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Home My WebLink AboutRES HA-109RESOLUTION NO. HA-109 A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY APPROVING A CONDITIONAL AGREEMENT REGARDING CROSSINGS AT PALM DESERT BETWEEN THE AUTHORITY AND URBAN HOUSING COMMUNITIES, INC., APPROPRIATING FUNDS IN CONNECTION THEREWITH, AND TAKING RELATED ACTIONS RECITALS: A. Pursuant to AB X1 26 (enacted in June 2011) and the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), the former Palm Desert Redevelopment Agency (the "Former Agency") was dissolved as of February 1, 2012, the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency"), as the successor entity to the Former Agency, was constituted, and a board of the Successor Agency (the "Board") was established. B. AB X1 26 added Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section 34170) to Division 24 of the California Health and Safety Code ("HSC") (such Parts 1.8 and 1.85, including amendments and supplements enacted after AB X1 26, being referred to herein as the "Dissolution Act"). C. Pursuant to HSC Section 34176(b), the City Council of the City of Palm Desert (the "City") adopted Resolution No. 2012-07, electing for the City to not retain the responsibility for performing housing functions previously performed by the Former Agency, and determining that all of the assets, as allowed by law, and all rights, powers, liabilities, duties, and obligations associated with the housing activities of the Former Agency be transferred to the Palm Desert Housing Authority (the "Authority"). D. The Urban Housing Communities, Inc. (the "Developer") owns approximately +1- 11.8-acre portion of real property located in the City on Dick Kelly Drive and identified as APN 694-130-017, 694-130-018, 694-130-019, 694-130-020 (the "Property") and proposes to construct thereon a 176-unit multi -family residential apartment community for households with incomes up to 80% of the area median income (the "Project"). The Property is described in Exhibit "A", attached hereto and incorporated herein. E. The Developer has submitted a funding request to the Authority to make a loan to the Developer in the amount of $7,235,000.00 (the "Loan") to assist the Developer in the development of the Project. The Project is intended to be funded by leveraging multiple funding sources including four percent (4%) tax exempt bond proceeds, Federal tax credits, State tax credits, and County of Riverside housing vouchers, deferred developer fees and the Loan. G. The Authority, as the housing successor to the Former Agency, wishes to approve the Conditional Agreement Regarding Crossings at Palm Desert between the Authority and the Developer attached hereto as Exhibit "B" and incorporated herein by P6401-000112546752v6.d0c RESOLUTION NO. HA-109 PASSED, APPROVED and ADOPTED ON THIS 14th day of July 2022, by the following vote, to wit: AYES: JONATHAN, KELLY, QUINTANILLA, and HARNIK NOES: NONE ABSENT: NESTANDE ABSTAIN: NONE "-A A�'� JAN C. HARN I K, C AIRMAN ATTEST: AtfrHONY J. , SE RET R PALM DESE T HOUSING AUTHORITY P6401-000112546752v6.doc RESOLUTION NO. HA-109 THENCE N00''01'26"W, A DISTANCE OF 100.00 FEET TO THE POINT OF BEGINNING. EXCEPT PARCEL NO. 2004-02.12 ("C" STREET), PARCEL NO. 2004-02.11 (AVENUE 35) AND A PORTION OF PARCEL NO. 2004-02.10 (GATEWAY DRIVE), ALL CONVEYED TO THE CITY OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE WEST ONE QUARTER (W114) CORNER OF SECTION 29, TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ON THE CENTERLINES OF MONTEREY AVENUE AND AVENUE 35; THENCE N89°58'35"E ALONG THE EAST -WEST ONE QUARTER (E-W 114) SECTION LINE OF SAID SECTION 29 AND THE CENTERLINE OF SAID AVENUE 35, A DISTANCE OF 1314.94 FEET TO THE CENTERLINE INTERSECTION OF SAID AVENUE 35 AND GATEWAY DRIVE; THENCE CONTINUING 1\189-58'35"E ALONG THE EAST -WEST ONE QUARTER (E-W 114) SECTION LINE OF SAID SECTION 29 AND THE CENTERLINE OF SAID AVENUE 35, A DISTANCE OF 71.07 FEET; THENCE S00001'25"E, A DISTANCE OF 54.00 FEET TO THE SOUTHERLY LINE OF PARCEL NO. 2004-02.11(AVENUE 35) CONVEYED TO THE CITY OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO. 2007- 0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING 54.00 FEET SOUTHERLY OF THE CENTERLINE OF SAID AVENUE 35, AS MEASURED AT RIGHT ANGLES THERETO, SAID POINT BEING ALSO THE TRUE POINT OF BEGINNING; THENCE N89°58'35"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO.2004- 02.11 (AVENUE 35), A DISTANCE OF 782.06 FEET TO THE POINT OF CURVATURE OF A CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 946.00 FEET; THENCE EASTERLY AND SOUTHEASTERLY ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004- 02.11 (AVENUE 35) AND THE ARC OF SAID CURVE, A DISTANCE OF 220.33 FEET THROUGH A CENTRAL ANGLE OF 13°20'40" TO A POINT OF REVERSE CURVATURE OF A CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 1054.00 FEET AND TO WHICH POINT A RADIAL LINE BEARS S13"19'14"W; THENCE SOUTHEASTERLY ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004- 02.11(AVENUE 35) AND THE ARC OF SAID CURVE, A DISTANCE OF 185.57 FEET THROUGH A CENTRAL ANGLE OF 10005'15"; THENCE S52030'03"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO.2004- 02.11 (AVENUE 35), A DISTANCE OF 27.78 FEET TO THE WESTERLY LINE OF PARCEL NO. 2004-02.12 ("C" STREET) CONVEYED TO THE CITY OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO.2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA; THENCE S00009'04"E ALONG THE WESTERLY LINE OF SAID PARCEL NO. 2004-02.12 ("C" STREET), A DISTANCE OF 365.78 FEET TO THE NORTHERLY LINE OF THAT PARCEL OF LAND CONVEYED TO THE PALM SPRINGS UNIFIED SCHOOL DISTRICT (P.S.U.S.D.) BY 5 P6401-0001125467524-doc RESOLUTION NO. HA-109 EXHIBIT "B" CONDITIONAL AGREEMENT Mark Bigley Urban Crossings Communities, Inc. 2000 E Fourth Street Santa Ana, CA 92705 Re: Conditional Aareement Reaardina Crossinas at Palm Desert ("Conditional Aareement") Dear Mr. Bigley: The Palm Desert Housing Authority (the "Housing Authority"), has approved a request from your firm, Urban Housing Communities, Inc. ("UHC"), to finance a loan for the construction on a +1-11.8-acre parcel comprised of APNs 694-130-017, 694-130-018, 694-130-019, 694- 130-020 (the "Property"), located on Dick Kelly Drive, in the total amount of Seven Million Two Hundred Thirty -Five Thousand Dollars ($7,235,000.00) (the "Housing Authority Loan") for the development of a 176-unit multi -family apartment community located on the Property and known as the Crossings at Palm Desert Apartments (the "Project"). As of July 14, 2022 the Authority has conditionally approved the Housing Authority Loan to UHC, subject to the following: 1. Proiect. The Project will be operated for a period of fifty-seven (57) years following the date of completion of the Project and issuance of a certificate of occupancy to provide affordable rental housing to extremely -low, very -low and low income households in accordance with the affordability restrictions contained in the Loan Documents (as defined below) and in accordance with the four percent (4%) tax-exempt bonds, Federal tax credits, State tax credits and project based vouchers to be used the Project. To the extent necessary, the Housing Authority shall subordinate the deed of trust securing the Housing Authority Loan to the liens and encumbrances of the Project's construction and permanent lenders. The Housing Authority will not subordinate its interests in the regulatory agreement referenced in Section 3 below to the liens or encumbrances of the Project's construction and permanent lenders. 2. Proiect Owner. The Project owner shall be a California limited partnership whose administrative general partner is controlled by UHC or its affiliates. 3. Housinq Authority Loan Documents. The proposed structuring of the Housing Authority Loan will be evidenced by, among other things, a loan and development agreement (the "Loan Agreement"), promissory note, deed of trust and regulatory agreement, (collectively, the "Loan Documents"), each in form and substance acceptable to the Housing Authority and its counsel, and executed by the Project owner and the Housing Authority as applicable. P6401-000112546752v6.doc RESOLUTION NO. HA-109 not have closed and been funded as provided herein. Notwithstanding the foregoing, the Executive Director may, in his or her sole discretion, extend the termination date for period of twelve (12) months. 10. Confirmation of Pro -Forma. Prior to closing of the Housing Authority Loan, the Housing Authority shall have received such materials, appraisals and market studies as it shall require to confirm (i) the contents of the pro -forma submitted by UHC to the Housing Authority and dated June 28, 2022 (including, without limitation, that the fair market value of the Property is at least Five Million Four Hundred Forty -Seven Thousand Dollars ($5,447,000.00), and that prior to closing UHC will make a payment of not less than Two Million Six Hundred Twenty -Eight Thousand Dollars ($2,628,000.00) to retire the City's University Park Section 29 Assessment District Limited Obligation Improvement Bonds (the "CFD Bonds"), and (ii) that there have been no other material changes to the pro -forma that would affect the security for or the size of the Housing Authority Loan. 11. Countemarts. This letter may be executed in counterparts, with the same effect as if each counterpart were an original document. Very truly yours, Palm Desert Housing Authority By: Name: L. Todd Hileman Its: Executive Director AGREED TO BY URBAN HOUSING COMMUNITIES, INC.: By: Mark Bigley, Vice President Date: .2022 9 P6401-000112546752v6.doc