CDC - Item 5A - Approved an Affordable Housing Reimbursement Agreement between City and CDCgKz=6
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TO: THE HONORABLE CHAIRMAN AND COMMISSION MEMBERS
THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, EXECUTIVE DIREC
DATE: FEBRUARY 8, 2011
SUBJECT: APPROVE AN AFFORDABLE HOUSING REIMBURSEMENT
AGREEMENT BETWEEN THE CITY OF ROSEMEAD AND THE
COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
ROSEMEAD AND ADOPT RELATED RESOLUTIONS FOR THE
PROJECT AREAS
BACKGROUND
On Monday, January 10, 2011, Governor Brown issued his 2011 -12 budget proposal.
The proposal includes the dissolution of redevelopment agencies statewide and the
requirement that all future tax increment be used only to satisfy the agencies' existing
obligations. Given the current budget proposal, it is recommended that the Community
Development Commission of the City of Rosemead (CDC) and the City of Rosemead
enter into an agreement for funding affordable housing (Affordable Housing
Reimbursement Agreement) (Exhibit 1). These funds will be used to preserve and
expand the supply of affordable housing consistent with the goals and objectives of the
Project Areas No. 1 and 2 ( "Project Areas "), the Five -Year Implementation Plan and
other CDC commitments. Pursuant to the attached agreement, the CDC would fund
affordable housing projects and programs with existing and future Low- and Moderate -
Income funds, currently 20% of tax increment funds received from the Project Areas,
and the City of Rosemead would implement the affordable housing projects.
Staff Recommendation
It is recommended that the Community Development Commission and the City Council
approve an Affordable Housing Reimbursement Agreement between the Community
Development Commission of the City of Rosemead and the City of Rosemead and
adopt related Resolutions No. CDC 2011 -06 and 2011 -06 for the funding of affordable
housing for Project Areas No. 1 and 2.
SUMMARY
The CDC currently has numerous affordable housing projects. Some of the important
projects include the two senior housing projects, Garvey and Angelus that the CDC
assists both for infrastructure improvements and funding assistance to the Rosemead
Housing Development Corporation (RHDC) so it can continue to serve low income
seniors. The CDC also maintains a list of potential projects that �u ed with
APPROVED FOR CITY COUNCIL AGENDA: .L�
Community Development Commission & City Council
February 8, 2011
Pane 2 of 2
future CDC resources and that would assist in the creation, protection, and
improvement of affordable housing. These affordable housing projects (Projects)
comprise the projects attached as an exhibit to the Affordable Housing Reimbursement
Agreement that the City agrees to implement these projects with low- and moderate -
income funds (20% tax increment funds) received from the CDC. The total local funding
commitment for these projects is currently estimated to be $1.5 million annually.
Affordable housing is a critical unmet need throughout the Los Angeles Area, and the
City of Rosemead is no exception. Funding the preservation and expansion of
affordable housing is key to a vibrant and sustainable local economy. In addition to
funding these important activities, 20% tax increment funds are used to administer the
CDC housing programs and reporting requirements of Federal, State and local
agencies.
It is recommended that the CDC and City enter into the attached Affordable Housing
Reimbursement Agreement to ensure that critical projects are continued and /or are
completed to protect and provide affordable housing to the community.
FISCAL ANALYSIS
The Affordable Housing Reimbursement Agreement would encumber existing and
future low- and moderate - income funds (20% tax increment funds) from the CDC
Project Areas to fund the preservation, rehabilitation and production of housing
affordable to very low -, low -, and moderate - income households as outlined in the
Agreement.
PUBLIC NOTICE PROCESS
This item has been noticed according to the California Health and Safety Code Section
33490.
LEGAL REVIEW
The attached Affordable Housing Reimbursement Agreement and related resolutions
have been reviewed and approved by the Commission's Attorney and the City Attorney.
