2017-02 1 _\
RESOLUTION NO. 2017-02
A RESOLUTION OF THE OVERSIGHT BOARD FOR THE
SUCESSOR AGENCY TO COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF GRAND TERRACE APPROVING
A LOW AND MODERATE INCOME SENIOR HOUSING
RESIDUAL RECEIPTS SECURITY AGREEMENT AS AN
ENFORCEABLE OBLIGATION
WHEREAS, the City of Grand'Terrace ("City") entered into-a Ground Lease, dated
September 22, 2005, a Regulatory Agreement, dated October 27, 2005, an Assignment and ,
Assumption Agreement dated January 17, 2006, and a First Amendment to the Ground Lease,-
dated August 1, 2008, with the former Community Redevelopment Agency of the City of Grand
Terrace ("Agency") and the Corporation for Better Housing a non-profit affordable development
corporation("Corporation") for the development of a senior housing development; and
WHEREAS, the Agency also entered into a Low and Moderate Income.Senior Housing
Residual Receipts Security Agreement ("Security Agreement") with the City on February 24,
2009; and
WHEREAS, the City and Agency entered into these agreements to effectuate the
Redevelopment Plan and Housing Element; and
WHEREAS, under this set of agreements the City leased land to Corporation in
consideration of one dollar($1.00)'annual rent and receipt of residual receipt payments; and
WHEREAS, the Security Agreement the Agency agreed to secure.to the City the amounts
owed to City so that low and moderate income housing could continue to be provided by
Corporation in the Redevelopment Project Area and redevelopment goals cold be met; and
WHEREAS, without the Security Agreement, the provision of low and moderate income
housing is jeopardized in addition to affecting third party rights.
WHEREAS, AB x1 26 required the dissolution of altredevelopment agencies in the state;
and
WHEREAS, on January 10, 2012, the City adopted Resolution 2012-01 electing to serve
as the Successor Agency to the Grand Terrace Community Redevelopment Agency ("Successor
Agency")pursuant to HSC Section 34176; and
WHEREAS, the Oversight Board for the Successor Agency to the Community
Redevelopment Agency ("Oversight Board") finds that the Security Agreement is part of a set of
agreements for the provision of housing, was properly authorized in compliance with
Community Redevelopment Law, and serves a legitimate redevelopment purposes; and
O.B. RESOLUTION NO. 2017-02 PAGE 1 OF 6 JANUARY 18, 2017
WHEREAS, the Oversight Board finds that the Security Agreement is an enforceable
obligation and annual payments of$300,000 should be repaid to the City, subject to approval by
the Oversight Board and the Department of Finance; and
WHEREAS, the Department of Finance, on their Determination Letter dated October 19,
2012, stated that the agreements between the City and former Redevelopment Agency may take
effect after a Finding of Completion is issued and that the Oversight Board makes a finding that
the amount was for legitimate redevelopment purposes;
WHEREAS, the Successor Agency received its Finding of Completion from the
Department of Finance on May 9, 2013; and
WHEREAS, on January 10, 2017, the annual $300,000 Residual Receipt repayment to
the City was reviewed and approved by the Successor Agency; and
WHEREAS, the Oversight Board has met on January 18, 2017 and duly considered the
annual$300,000 Residual Receipt repayment to the City.
NOW THEREFORE, THE OVERSIGHT BOARD FOR THE SUCESSOR AGENCY
TO COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE
DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS:
SECTION 1. The Oversight Board finds that the above recitations are true and correct
and, accordingly, are incorporated as a material part of this Resolution.
SECTION 2. The Oversight Board finds that the annual $300,000 Residual Receipt
Repayment is true and correct and, accordingly; is hereby considered an enforceable obligation.
SECTION 3. Pursuant to HSC Section 34177, the Low and Moderate Income Senior
Housing Residual Receipts Security Agreement, incorporated herein as Attachment A, is hereby
approved as an enforceable obligation in substantially the same form as shown in Attachment A
by the Oversight Board.
SECTION 4. The Executive Director is hereby directed to take all necessary and
appropriate acts to submit the Low and Moderate Income Senior Housing Residual Receipts
Security Agreement to the California Department of Finance, State Controller's Office, San
Bernardino County Auditor-Controller, and any other agency by February 1, 2017. The
Executive Director is further authorized to perform all acts necessary and appropriate which may
be required by the California Health & Safety Code. This includes, but is not limited to the
requirements set forth by the California Department of Finance, the San Bernardino County
Auditor-Controller, or any other applicable agency.
