RESOLUTION NO.__________ (N.C.S.)
A RESOLUTION AUTHORIZING THE EXECUTION OF A HOUSING SUCCESSOR AGENCY LOAN AGREEMENT BETWEEN THE CITY OF SALINAS AND SUN ROSE HOUSING, LLC.
WHEREAS, on May 2, 2000 , the Former Redevelopment Agency, now known as the Housing Successor Agency (HSA), and Interim entered into the First Amended and Restated Owner Participation and Grant Agreement (OPA) in amount of $80,000 for the renovation of the Soledad House to provide transitional and supportive services for very low- and low-income persons with psychiatric disabilities who are homeless, chronically homeless, or at-risk of homelessness; and WHEREAS, on June 20, 2000, the City of Salinas (City) and Interim entered into a HOME Investment Partnerships Program (HOME) Funding Agreement to allocate $100,000 in FY 1999-2000 HOME funds to support the further development of Soledad House; and WHEREAS, in December 2019, Interim Inc. (Interim) formed the Sun Rose Housing, LLC, a California limited liability company (Owner), and acquired the property at 439 Soledad Street; and WHEREAS, on February 11, 2021, City and Owner entered into the Community Development Block Grant (CDBG) Agreement and allocated $500,000 of CDBG funds to replace an existing 8-bedroom transitional housing facility with a new facility including an 8-bedroom transitional unit, nine (9) units of permanent supportive housing construction of the transitional unit on the project; and WHEREAS, on May 11, 2021, the City entered into an Assignment, Assumption and Second Modification Agreement of HOME Documents to reflect the modification to HOME Documents and transfer of covenant documents from the former property to the Owner and the assignment and assumption of the HOME Documents from Interim to Owner; and WHEREAS, on May 11, 2021, the City also entered into the Assignment, Assumption and Second Modification Agreement of Owner Participation and Grant Agreement to reflect the modification to the HSA documents and consent to the transfer of covenant documents from the former property to the Owner and the assignment and assumption of the HSA Documents from Interim to the Owner; and WHEREAS, on February 22, 2022, and under the City’s annual Notice of Funding Availability, Interim submitted an application requesting $500,000 in HSA funds to complete construction of the Project due to a funding deficit related to inflation costs; and to replace an existing 8-bedroom transitional housing unit with a new 11-unit proposal (the Project) composed of one 8-bedroom transitional unit, nine (9) units of permanent supportive for persons with psychiatric disabilities who are homeless, chronically homeless or at-risk of homelessness, and one manager’s unit; and WHEREAS, HSA funds can be used for housing development for low- and moderate-income residents as well as homeless prevention and rapid re-housing and this Project is eligible to received HSA funds as it serves very low- and low- income individuals with psychiatric disabilities who are homeless, chronically homeless or at-risk of homelessness; and WHEREAS, the City of Salinas has determined that the Project is exempt from the California Environmental Quality Act (CEQA) Guidelines Section 15268(a) because the Project is a Ministerial Project.
NOW, THEREFORE, BE IT RESOLVED, that the Salinas City Council hereby authorizes the City Manager or designee to execute, for and on behalf of the City, a Housing Successor Agency (HSA) Loan Agreement, and any other applicable documents with Sun Rose Housing, LLC for the construction of the Project at 439 Soledad Street (Project); and NOW, THEREFORE, BE IT FURTHER RESOLVED, that the Salinas City Council authorizes an appropriation of $500,000 of HSA – Affordable Housing funds to fund the Project.
PASSED AND APPROVED this 6th day of December 2022 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT: APPROVED:
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Kimbley Craig, Mayor
ATTEST:
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Patricia M. Barajas, City Clerk