Agenda Item No: 1.e
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: September 17, 2024
Submitted by: Jeannette Ortega
From: Administrative Services
Subject:
Consideration of a Resolution Adopting Development Agreement and Affordable Housing Covenants No. DA -2024-01 with Homeless Intervention Services of Orange County for Permanent Local Housing Allocation Funding in the Amount of $39,500 for the Detached Accessory Dwelling Unit located at 913 N. Bradford Avenue (APN 339-283-17) Financial Impact:
Fiscal Impact: The City has received an cumulative allocation of $1,100,087 over the last 5 years from Permanent Local Housing Allocation (PLHA) funds from the State of California.
Approximately $686,015 is allocated to the North SPA and $414,072 are the remaining funds for the City to use for housing -related projects and programs that assist in addressing the unmet housing needs of Placentia, including persons experiencing or at risk of homelessness.
The total funding request by HIS -OC to the City is $39,500. The City has sufficient funds from PLHA to fulfill their funding request in the amount to of $39,500 for the ADU expansion project.
Summary:
Homeless Intervention Services of Orange County (HIS -OC) has been helping unhoused and housing -insecure families since 1989. The organization began with a vision that Placentia Presbyterian Church had by advocating for a local family living in a park. They purchased a farmhouse neighboring their church, which became HIS House, a transitional shelter for underprivileged, unhoused families.
In 2023, HIS -OC partnered with University of California Irvine (UCI) and Orange Coast College to design and construct a 781 -square foot detached Accessory Dwelling Unit (ADU) at no cost to HIS -OC. The ADU was designed by Danielian Associates and was constructed offsite. The ADU was displayed at the Orange County Fairgrounds for its sustainable development, built with metal studs and other energy saving measures, which results in "net zero" greenhouse gas emissions. Upon completion, the ADU will help expand HIS-OC's shelter capacity for transitional -aged youth population ages 18-24 years.
On March 5, 2024, the Development Services Department approved the ADU and the ADU construction plans were also approved by the Building Division. The ADU has been moved and placed on a permanent foundation by a crane, "assembled" directly behind the 913 N.
Bradford Avenue. The total cost to complete the ADU and tie into utilities is $234,093. HIS -OC has been accepting donations and fundraising and have thus far raised $100,000. In addition, they have recently received $75,400 through a dedicated funding effort. HIS -OC will also be 1 allocating an additional $19,193 from their financial reserves. This leaves a remaining $39,500 shortfall. On July 31, 2024, HIS -OC submitted a letter to the City requesting $39,500 to complete this ADU expansion and provide participants shelter before the cold weather and holiday season.
Recommendation:
Recommended Action: It is recommended that the City Council:
1. Approve Resolution No. R-2024-62, a Resolution of the City Council of the City of Placentia, California authorizing a budget amendment in Fiscal Year 2024-25 in compliance with City Charter of the City of Placentia §§1206 and 1209 pertaining to appropriations for actual expenditures; and
2. Adopt Resolution No. R-2024-63, a Resolution of the City Council of the City of Placentia, California, approving a Development Agreement and Affordable Housing Covenants No. DA -2024-01 with Homeless Intervention Services of Orange County for Permanent Local Housing Allocation funding in the amount of $39,500 for the detached Accessory Dwelling Unit located at 913 N. Bradford Avenue (APN 339-283-17); and
3. Authorize the City Administrator to execute the necessary documents, in a form approved by the City Attorney.
Strategic Plan Statement:
This item is consistent with the City Council approved 5 -Year Strategic Goal to Promote Community and Economic Development under Objective #3.10, which is implementation of Housing Element strategies, Objective #3.11, which is to secure funding to address homeless, and Objective #3.12, which is to secure funding to address affordable housing.
Discussion:
Homeless Intervention Services of Orange County (HIS -OC) has been helping unhoused and housing -insecure families since 1989. The organization began by a vision that Placentia Presbyterian Church had by advocating for a local family living in a park. They purchased a farmhouse neighboring their church, which became HIS House, a transitional shelter for underprivileged, unhoused families. For almost 35 years, their transitional housing program has continued to grow and provide comprehensive wraparound services for families, including:
• The transitional house consists of a private bedroom for each family; the rest of the home is shared living.
• On-site weekly Case Management.
• Job skills and placement assistance.
• Connections to physical and mental health services.
• Documentation assistance.
• Family reunification.
• Parenting classes.
• Financial literacy classes.