SECTION 5. The Oversight Board Secretary shall certify to the adoption.of this
Resolution.
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O.B. RESOLUTION NO. 2017-02 PAGE 2 OF 6 JANUARY 18, 2017
PASSED APPROVED AND ADOPTED this 18t'day of January, 2017 by the following vote:
AYES: Board Members Freeman, Forbes, Saks, Vice Chair Morga, and
Chair McNaboe
NOES: None
ABSENT: Board Member Strong
ABSTAIN: Norte
bar- oe�
Oversight Boa d Chair
ATTEST:
Pat Jacquez res
Oversight B and Se retary J
O.B. RESOLUTION NO. 2017-02 PAGE 3 OF 6 JANUARY 18, 2017
Attachment A
SUCESSOR AGENCY TO THE
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF GRAND TERRACE -
Low and Moderate Income Senior Housing Residual Receipts Security Agreement-. _
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O.B. RESOLUTION NO. 2017-02 PAGE 4 OF 6 JANUARY 18, 2017
LOW AND MODERATE INCOME SENIOR HOUSING
RESIDUAL RECEIPTS SECURITY AGREEMENT
THIS-RESIDUAL RECEIPTS SECURITY AGREEMENT.("Agreement")is entered into
by and between the City of Grand Terrace, a public body, corporate and politic, (hereinafter the
"City") and the City of Grand Terrace. Community Redevelopment Agency, a public body,
corporate politic, (hereinafter the"Agency").
RECITALS
A. In order to effectuate and further the goals and objectives of the City, in
implementing the Housing Element of its General Plan and the Agency in implementing its
Redevelopment Plan, the City, Agency and Corporation for Better Housing,_ .a non-profit
affordable development corporation (hereinafter "CBH") have heretofore entered into a.
Regulatory Agreement, dated October 27, 2005, a Ground Lease, dated September 22, 2005, a
First Amendment to Ground Lease, dated August 1, 2008 and an Assignment and Assumption
Agreement, dated January 17, 2006, in order to provide a low and.moderate income multi-family
residential rental housin&facility to be located on property owned by the City (hereinafter the
"Site").
B. Pursuant to the Regulatory Agreement and the Ground Lease, the City has leased
the Site to CBH in exchange for a rental payment and the payment of Residual Receipts, as
defined in said Regulatory Agreement.
C. As consideration for the performance of the City's obligations under.the
Regulatory Agreement and Ground Lease on behalf of the Agency with respect to the Agency's
obligation to provide low and moderate income housing'pursuant to its Redevelopment Plan,the
City and Agency desire to enter into this Agreement to secure the annual payment to the City of
sufficient Residual Receipts to compensate the City for its performance under said Regulatory
Agreement and Ground Lease.
NOW THEREFORE,CITY AND AGENCY MUTUALLY AGREE AS
FOLLOWS:
SECTION 1. The foregoing Recitals are true and correct and made a part hereof.
SECTION 2. Term.The Term of this Agreement(the "Term")shall commence as of the date of
the approval,but shall provide for payments as provided herein commencing as of the date of
the Regulatory Agreement.
SECTION 3. Remittance. The Agency hereby agrees to pay to the City annually not to exceed
$30.0,000 as security for the City's receipt of Residual Receipts.
SECTION 4. All Residual Receipts received by the City from CBH, or its successors,pursuant
to the Regulatory Agreement, shall be credited to the Agency in calculating the annual.payment
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O.B. RESOLUTION NO. 2017-02 PAGE 5 OF 6 JANUARY 18, 2017
by the Agency. In no case. shall the Agency's obligation to the City exceed $3.00,000. As
indicated herein, this obligation to the City shall commence upon the effective date of the
Regulatory Agreement.To the extent any sums are due and owing as of the date of the execution
of this Agreement,the Parties hereto may agree to reduce or waive such obligation: .
Date: February 24,2009 CITY OF GRAND TERRACE
By:
4Met�tVerre,Mayor
Dated:.Februaryz4 , 2009. CITY OF GRAND TERRACE
REDEVELOP AGENCY
Marye Ferre,Mayor
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O.B. RESOLUTION NO. 2017-02 PAGE 6 OF 6 JANUARY 18, 2017