HomeMy WebLinkAbout23123 RESOLUTION NO. 23123
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS
CAPACITY AS HOUSING SUCCESSOR AGENCY,
APPROVING, AUTHORIZING, AND DIRECTING
EXECUTION OF AN ASSIGNMENT AND ASSUMPTION
AGREEMENT BY AND AMONG MILLENNIUM HOUSING
CORPORATION, (THE "ASSIGNOR") AND MILLENNIUM
HOUSING LLC, WITH RESPECT TO CERTAIN LOANS
PREVIOUSLY MADE BY THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM
SPRINGS TO ASSIST IN FINANCING THE
REHABILITATION OF THE SAHARA MOBILE HOME PARK
AT 1955 SOUTH CAMINO REAL. A6230.
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs
(the "Agency') has established an affordable housing setaside fund in accordance with
Section 33000 et. seq. of the California Health and Safety Code; and
WHEREAS, AB 1X 26 was signed by the Governor of California on
June 29, 2011, making certain changes to the Redevelopment Law, including adding
Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section
34170) to Division 24 of the California Health and Safety Code, suspending most
redevelopment agency activities and, among other things, prohibiting redevelopment
agencies from incurring indebtedness or entering into or modifying contracts; and
WHEREAS, effective February 1, 2012, all existing redevelopment agencies and
redevelopment agency components of community development agencies were
dissolved; however, except for those provisions of the Redevelopment Law that are
repealed, restricted, or revised pursuant to AB XI 26, all authority, rights, powers, duties
and obligations previously vested with the former redevelopment agencies under the
Redevelopment Law, are vested in the successor agencies;
WHEREAS, at a meeting of January 4, 2012, the City of Palm Springs took
action to designate itself as the Successor Agency and the Housing Successor Agency
to the Community Redevelopment Agency, as provided in California Health and Safety
Code §§ 34173 and 34176; and
WHEREAS, pursuant to Cal. Health & Safety Code §34176, the City expressed
its intention to retain the housing assets and functions previously performed by the
Palm Springs Community Redevelopment Agency and assume all rights, powers,
assets, liabilities, duties, and obligations associated with the housing activities of the
Palm Springs Community Redevelopment Agency; and
Resolution No. 23123
Page 2
WHEREAS, in 2002 and 2007, the Agency approved loans to the borrower at the
time of bond issuance of the project to Millennium Housing Corporation, a California
Nonprofit Benefit Corporation, to Millennium Housing, LLC, a single purpose entity
wholly-owned by the parent, Millennium Housing Corporation; subject to the existing
covenants; and
WHEREAS, Tahquitz has requested City consent to the addition of a new Limited
Partner, Rocky Mountain Engineering, to the Partnership; the party has had a financial
interest in the project since Tahquitz acquired the project from the prior owners in 2008,
but were not part of the ownership of the property; and
WHEREAS, the owners still agree to continue to restrict, though an existing
Regulatory Agreement, the rents on 50% of the existing spaces (254) to levels
affordable to low- and very-low income residents: 25% shall be available for persons of
very-low income (50% of Area Median Income - AMI) and 25% for persons of low
income (80% of Area Median Income—AMI) for a the remaining tern; and
WHEREAS, the Assignor assigns and the Assignee assumes (i) all of Assignor's
right, title and interest as the borrower of financial assistance in the initial aggregate
principal amount of$850,000 (the "Loan") from the City as the successor agency of The
Community Redevelopment Agency of the City of Palm Springs, and (ii) all of Assignor's
right, title and interest to certain assigned documents related to the Loan.
NOW, THEREFORE, BE IT RESOLVED, by the City of Palm Springs, in its
capacity as the Successor Housing Agency to the Community Redevelopment Agency,
as follows:
SECTION 1. The above findings are true and correct and are adopted findings of
the City Council of the City of Palm Springs.
SECTION 2. An Assignment and Assumption Agreement by and between the
City of Palm Springs and Millennium Housing Corporation, a California nonprofit
public benefit corporation, is hereby approved.
SECTION 3. The City Manager is hereby authorized and directed, on behalf of
the City, to execute all documents, including applications or letters of intent or
commitment, related to the Project and the purposes of this Resolution.
ADOPTED THIS 18T" DAY OF APRIL, 2012.
David H. Ready, City Mares er
ATTEST:
?am�es Thompson, City Clerk
Resolution No. 23123
Page 3
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. 23123 is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on 18th day of April, 2012, by the
following vote:
AYES: Councilmember Hutcheson, Councilmember Lewin, Councilmember Mills,
Mayor Pro Tern Foat, and Mayor Pougnet.
NOES: None.
ABSENT: None.
ABSTAIN: None.
mes Thompson, City Clerk 66/j 41
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City of Palm Springs, California