After 30 years in operation, thousands of people served, and numerous additions to the house, in 2020, HIS House became its own 501 (c)(3) nonprofit to expand services beyond the transitional shelter. Their new name is Homeless Intervention Services of Orange County (HIS -OC).
In 2023, HIS -OC partnered with UCI and Orange Coast College to design and construct a 781 -square foot detached Accessory Dwelling Unit (ADU) at no cost to HIS -OC. The ADU was 2 designed by Danielian Associates and was constructed offsite. The ADU was displayed at the Orange County Fairgrounds for its sustainable development, built with metal studs and other energy saving measures, that results in "net zero" greenhouse gas emissions. Upon completion, the ADU will help expand HIS-OC's shelter capacity for transitional -aged youth population ages 18-24 years.
On March 5, 2024, the Development Services Department approved the ADU and the ADU construction plans were also approved by the Building Division. The ADU has been moved and placed on a permanent foundation by a crane, "assembled" directly behind the 913 N.
Bradford Avenue. The total cost to complete the ADU and tie into utilities is $234,093. HIS -OC has been accepting donations and fundraising and have thus far raised $100,000. In addition, they have recently received $75,400 through a dedicated funding effort. HIS -OC will also be allocating an additional $19,193 from their financial reserves. This leaves a remaining $39,500 shortfall. On July 31, 2024, HIS -OC submitted a letter to the City of Placentia requesting $39,500 to complete this ADU expansion and provide participants shelter before the cold weather and holiday season.
The City has received an allocation of $1,100,087 in Permanent Local Housing Allocation (PLHA) funds from the State of California. Approximately $686,015 is allocated to the North SPA and $414,072 are the remaining funds for the City to use for housing -related projects and programs that assist in addressing the unmet housing needs of Placentia, including persons experiencing or at risk of homelessness.
The California Health and Safety Code Section 50470 states the following:
(D) The moneys in the (PLHA) fund allocated to local governments may be expended for the following purposes:
(ii) Affordable rental and ownership housing that meets the needs of a growing workforce earning up to 120 percent of area median income, or 150 percent of area median income in high-cost areas.
(vi) Assisting persons who are experiencing or at risk of homelessness, including providing rapid rehousing, rental assistance, navigation centers, emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.
The City Attorney Office's concludes that based upon this determination, it appears that PLHA funding can be applied to the ADU expansion project by HIS -OC.
In addition, Labor Code §1720 basically states that any project funded in whole or in part with public funds, must pay prevailing wages, unless there is an exception. The only possible exception is under Labor Code § 1720(c)(5)(D) which states:
"(5) Unless otherwise required by a public funding program, the construction or rehabilitation of privately owned residential projects is not subject to this chapter if one or more of the following conditions are met:
(D) The project consists of new construction, expansion, or rehabilitation work associated with a facility developed by a nonprofit organization to be operated on a not-for- profit basis to provide emergency or transitional shelter and ancillary services and assistance 3 to homeless adults and children. The nonprofit organization operating the project shall provide, at no profit, not less than 50 percent of the total project cost from nonpublic sources, excluding real property that is transferred or leased. Total project cost includes the value of donated labor, materials, and architectural and engineering services." Pursuant to Department of Industrial Relations determinations, in order for the exemption to apply, they need to be a non-profit and operate the facility for no profit.
The individuals residing in the project need to be homeless.
The facilities also need to be transitional and not permanent residences.
The City Attorney Office's concludes that if they meet all the above in the exception, then they may be exempted.
Fiscal Impact Summary:
The City has received an allocation of $1,100,087 in Permanent Local Housing Allocation (PLHA) funds from the State of California. Approximately $686,015 is allocated to the North SPA and $414,072 are the remaining funds for the City to use for housing -related projects and programs that assist in addressing the unmet housing needs of Placentia, including persons experiencing or at risk of homelessness. The total funding request by HIS -OC to the City is $39,500. Based upon the aforementioned information, the City has sufficient funds from PLHA to fulfill their funding request for the ADU expansion project.
