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HomeMy WebLinkAboutRES NO 117-03 117-03 RESOLUTION NO. A RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD REGARDING THE USE OF REDEVELOPMENT HOUSING SET ASIDE MONIES OUTSIDE THE DOWNTOWN REDEVELOPMENT PROJECT AREA AND COMMITTING FUNDING FOR HOUSING FOR LOW AND MODERATE INCOME CITIZENS WHEREAS, there is a need in the City of Bakersfield (the "City") for decent, safe and sanitary housing and particularly for housing affordable to very-low, Iow- and moderate-income purchasers; and WHEREAS, the Community Redevelopment Law of the State of California (Health and Safety Code Section 33000 et. seq.), (the "Law"), imposes specific obligations on each redevelopment agency to respond to housing needs within their jurisdiction, including, but not limited to, establishment of a Low- and Moderate-Income Housing Fund (the "Fund"); and WHEREAS, Section 33334.2 of the Law provides that the redevelopment agency shall use not less than twenty percent (20%) of all taxes which are allocated to it for the purposes of increasing, improving, and preserving the community's supply of Iow- and moderate-income housing; and WHEREAS, Section 33334.2 also provides that an agency may use these funds inside or outside the Downtown Redevelopment Project Area upon a resolution of the agency and the legislative body that such use of funds will be of benefit to the Downtown Redevelopment Project Area; and WHEREAS, a number of conditions limit the ability of the Bakersfield Redevelopment Agency ("Agency") to provide residential development in the Downtown Redevelopment Project Area, such as, the existing land uses and socio-economic characteristics of the Downtown Redevelopment Project Area; and WHEREAS, available land that is suitable for affordable housing development is limited and probable land acquisition costs indicate a need to provide significant levels of financial assistance for the new construction of housing projects; and WHEREAS, there is very little housing available to very-low, Iow- and moderate- income citizens in or in close proximity to the Downtown Redevelopment Project Area; and WHEREAS, the Bakersfield Redevelopment Agency can provide more people affordable housing opportunities by allowing the use of housing monies outside the Downtown Redevelopment Project Area; and WHEREAS, Parkview Cottages, LLC and Parkview Builders, LLC, ("Parkview") has submitted a proposal to construct seventy-four (74) single-family homes ("the Project") to be affordable to very-low, Iow- and moderate-income purchasers; and WHEREAS, the Project is to be located north of the Downtown Redevelopment Project area and in the Old Town Kern-Pioneer Redevelopment Project Area; and WHEREAS, Parkview needed financial assistance from the Agency in order to be able to provide this much-needed housing; and WHEREAS, Agency borrowed $1,200,000.00 from the California Housing Finance Authority ("CalHFA") to acquire the property needed for the Project; and WHEREAS, the loan is a 3% simple interest loan for ten years; and WHEREAS, Agency is seeking to use $2,311,000.00 in Downtown Redevelopment Project Area housing-set aside monies for the Project; and WHEREAS, such funds will be used to repay the loan and pay any other acquisition costs; and WHEREAS, the Project will benefit the Downtown Redevelopment Project Area by providing decent, safe and sanitary housing in close proximity to the Downtown Redevelopment Project Area, where such housing is not available. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAKERSFIELD as follows: 1. The above recitals are true and correct; The use of funds from the Downtown Redevelopment Project Area's Low- and Moderate-Income Housing Fund outside of the Downtown Redevelopment Project Area will benefit the Downtown Redevelopment Project Area; The City of Bakersfield approves the use of up to $2,311,000.00 of the Bakersfield Redevelopment Agency's Downtown Redevelopment Project Area Low- and Moderate-Income Housing Fund to assist Parkview in the creation of 74 single-family residences affordable for purchase by very- Iow, Iow- and moderate-income persons by paying for the acquisition of the real property needed for the Project. --oo0oo- ORIGiN,~ I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held ojuL , by the following vote: AYES: COUNCIL MEMBER COUCH, CARSON, BENHAM, MAGGARD, HANSON, SULLIVAN, SALVAGGIO NOES: COUNCIL MEMBER ABSTAIN: COUNCIL MEMBER ABSENT: COUNCIL MEMBER 9 Z003 CITY CLERK and Ex Officio ~lerk of the Council of the City of Bakersfield HARVEY L. HALL MAYOR of Bakersfield APPROVED as to form: BART J. THILTGEN City Attorney S:council\resos\33334.2parkview.doc ORtGIN,~