RESOLUTION NO. __-22
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL APPROVING, AUTHORIZING, AND DIRECTING EXECUTION OF: (1) AFFORDABLE
HOUSING REGULATORY AGREEMENT BETWEEN THE CITY OF PLEASANT HILL AND THE POST PRESERVATION LP (THE “DEVELOPER”) TO PRESERVE 50 PERCENT OF THE UNITS AT THE POST APARTMENTS (1460 CONTRA COSTA BLVD; APN 127- 050-070-3) (THE “PROJECT”) FOR LOW-INCOME HOUSEHOLDS EARNING 80% OR LESS OF THE AREA MEDIAN INCOME FOR A PERIOD OF 10 YEARS; (2) LOAN TO THE DEVELOPER IN THE AMOUNT OF $10,000 TO FACILITATE ACQUISITION OF
THE PROJECT
WHEREAS, Novin Development has established the Post Preservation LP, a California limited partnership (the “Borrower”) for the purpose of acquiring and operating the Post Apartments (1460 Contra Costa Blvd.; APN 127-050-070-3) (the “Property”), rental apartments that shall include affordable rental units; and
WHEREAS, in order to acquire the asset and make it eligible for a potential tax exemption to preserve the property’s affordability, the Borrower requires financial assistance and has requested that the City provide a loan in the amount of Ten Thousand Dollars ($10,000) to assist in the funding of acquisition, and has offered, as a condition of such loan to restrict not less than fifty percent (50%) of the residential units on the Property (excluding the manager’s unit) for low income households; and
WHEREAS, the City has inclusionary housing in-lieu fees that have been paid to the City pursuant to Pleasant Hill Municipal Code section 18.20.60 in an amount sufficient to make the loan requested by Borrower, which may be used to assist in the acquisition of the 71-unit The Post Apartments complex at 1460 Contra Costa in the City of Pleasant Hill; and WHEREAS, the City therefore desires to enter into an Affordable Housing Regulatory Agreement (“Agreement”) (in the form attached hereto as Exhibit 1) with the Borrower to preserve at least fifty percent (50%) of the housing units on the Property for those income-qualified households earning up to 80% of the Area Median Income for a period of 10 years, subject to the terms and conditions as set forth in the Agreement, and make a loan of Ten Thousand Dollars ($10,000), which shall be repaid within one year of closing on the loan, and which shall be secured by a Promissory Note and Deed of Trust (in the form attached hereto as Exhibits 2 and 3); and WHEREAS, the California Environmental Quality Act (Public Resources Code Sections 21000 et seq.) (“CEQA”), imposes no conditions on the City’s consideration and approval of this Agreement, because pursuant to CEQA Guidelines Sections 15060(c), 15061(b)(2) and (3), 15273, 15378, and Public Resources Code Section 21065, funding of a proposal is not subject to environmental review under CEQA as it does not constitute a “project,” does not commit the City to a definite course of action, does not constitute discretionary approval of a specific project, and will not result in a direct or reasonably foreseeable indirect physical change in the environment, and in the alternative is exempt from CEQA.
2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLEASANT HILL:
Section 1. The foregoing recitals are true and correct and constitute a substantive part of this Resolution.
Section 2. The City Council hereby approves the Regulatory Agreement, Promissory Note and Deed of Trust in substantially the form attached hereto as Attachments 1, 2 and 3 to this resolution, subject to minor, non-substantive changes as approved by the City Manager in consultation with the City Attorney, and authorizes the City to make the loan to Borrower in the amount of $10,000 to assist in the acquisition of the Property.
Section 3. The City Manager and/or their designee is authorized to take all actions necessary to make the loan and effectuate the implementation of the Regulatory Agreement.
ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting held on the 4 th
day of April, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
MICHAEL G. HARRIS, OD, Mayor
ATTEST:
DANIELLE K. HABR, City Clerk
EXHIBIT 1
AFFORDABLE HOUSING REGULATORY AGREEMENT
THE POST APARTMENTS – 1460 CONTRA COSTA BOULEVARD
[to be attached]