Attachments
HIS OC Funding Letter Request 7.31.2024.pdf
Development and Affordable Covenant.docx
Attach 3 Resolution R-2024- HIS 00 DA KJS changes.docx
Attachment _2_ -_ Budget _Amendment_Resolution-_HIS-OC_PLHA_Funding.docx 4 HISOC
Humelass Irsterver idiom 5iwvk,s of OC
Jim lett An -ala
City Administrator
401 E Chapman
Placentia, CA 92570
R : ADU Expansion Fro jest Funding Request
Dear DAmie Arrkrla,
w'rw.',1I15.00.org
July 3 t, 2024
1 am writing on beha] F of Homeless Eaterveiition Services of Orange County {1-115.00 to seek your support for our Accessory Dwelling, Unit (A DU) expansion project in Placentia, California. This critical initiative aims to provide additional housing for our comnrun its"s mpg vulnerable population.
Transitional --Youth (TAY) aged E 8.24_ The total cosi of the ,+IDU expansion project rs elitiMaked a# $234,093.00. i -TI has pledged $ l00,O00,O towards this mkt!, r, demonstrating our commitment to addressing the housing crisis For at -risk youth in our area. Furthermore, we have successfully raised an additional $75.400.00 thtuuj. h dedicated fundraising efforts. However, INC still have a funding gap of $5k1593,00 to rah out total pnjcct cost,
H18 -0C is p-eparml to allocate an additional $19., t 93,00 from our financial reserve to further support this initiative, This leaves us with a remaining need of ,S00.00. WE RFC reaching out to you with a hrartfflt request thatyoar consider donating this remaining nCCii so that we may complete this project before year's end. ensuring we'Can t participants in before the cold weather and holiday seasons, The sucocssful completion of this project will enable 415 to add up to ] O more beds, significant) increasing our capacity in Benue the TAY population_ These young individuals are ata critical stage in their lives and offer' fisc.c numerous ch$Ilen s, including homelessness and tack of support_ apandi our facilities aims to provide them with a safe end supportive 'ell'''. ironiriertt that Fosters stability, growIh, and self-sufficiency,
Your contri hvtion wou Id help us reach. our funding goal and make a tangible difference in the lives of then ung People_ We believe that every youth deserw&i the opportunity to thrive, and with o it support we can Mace This a rex I Gtv for more needy individuals.
Thank you for considering our req uest- We would be de€ighted to discuss this project further and explore how your support can sigriirrunrly Gm pact it. Don't hesitate to contact me a,r 7 t 4-595.-0771 or [email protected]. if you have any questions or require additional information, Sincerely,
tree Director
Homciess Intervention Services of orange n v
q07 N Bradtbrd, Placentia CA 92870
T14,9'93.57744
.+€3L33 fax
Tax Ip ABA -029
R.O. Bax 1292.
tPlaCerxiN_ CA g2871
RECORDING REQUESTED
BY AND WHEN RECORDED
MAIL TO:
CITY OF PLACENTIA
401 E. Chapman Avenue
Placentia, CA 92870
Attn: City Clerk
APN:
Address:
EXEMPT FROM RECORDING FEE
PER GOV. CODE § 27383
SPACE ABOVE FOR RECORDER USE
DEVELOPMENT AGREEMENT
AND AFFORDABLE HOUSING COVENANTS NO. 2024-01
THIS DEVELOPMENT AGREEMENT AND AFFORDABLE HOUSING
COVENANTS ("Agreement") is entered into this 17th day of September 2024 ("Effective Date") by and between the City of Placentia, a California charter city and municipal corporation ("City") and Homeless Intervention Services of Orange County, a California non-profit, public benefit corporation ("Developer").
RECITALS
A. Developer is in the process of obtaining entitlements from the City for its Accessory Dwelling Unit expansion project ("Project") located at 913 N. Bradford Avenue, Placentia, California, Assessor's Parcel Number 339-283-17 and legally described in Exhibit "A" attached hereto and incorporated herein by reference ("Property"). The Project aims to provide additional housing for the community's most vulnerable population: transitional youth aged 18-24. This type of housing is scarce and much needed within the community.
B. The City is a recipient of Permanent Local Housing Allocation funds from the State of California ("PLHA"). Under PLHA, subject to specific requirements, the funds can be used for, among other things:
i. affordable rental and ownership housing that meets the needs of a growing workforce earning up to 120 percent of area median income, or 150 percent of area median income in high-cost areas; or
ii. assisting persons who are experiencing or at risk of homelessness, including providing rapid rehousing, rental assistance, navigation centers, emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.
6 C. The Project falls within parameters for the use of PLHA funds. In order to complete its Project, Developer is requesting from the City the sum of $39,500, which is less than 20% of the overall Project costs. The City is willing to provide such financial assistance to provide transitional housing to vulnerable youths in the community.
