HomeMy WebLinkAboutResolution No. 14-R16RESOLUTION NO. 14-1116
RESOLUTION OF THE SUCCESSOR AGENCY TO THE AZUSA
REDEVELOPMENT AGENCY APPROVING A FIRST AMENDMENT
TO DECLARATION OF COMMUNITY REDEVELOPMENT
AFFORDABLE HOUSING COVENANTS, CONDITIONS AND
RESTRICTIONS (9TH & ALAMEDA)
WHEREAS, the Azusa Redevelopment Agency ("RDA") and City Ventures, LLC
("Original Developer") entered into a Disposition and -Development Agreement (9th &
Alameda), dated June 6, 2011 ("DDA"), which obligated the Original Developer to construct a
condominium project consisting of fourteen new homes on certain real property located in the
RDA's redevelopment project area ("Property"), including two Affordable Homes, and to
convey each Affordable Home to a Qualifying Household at an Affordable Housing Cost (as
those terms are defined in the DDA); and
WHEREAS, the Original Developer subsequently assigned its rights and interest in the
DDA to City Ventures Homebuilding, LLC, a Delaware limited liability company
("Developer"); and
WHEREAS, Health and Safety Code Section 34172, as modified by the opinion of the
Supreme Court of the State of California'in California Redevelopment Association, et al. v. Ana
Matosantos, et al., Case No. S194861 ("Legal Action"), provides that all redevelopment
agencies, including the RDA, were dissolved as of February 1, 2012; and
WHEREAS, pursuant to Health and Safety Code Section 34173(d), the City of Azusa
elected to become the Successor Agency to the Redevelopment Agency of the City of Azusa
("Successor Agency"); and
WHEREAS, the Successor Agency is the successor entity to the former RDA and,
pursuant to the Dissolution Act, is responsible for the wind -down of the former RDA and the
performance of all enforceable obligations of the former RDA, including the DDA; and
WHEREAS, pursuant to the DDA, the Successor Agency and Developer entered into
that certain Declaration of Community Redevelopment Affordable Housing Covenants,
Conditions and Restrictions (9`h & Alameda), dated October 29, 2013 ("Declaration"), which
was recorded on October 31, 2014 in the official records of the County of Los Angeles ("Official
Records") as Instrument No. 20131553942, against the Property; and
WHEREAS, the Successor Agency and Developer subsequently entered into a Partial
Release of Declaration of Community Redevelopment Affordable Housing Covenants,
Conditions and Restrictions (91h & Alameda), dated April 10, 2014 ("Partial Release"), recorded
on April 14, 2014 in the Official Records as Instrument No. 2014-0374855 against the Property,
which releases each of the units in the Property except for Units 4 and 5, as legally described
therein ("Market Rate Homes"), from the provisions of the Declaration; and
WHEREAS, pursuant to the Partial Release, Units 4 and 5 of the Property ("Affordable
Units") remain fully bound by all of the provisions of the Declaration in accordance with its
terms; and
WHEREAS, the Successor Agency also made and recorded against the Property a
Notice of Affordability Restrictions on Transfer of Property (91h & Alameda), dated October 24,
2013 ("Notice"), recorded on October 31, 2014 in the Official Records as Instrument No.
20131553940 and, pursuant to the Partial Release, the Market Rate Homes were released from
the Notice but the Affordable Units remain subject to the Notice; and
WHEREAS, a Qualifying Household has entered into a contract with Developer to
purchase one of the Affordable Homes at an Affordable Housing Cost but the Qualified
Household requires Federal Housing Administration (FHA) financing to qualify for a home loan
and FHA will not allow the use of FHA financing under the current terms of the Declaration;
and
WHEREAS, Developer and Successor Agency have negotiated certain revisions to the
Declaration in order to conform the Declaration with the requirements of FHA regulations
relating to affordable housing restrictions, which revisions are set forth in the First Amendment
to Declaration of Community Redevelopment Affordable Housing Covenants, Conditions and
Restrictions (9th & Alameda), a copy of which is attached to this Resolution as Exhibit A and
incorporated herein by this reference ("First Amendment').
NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE AZUSA
REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Recitals. The Recitals set forth above are true and correct and are
incorporated into this Resolution by this reference.
Section 2. CEQA Compliance. The approval of the First Amendment through this
Resolution does not commit the Successor Agency to any action that may have a significant
effect on the environment. As a result, such action does not constitute a project subject to the
requirements of the California Environmental Quality Act. The City Clerk is authorized and
directed to file a Notice of Exemption with the appropriate official of the County of Los Angeles,
California, within five (5) days following the date of adoption of this Resolution.
Section 3. Approval of First. Amendment. The Successor Agency hereby approves
the First Amendment to Declaration of Community Redevelopment Affordable Housing
Covenants, Conditions and Restrictions (9th & Alameda), in substantially the form attached to
this Resolution as Exhibit A, and authorizes and directs the Executive Director to execute the
First Amendment on behalf of the Successor Agency.
Section 4. Transmittal of First Amendment to Oversight Board. The Executive
Director is hereby authorized and directed to take any action necessary to carry out the purposes
of this Resolution, including without limitation, providing any documentation and evidence to
the Oversight Board as necessary to obtain from the Oversight Board approval of the First
Amendment.
Section 5. Severability. if any provision of this Resolution or the application of any
such provision to any person or circumstance is held invalid, such invalidity shall not affect other
provisions or applications of this Resolution that can be given effect without the invalid
provision or application, and to this end the provisions of this Resolution are severable. The
Successor Agency declares that it would have adopted this Resolution irrespective of the
invalidity of any particular portion of this Resolution.
Section 6. Effectiveness. This Resolution shall take effect immediately upon its
adoption.
PASSED APPROVED and ADOPTED this 6°i day of October, 2014.
o�_ph Romero Rocha
Chairman
ATTEST:
efire'yyL2�6ence Cornejo(r.
Secretary
CERTIFICATION
I, Jeffrey Lawrence Cornejo, Jr., City Clerk of the City of Azusa, do hereby certify that
Resolution No. 14-R16 was duly adopted by the City Council of the City of Azusa, serving as
the Successor Agency to the Former Redevelopment Agency, at a regular meeting held on the 6'h
day of October 2014, by the following vote of the Agency:
AYES: AGENCY MEMBERS: GONZALES, CARRILLO, MACIAS, ALVAREZ, ROCHA
NOES: AGENCY MEMBERS: NONE
ABSENT: AGENCY MEMBERS: NONE
J6fify*'LaWnee Cornejo, Jr.
Secretary