest during Fiscal Year 2015-16.
SECTION 3. Effective Date. This resolution shall take effect immediately upon
its passage and adoption.
PASSED, APPROVED AND ADOPTED BY THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, ACTING SOLELY IN ITS CAPACITY AS HOUSING
SUCCESSOR AGENCY, THIS 17T" DAY OF JUNE, 2015.
DAVID H. REA ANAGER
ATTEST:
MES THOMPSON, CITY CLERK
'
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 23846 is a full, true and correct copy, and was dulr adopted at a regular
meeting of the City Council of the City of Palm Springs on the 17 " day of June, 2015,
by the following vote:
AYES: Councilmember Foat, Councilmember Hutcheson, Councilmember Mills,
Mayor Pro Tern Lewin, and Mayor Pougnet.
NOES: None.
ABSENT: None.
ABSTAIN: None. _may
ES THOMPSON, CITY CLERK
City of Palm Springs, California