NOW, THEREFORE, in consideration of the mutual promises set forth in this Agreement and other good and valuable consideration, the receipt and sufficiency of which is acknowledged by the City and the HIS -OC, the Parties agree as follows:
ARTICLE 1 DEFINITIONS
1.1 Affordable Rent means either a unit being rented to low-income, very low-income or extremely low-income households (as said terms are defined in the PLHA Guidelines), that complies with the Multifamily Housing Program guidelines Section 7312 and the Section 7301 definition of "Affordable Rent," or a unit being rented to moderate -income households, that is available at a gross rent, including a utility allowance, that does not exceed 30 percent of the applicable income eligibility level, and complies with the definition of moderate -income in the PLHA Guidelines.
1.2 Affordable Unit means one of rental units offered by Developer to be rented to an Eligible Tenant at an Affordable Rent.
1.3 California Health and Safety Code ("HSC") Section 50093 provides definitions of household income and affordable housing costs that are used in this Agreement.
1.4 City means the City of Placentia, California.
1.5 Developer means Homeless Intervention Services of Orange County, a California non-profit, public benefit corporation.
1.6 Eligible Household means a household for which gross household income does not exceed the applicable maximum income level for an extremely low-, very low-, low- or moderate -income household as set HCD.
1.7 Eligible Tenant means a prospective Tenant who meets the eligibility criteria for an extremely low-, very low-, low- or moderate -income tenant of an Affordable Unit as set forth in HSC Section 50093.
1.8 HCD means the California Department of Housing and Community Development.
1.9 PLHA means Permanent Local Housing Allocation program administered by HCD.
1.10 PLHA Guidelines means those guidelines published by the HCD, as the same are amended from time to time in connection with the Permanent Local Housing Allocation. 2 7
1.11 Project means the development of housing for the community's most vulnerable population: transitional youth aged 18-24, on the Property.
1.12 Property means the real property located at 913 N. Bradford Avenue, Placentia, California, on which the Project is to be developed.
1.13 Rent means the total of monthly payments by the Tenant of a Unit for the following: use and occupancy of the Unit and land and associated facilities, including parking; any separately charged fees or service charges assessed by the Developer which are required of all Tenants, other than security deposits; an allowance for the cost of an adequate level of service for utilities paid by the Tenant, including garbage collection, sewer, water, electricity, gas and other heating, cooking and refrigeration fuel, but not telephone service or cable TV; and any other interest, taxes, fees or charges for use of the land or associated facilities and assessed by a public or private entity other than the Developer, and paid by the Tenant.
1.14 Tenant means a household occupying a Unit.
1.15 Term means the term of this Agreement, which shall commence on the Effective Date and shall continue for 55 years after the issuance of a Certificate of Occupancy for the Project.
These deed restrictions and covenants running with the land shall remain in force and effect, in perpetuity, without regard to any transfer of ownership by the Developer.
1.16 Unit means one of the units on the Property.
ARTICLE 2 AFFORDABLE HOUSING COVENANTS
2.1 Affordable Housing Covenant. For a period of 55 years, the Developer covenants and agrees that an Affordable Unit reserved for Eligible Tenants and/or Eligible Households will be at an Affordable Rent whose Gross Income at the time of initial occupancy of an Affordable Unit does not exceed the household income qualification limits as set by the PLHA Guidelines, HCD and HSC. This covenant and agreement shall run with the land and be binding on the Developer and its successors in interest. Developer, and its successors in interest , shall be responsible for all management functions with respect to the Property and the Project, including, without limitation, the selection of Eligible Households, and certification and recertification of household income and eligibility.
2.2 Occupancy Requirements. The Units shall be occupied by Eligible Tenants meeting the income requirements and in a manner that complies with the PLHA Guidelines, HCD and HSC.
2.3 Leasing of Affordable Units. Each of the Affordable Units shall be leased to an Eligible Tenant at an Affordable Rental rate as set forth in the PLHA Guidelines, HCD and HSC and consistent with this Agreement. The Developer shall not permit a household or tenant to occupy an Affordable Unit unless the household or tenant is determined to be an Eligible Tenant or Eligible Household. Any attempted assignment or assignment, sublease or attempted sublease, 3 8
license or attempted license of such an Affordable Unit to anyone except an Eligible Household or Eligible Tenant shall be made a material default under any lease and this Agreement.
