Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VIST A AUTHORIZING THE CITY MANAGER TO
EXECUTE A LETTER SUPPORTING THE CONVERSION OF
THE HOUSING AUTHORITY OF THE COUNTY OF SAN
DIEGO’S CHULA VISTA PUBLIC HOUSING PORTFOLIO
THROUGH THE RENTAL ASSISTANCE DEMONSTRATION
PROGRAM AND AUTHORIZING THE CITY MANAGER TO
AMEND OR TERMINATE RELATED AGREEMENTS AND
INSTRUMENTS
WHEREAS, the Housing Authority of the County of San Diego (HACSD) owns four properties within Chula Vista, located at 772-792 Dorothy Street (Dorothy Street Manor), 584-588 L Street (L Street Manor), 1670-1682 Melrose Avenue (Melrose Manor), and 434 F Street (Town Center Manor), collectively the “Chula Vista public housing properties”, that it operates as public housing pursuant to Section 9 of the U.S. Housing Act of 1937, as amended; and
WHEREAS, the current public housing funding model does not generate sufficient revenue to address capital improvement needs; and
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) administers the Rental Assistance Demonstration (RAD) program to convert public housing properties to properties subsidized by Section 8 Project-Based Vouchers; and
WHEREAS, HACSD now desires to carry out a RAD conversion of its Chula Vista public housing properties in order to reposition them for long-term fiscal and operational stability; and
WHEREAS, HACSD has requested a letter of support from the City of Chula Vista (City) in carrying out this RAD conversion; and
WHEREAS, the Grant Deed for the property located at 434 F Street property contains a clause that would cause ownership of the property to revert to the City in the event that the property is no longer used for low and moderate income housing; and
WHEREAS, this Grant Deed reverter clause does not add meaningful protection to the affordability covenants, but will materially increase the difficulty of financing a substantial rehabilitation of the property; and
WHEREAS, HACSD has therefore requested that the 434 F Street grant deed be amended to remove the reverter clause; and
WHEREAS, the Abstract of Development Agreement for the property located at 58 4-588 L Street contains a clause granting the City the first right of refusal to acquire the property if Resolution No.
HACSD chooses to sell or otherwise transfer title to the property, and to sell the property at fair market value if the City declines to exercise its right to acquire the property; and
WHEREAS, as part of the RAD conversion, HACSD desires to transfer ownership of the improvements at 58 4-588 L Street to an affordable developer in order to carry out a substantial rehabilitation; and
WHEREAS, the provisions for sale or transfer of the 58 4-588 L Street property wo uld prevent HACSD from carrying out a successful RAD conversion or substantial rehabilitation; and
WHEREAS, HACSD therefore requests that the Abstract of Development Agreement, and associated Development Agreement, be terminated.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby support the conversion of the Chula Vista public housing properties owned by the Housing Authority of the County of San Diego under the HUD Rental Assistance Demonstration program and authorizes the City Manager to execute a letter of support to this effect.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it authorizes the City Manager to negotiate and execute an amendment to the Grant Deed for the property located at 434 F Street to remove the reverter clause 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 V ista, that it authorizes the City Manager to negotiate and execute a termination of the Developer Agreement and Abstract of Developer Agreement for the property located at 58 4-588 L Street 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, that it authorizes the City Manager to negotiate and execute any necessary additional documents or take any other action consistent with this resolution and its basic purpose in the form as may be required or approved by the City Attorney.
Presented by Approved as to Form by
Stacey Kurz Marco A. Verdugo
Director of Housing and Homeless Services City Attorney