Prepared by:
Michelle G. Ramirez
Community Development Manager
Attachment A: Affordable Housing Reimbursement Agreement
Attachment B: Resolution No. CDC 2011 -06
Attachment C: Resolution No. 2011 -06
FEAWN-MATMIRIANO
AFFORDABLE HOUSING
REIMBURSEMENT AGREEMENT
THIS AFFORDABLE HOUSING REIMBURSEMENT AGREEMENT ( "Agreement ")
is entered into this 8th day of February, 2011, by and between the Rosemead Community
Development Commission ( "CDC "), and the City of Rosemead ( "City "), with reference to the
following facts:
A. CDC has prepared Redevelopment Plans ( "Redevelopment Plans ") for the No. 1
and No. 2 Project Areas ("Project Areas "), which results in the allocation of property taxes from
the Project Areas to the CDC ( "Tax Increment ") pursuant to Section 33670(b) of the California
Community Redevelopment Law (Health & Safety Code Section 33000 et seq.) ( "CRL ") for
purposes of redevelopment.
B. The intent of the Redevelopment Plans is, in part, to provide for the production
and rehabilitation of for -sale and rental housing affordable to very low -, low- and moderate -
income persons and families; to take all necessary actions to implement the Redevelopment
Plans for the respective Project Areas; and to expend Tax Increment to accomplish the affordable
housing goals and objectives of the respective Redevelopment Plans.
C. The CDC has adopted a Five -Year Implementation Plan for the Project Areas
( "Implementation Plan ") establishing goals for, among other things, elimination of blight and
production and rehabilitation of affordable housing. To implement the programs and activities
associated with each affordable housing goal, the CDC has committed redevelopment funds from
the Project Areas based on estimated available Tax Increment revenue and debt financing
structures. The Redevelopment Plans and the Implementation Plan and all official records of the
CDC, as amended from time to time, are incorporated herein by reference.
D. Pursuant to Section 33220 of the CRL, certain public bodies, including the City
may aid and cooperate in the planning, undertaking, construction, or operation of redevelopment
projects. CDC desires assistance and cooperation of the City to carry out the affordable housing
programs and projects listed in Exhibit I attached hereto and incorporated herein by this
reference (collectively, "Projects "). The affordable housing programs and activities associated
with the Project, acquisition of property, development of design criteria, design, planning,
preparation of construction bid documents, financial analysis, financing, project administration
and new construction or rehabilitation, as applicable.
E. The City is willing to aid and cooperate with the CDC to expeditiously implement
the Projects in accordance with the Redevelopment Plans and Implementation Plan on the
condition that CDC pledge Net Available LMI Funds, as defined in Recital F below, to finance
the Projects in this current fiscal year and forthcoming fiscal years.
F. For purposes of this Agreement, "Net Available LMI Funds" means that portion
of the Tax Increment revenues, currently 20 %, which CDC is required to deposit into the CDC's
Low and Moderate Income Housing Fund established pursuant to Section 33334.3 of the CRL
( "LMI Funds "), including (1) any and all LMI Funds currently held by the CDC, which are not
budgeted or appropriated for payment of other indebtedness or obligations of the CDC; (2) any
and all net proceeds of Low and Moderate Income Housing Fund bonded indebtedness currently
or hereafter held by the CDC or any lawful successor of CDC (except to the extent otherwise
determined by the City Manager on behalf of the City and the CDC Executive Director on behalf
of the CDC); and (3) all future LMI Funds allocable to the CDC, or any lawful successor of
CDC, pursuant to the Redevelopment Plans and the CRL or other applicable law, to pay Low and
Moderate Income Housing Fund indebtedness of the CDC after the CDC or its successor
has made all necessary annual payments with respect to other outstanding Low and Moderate
Income Housing Fund debt obligations, including without limitation bonded indebtedness, pass -
through payments owed to affected taxing entities under written agreement or, if applicable,
Sections 33607.5 or 33607.7 of the CRL, written agreements with other persons or entities
including but not limited to the Garvey Assistance and Operating Agreement between the CDC
and the Rosemead Housing Development Corporation, and any other statutorily required
payment obligations of the CDC.
