Form Rev 9/30/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A LOAN TO WAKELAND
HOUSING AND DEVELOPMENT CORPORATION, OR AN
AFFILIATED ENTITY, TO ASSIST IN THE CONSTRUCTION
OF A 68-UNIT AFFORDABLE HOUSING DEVELOPMENT TO
BE LOCATED AT 545 EAST NAPLES STREET,
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND
EXECUTE ALL DOCUMENTS RELATED TO THE LOAN IN A
FORM APPROVED BY CITY ATTORNEY , AND
APPROPRIATING FUNDS THEREFORE
WHEREAS, in 2024, the City of Chula Vista (“City”) established a Local Housing Trust Fund (LHTF) to assist with the construction, rehabilitation, and preservation of affordable housing, and deposited $500,000 into the LHTF pursuant to Resolution No. 2024-102; and
WHEREAS, the City applied for a LHTF matching grant from the California Department of Housing and Community Development (HCD) pursuant to Resolution No. 2024 -163, adopted on August 6, 2024, and was subsequently awarded a matching grant of $500,000 from HCD; and
WHEREAS, the combined LHTF local contribution and state match must be spent on the production of affordable housing, less $25,000 for administrative costs; and
WHEREAS, the Chula Vista Housing Authority ( “Housing Authority ”) also had $3,000,000 available for the production of affordable housing; and
WHEREAS, the City and the Housing Authority issued a combined Notice of Funding Availability (NOFA) for the new construction of affordable housing; and
WHEREAS, the NOFA was issued on November 7, 2025, with a deadline of January 15, 2026, and two (2) proposals were submitted for consideration; and
WHEREAS, a selection committee of City staff determined that a submittal by Wakeland Housing and Development Corporation (“Wakeland”) for a 68-unit affordable project to be located at 545 East Naples Street ( “Project”) scored highest on a range of factors including project readiness, developer experience, and overall quality; and
WHEREAS, the Housing and Homeless Advisory Commission provided an advisory recommendation that the Housing Authority approve the loan by a vote of 3-0 at its special meeting on March 25, 2026.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby authorize a loan from its Housing Fund to Wakeland, or an affiliated entity, in an amount not to exceed one million dollars ($1,000,000), less $25,000 for administrative costs, Resolution No.
for the construction of the Project, to be secured against the property and repaid from cash surplus in annual installments.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it amends the fiscal year 2025-26 budget by appropriating $475,000 to the other expenses category and $25,000 to the supplies and services category of the Local Housing Trust Fund, Fund 313.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista , that it authorizes the City Manager to negotiate and execute a loan agreement, regulatory agreement, and all associated loan documents, and to carry out all other actions necessary for the development of the Project, consistent with the City’s standard documents , in a form approved by the City Attorney, and at minimum, subject to the following terms and conditions:
1. The City shall not disburse loan funds until Wakeland has secured all necessary financing for the construction of the Project, secured all land use approvals, and taken all other steps necessary to carry out the close of financing.
2. The funding commitment shall be valid for a period of two (2) years from the date of this resolution, with one optional extension of one year at the sole discretion of the City Manager (the Commitment Term). The commitment shall expire if the Project has not secured all other necessary financing and taken all other steps necessary to commence construction by the end of the Commitment Term, unless further extended with the approval of Council.
3. The loan shall be evidenced by a promissory note in favor of the City, secured by a deed of trust recorded against the property.
4. The term of the loan and regulatory agreement shall be fifty-five (55) years.
5. Wakeland, or its affiliate or approved successors in interest, s hall operate the Project consistent with a regulatory agreement to be recorded against the Project and running with the land, along with any other covenants imposed by other Project lenders.
Presented by Approved as to form by
Stacey Kurz Marco A. Verdugo
Director of Housing and Homeless Services City Attorney