HomeMy WebLinkAbout8636RESOLUTION NO. 8636
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS APPROVING
AN INTERFUND LOAN FROM THE GENERAL FUND TO THE INCLUSIONARY
HOUSING FUND
WHEREAS, the City Council approved Resolution No. 7354 establishing an interfund loan
policy effective December 17, 2013; and
WHEREAS, Resolution No. 7354 requires that interfund loans established after the
effective date of the policy be approved by the City Council subsequent to review by the City
Attorney and preparation of a resolution authorizing the loan, including specific loan terms, if
applicable; and
WHEREAS, the City Council adopted Ordinance No. 2959 on July 5, 2023, adding Chapter
18.230 for an Inclusionary Housing Program that imposes income and affordability restrictions on
new residential development for For -Sale and Rental Housing, including an alternative means of
fulfilling inclusionary housing obligations through payment of an in -lieu fee; and
WHEREAS, the City Council adopted Resolution No. 8528 on December 19, 2023,
establishing In -Lieu Fee Amounts for compliance with the City's Inclusionary Housing Program;
and
. WHEREAS, moneys in the Inclusionary Housing Fund shall be expended exclusively to
provide housing affordable to Very Low-income, Low-income, and Moderate -income households
in the City of Redlands, and administration and compliance monitoring of the Inclusionary
Housing Program; and
WHEREAS, the Venue at Orange Apartments proposes to construct and maintain 50
housing units affordable to Very Low Income households alongside market rate units pursuant to
the availability of financial assistance from the Inclusionary Housing Fund that will make
provision of these affordable housing units financially feasible; and
WHEREAS, there is a gap in timing of cash flows for the Inclusionary Housing Fund,
which depends on the In -Lieu Fees yet to be paid from existing residential developments that have
yet to apply for building permits but which are expected to generate significant In -Lieu Fee
revenue over the next two to five years; and
WHEREAS, the City -contracted consultant, Keyser Marston Associates, Inc. has prepared
a financial gap analysis for the Venue at Orange Apartment Project and found a $1.59 million
financial gap for the provision of the 50 units of affordable housing, consistent with the developer's
request for financial assistance in the amount of $1.5 million in the form of a forgivable loan from
the Inclusionary Housing Fund; and
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WHEREAS, an interfund loan from the General Fund to the Inclusionary Housing Fund
would bridge this gap in cash flows and enable the Inclusionary Housing Fund to contribute
$1,500,000 in financial assistance requested by the Venue at Orange Apartment project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF REDLANDS AS FOLLOWS:
Section I . The City Council hereby approves a loan from the General Fund to the
Inclusionary Housing Fund for a period not -to -exceed five (5) years in the amount of one million
five hundred thousand dollars ($1,500,000) at an annual interest rate equal to the rolling four -
quarter average interest rate earned by the Local Area Investment Fund to be charged at the end
of the fiscal year on the amount of then -outstanding principal. The loan shall be made by an
advance to be recorded to the Inclusionary Housing Fund in the current fiscal year.
Section 2. This Resolution is exempt from the California Environmental Quality Act
Public Resources Code section 21000 et seq.) (" CEQA") pursuant to the State's CEQA
Guidelines sub- section 15060(c)(2) because the adoption of this Resolution will not result in a
direct or a reasonably foreseeable, indirect, physical change in the environment, and State CEQA
Guidelines sub- sections 15378(b)(2) and (4), because the adoption of this Resolution, does not
constitute a " project" under CEQA, and therefore review under CEQA is not required.
ADOPTED, SIGNED AND APPROVED this lst day.,6Wctg6cr, 2024.
Tejeda, Mayor
ATTEST:
a e Donaldson, City Clerk
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1, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing
resolution was adopted by the City Council at a regular meeting thereof held on the 1st day of
October, 2024, by the following vote:
AYES: Councilmembers Barich, Guzman -Lowery, Saucedo; Mayor Tejeda
NOES:
ABSENT:
ABSTAINED: Councilmember Davis
Jq6ale Donaldson, City Clerk
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