G. By approving and entering into this Agreement, the CDC has approved the pledge
of Net Available LMI Funds from the Project Areas to pay for the Projects. The obligations of
the CDC under this Agreement shall constitute an indebtedness of the CDC for the purpose of
carrying out the Redevelopment, Plans for the Project Areas and a pledge of Net Available LMI
Funds received by the CDC from the Project Areas to pay such indebtedness under the
provisions of Article XVI, Section 16 of the Constitution of the State of California, the CRL and
the Redevelopment Plans.
H. This Agreement is in addition to, and does not supersede any other cooperative,
repayment or reimbursement agreements entered into between the CDC and the City.
NOW, THEREFORE, the parties hereto do mutually agree as follows:
INTRODUCTORY PROVISIONS
1.1 The recitals above are an integral part of this Agreement and set forth the
intentions of the parties and the premises on which the parties have decided to enter into this
Agreement and are incorporated into the terms and conditions of this Agreement.
2. CDC'S OBLIGATIONS
2.1 The CDC agrees to pay to the City the amounts set forth in Exhibit 1, or such
lesser amounts to the extent the costs incurred by City to carry out the Projects are less than the
budgeted amounts set forth in Exhibit 1, to reimburse City for all costs incurred by the City in
connection with the Projects, including without limitation all costs of planning, land acquisition,
financing, development, permitting, design, site testing, environmental remediation, other
predevelopment activities (e.g., preparation of appraisals, geotechnical analyses, title reports and
relocation plans), bidding, project administration, construction and construction management.
The CDC's obligations under this Agreement, including without limitation the CDC's obligation
to make the payments to the City required hereunder, shall constitute an indebtedness of the
CDC for the purpose of carrying out the redevelopment of the Project Areas and are obligations
to make payments authorized by Section 33334.2 et seq. of the CRL. The obligations of the
CDC set forth in this Agreement are contractual obligations that, if breached, will subject the
CDC to damages and other liabilities or remedies.
2.2 The obligations of CDC under this Agreement shall be payable out of Net
Available LMI Funds, as defined in Recital F above, allocated to the CDC or any lawful
successor of the CDC to carry out the Redevelopment Plans and /or pay indebtedness of the CDC
pursuant to Section 33670 et seq. of the CRL, Article XVI, Section 16 of the Constitution of the
State of California, and any other applicable constitutional provision, statute or other provision
of law now existing or adopted in the future.
2.3 The indebtedness of CDC under this Agreement shall be subordinate to the rights
of the holder or holders of any outstanding bonds, notes or other instruments of indebtedness (all
referred to herein as "indebtedness ") of the CDC incurred or issued to finance redevelopment of
the Project Areas, including without limitation any pledge of Tax Increment revenues from the
Project Areas to pay any portion of the principal and interest (and otherwise comply with the
obligations and covenants) of any bond or bonds heretofore issued or sold or issued or sold in the
future by the CDC with respect to the Project Areas.
2.4 All payments due to be made by the CDC to the City under this Agreement shall
be made by the CDC within the times set forth in Exhibit 1 and as otherwise necessary to
reimburse the City for the costs incurred by City in performing its obligations hereunder. City
shall provide CDC with a report from time to time as requested by CDC accompanied by
evidence reasonably satisfactory to the CDC's Executive Director that the City's progress in the
management, development and construction of the Project for which payment is requested is
commensurate with the amount of the requested payment and that City has incurred costs or
obligations equal to or greater than the amount requested.
3. CITY'S OBLIGATIONS
3.1 The City shall accept and devote any and all funds offered by the CDC pursuant
to this Agreement solely to completion of the Projects by (i) reimbursing the City's accounts or
using such funds to make City expenditures to perform the work required to carry out and
complete the Projects; (ii) utilizing such funds to pay debt service on bonds or other indebtedness
or obligations that the City has or will incur for such purposes; and/or (iii) paying such funds into
a special fund of the City to be held and expended only for the purpose of satisfying the
obligations of the City hereunder.
