RESOLUTION NO. 24-95
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN CLEMENTE, CALIFORNIA, APPROVING THE PROPOSED RESYNDICATION PLAN FOR MENDOCINO AT TALEGA I AND II APARTMENTS AFFORDABLE HOUSING PROJECT WHEREAS, on June 6, 2001, the City entered into two Affordable Housing Project Agreements with the Jamboree Housing Corporation (the Developer) for the development of 186 affordable housing rental units located at 123 Calle Amistad in San Clemente, which is known commonly as The Mendocino at Talega I and II Apartments (the “Project”); and WHEREAS, the City also entered into two Regulatory Agreements and Declaration of Covenants and Restrictions on July 31, 2001 (the “Regulatory Agreements”), which govern the occupancy, rents, operation, and management for the two phases of the Project; and WHEREAS, the City originally made two interest-free affordable housing loans on the property in the amounts of $613,080 and $351,540, which are subordinate to loans made by other parties to the Project; and WHEREAS, the Project was built in phases, which were completed in 2003 and 2004, respectively; and WHEREAS, after 20 years of operation, the Project now requires extensive repairs as fixtures and materials are nearing the end of their useful life; and WHEREAS, the Developer has requested the City’s approval of a “resyndication” plan for the refinancing and rehabilitation of the properties; and WHEREAS, the resyndication of the Project requires the City to resubordinate the affordable housing loans made when the Project was originally undertaken; and WHEREAS, the City loans would be subordinate to the tax-exempt multifamily bonds/new permanent mortgage, the State of California Department of Housing and Community Development (“State HCD”) loan, and the County of Orange in the Project's loan hierarchy; and WHEREAS, the Developer has also requested to amend the Regulatory Agreements, including changing definitions related to affordability, adjusting the unit mix, and providing that upon recertification, tenants who no longer qualify may remain in their unit; and WHEREAS, the Developer is requesting that the City conform to the TCAC standard to align the City’s Regulatory Agreements and the regulatory agreements for TCAC, HCD and the County; and WHEREAS, City’s Housing Element identifies the City’s housing needs and outlines goals, policies and programs to address them; and WHEREAS, in relation to this Project, approval of this Project furthers the City’s implementation of Goal 5.4 of the Housing Element, which seeks to “preserve and enhance improvements to older, higher density neighborhoods by pursuing grant funding opportunities for housing rehabilitation and neighborhood improvements.” NOW, THEREFORE, the City Council of the City of San Clemente does hereby resolve as follows:
Section 1. That the proposed resyndication plan for Mendocino at Talega I and II Apartments Affordable Housing Project is hereby approved.
Section 2. That the City Manager is hereby authorized and directed to execute the following documents in support of the request for resyndication in forms substantially similar to those presented to the City Council on June 18, 2024:
1. Amendment No. 2 to Regulatory Agreement for Talega I with Amistad Housing Partners I LP
2. Amendment No. 2 to Regulatory Agreement for Talega II with Amistad Housing Partners II LP
3. Subordination Agreement with Banner Bank, as agent for the California Municipal Finance Authority for Talega I
4. Subordination Agreement with Banner Bank, as agent for the California Municipal Finance Authority for Talega II
5. Subordination Agreement with State of California Department of Housing and Community Development for Talega I
6. Subordination Agreement with State of California Department of Housing and Community Development for Talega II
7. Subordination Agreement with County of Orange Housing & Community Development for Talega I
8. Subordination Agreement with Orange County Housing Authority for Talega I
9. Subordination Agreement with Orange County Housing Authority for Talega II Section 3. That the City Manager is hereby authorized and directed, in consultant with the City Attorney, to make such revisions to the above documents, execute such other documents and takes such other and further actions as are necessary and proper to accomplish the purpose of this resolution.
Section 4. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
PASSED AND ADOPTED this _____ day of ____________________, _______.
ATTEST:
___________________________ __________________________
City Clerk of the City of Mayor of the City of San
San Clemente, California Clemente, California
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) §
CITY OF SAN CLEMENTE )
I, LAURA CAMPAGNOLO, City Clerk of the City of San Clemente, California, do hereby certify that Resolution No. 24-95 was adopted at a regular meeting of the City Council of the City of San Clemente held on the _______ day of _______________________, _________, by the following vote:
AYES:
NOES:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Clemente, California, this _____ day of _________________, ________. __________________________
CITY CLERK of the City of
San Clemente, California
Approved as to form:
___________________________
Elizabeth A. Mitchell, City Attorney
Resolution No. 24-95 Page 2
Attachment 1