FROM:
Development Services
SUBJECT:
Title
A Resolution of the City Council of the City of Fontana Approving A Development Impact Fee Deferral Agreement Between the City of Fontana and Aldea Fontana Foothill LLC for the Aldea Legacy Apartments Multi-Family Residential Housing Project and Authorize the City Manager to Execute the Agreement and take certain actions to complete the transaction.
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RECOMMENDATION:
Recommendation
Adopt Resolution No. 2024-128, Approving a Development Impact Fee Deferral Agreement Between the City of Fontana and Aldea Fontana Foothill LLC for the Aldea Legacy Apartments Multi-Family Residential Housing Project and Authorize the City Manager to Execute the Agreement and take certain actions to complete the transaction.
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FONTANA HOUSING AUTHORITY GOALS:
• To promote affordable housing by construction of high-quality multi-family housing which also serves to address the affordability needs of this community.
• To promote affordable housing by acquisition, substantial rehabilitation, and professional management of selected multi-family properties as a vehicle to reduce crime and code enforcement activity and to address the affordability needs of this community.
• To preserve the local environment for generations to come and to create a healthy economic and environmental future by adopting policies that promote compact and efficient development in new and existing communities.
• to assure that the Project is financially feasible and that the Owner is able to deliver the needed affordable housing and supportive services.
DISCUSSION:
Aldea Fontana Foothill LLC (“Aldea”) is the owner of a multi-family residential development at the location of 15186 Foothill Boulevard, Fontana, California (“Property”). The Property is an apartment complex that consists of 4 apartment buildings with a total of 78 units and associated amenities on approximately 2.27 acres of land. Aldea entered into a Lease Agreement with the Fontana Housing Authority. The lease agreement includes an option to purchase. The purpose of the lease / purchase option is to provide affordable housing to extremely low- and moderate-income households. Aldea has requested a deferment of the development impact fees from the City and the City is willing to defer the payment of City development impact fees pursuant to the terms and conditions of the Development Impact Fee Deferral Agreement (“DIF Deferral Agreement”). The impact fees deferred are only those impact fees imposed or levied by the City upon the development of the Property, but such deferment does not apply to other fees imposed by the City, nor shall it apply to fees levied by the County, School Districts, or any other agency. The key terms of the DIF Deferral Agreement and for the deferment of the impact fees are as follows:
1. This deferral shall only apply to development impact fees levied by the City. It shall not apply to any other fees levied by the City, nor shall it apply to fees levied by the County, School District, or any other public entity.
2. Owner shall pay the total amount of fees deferred upon the occurrence that 1) the Property is sold, or 2) if not renewed, the earliest date the Lease Agreement expires on September 30, 2029, whichever event shall occur first. In no event shall the Deferred Fees for the Project be paid later than September 30, 2034.
3. Owner shall execute a Development Impact Fee Deferral Agreement with the City to provide the terms and conditions for the deferral of the development impact fees.
4. City shall record this Agreement against the Property upon full execution by the City and Owner and will file a release of lien when the Deferred Fees plus any interest, charges and fees have been fully paid and satisfied.
FISCAL IMPACT:
The deferment of the impact fees will mean that the City will not receive the impact fees to defer payment of $1,620,436.74, until the close of escrow date if the Property is sold and the impact fees would be paid out of the sales proceed through escrow; or if not renewed, the date the Lease Agreement expires on September 30, 2029, whichever date that will occur first.
MOTION:
Approve staff’s recommendation.