3.2 It is the responsibility of City to pay all development and construction costs in
connection with the Projects from funds paid to the City by the CDC under this Agreement.
3.3 Prior to commencement of work on any of the listed Projects, all necessary
environmental review required by the California Environmental Quality Act ( "CEQA ") shall be
completed. This Agreement in no way limits the discretion of the City Council, Planning
Commission, the CDC Board or the City Board in completing environmental review of the
Projects.
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3.4 The City shall perform its obligations hereunder in accordance with the applicable
provisions of federal, state and local laws, and shall timely complete the work required for each
Project within the times set forth in Exhibit 1.
4. LIABILITY AND INDEMNIFICATION
4.1 In contemplation of the provisions of California Government Code Section 895.2
imposing certain tort liability jointly upon public entities solely by reason of such entities being
parties to an agreement as defined by Government Code Section 895, the parties hereto, as
between themselves, pursuant to the authorization contained in Government Code Sections 895.4
and 895.6, shall each assume the full liability imposed upon it, or any of its officers, agents or
employees, by law for injury caused by negligent or wrongful acts or omissions occurring in the
performance of this Agreement to the same extent that such liability would be imposed in the
absence of Government Code Section 895.2. To achieve the above - stated purpose, each party
indemnifies, defends and holds harmless the other party for any liability, losses, costs or
expenses that may be incurred by such other party solely by reason of Government Code Section
895.2.
DEFAULT
5.1 If either party fails to perform an obligation required by this Agreement within
thirty (30) calendar days of receiving written notice from the non - defaulting party, the party
failing to perform shall be in default hereunder. In the event of default, the non - defaulting party
will have all the rights and remedies available to it at law or in equity to enforce the provisions of
this Agreement, including without limitation the right to sue for damages for breach of contract.
The rights and remedies of the non - defaulting parry enumerated in this section are cumulative
and shall not limit the non - defaulting party's rights under any other provision of this Agreement,
or otherwise waive or deny any right or remedy, at law or in equity, existing as of the date of the
Agreement or hereinafter enacted or established, that may be available to the non - defaulting
parry against the defaulting parry. All notices of defaults shall clearly indicate a notice of default
under this Agreement.
6. MODIFICATION OF PROJECTS
6.1 The City and CDC may modify the list of Projects and time schedules set forth in
Exhibit 1 from time to time to provide for the use of additional federal, state and local funds; to
account for unexpected changes in available revenues; to modify or delete a particular project; to
modify the cost estimate for individual projects; to maintain consistency with the City's General
Plan or the Redevelopment Plans; or to take into consideration unforeseen circumstances
including circumstances that may come to light as a result of subsequent CEQA review. Any
such modifications shall be in writing and subject to approval by the City Council and CDC
Board.
TERMINATION OF AGREEMENT
7.1 This Agreement and the obligations of the City and CDC hereunder shall
terminate upon the earlier of completion of the Projects by the City and CDC's reimbursement of
City's costs incurred in connection therewith or June 27, 2030.
8. MISCELLANEOUS
8.1 This Agreement may be executed in multiple originals, each of which is deemed
to be an original.
8.2 This Agreement integrates all of the terms and conditions mentioned herein or
incidental hereto, and supersedes all negotiations or previous agreements between the parties
with respect to the subject matter of this Agreement.
8.3 This Agreement is intended solely for the benefit of the City and the CDC.
Notwithstanding any reference in this Agreement to persons or entities other than the City and
the CDC, there shall be no third party beneficiaries under this Agreement.
8.4 All waivers of the provisions of this Agreement and all amendments to this
Agreement must be in writing and signed by the authorized representatives of the parties.
8.5 If any term, provisions, covenant or condition of this Agreement is held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions
shall continue in full force and effect.
8.6 This Agreement shall be binding on and shall inure to the benefit of all successors
and assigns of the parties, whether by agreement or operation of law.
[Signatures on following page]
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first
set forth above.
