RESOLUTION NO Adopted by the Housing Authority of the City of Sacramento. December 3, 2013
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1 RESOLUTION NO Adopted by the Housing Authority of the City of Sacramento December 3, 2013 WASHINGTON PLAZA APARTMENTS REHABILITATION ( PROJECT ): APPROVAL OF TERMINATION OF GROUND LEASE WITH SACRAMENTO HOUSING AUTHORITY REPOSITIONG PROGRAM, INC. ( SHARP ); APPROVAL OF DISPOSITION AND DEVELOPMENT AGREEMENT; APPROVAL OF $390,000 GROUND LEASE; APPROVAL OF $5,458,000 SELLER CARRYBACK LOAN AGREEMENT FOR IMPROVEMENTS; APPROVAL OF USE AGREEMENT AND RELATED DOCUMENTS WITH WASHINGTON PLAZA HOUSING ASSOCIATES, LP; RELATED BUDGET AMENDMENTS AND ENVIRONMENTAL FINDINGS BACKGROUND A. The Housing Authority of the City of Sacramento ( Housing Authority ) adopted Resolution No on March 10, 2009 to authorize application to the United States Department of Housing and Urban Development ( HUD ) for disposition of Washington Plaza Apartments ( Washington Plaza or Project ) at 1318 E Street, Sacramento; B. Said resolution also authorized the transfer of ownership of Washington Plaza to an instrumentality of the Housing Authority for ultimate further transfer to an entity that can benefit from the use of low-income housing tax credits to accomplish necessary renovations to Washington Plaza; C. HUD approved the disposition of Washington Plaza on October 8, 2009 and the instrumentality, the Sacramento Housing Authority Repositioning Program, Inc., ( SHARP ) was established; D. SHARP and BRIDGE Housing Corporation ( BRIDGE ) created Washington Plaza Housing Associates, LP, ("Developer") to seek California Tax Allocation Committee tax credits to accomplish rehabilitation of Washington Plaza; Resolution December 3, 2013 Page 1 of 174
2 E. On September 10, 2013, Housing Authority Resolution authorized: i) 5,458,000 fair market value seller financing of the Washington Plaza improvements ( Carryback Loan Commitment ), ii) a ground lease to the Developer, and iii) other related documents and actions by the Executive Director required to accomplish the Project. F. On October 24, 2013 HUD approved the sale of Washington Plaza improvements to the Developer at fair market value, and a long term year ground lease for the underlying land with Developer at fair market value. G. Project implementation requires termination of the existing ground lease between the Housing Authority/SHARP and approval of i) a disposition and development agreement, ii)a fair market value ground lease and iii) a use agreement with Developer. H. On September 10, 2013 environmental impacts of the Project were considered in accordance with California Environmental Quality Act (CEQA) and determined that the Project is exempt due to CEQA 15301, where rehabilitation to the existing facility involves no expansion or change to the existing use, Resolution I. The Project was also reviewed under the National Environmental Policy Act (NEPA) and made a Finding of No Significant Impact Resolution J. Further environmental review is not required under CEQA or NEPA because there is neither any new information of substantial importance nor any substantial changes to the circumstances under which the project will be undertaken that would require the preparation of supplemental environmental documentation the actions herein fall within the scope of the project that was previously analyzed. BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE HOUSING AUTHORITY OF THE CITY OF SACRAMENTO RESOLVES AS FOLLOWS: Section 1. All of the evidence having been duly considered, the findings, including the environmental findings, as stated above, are found to be true and correct. Section 2. The Executive Director or her designee is authorized to terminate the existing ground by and between the Housing Authority and SHARP. Resolution December 3, 2013 Page 2 of 174
3 Section 3. The Executive Director or her designee, is authorized to execute Disposition and Development Agreement, attached as Exhibit A, between the Developer and, jointly, the Housing Authority and Agency. Section 4. The Executive Director or her designee is authorized to enter into a Ground Lease between the Housing Authority and the Developer, not to exceed 99 years with rent capitalized at its fair market value of $390,000 and to be repaid on a residual receipts basis. The form of the Ground Lease is attached as Exhibit B. Section 5. The Executive Director or her designee is authorized to enter the Acquisition Loan Agreement ( Seller Carryback Loan ), the form of which is attached as Exhibit C, for financing the $5,458,000 fair market value acquisition of Washington Plaza improvements by Developer. Section 6. The Standard Housing and Urban Development Use Agreement attached to the Disposition and Development Agreement that requires rehabilitation of Washington Plaza and reserves the property for project-based vouchers and occupancy solely by eligible residents under the Section 8 Program, is approved. Section 6. The Executive Director is authorized to execute and transmit the documents as approved, and related documents, to the Developer, and the Executive Director is authorized to enter into other documents, as approved to form by Housing Authority Counsel, and perform other actions necessary to fulfill the intent of each approved documents that accompanies this resolution, in compliance with the terms of each, and to ensure proper repayment of the Housing Authority funds including without limitation, subordination, extensions, and restructuring of such a loan consistent with Agency adopted policy and with this resolution. Section 7. The Executive Director is authorized to amend the Housing Authority budget to receive and allocate payments for use in a manner consistent with the United States Department of Housing and Urban Development Disposition Approval for 1318 E Street, Sacramento, CA, dated October 24, Resolution December 3, 2013 Page 3 of 174
4 Table of Contents: Exhibit A - Disposition and Development Agreement Exhibit B - Ground Lease Exhibit C - Acquisition Loan Agreement ( Seller Carryback Loan ) Adopted by the Housing Authority of the City of Sacramento on December 3, 2013, by the following vote: Ayes: Noes: Abstain: Absent: Members Ashby, Cohn, Fong, McCarty, Pannell, Schenirer, and Warren None None Member Hansen and Mayor Johnson Attest: Digitally signed by Shirley A. Concolino DN: cn=shirley A. Concolino, o=city of Sacramento, ou=city Clerk, =sconcolino@cityofsacramento.org, c=us Date: :20:14-08'00' Shirley Concolino, Secretary Resolution December 3, 2013 Page 4 of 174
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