2.4 Income Verification. The Developer shall make a good faith effort to verify and document that the income statement provided by applicants for an Affordable Unit is accurate by taking at least two (2) or more of the following steps as a part of the Developer's verification process:
a. Obtain a minimum of the three (3) most current pay stubs and/or obtain a verification of income from the applicant's and household members current employer(s) for all adults aged eighteen (18) or older who are employed; b. Obtain an income tax return from the applicant and household members for the most recent tax year;
c. Obtain the three (3) most current savings and checking account(s) bank/financial institution statements from the applicant and each household member;
d. Obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant or household member receives assistance from either of such agencies; e. If the applicant or household member is unemployed and has no such tax return, obtain another form of independent verification.
Developer shall maintain on file, immediately prior to initial occupancy and annually thereafter, income statement certifications for each tenant renting any of the Affordable Units.
2.5 Selection of Eligible Tenants. Developer shall, at its sole cost and expense, conduct all procedures and comply with all requirements in this Agreement in selecting Eligible Tenants for an Affordable Unit. If a prospective renter qualifies as an Eligible Tenant, the Eligible Tenant shall be required to execute a lease agreement for the Affordable Unit.
2.6 Documentation. The Developer, or its successor in interest, shall provide the City with all documentation required pursuant to this Agreement. Developer shall obtain from each household prior to initial occupancy of an Affordable Unit, and on every anniversary thereafter, a written certificate containing at least all the following, in such format and with such supporting documentation, as City and Developer may reasonably require:
a. The identity of each household member;
b. The number of household members; and
c. The total gross household income (i.e., inclusive of all household members' individual income).
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Developer shall retain such certificates for not less than five (5) years, and upon City's request, shall provide copies of such certificates to City and make the originals available for City inspection.
2.7 City Approval of Eligible Tenant. The Developer shall not lease an Affordable Unit to an Eligible Tenant or Eligible Household unless and until the City has reviewed and approved the renter as an Eligible Tenant for an Affordable Unit.
2.8 Certified Annual Report. By not later than July 15th of each year during the term of this Agreement, Developer shall submit an annual report to the City ("Annual Report") for the prior calendar or portion of any prior calendar year that the Affordable Units start or cease being required under the terms of this Agreement with a certification that the Project complies with this Agreement, PLHA Guidelines and HCD requirements. The Annual Report shall, at a minimum, include the following information for each Affordable Unit in the Project: (i) unit number; (ii) number of bedrooms; (iii) current rent and other charges; (iv) dates of any vacancies during the previous year; (v) number of people residing in the unit; (vi) total gross household income of all residents living in the unit; and (vii) documentation of source of household income including if applicable, place of any employment.
Developer shall include with the Annual Report, an income recertification for each household, documentation verifying Eligible Household eligibility, and such additional information as City may reasonably request from time to time in order to demonstrate compliance with this Agreement. The Annual Report shall conform to the format requested by City.
2.9 Enforcement of Affordable Housing Covenants Declaration. Developer irrevocably stipulates and agrees that breach of the Affordable Housing Covenants in this Article 2 either by the Developer or its successors in interest will result in great and irreparable damage to the City, and will result in damages to the City that are either impracticable or extremely difficult to quantify. Accordingly, upon such a breach of these Affordable Housing Covenants set forth in this Article 2, the City may institute an action for injunctive relief and/or specific performance for the remedy of such breach.
ARTICLE 3 DEFAULT
3.1 Default. If Developer defaults with regard to any provision of this Agreement, the City shall serve written notice of such default upon Developer. If, after the service of written notice of such default, the Developer does not cure such default within thirty (30) calendar days after service of the notice of default (or, if such cure reasonably takes longer than thirty (30) days, if such cure has not been commenced within the thirty (30) day period or is not diligently completed within a reasonable time thereafter), Developer shall be in default of the terms of this Agreement, and shall be liable to the City for damages caused by such default. Alternatively, the City, at its option, may institute of the terms of this Agreement with respect to any default not cured within the above-described period.
3.2 Legal Actions. In addition to any other rights or remedies, the City may, at its option, institute legal action to cure, correct or remedy any default, including an action for specific 5 10
performance, to recover damages for any default, or to obtain any other remedy consistent with the purposes of this Agreement.
