HomeMy WebLinkAboutReso 32-18 REVISED Affordable Housing Sequoia• Lm V I I qZr• a
OF THE CITY OF MORRO BAY, CALIFORNIA
UTHORIZING A GRANTOF 0 tt0 OF • D.HOUSING
IWILIEU FUNDS BE USED AS LOCAL MATCH TO THE
ALIFORNIA STATE TAX CREDIT•
• • • I • • 110907TAIT
WHEREAS, Sequoia Street Apartments located at 365-389 Sequoia Street in the City of
Morro Bay was permitted by the City in 1999 as a 12-unit affordable family rental development;
and
WHEREAS, the California Tax Credit Allocation Committee (TCAC) administers the
Federal and State Low -Income Housing Tax Credit Program, which is a funding program for
affordable housing and TCAC provided funding in 1999 for the development of the Sequoia
Apartments, which is required to provide low- and very low-income family rental housing for a
period of 55 years due to expire in 2054; and
WHEREAS, Peoples' Self -Help Housing Corporation (PSHHC) received assistance from
the City of Morro Bay through a State Community Development Block Grant (CDBG) award of
$425,500 in 1997 and $50,000 in City Affordable Housing In -Lieu funds in 1998 to assist with
the development of the Sequoia Street Apartments as a 0% loan, which requires development
to provide low- and very low-income family rental housing for a period of 30 years due to expire
in 2027 and 2028, respectively; and
WHEREAS, PSHHC made a request to the City on March 16, 2018, for an allocation of
$75,000 of the City's Affordable Housing In -Lieu funds to be used as local match for a funding
application to TCAC and staff recommended a 0% residual receipts loan of $50,000; and
WHEREAS, PSHHC has requested to restate the existing 1997 CDBG and 1998
Affordable Housing In -Lieu funding loans for the purpose of resyndicating the subject property.
as part of a larger scattered site project application due to the TCAC program on July 2, 2018;
and if successful, would extend the loans for a period of 55 years from date of TCAC financing;
and
WHEREAS, the City identified affordable housing for families as a goal in its adopted
2014-2019 Housing Element; and
WHEREAS, the City Council has duly considered all evidence, including the testimony of
the applicant, interested parties, and the evaluation and recommendations by staff, presented at
its meeting on May 22, 2018.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Morro Bay:
1. A funding allocation of $50,000 from the City's Affordable Housing In -Lieu fund be
granted, as a local match to strengthen a .funding application to TCAC's Low -Income
City Council Resolution #32-18
Sequoia Apartments Request for Affordable Housing In -Lieu
365-389 Sequoia St
Page 2
Housing Tax Credit Program to upgrade and renovate the Sequoia Apartments located
at 365-389 Sequoia Street.
2. Authorizes the City Manager or his designee to execute the required documents
necessary for the TCAC funding application, including the agreement between the City
and PSHHC to memorialize the subjectloan as a 0% residual receipts loan, as well as a
restatement of the existing CDBG and Affordable Housing In -Lieu loan with a principal
amount of $425,500 and $50,000, respectively, with 0% interest payable in full at the
end of the term for a term of 55 years.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting
thereof held on this 22"d day of May, 2018 on the following vote:
AYES: Irons, Davis, Headding, Makowetski, McPherson
NOES: None
ABSENT: None
ABSTAIN: None
J E L. IRONS, May
ATTEST
LORI M. KUDZMA, Deputy City Clerk