CITY OF ROSEMEAD
IN
Gary Taylor, Mayor
Gloria Molleda, City Clerk
Approved As To Form:
Attest:
Gloria Molleda, Secretary
Approved As To Form:
By: By:
Rachel Richman, City Attorney Rachel Richman CDC General Counsel
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Exhibit 1
List of Proiects and Schedule for Performance and Payment
The costs of each Program/Project in this list include all activities needed to carry out
implementation of the Program/Project (e.g., acquisition of property, planning and design
costs, administrative costs, etc.)
20% Set Aside Prepayment
In 1991, the CDC pre -paid $6.8 million from proceeds from its 1987 tax allocation notes. This
pre - payment was restructured in 1993 along with the 1993 series tax allocation bonds. These
actions have resulted in a decrease of $469,142 on annual housing set -aside requirement until
fiscal year 2021 -22.
Financing: $469,142 annually
Funding Source: Redevelopment Housing Set Aside funds
Angelus /Garvey Senior Housing
There are presently two apartment complexes in Rosemead that are rented exclusively by low -
income seniors (Angelus and Garvey Senior Apartments). There is a single waiting list for both
senior apartment complexes. Angelus Senior Apartments is made up of 50 one - bedroom units
and one two - bedroom unit, while Garvey Senior Apartments contains 64 one - bedroom and eight
two - bedroom units. The Rosemead Housing Development Corporation (RHDC) is responsible
for the oversight of two senior housing facilities in which the CDC allocates funding annually
towards the financing, operation, and management of the two sites.
Financing: $431,500 annually
Funding Source: Redevelopment Housing Set Aside funds
Owner Occupied Rehabilitation Program
In order to preserve the City's exiting affordable housing stock and promote, increase, and
maintain homeownership for low and moderate income, the CDC provides an Owner Occupied
Rehabilitation Program, which includes six (6) programs to aid in maintenance and preservation
of housing stock.
• Deferred Loans - The CDC provides low interest (zero to three percent) deferred
payment loans to low and moderate income homeowners who own and occupy their
homes and need financial assistance to make repairs and improvements. The loan is
paid back through the sale, transfer of ownership, or refinancing of the home
• Grants - Grants are available to senior citizens 62 years or older and disabled citizens
for up to $10,000, at no cost to the homeowner, for repairs related to interior and
exterior code deficiencies and general home improvements. Owner occupants are
eligible for this program once every five years and with a maximum of three (3)
grants.
• Emergency Grants - Emergency grants are available to all eligible income qualified
applicants. The maximum emergency grant is $2,000 for corrections to emergency
code deficiencies that constitute an immediate health- safety issues
Exhibit 1
• Rebate Program - Rebates are available to income eligible homeowners, for
correction of code deficiencies and general home improvements to the exterior of the
house. 50 percent rebates up to $15,000 may be obtained from the CDC after
satisfactory completion of the work and evidence of payment to the contractor has
been received by the CDC.
• Lead /Asbestos Testing - Funds for testing and clearance testing (including risk
assessment) of units constructed prior to 1978 that participate in the CDC's Owner-
Occupied Rehabilitation Program.
• Lead /Asbestos Remediation - Funds are available to remediate lead /asbestos hazards
in units participating in the CDC's Owner- Occupied Rehabilitation Program
Financing: up to $811,500 annually
Funding Source: Redevelopment Housing Set Aside funds
Down Payment Assistance Program
The CDC assists low income residents with the purchase of their first home. The assistance is in
the form is a silent second loan and is available to low income families who have not owned a
home within the previous three years. The amount of the loan will vary depending on the value
of the house to be purchased to assist the homebuyer in achieving a 25 percent down payment.
The maximum allowable loan is currently $70,000.
