Resolution - 2017-110RESOLUTION NO. 2017-110
A RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF WEST COVINA, CALIFORNIA
ACTING IN ITS CAPACITY AS THE HOUSING AUTHORITY OF
THE CITY OF WEST COVINA, ACTING IN ITS CAPACITY AS
HOUSING SUCCESSOR TO THE DISSOLVED
REDEVELOPMENT AGENCY OF THE CITY OF WEST COVINA,
AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE
ANY AND ALL DOCUMENTS AND TAKE ALL ACTIONS IN
FURTHERANCE OF THE APPROVAL OF THE ASSIGNMENT OF
THE MAUNA LOA APARTMENTS AFFORDABLE HOUSING
AGREEMENT FROM ROBERT AND BETTY CHU TO ROY H, LP
WHEREAS, On December 10, 1997, the former Redevelopment Agency ("RDA") and
Mr. Robert and Betty Chu ("Owners") entered into an Affordable Housing Agreement for in which
the RDA provided a $607,200 loan (Agency Loan) to secure twelve affordable housing units within
the Mauna Loa Apartments located at 2000 W. Pacific Avenue; and
WHEREAS, on February 1 1994, RDA and Owners executed the following
documents governing the affordable housing units within the Mauna Loa Apartments: (i)
Affordable Housing Agreement, which establishes affordability requirements for 12 units of the
80 units, limits the use of the property by covenant, and restricts the sale of the property; (ii)
Deed of Trust and Promissory Note. securing the Agency Loan, and,
WHEREAS, as part of the 2011-12 State budget bill, the California Legislature has enacted
and the Governor has signed, companion bills AB1X 26 and AB1X 27, requiring that each
redevelopment agency be dissolved unless the community that created it enacts a resolution
committing it to making certain payments; and
WHEREAS, The City Council of the City of West Covina subsequently adopted
Resolution No. 2012-11 on this date, electing to transfer the housing assets, functions, and
obligations of the Redevelopment Agency pursuant to Health and Safety Code Section 34176 upon
Redevelopment Agency dissolution to the Housing Authority.
WHEREAS, On January 17, 2012 pursuant to urgency Ordinance No. 2226, and on
February 7, 2012, pursuant to regular Ordinance No. 2228, the City Council of the City of West
Covina expanded the duties of the Community Development Commission ("CDC") to include the
functions of the Housing Authority. The Agency Loan that was made by the Redevelopment
Agency and related documents are housing assets of the former Redevelopment Agency retained
and assumed by the CDC.
WHEREAS, pursuant to Section 18 of the Affordable Housing Agreement, the Owners
are to provide a ninety-day notification to the CDC of the intent to assign ownership of Mauna Loa
APPROVED AS TO FORM ATTEST
KiMberly Hdll Barlow Nickolas S. Lewis
City Attorney City Clerk
Apartments. Mrs. Chu provided notice to CDC on September 21, 2017 of their intent to sell Mauna
Loa Apartments to Roy H, LP; and
WHEREAS, in order to effectuate the refinancing and to allow for the rehabilitation,
National Core is requesting to that the original Regulatory Agreement along with the Loan
Agreement, Promissory Note and Deed of Trust be amended and restated; and
WHEREAS, an Assignment and Assumption Agreement and the new Promissory Note
will be presented to the CDC as Housing Authority for review and approval.
NOW, THEREFORE, BE 1T RESOLVED, the West Covina Community
Development Commission hereby finds, determines, and resolves as follows:
Section 1. The Community Development Commission Board hereby
approves the terms of the Assignment and Assumption Agreement and the new
Promissory Note; and
Section 2. The Community Development Commission Board hereby
authorizes the CDC Executive Director to execute any and all agreements and
documents and to take all actions in furtherance of the approval in Section 1.
PASSED, APPROVED, AND ADOPTED this 7 th day of November, 2017.
Corey Nyrafshaw
Mayor
1, HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council
of the City of West Covina, California, at a regular meeting thereof on the 7s t day of November,
2017 by the following vote of the City Council:
AYES:
NOES:
ABSENT:
AB STAIN:
Johnson, Spence, Toma, Wu, Warshaw
None.
None.
None.