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HomeMy WebLinkAbout1990-06 CRA . - . . . REL:mb(7) 1/22/90 Rev. 4/20/90 RESOLUTION NO. 90- 6 A RESOLUTION OF THE COMMUNITY REDE- VELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE EXECUTIVE DIRECTOR OF THE AGENCY TO SUBORDINATE AFFORDABLE HOUSING COVENANTS AND RESTRICTIONS PUR- SUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 33334.14. WHEREAS, section 33334.3 of the Health and Safety Code of the State of California, requires that housing units which have been constructed or substantially rehabilitated with moneys from the Agency's Low and Moderate Income Housing Fund remain available at affordable housing costs to persons of low or moderate or very low income through covenants or restrictions; and WHEREAS, in 1989 the State of California enacted Senate Bill No. 1354, adding section 33334.14 to the Health and Safety Code, which allows a redevelopment agency to subordinate such covenants or restrictions to the lien, encumbrance, or regulatory agreement of a lender providing financing, refinancing, or other assistance to the housing units in certain circumstances; NOW, THEREFORE BE IT RESOLVED by the Community Redevelop- ment Agency of the City of Santa Ana as follows: 1. The Executive Director is authorized to subordinate covenants or restrictions imposed by the Agency pursuant to Health and Safety Code section 33334.3 to the lien, encumbrance, or regulatory agreement of a lender, and to execute all documents pertaining thereto, on behalf of the Agency, in any case where the Executive Director determines such subordination is consistent with the provisions of Health and Safety Code section 33334.14. 2. The Executive Director is further authorized to make findings on behalf of the Agency in conjunction with any sub- ordination of covenants or restrictions pursuant to Health and Safety Code section 33334.14, provided such findings are first approved as to form by Agency Legal Counsel. . . . RESOLUTION NO. 90- 6 PAGE TWO 3. The Executive Director is further authorized to enter into agreements with lenders on behalf of the Agency in order to protect the Agency's investment in the event of default in connection with the subordination of covenants or restrictions pursuant to Health and Safety Code section 33334.14. ADOPTED this by the following vote: 19th day of JUNE , 1990, AYES: MEMBE RS: ACOSTA, GRISET, MAY, NORTON. MCGUIGAN. PULIDO, & YOUNG NOES: MEMBERS: ABSENT: MEMBERS: <Q:(~ Chairman ATTEST: ~ Executive Director APPROVED AS TO FORM: ~ Agency Legal Counsel