Form Rev 3/6/2023
RESOLUTION NO. 2025-____
(Successor Agency to the Redevelopment Agency 2025-____ / Housing Authority 2025-____)
JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA , THE CHULA VISTA HOUSING
AUTHORITY, AND THE CHULA VISTA HOUSING
AUTHORITY ACTING IN ITS CAPACITY AS THE
SUCCESSOR HOUSING AGENCY TO THE CHULA VISTA
REDEVELOPMENT AGENCY: (1) AUTHORIZING THE CITY
MANAGER TO NEGOTIATE AND ENTER INTO A
LEASEHOLD DISPOSITION AND DEVELOPMENT
AGREEMENT AND GROUND LEASE, AND TO CONVEY THE
PALOMAR MOTEL IMPROVEMENTS TO WAKELAND
HOUSING AND DEVELOPMENT CORPORATION, OR AN
AFFILIATE; (2) AUTHORIZING A LOAN FROM THE CHULA
VISTA HOUSING AUTHORITY IN AN AMOUNT NOT TO
EXCEED $3,000,000 OF SUCCESSOR HOUSING AGENCY TO
THE CHULA VISTA REDEVELOPMENT AGENCY FUNDS TO
WAKELAND HOUSING AND DEVELOPMENT
CORPORATION, OR AN AFFILIATE , FOR THE
REHABILITATION AND CONVERSION OF THE PALOMAR
MOTEL TO PERMANENT SUPPORTIVE HOUSING; (3)
AMENDING THE FISCAL YEAR 2024 -25 BUDGET; AND (4)
AMENDING THE 2024 -25 CAPITAL IMPROVEMENT
PROGRAM BUDGET THEREFOR
WHEREAS, the California Health and Safety Code (“HSC”) Sections 33334.2, 33334.6, and 34176.1 authorize and direct the Chula Vista Housing Authority (“Housing Authority”), in its capacity as the Successor Housing Entity as defined in California Health and Safety Code Section 34176, to expend Low and Moderate Income Housing Asset Funds for the purposes of increasing, improving, and preserving the community’s supply of low and moderate income housing available at an affordable rent to persons and families of low or moderate income; and
WHEREAS, pursuant to HCD Section 34176(d) the Housing Authority has established a Low and Moderate Income Housing Asset Fund (the “Housing Fund”); and
WHEREAS, pursuant to HSC Section 34176.1, Hou sing Successor Entities may not accumulate an “excess surplus,” or a high unencumbered Housing Fund balance as determined by a threshold formula, and the Housing Fund has accumulated an excess surplus of approximately $7,000,000 that must be encumbered by June 30, 2025; and
WHEREAS, the City of Chula Vista (“City”) acquired that certain real property located at 1160 Walnut Avenue (the “Property”), containing a 28 -unit motel known as the Palomar Motel (the “Project”), with the intent to rehabilitate it and convert it to Permanent Supportive Housing, combining affordable housing assistance with voluntary support services such as substance abuse treatment and mental health care to address the needs of chronically homeless people; and
Resolution No.
WHEREAS, the City carri ed out a competitive selection process consisting of a Request for Qualifications (“RFQ”) and Request for Proposals (“RFP”) to select a developer to carry out the substantial rehabilitation of the Project and oversee its long -term operation, and selected Wakeland Housing and Development Corporation , or an affiliate thereof (“Wakeland”), as the developer via Resolution No. 2024-031; and
WHEREAS, the Housing Authority wishes to partially fulfill the encumbrance requirements of the Housing Fund and assist with the substantial rehabilitation of the Project by making a loan to Wakeland in an amount not to exceed $3,000,000; and
WHEREAS, a balance of $5,284,245 from the Capital Improvement Program (“CIP”) fund was previously appropriated for the Project via Resolution Nos. 2024-133, adopted on June 25, 2024, and 2024-0263, adopted on November 12, 2024; and
WHEREAS, the City Charter states that at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by a motion adopted by the affirmative votes of at least four members; and
WHEREAS, the City and Housing Authority, acting in its capacity as the Successor Housing Entity, now desire to amend the Fiscal Year 2024 -25 Successor Agency Budget by appropriating $3,000,000 in Low-Mod funds for the Project; and
WHEREAS, the City and Housing Authority also desire to amend the Fiscal Year 2025 Infrastructure, Facilities, and Equipment Expenditures Plan to reallocate CIP funds previously appropriated for the Project to other purposes; and
WHEREAS, in order to further facilitate the substantial rehabilitation and long -term operation of the property, the City desires to negotiate and enter into various agreements with Wakeland, including a Leasehold Disposition and Development Agreement (“LDDA”), a long - term ground lease agreement for the Property, and a conveyance of the Project to Wakeland;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it authorizes and directs the City Manager or designee to negotiate and enter into a Leasehold Disposition and Development Agreement (“LDDA”) between the City of Chul a Vista and Wakeland, a long-term ground lease agreement for the Property between the City of Chula Vista and Wakeland with an annual rent of $1, and a conveyance of the Project to Wakeland for the sum of $1, along with a regulatory agreement and all other necessary documents, in the form as may be required or approved by the City Attorney.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista and the Chula Vista Housing Authority, that it appropriates $3,000,000 from the available fund balance of the Successor Agency to the Redevelopment Agency Fund increasing CIP GGV0270.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista , the Chula Vista Housing Authority , and the Chula Vista Housing Authority acting in its capacity as the Successory Housing Entity to the Chula Vista Redevelopment Agency, that they each authorize Resolution No.
and direct the Executive Director to make a loan from the Chula Vista Housing Authority to Wakeland in an amount not to exceed $3,000,000 for the substantial rehabilitation of the Project.
BE IT FURTHER RESOLVED, by the City Council of the City of Chula Vista and the Chula Vista Housing Authority , that they hereby amend the Fiscal Year 2024 -25 budge t and approves the following appropriations and transfers:
Fund Supplies and
Services
Transfers Out Capital
Projects
(GGV0270)
Total
Expenditures
Estimated
Revenue
Net
Impact
Housing Authority
Fund
$5,000,000 $5,000,000 ($5,000,000) $ -
Capital Improvement
Fund
$5,000,000 ($5,000,000) $ - $ -
Presented by Approved as to form by
Stacey Kurz Marco A. Verdugo
Director of Housing and Homeless Services City Attorney