HomeMy WebLinkAboutOld Civic Center Site Project - Proposition L ;&
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CITY OF HUNTINGTON BEACH
1 REQUEST FOR LEGAL SERVICES Ca"nary City Clark
Pink City Administrator
Goldenrod Departmental
HUNTINGTON BEACH.
Date Request Made By Department
Sept. 3, 1981 Stephen V. Kohler Development Services/HCD Division
INSTRUCTIONS: File request in the City Attorney's Office as soon as possible. Print or type facts necessary for City Attorney. Out-
line briefly reasons for the request.Attach all information and exhibits pertinent to the subject.
Type of Legal Service Requested:
[ ] Ordinance [ ] Insurance [ 1 Other
[ ] Resolution [ ] . Bonds
[ ] Contract/Agreement [Xi Opinion
All exhibits must be attached,or this request will be returned to.you.
[A Exhibits Attached
Please prepare a statement to certify that Prop "L" was -prepared' in compliance
with Article XXXIV of the State Constitution and the election's code.
(see attached memo)
RECEIVED
CITY ATTORNEY
S E P 09 1981
AM PM
718 W011111211121314IN6
If for Council Action, If not for Council action,desired completion date .Signature: 4
Agenda deadline
Council meeting
/fl �
PIO 12/79
•
CITY OF HUNTINGTON BEACH
V" INTER-DEPARTMENT COMMUNICATION
HUNTINGTON BEACH
p en er,
To Gail Hutton From Senior m ty
City Attorney Develop ecialist
Subject CITY ATTORNEY'S OPINION REGARDING Date September 3, 1981
ARTICLE XXXIV REFERENDUM PROCEDURES
(PROP "L"; JUNE, 1980)
As you know, in June, 1980 the City had placed on its election ballot Prop "L", an
Article XXXIV referendum complying with the provisions of the State Constitution.
Since the approval of this measure, the City Council has also approved a Cooperation
Agreement with the Orange County Housing Authority and more recently authorized
by resolution the Orange County Housing Authority to apply to HUD for public housing
funds on the City's behalf. As part of this application for public housing funds
now under preparation, HUD will require the submission of certain documents certi-
fying the validity of the Article XXXIV referendum measure. One of these required
documents is an opinion from the local governing body's counsel certifying that the
election procedures used in placing the Article XXXIV measure on the ballot were
consistent with the election's code and Article XXXIV of the State Constitution.
QUESTION: Please prepare on your letterhead a statement to certify that
Prop "L" , a low rent housing referendum approved through the
election of June, 1980, was prepared in compliance with Article
XXXIV of the State Constitution and the election's code.
Attached you will find.one copy of a suggested format provided
by the County of Orange County Counsel .
Upon__compl eti on_,� ease return thjs_document to this_off_i.ce�and we_wi 11 forw.ar_d i t
to the Or Counr_Housi nq Author_i tv al on_g_wi th .he—otherreq �i r�,ed documents _or
th _Haus .n.g-.Autho=r.- ty's_use. for applying for public housing funds on the City's
behalf. If you should have any questions, please call me at extension 5542.
SVK:jb
attachment
ADRIAN KUYPER
• ~ - COI1nTY COUw9tL
OFFICES OF WILLIAM J.McCOURT
-JJii11LL�. p1J.OU.11.A`DI- e17 J3L U111 E.S1i'1J.e1J. ARTHUR C.WAHLSTEOT,JR..
wss�srwnrs
County Of Orange JOHN W. ANDERSON`
33.. LAU R=NCE M.WATSON
VICTOR T_BELLERUE-
- JOHN R.GRISET
HALL OF ADMINISTRATION P.O.BOX 1379 • SANTA ANA,CA 92762 • 834-3300 CHARLES B.SEVIER
- TERRY C.ANDRUS _
TERRY E.DIXON - -
EDWARD N.DURAN -
July 20 , . 1981 IRYNEC. BLACK
RICHARD D.OVIEDO
O.M.MOORE
JULEE ROBINSON -
BENJAMIN P.DE MAYO
R. DONALD McINTYRE
_ - HOWARD SERMN
M.TON►PERRY
DANIEL J.DIOIER
- - - GENE AXELROD
Mr. Art Luna ROBERT L.AUSTIN
_ DONALD H_RUBIN
Executive Director. DAVID R.CHAFFEE
Orange County Housing Authority BARBARA H.E
CAROL D.BROWN
2043 North Broadway BARBARA L.STOCKER
oe.uress
Santa Ana, CA 92706
Dear Mr. Luna:
As the attorneys for the County of Orange, our opinion
has been requested regarding the validity of the proceedings
to ratify County Measure C in the June 3, 1980 election.
This office serves as counsel to the Orange County
Registrar of Voters, and as such we have reviewed the actions
of the Registrar of. voters in that election. It is our
opinion that. they have complied with the requirements of .
Article XXXIV of the California Constitution and the Elections.
Code.
