CDC - 2011-23 - Approving the Transfer of $105,000 From the Low and Moderate Income Housing Fund to the RHDC FundRESOLUTION NO. 2011 -23
A RESOLUTION OF THE ROSEMEAD COMMUNITY
DEVELOPMENT COMMISSION APPROVING THE
TRANSFER OF $105,000 FROM THE LOW AND
MODERATE INCOME HOUSING FUND TO THE
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
(RHDC) FUND AND ENTERING INTO AN AGREEMENT
MEMORIALIZING SUCH TRANSFER WITH THE RHDC
WHEREAS, The City Council of the City ( "City Council ") has adopted Redevelopment
Plans (each individually, a "Redevelopment Plan'; and collectively, the "Redevelopment Plans ")
for the for the No. 1 and No. 2 Project Areas (each individually, a "Project Area "; and
collectively, the "Project Areas ");and
WHEREAS, pursuant to the California Community Redevelopment Law (California
Health and Safety Code Section 33000, et sM.) ( "Redevelopment Law "), the Rosemead
Community Development Commission ( "C OC "' is undertaking a program to redevelop the
Project Areas; and
WHEREAS, the CDC created the Rosemead Housing Development Corporation
( "RHDC ") as a separate legal corporation to assist in the development of affordable housing
within the community; and
WHEREAS, the RHDC constructed 2 apartment complexes that have had recorded
against them covenants that restrict residency in the complexes to senior citizens who qualify as
low- income residents or low- income households; and
WHEREAS, both apartment complexes required substantial repairs during the 2010/2011
fiscal year and the costs of repairs, combined with the low rental rates (which rates have not been
raised at any time since completion of construction on each complex) have left RHDC unable to
meet its financial obligations; and
WHEREAS, the CDC has annually subsidized the activities of the RHDC and this
transfer of funds will merely offset the extri repair costs incurred by the RHDC in fiscal year
2010/2011 to keep the RHDC at the same operating level that it would be had the repairs not
been required in this fiscal year; and
NOW, THEREFORE, THE ROSEMEAD COMMUNITY DEVELOPMENT
COMMISSION DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The CDC hereby finds that the transfer of funds from the CDC's Low and
Moderate Income Housing Fund to the RHDC will further the purposes of redevelopment within
the community by allowing the RHDC to preserve the two apartment complexes as affordable
units in the community within the meaning of California Health and Safety Code Section
33334.2.
Section 2. The CDC hereby approves the transfer of $105,000 to the RHDC and
authorizes the Chair of the CDC to execute an agreement on behalf of the CDC with the RHDC
for the proper use of the funds and direct the Executive Director or his designee do any and all
things and to execute and deliver, and if appropriate, record, any and all documents which they
may deem necessary or advisable in order to effectuate the purposes of this Resolution, and any
such actions previously taken by such officers are hereby ratified and confirmed.
APPROVED AND ADOPTED this 28th day of June, 2011, by the following vote:
- -
S,feven Ly, Chair
ATTEST:
'
Gloria � Molleda
, Secretary
APPROVED AS TO FORM:
Rac el H. Richman, CDC General Counsel
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD )
I, Gloria Molleda, Commission Secretary of the City of Rosemead, do hereby certify that the
foregoing Resolution No. 2011 -23 being:
A RESOLUTION OF THE ROSEMEAD COMMUNITY DEVELOPMENT COMMISSION
APPROVING THE TRANSFER OF $105, 000 FROM THE LOW AND MODERATE INCOME
HOUSING FUND TO THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION (RHDC)
FUND AND ENTERING INTO AN AGREEMENT MEMORIALIZING SUCH TRANSFER WITH
THE RHDC
was duly and regularly approved and adopted by the Rosemead Community Development
Commission on the 28th of June, 2011, by the following vote to wit:
Yes: Alarcon, Armenta, Clark, Ly
No: None
Abstain: None
Absent: Low
N h@A -ox W n 904
Gloria Molleda
Commission Secretary