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HomeMy WebLinkAboutReso 96-060 - Amending the agreement between the COR & Shasta County Housing Development Corp Dated 09-07-93 for Cost Associated with the Development of Affordable Senior Housing , � RESOLUTION N0.����� � �, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AMENDING THE AGREEMENT BETWEEN THE CITY OF REDDING AND SHASTA HOUSING DEVELOPMENT CORPORATION DATED SEPTEMBER 7, 1993, FOR COSTS ASSOCIATED WITH THE DEVELOPMENT OF AFFORDABLE SENIOR HOUSING WHEREAS, the City Council of the City of Redding, on September 7, 1993, by Resolution No. 93-323, approved an Agreement between the City of Redding and Shasta Housing Development Corporation (SHDC) providing funds for pre-development costs related to an affordable rental housing facility for seniors within the City of Redding; and WHEREAS, on April 5, 1994, by Resolution No. 94-65, the City Council of the City of Redding approved Amendment No. 1 to said Agreement; and WHEREAS, SHDC has requested a second amendment to said Agreement to comply with funding requirements of the U. S. Department of Housing and Urban Development, Section 202 Loan Program; and WHEREAS, the City Council has concurred with this request. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Redding hereby approves Amendment #2 to the Agreement dated September 7, 1993, and authorizes the Mayor to sign said Amendment. � - I HEREBY CERTIFY that the foregoing resolution was introduced and read at a regular meeting of the Redding City Council on the 19th day of March, 1996, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBER P• Anderson, R. Anderson, McGeorge, Murray and Kehoe NOES: COUNCIL MEMBER None ABSENT: COUNCIL MEMBER None ABSTAIN: COUNCIL MEMBER I�one AVID A. OE, Mayor ATTEST: CONNIE STR HMAYER, ity Clerk FORM APPR�VED: ./, %`/�,.,-.f�� //��, i � �/r+���,/�r�'[:'eL' f'`��'�C ��� ��. '` W. LEONARD WIN A E, City Attorney � �1 ,� � . � , , ' . •, AMENDMENT N0. ��'O AGREEMENT BETWEEN CITY OF �DING AND SHASTA HOUSING DEVELOPMENT CORPORATION DATED SEPTEMBER 7, 1993 . TH/S AGREEMENT, made and entered into this 19th day of March 1996, at Redding, California, by and between the CITY OF REDDING, a municipal corporation ("CITY"), and SHASTA HOUSING DEVELOPMENT CORPORATION, a California Non-Profit Public Benefit Corporation ("SHDC"). W/TNESSETH: WHEREAS, CITY and SHDC entered into an Agreement on September 7, 1993; and WHEREAS, CITY and SHDC amended that Agreement on April 5, 1994; and WHEREAS, CITY and SHDC wish to further amend the Agreement between the parties; NOW, THEREFORE, CITY and SHDC agree to the following amendments to the Agreement to read as follows: I. AMOUNT AND USE OF FUNDS B. SHDC shall use the funds provided pursuant to this Agreement to finance predevelopment costs for the purpose of developing sixty-one (61) units of rental housing affordable to very-low income households. Said units shall be occupied in accordance with affordability restriction set forth in Section V of this Agreement. II. LOAN TERMS AND CONDITIONS � A. In consideration of CITY loan, SHDC shall execute a Residual Receipt Note. During the term of the loan, payments of principal and interest shall only be required from residual receipts generated from the operation of SHDC's affordable housing facility located at 3510 S. Market Street, Redding, California, Shasta County Assessor's Parcel No. 108- 040-12. "Residual Receipts" shall be defined as surplus cash remaining after payments on all reasonable expenses necessary to operate and maintain the facility in habitable condition, debt service, taxes, and reasonable reserves. Determination of the residual receipts generated by the facility shall be made by SHDC on or before August thirty- first of each year, subject to review and audit by CITY of all relevant project income and operating data and any other supporting documentation requested by CITY. B. SHDC has previously executed a Deed of Trust naming CITY as beneficiary. Said Deed is recorded on SHDC's property located at 4600 Alder Street, Redding, California, AP# 113-320-10. CITY and SHDC agree that said Deed will be removed from AP#1 13-320- 10 and will be subsequently recorded on the property identified in Section II-A. This transaction shall be completed through an escrow to be established with Chicago Title Insurance Company (hereinafter referred to as the "Escrow Agent") located at 1647 Court Street, Redding, California. Each of the parties shall execute and deliver to the Escrow Agent written instructions consistent with the terms of this Agreement. CITY's escrow instruction shall provide that: 1. Escrow Agent shall record the transferred Deed of Trust in the Shasta County Recorder's Office pursuant to the escrow instruction of CITY and SHDC. 2. After recordation of the transferred Deed of Trust, Escrow Agent shall issue an ALTA policy of mortgage title insurance•in the amount of the Note. Said policy shall show title to the property descnbed in Section 11-A _vested..in,.SHDC,,and: __ ...., .. . . insure CITY as beneficiary. � � ` �` � �� � •, 3. CITY loan s�l not be subordinate to any other se�ity document recorded on the property. C. SHDC shall provide CITY with a corporate resolution authorizing the execution of this Agreement. D. SHDC shall be responsible for all sums necessary to complete the development of the affordable senior rental housing complex described in Section I-B and Exhibit "A" Scope of Services. E. CITY loan will remain in effect as long as SHDC continues to operate the affordable senior rental housing complex described in Section I-B and Exhibit "A" Scope of Services", or for other housing purposes which are eligible under the CDBG Entitlement Grant regulations and acceptabfe to CITY. F. The full amount of the loan will be immediately due and payabfe if the title to either the property described in Section I-B and located at 4600 Alder Street, Redding, California or the property described in Section I-A and located at 3510 S. Market Street, Redding, California, is transferred by sale or other means. V. AFFORDABILITY RESTRICTIONS, � B. Sixty-one (61) units developed on the property described in Section I-B and located at 4600 Alder Street, Redding California shall be occupied by very-low income households. For the purposes of this Agreement very-low income is defined as fotlows: - - the household gross annual income from all sources may not exceed fifty percent (50%> of the area median income further adjusted by family size, as most recently published by the U.S. Department of Housing and Urban Development (HUD). C. SHDC agrees to maintain the rents for the sixty-one (61) units described in Section V-B at affordable levels for very-low income households, for the term of this Agreement. For the purposes of this Agreement, affordable rents shall mean an amount paid for rent, utilities, and related services by the tenant(s) not in excess of thirty percent (30%) of the adjusted gross income of the tenant(s). Such determination shall be made at the time of initial occupancy by the tenant(s). The above amendments do not change any other provision of the Agreement which is incorporated herein by reference. In WITNESS WHEREOF, CITY and SHDC have executed this Agreement the date and year above written. CITY OF REDDING DAVID A. KEHOE, Mayor ATTEST: SHASTA HOUSING DEVELOPMENT CORP. CONNIE STROHMAYER, City Clerk FORM APPROVED: MARIE RITUCCI, Executive Director ,:... ; ; .., W. LEONARD WINGATE, City Attorney .. ...� _. .... .:: .::: ... ...� . ,.:: ; .:. . ....,_,..