3.3 Choice of Law/Venue. Any legal action or proceeding concerning this Agreement shall be filed and prosecuted in the appropriate State of California court in Orange County, California. Each Party hereto irrevocably consents to the personal jurisdiction of that court. The City and Developer each hereby expressly waive the benefit of any provision of federal or state law or judicial decision providing for the filing, removal, or change of venue to any other court or jurisdiction, including without implied limitation, federal district court due to any of the following:
(a) any diversity of citizenship between the City and Developer; or (b) the fact that the City is a party to such action or proceeding; or (c) that a federal question or federal right is involved or alleged to be involved.
3.4 Attorneys' Fees. In any action brought to enforce this Agreement, the prevailing party shall be entitled to all costs and expenses of suit, including attorney's fees.
3.5 Rights and Remedies are Cumulative. The rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same Default or any other Default by the other Party.
ARTICLE 4 GENERAL PROVISIONS
4.1 Maintenance of the Property. Developer agrees to maintain all interior and exterior improvements, including landscaping, on the Property in good condition and repair (and, as to landscaping, in a healthy condition, subject to state and local drought restrictions) and in accordance with all applicable laws, rules, ordinances, orders and regulations of all federal, state, county, municipal, and other governmental agencies and bodies having or claiming jurisdiction and all their respective departments, bureaus, and officials.
4.2 No Third -Party Beneficiaries. The performance of the obligations under this Agreement are not intended to benefit any party other than the City or Developer. No person or entity not a signatory to this Agreement shall have any rights or causes of action against any Party to this Agreement as a result of that Party's performance or non-performance under this Agreement, or for the enforcement of any provisions of this Agreement.
4.3 Entire Agreement. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto. This Agreement supersedes all negotiations or previous agreements between the Parties with respect to all or any portion of the Property and the Project thereon.
4.4 Non -Discrimination. There shall be no discrimination against or segregation of any person or group of persons, on account of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, gender, gender identity, genetic information, gender expression, sex or sexual orientation, military 6 11
and veteran status, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of any Affordable Unit nor shall Developer or any person claiming under or through Developer, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees of any Unit or in connection with the employment of persons for the construction, operation and management of any Affordable Unit. Developer shall market units in accordance with the HUD -approved affirmative fair housing marketing plan and all federal, state, or local fair housing and equal opportunity requirements.
4.5 Non -liability of City or City Officials and Employees. The City, its council members, officers, agents and employees, shall not be personally liable to Developer for any obligation created under the terms of this Agreement except in the case of actual fraud, willful misconduct or sole gross negligence by such person.
4.6 Prevailing Wage. This Project may be deemed a public work as defined in California Labor Code Section 1720. Developer shall make its own determination whether it is subject to prevailing wage laws. Developer shall indemnify and hold the City harmless should it be determined that prevailing wage laws apply.
4.7 Indemnification. Developer shall, at its expense, defend, indemnify, and hold harmless the City and its officers, agents, employees and representatives harmless from any and all losses, liabilities, claims, lawsuits, causes of action, judgments, settlements, court costs, attorneys' fees, and other legal expenses, and other damages of whatsoever nature arising out of or in connection with, or relating in any manner to any act or omission (where there was a duty to act) of Developer or its agents, employees, contractors and subcontractors of any tier and employees thereof in connection with or arising from Developer's performance or failure to perform its obligations under this Agreement, Developer's ownership or operation of the Project, or the development of the Project, except and to the extent any such loss, liability, claim, lawsuit or other damage arises from the sole negligence or willful misconduct of the City or its officers, agents, employees or representatives.
Further, Developer shall defend, indemnify, and hold harmless the City from and against any and all claims, damages, demands, suits and/or proceedings of any kind brought by anyone challenging the validity and/or legality of this Agreement, or the process followed. Developer shall further defend, indemnify, and hold harmless the City from and against any and all claims, damages, demands, suits and/or proceedings of any kind brought by anyone challenging the validity and/or legality of Developer's planned development of the Property, including any and all challenges to any permits and/or approvals that may or may not be granted by the City for the development of the Property.
4.8 Term. The provisions of this Agreement shall apply to the Property for the entire Term. This Agreement shall bind any successor, heir or assign of Developer, whether a change in interest occurs voluntarily or involuntarily, by operation of law or otherwise, except as expressly released by the City.
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4.9 Transfer and Encumbrance of Property. Except as otherwise provided herein, Developer shall not make or permit any sale, assignment, conveyance, lease (other than the rental of the Affordable Units to Eligible Tenants), or transfer of the Property or any part thereof, without the prior written consent of the City during the Term of this Agreement. This Agreement shall be binding upon, and inure to the benefit of, the Parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns.
4.10 Covenants to Run With the Land. The City and Developer hereby declare their express intent that the covenants and restrictions set forth in this Agreement shall run with the land, and shall bind all successors in title to the Property, provided, however, that on the expiration of the Term of this Agreement said covenants and restrictions shall expire. Each and every contract, deed or other instrument hereafter executed covering or conveying the Property or any portion thereof, shall be held conclusively to have been executed, delivered and accepted subject to such covenants and restrictions, regardless of whether such covenants or restrictions are set forth in such contract, deed or other instrument, unless the City expressly releases such conveyed portion of the Property from the requirements of this Agreement.
4.11 No Waiver. Failure to insist upon strict compliance with any of the terms, covenants, conditions and restrictions hereof on any one occasion shall not be deemed a waiver of such term, covenant, condition or restriction. Any waiver or relinquishment of rights or powers hereunder at any one or more times shall not be deemed a waiver or relinquishment of such rights or powers at any other time or times.
4.12 Notices. Any notice requirement set forth herein shall be deemed to be satisfied three (3) days after mailing of the notice first-class United States certified mail, postage prepaid, addressed to the appropriate party as follows:
Developer:
Homeless Intervention Services of Orange County
P.O. Box 1293
Placentia, California 92871
Attn: Christine C. Stellino
City: City of Placentia
401 E. Chapman Avenue
Placentia, California 92870
Attn: City Administrator
Such addresses may be changed by notice to the other party given in the same manner as provided above.
4.13 Severability. If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions of this Agreement shall not in any way be affected or impaired thereby.
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4.14 Consent and Approvals. Any consent or approval by the City or Developer required under this Agreement shall not be unreasonably delayed or withheld, unless otherwise provided in this Agreement. Any approval required under this Agreement shall be in writing and executed by an authorized representative of the party granting the approval.
4.15 City Actions. All references in this Agreement to City action (including approvals, consents or extensions of time) shall mean action by the City Administrator or the City Administrator' s designee.
4.16 Multiple Originals; Counterparts. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts. [Signatures on following page.]
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IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date first written above.
HOMELESS INTERVENTION SERVICES
OF ORANGE COUNTY
By:
Name
Its:
By:
Name
Its:
CITY OF PLACENTIA
By:
Damien R. Arrula
City Administrator
ATTEST:
By:
Robert S. McKinnell
City Clerk
APPROVED AS TO FORM:
By:
Christian L. Bettenhausen
City Attorney
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EXHIBIT "A"
LEGAL DESCRIPTION
11 16
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF
) SS.
)
On , before me,
personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
12 17
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF
) SS.
)
On , before me,
personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
13 18
RESOLUTION NO. R-2024-63
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA, APPROVING A
DEVELOPMENT AGREEMENT AND AFFORDABLE
HOUSING COVENANTS NO. DDA -2024-01 WITH
HOMELESS INTERVENTION SERVICES OF ORANGE
COUNTY FOR PERMANENT LOCAL HOUSING
ALLOCATION FUNDING IN THE AMOUNT OF $39,500
FOR THE DETACHED ACCESSORY DWELLING UNIT
LOCATED AT 913 N. BRADFORD AVENUE (APN 339-283-
17)
A. Recitals.
(i) Homeless Intervention Services of Orange County ("HIS -OC:) has been helping unhoused families since 1989 by providing comprehensive wraparound services for underprivileged, unhoused families; and
(ii) In 2023 In 2023, HIS -OC partnered with University of California Irvine ("UCI") and Orange Coast College to design and construct a 781 -square foot detached Accessory Dwelling Unit ("ADU") at 913 N. Bradford Avenue ("APN 339-283-17"); and (iii) Upon completion, the ADU will help expand HIS-OC's shelter capacity for transitional -aged youth population ages 18-24 years; and (iv) On July 31, 2024, HIS -OC submitted a letter to the City requesting $39,500 to complete this ADU expansion; and
(v) The City is a recipient of Permanent Local Housing Allocation ("PLHA") funds from the State of California in the amount of $1,100,087; and (vi) PLHA funds are to be used for housing -related projects and programs that assist in addressing the unmet housing needs of local communities; and (vii) The City Council has agreed to provide HIS -OC with PLHA funding in the amount to $39,500 pursuant to the terms of which are set forth in that certain draft instrument entitled "Development Agreement and Affordable Housing Covenants No. 2024-01" ("DA") in a form submitted herein (the "Agreement"); and (viii) Based on the specific requirements of PLHA Guidelines, the ADU administered by HIS -OC is within the parameters for the use of PLHA funds. (ix) All other legal prerequisites to the adoption of this Resolution have occurred.
