R-477
Santa Monica, California
RESOLUTION NUMBER...iZL(RAS)
REDEVELOPMENT AGENCY SERIES
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF SANTA MONICA AUTHORIZING
THE EXECUIVE DIRECTOR TO MAKE FINDINGS
ON A PROJECT-BY-PROJECT BASIS PERTAINING TO
A GOOD FAITH ATTEMPT TO OBTAIN COMMERCIAL
AND/OR PRIVATE FINANCING
FOR AFFORDABLE HOUSING PROJECTS INVOLVING NEW
CONSTRUCTION OR SUBSTANTIAL REHABILITATION WHERE THE
AGENCY CONTRIBUTION EXCEEDS 50% OF THE
COST OF PRODUCING THE AFFORDABLE UNITS
WHEREAS, the affordable housing is a matter of both local and statewide
concern ;
WHEREAS, the Redevelopment Agency of the City of Santa Monica
("Agency") is committed to addressing the community's affordable housing needs
through use of Agency Housing Set Aside Funds ("Housing Funds") earmarked
specifically to fund low and moderate income housing through new construction
or substantial rehabilitation ("Affordable Housing Project"); and,
WHEREAS, the State of California Health & Safety Code Section
33334.30) requires that where Housing Funds exceed 50 percent of the cost of
producing an affordable housing project, the Agency shall find, based on
substantial evidence, that the use of said Housing Funds is necessary because
the Agency or Owner has made a good faith attempt but has been unable to
obtain commercial or private means of financing the units at the same level of
affordability and quantity; and,
WHEREAS, due to the high cost of producing affordable housing in Santa
Monica, coupled with the limited cash flow resulting from deed restricted rents, it
is not feasible to increase commercial or private financing for Affordable Housing
Projects to levels that would reduce the use of Housing Funds to below 50% of
the cost of producing the units while still achieving the same level of affordability
or quantity of units;
WHEREAS, the nature of commercial real estate is such that in order to
be able to bid competitively on the open market with abbreviated escrow
timeframes, it is necessary for the Executive Director to be able to make
expenditures of Housing Funds on behalf of the Agency without being subject to
time constraints imposed by having to submit the findings required by Section
33334.30) of the Health and Safety Code directly to the Agency for approval
NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY
OF SANTA MONICA DOES RESOLVE AS FOllOWS:
SECTION 1. The Redevelopment Agency of the City of Santa Monica
hereby authorizes the Executive Director to make findings on a project-by-project
basis demonstrating that for Affordable Housing Projects in which Housing Funds
exceed 50% of the cost of producing the units, the use of this level of Housing
Funds is necessary because the Agency or Owner has made a good faith
attempt but has been unable to secure commercial or private means of financing
the units at the same level of affordability and quantity.
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SECTION 2, Pursuant to Section 33334.30) of the State of California
Health and Safety Code, the Executive Director of the Agency will make findings
on behalf of the Agency using the attached Summary of Findings in cases where
such findings are supported by substantial evidence.
SECTION 3. Agency staff shall report to the Agency on a project-by
project basis prior to close of escrow documenting compliance with Health and
Safety Code Section 33334.30).
SECTION 4. For purposes of making the findings required pursuant to this
Resolution, substantial evidence of a good faith attempt to secure commercial or
private financing shall include, but is not limited to a letter, a list of standard
financing terms ("terms sheet"), or other official documentation from at least two
bona fide banks or lending institutions documenting the criteria used by the bank
or institution in making the determination either: 1) not to provide financing to the
project; or, 2) to provide financing to the project but at levels insufficient to reduce
the use of Housing Funds below 50% of the cost of producing the units while still
providing the same level of affordability and quantity of units.
SECTION 5. The City Clerk shall certify to the adoption of the Resolution,
and thenceforth and thereafter the same shall be in full force and effect. This
Resolution shall be of no further force and effect after December 31,2003,
FORM:
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S MOUTRIE
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Adopted and approved this 17th day of December, 2002.
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Richard Bloom, Chair
I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby
certify that the foregoing Resolution No. 477 (RAS) was duly adopted at a joint
meeting of the Santa Monica City.Council and the Redevelopment Agency held
on the 17th of December, 2002 by the following vote:
Ayes: Agency members:
Feinstein, Genser, Holbrook, O'Connor,
Chair Pro Tem McKeown, Chair Bloom
Noes: Agency members:
None
Abstain: Agency members:
None
Absent: Agency members:
Katz
ATTEST: