HomeMy WebLinkAbout2001-048 - Courtyard Improvement Loans to New Property LiensRESOLUTION NO. 2001-048
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA APPROVING MODIFICATIONS TO THE
CORNERSTONE VILLAGE OWNER PARTICIPATION
AGREEMENT AND CORNERSTONE VILLAGE LOAN
PROGRAMS TO ALLOW RESIDUAL RECEIPT LOANS AND
TO SUBORDINATE THE FACADE AND COURTYARD
IMPROVEMENT LOANS TO NEW PRIORITY LIENS
CGN: 7/6/01
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA
DOES AS FOLLOWS:
Section 1. The City Council of the City of Santa Ana does hereby find,
determine and declare as follows:
Approximately 48 multi-family housing complexes located along Minnie
Street between McFadden Avenue and Grant Street in the City of Santa
Ana, commonly known as the Minnie Street Neighborhood, (the
"Neighborhood") contain approximately 527 dwelling units, and is home to
approximately 4,000 Iow and moderate income persons; and,
The City, in partnership with the Community Redevelopment Agency of
the City of Santa Ana (the "Agency"), the residents and most of the
property owners in the Neighborhood (the "Owners") had determined that
the Neighborhood is in significant need of rehabilitation of both the private
and public infrastructure so as to preserve this important stock of Iow
income housing for the community; and,
On March 6, 2000, the City and Agency approved the form of the
Cornerstone Village Owner Participation Agreements and the Cornerstone
Village Loan Programs, which provided three loan programs to Owners
with zero percent interest or forgivable loan terms.
A number of the buildings in the Neighborhood are proposed to be acquired
by new buyers who are applying for an allocation of federal Iow-income
housing tax credits from the State of California Tax Credit Allocation
Committee ("TCAC"), which gives a competitive advantage to applicants
who make nominal loan payments over applicants with zero percent interest
or forgivable loan terms.
Section 2. The City Council hereby approves amending the form of the
Cornerstone Village Owner Participation Agreement to allow the City and Agency to
offer alternative loan terms for the Facade and Courtyard Improvement Program
Resolution No. 2001-048
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consisting of:
· a three percent (3%) interest rate;
· principal and interest payments amortized over 30 years; and
· repayment of principal and accrued interest conditioned
sufficient cash flow based on net operating income.
on
Section 3. The City Council hereby approves amending the form of the
Comerstone Village Owner Participation Agreements to allow the City and Agency to
subordinate the Facade and Courtyard Improvement Program loan to loans to finance or
refinance the purchase of the property.
Section 4. The City Council hereby authorizes the City Attorney to prepare and
the Mayor to execute amendments to the Cornerstone Village Owner Participation
Agreements consistent with terms of Sections 2 and 3 of this resolution.
Section 5. The City Council hereby approves modifying the Cornerstone Village
Loan Programs to allow the City and Agency to offer alternative loan terms for the Stair
and Balcony Loan Program and the General Property Improvement Loan Program
consisting of:
· a three percent (3%) interest rate;
· principal and interest payments amortized over 30 years; and
· repayment of principal and accrued interest conditioned
sufficient cash flow based on net operating income.
on
ADOPTED this 16~ day of July ,2001.
Patricia A. McGuigan ~ ~
Mayor Pro Tem
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
~'~ristoph~r G. Norman
Assistant City Attorney
Resolution No. 2001-048
Page 2 of 3
AYES:
NOES:
ABSTAIN:
NOT PRESENT:
Councilmembers: Alvarez, Bist, Christy, Franklin, McGui~lan, Solorio
Councilmembers: None
Councilmembers: None
Councilmembers: Pulido
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the
attached Resolution No. 2001-048 to be the original resolution adopted by the City
Council of the City of Santa Ana on July 16, 2001.
Clerk of the Council
City of Santa Ana
Resolution No. 2001-048
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