Resolution R-2024-63
B. Resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
(1.) The City Council hereby finds that PLHA funding will assist in providing additional housing for the community's most vulnerable population: transitional youth aged 18-24 years, as this type of housing is scarce and much needed within the community.
(2.) The City Council hereby approves a Development Agreement and Affordable Housing Covenants No. DA -2024-01 with HIS -OC for the ADU expansion project located at 913 N. Bradford Avenue (APN 339-283-17). (3.) The City Council hereby directs the City Administrator to execute on its behalf the Development Agreement and Affordable Housing Covenants No. DA -2024-01 and necessary documents and to take all actions necessary under the State law and in compliance to PLHA Guidelines.
(4.) The City Clerk is directed to record or have recorded the Development Agreement and Affordable Housing Covenants No. DA -2024-01 and all necessary documents in compliance with PLHA Guidelines.
(5.) The City Council shall sign this resolution, and the Clerk shall attest and certify to the passage and adoption thereof.
(6.) The City Council declares that, should any provision, section, paragraph, sentence or word of this resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction, or by reason of any preemptive or inconsistent legislation, the remaining provisions, sections, paragraphs, sentences and words of this resolution shall remain in full force and effect.
(7.) The City Council finds the approval of the Development Agreement and Affordable Housing Covenants No. DA -2024-01 is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines section 15061(b)(3), the common sense exemption, in that it can be seen with certainty that the execution of the Development Agreement and Affordable Housing Covenants No. DA -2024-01 will not have a significant effect on the environment.
PASSED, APPROVED AND ADOPTED this 17th day of September 2024.
Jeremy Yamaguchi, Mayor
ATTEST:
Resolution R-2024-63
20 Robert S. McKinnell, City Clerk
STATE OF CALIFORNIA
CITY OF PLACENTIA
I, Robert S. McKinnell, City Clerk of the City of Placentia, do herby certify that the foregoing Resolution was adopted at a regular meeting of the City Council of the City of Placentia, held on the 17th day of September 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
Christian L. Bettenhausen, City Attorney
Exhibit "A"- Development Agreement and Affordable Housing Covenants No. DA -2024- 01 Resolution R-2024-63
RESOLUTION NO. R-2024-62
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA AUTHORIZING A BUDGET
AMENDMENT IN FISCAL YEAR 2024-25 IN COMPLIANCE
WITH CITY CHARTER OF THE CITY OF PLACENTIA §§ 1206
AND 1209 PERTAINING TO APPROPRIATIONS FOR
ACTUAL EXPENDITURES.
A. Recitals.
(i). The adopted budget for the 2024-25 Fiscal Year sets out estimated appropriations for City expenses throughout the year.
(ii). From time to time the adopted budget must be adjusted when precise expenditures are finally determined or when estimated expenditures exceed projected costs allocated.
(iii). City Charter of the City of Placentia § 1206 authorizes the City Council to amend or supplement the budget by motion adopted by the affirmative votes of at least three members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenues not included in the budget. All other legal prerequisites to the adoption of this Resolution have occurred.
B. Resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
1. In all respects as set forth in the Recitals, Part A., of this Resolution.
2. The adopted budget for Fiscal Year 2024-25, Resolution No. R-2024-38, is hereby amended to reflect the following expenditure of funds from the Account specified to the Account specified:
Fund
PLHA Funding
Description
HIS -OC ADU
Funding
Department
Administration
GL Account
501534-6401
Amount
$39,500
Type
Expense
3. The Mayor shall sign this resolution, and the City Clerk shall attest and certify to the passage and adoption thereof.
Resolution R-2024-62
22 PASSED, ADOPTED AND APPROVED THIS 17TH DAY OF SEPTEMBER 2024.
Jeremy B. Yamaguchi, Mayor
ATTEST:
Robert McKinnell, City Clerk
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing resolution was adopted at a regular meeting of the City Council of the City of Placentia held on the 17th day of September 2024 by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ABSTAIN: Councilmembers:
Robert McKinnell, City Clerk
APPROVED AS TO FORM:
Christian Bettenhausen, City Attorney
Resolution R-2024-62
23