Financing: up to $280,000 annually
Funding Source: Redevelopment Housing Set Aside funds
Tenant -Based Rental Assistance Program (TBRA)
The CDC's TBRA program is designed to assist persons displaced through governmental actions
(e.g. condemnation due to serious health/safety or code enforcement items) and to persons
displaced through development of the City's existing mobile home parks. This program is
modeled after a typical housing voucher program, which uses a payment standard based on local
housing prices. The TBRA assistance amount would be the difference between the actual rent
and the eligible tenant's ability to pay for rent (as determined by HUD).
Financing: up to $500,000 annually
Funding Source: Redevelopment Housing Set Aside funds
Community Housing Develonment Organization (CHDO) Construction Program
The CDC assists Community Housing Development Organization's (CHDO's) through the use
of HOME funds and Redevelopment Housing Set Aside funds for the development, purchase,
and /or rehabilitation of affordable housing for low to moderate - income Rosemead residents..
Financing: $250,000 per project
Funding Source: Redevelopment Housing Set Aside funds
Infill Housing Development
This program allows the replacement of an existing housing unit or the development of a new
unit on an existing vacant lot.
Financing: $300,000 per project
Funding Source: Redevelopment Housing Set Aside funds
Exhibit 1
New Residential Construction Programs
This program allows the development of mixed ownership /rental affordable housing as well as
mixed ownership /rental market -rate housing.
Financing: $200,000 per unit
Funding Source: Redevelopment Housing Set Aside funds
Land Assemblage and Write -Down
Rosemead uses Redevelopment Housing Set Aside funds and HOME funds to write -down the
cost of land for development of low and moderate - income housing. The intent of this program is
to reduce the land costs so that it becomes economically feasible for a private developer to build
units that are affordable to low and moderate income households.
Financing: $1.5 million per project
Funding Source: Redevelopment Housing Set Aside funds & HOME Funds
Exhibit 1
RESOLUTION NO. CDC 2011 -06
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF ROSEMEAD APPROVING AND AUTHORIZING
EXECUTION OF AN AFFORDABLE HOUSING REIMBURSEMENT
AGREEMENT BETWEEN THE COMMISSION AND CITY OF
ROSEMEAD
WHEREAS, the Community Development Commission of the City of
Rosemead(" CDC") is carrying out the Redevelopment Plan ('Redevelopment Plan ") for the
CDC ('Project'); and
WHEREAS, under the Redevelopment Plan, the City of Rosemead ( "City ") shall aid and
cooperate with the CDC in carrying out the Project and shall take actions necessary to ensure the
fulfillment of the purposes of the Redevelopment Plan and to eliminate and prevent the
recurrence or spread of conditions causing blight within the area of Project Areas No. 1 and 2
( "Project Areas "); and
WHEREAS, pursuant to Section 33220 of the California Community Redevelopment
Law (Health and Safety Code Section 33000, et seq.) (the "CRL "), for the purposes of aiding and
cooperating in the planning, undertaking, construction or operation of redevelopment projects
within the Project Areas, the City may, among other things, exercise the following powers: sell or
lease any of its property to the CDC; cause public improvements to be furnished in connection
with redevelopment projects; plan or replan and zone or rezone any part of a redevelopment
project; facilitate the production and rehabilitation of affordable housing and enter into
agreements with the CDC respecting actions to be taken pursuant to any such powers; and
WHEREAS, the CDC and City Council have prepared and wish to enter into an
Affordable Housing Reimbursement Agreement ( "Agreement ") to provide for City's production
and rehabilitation of affordable housing within the Project Areas and CDC's reimbursement of
City for the costs of the affordable housing projects; and
WHEREAS, a program Final Environmental Impact Reports were prepared and certified
on the Redevelopment Plan(s) ( "Final EIR(s) ") in accordance with the California Environmental
Quality Act ( "CEQA "), which included analysis of the affordable housing projects on a
programmatic level; and
WHEREAS, at this time there are no preliminary drawings, plans or other sufficient
information to enable a meaningful environmental assessment of the specific affordable housing
projects, therefore, the Agreement provides that the commitment of funds to and commencement
of the specific projects set forth therein shall be subject to completion of additional
environmental review and analysis, as required by CEQA;
NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF ROSEMEAD DOES HEREBY RESOLVE AS FOLLOWS:
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SECTION 1. The CDC hereby approves the Affordable Housing Reimbursement
Agreement and hereby authorizes and directs the Chair of the CDC to execute the Agreement on
behalf of the CDC, subject to any minor, technical or clarifying changes that may be approved by
the CDC's counsel. The CDC hereby further authorizes and directs the Executive Director to
take all actions and execute all documents as necessary to carry out the Agreement for the
production of the affordable housing projects, and the CDC's reimbursement of City for the costs
of the affordable housing projects as provided for in the Agreement.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the Rosemead
Community Development Commission on the 8tt' day of February, 2011.
ATTEST:
Gloria Molleda
Secretary
Mayor Taylor
Chair
APPROVED AS TO FORM:
Rachel Richman
Burke, Williams & Sorensen, LLP
Commission Counsel
RESOLUTION NO. 2011-06
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD
APPROVING AND AUTHORIZING EXECUTION OF AN AFFORDABLE
HOUSING REIMBURSEMENT AGREEMENT BETWEEN THE CITY
AND THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF ROSEMEAD
WHEREAS, the Community Development Commission of the City of Rosemead
( "CDC ") is carrying out the Redevelopment Plan ( "Redevelopment Plan ") for the Rosemead
Redevelopment Project ( "Project "); and
WHEREAS, under the Redevelopment Plan, the City of Rosemead ( "City ") shall aid and
cooperate with the CDC in carrying out the Project and shall take actions necessary to ensure the
fulfillment of the purposes of the Redevelopment Plan and to eliminate and prevent the
recurrence or spread of conditions causing blight within the area of the Project Areas No. 1 and 2
( "Project Areas "); and
WHEREAS, pursuant to Section 33220 of the California Community Redevelopment
Law (Health and Safety Code Section 33000, et seq.) (the "CRL "), for the purposes of aiding and
cooperating in the planning, undertaking, construction or operation of redevelopment projects
within the Project Areas, the City may, among other things, exercise the following powers: sell or
lease any of its property to the CDC; cause public improvements to be furnished in connection
with redevelopment projects; plan or replan and zone or rezone any part of a redevelopment
project; facilitate the production and rehabilitation of affordable housing and enter into
agreements with the CDC respecting actions to be taken pursuant to any such powers; and
WHEREAS, the CDC and City Council have prepared and wish to enter into an
Affordable Housing Reimbursement Agreement ( "Agreement ") to provide for City's production
and rehabilitation of affordable housing within the Project Areas and CDC's reimbursement of
City for the costs of the affordable housing projects; and
WHEREAS, a program Final Environmental Impact Reports were prepared and certified
on the Redevelopment Plan(s) ( "Final EIR(s) ") in accordance with the California Environmental
Quality Act ( "CEQA "), which included analysis of the affordable housing projects on a
programmatic level; and
WHEREAS, at this time there are no preliminary drawings, plans or other sufficient
information to enable a meaningful environmental assessment of the specific affordable housing
projects, therefore, the Agreement provides that commitment of funds to and commencement of
the specific projects set forth therein shall be subject to completion of additional environmental
review and analysis, as required by CEQA;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby approves the Affordable Housing Reimbursement
Agreement and hereby authorizes and directs the Mayor to execute the Agreement on behalf of
the City, subject to any minor, technical or clarifying changes that may be approved by the City
Attorney. The City Council hereby further authorizes and directs the City Manager to take all
actions and execute all documents as necessary to carry out the Agreement and accomplish THE
production of the affordable housing projects, and the CDC's reimbursement of City for the costs
of the affordable housing projects as provided for in the Agreement.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the Rosemead
Community Development Commission on the 8th day of February, 2011.
ATTEST:
Gloria Molleda
City Clerk
Mayor Taylor
Mayor
APPROVED AS TO FORM:
Rachel Richman
Burke, Williams & Sorensen, LLP
City Attorney