Very truly yours,
ADRIAN KUYPER, COUNTY COUNSEL
By
Benjamin P. de May Deputy
BPD:hp
HCD-29
Y Of HUNTIN �• •CITY GTON BEACH
Whltit Cn,r 41101natr
REQUEST FOR LEGAL SERVICES anarr C1tY Clerk
'•' lMnM C11y Aaminibt►at6r
u�nNt:Itw.stales 4et""rod Departmental
Date Regwe mob BY ti'apertniant
Sept.` 3, "1981 Stephen V. Kohler Development Services/HCD Division
INSTRUCTIONS: File request in the city Attomey's Office as soon as possible.Print or type huts nscettary for City Attorney.Out-
line briefly reamm for the request.Attach all information and exhibiti pertinent to the subjict.
Type of Legal Service Rnquenw:
I I Ordinance 11 . Insurance I 1 Other
1 :Resolution. {. ] , Sends
t I Cont6ct/ASriarant III. Opinion
All exhibits mustbe bttadleil,or this request will be returned to you.
00 EXhibits Attacllld
please preppare. statement to certify that Prop. "L° _was, prepared.in` col Hance
with Article XXXIV,.of the State Constitution and the election's code.
(see attached Mimeo)
3 : o� -M .
If for Council Aix . If not for Council aeflon.cheered cotnplatlon date Signature:
Agenda deadlitn _
council e-wtbig
1100"Q.
P10 uns
CITY OF HUNTINGTON BEACH .
INTER-DEPARTMENT COMMUNICATION
NUMTWGIOM OWN
en e
To Gail Hutton From Senior ty
City Attorney Develo ecialist
Subject CITY ATTORNEY'S OPINION REGARDING Date September 3, 1981
ARTICLE XXXIV REFERENDUN PROCEDURES
(.PROP "Lu; JUNE, 1980)
As. you knew, in Ju�re, '1980:the City had placed on its election ballot Prop- "L", an
Article XXXIV reforendum conspiying .with the provisions.of the State.Constitution.
Since the approval of this riaeasure, the City:Council has also approved a' Coope"ration
Agreement.with tN *ange. .County Housing:_Authority and more recently;authorized
:by resolution the Orange County Housing Authority_to apply to -HUD.for publ:ic .housing
funds on. the City'.s behalf.. As part of this. application for public. housing funds
now under preparat. phj� HUD will require the submission of .certain documents .certi-
fying the validity of" the Article XXXIV referendum measure.. One, of these required
..documents is an opinion from=.the local governing :body's counsel_ certifying that .the
election procedures used in placing the Article. XXXIV measure on the.ballot .were
consistent with the election's code and Article XXXIV of the State Constitution.
QUESTION: Please prepare. on your. letterhead:a statement to certify that
Prop. "V.,. a low rent housing referendum approved through the
election of June, 1980, was prepared .in compliance -with Article
XXXIV of the State.Cons.tiEution and .the election's. code.
.'Attached you will. find one 'copy of a suggested format_ provided
by the County of Orange County Counsel. .
Upon completion,. .please, rreturn this document to this office snd we will forward it
to ,the. Orange County Housing'.Authority along with the other. required documents. for
the Housing Authority.'s use for applying for. public 'housing funds on the City's
behalf. If you should have any questions, please call me at extension 5542.
SVK:jb..
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THE COUNTY COLJNSEL ANTMUR C.WAMLSTZOT.J.t
County Of Orange JOHN W. ANO6NSON
1AURHNC6 M.WATSON
- VICTOR T:OHLL4RUt
- JOHN R.6RISXT
HALL OF AOMINISTRATION • P.O.BOX 1379 • SANTA ANA.CA 92J02 • 834-3300 CMARLGs 9.S6VItR
TERRY C.ANORUS
►zPPV t.DIXOP#
60W46100 P#.DURAN'
July 201 1981 lwvlvtC.e1-ACK
"ICMAND 0.OV_l1loo
- O.M.NOORt
JULt6 ROBINSON
BuNJAMIN P.:06 1MAv0
p:DONALO McINT1/IRt
HOWARD 118111111106
M.Tons Ptwwr
-- DAP#/tL.a.OIOIe*
- - G614t^XUtUR00-
Mr., ."Art Luna wosePT wusTla.
- " - OONALD N:pYfIN.
EXecut'ive Director. OAV10 R.CNAPP[t
Orange County. Houi3ing Authority owpawpA y.ivw�+s
cAPOL D.:DWOWN.
204 3 "North Broadway. 0Ap•ARA L.sTOCKG*
Santa Ana, CA 92706 o....a�.
Dear ''Mr. Luna: "
,A6. the `attorneys for the County of Orange, .our opinion
has been requested regarding the validity of the proceedings
to ratify County Measure C in the June 3, 1980 election.
This, office serves as. counsel to the Oranye.,County
Registrar of Voters, .and as- such we have reviewed the actions
of " the: Registrar of Voters in that election. . .it, is. our,
opinion that they have complied with the r.equiremeats. .of.
Article XXXIV of the California Constitution and the Elections
Code.
Very truly yours,
ADRIAN KUYPER, COUNTY COUNSEL
Benipm'in P. de ray , Deputy
BPD:hp
W
' 1 i
CITY OF H•UNTINGTON BEACH
2000 MAIN STREET CALIFORNIA 92648
P. O. Box 190
HOUSING AND COMMUNITY DEVELOPMENT
Ms. Debby Linn, Planner June 22, 1981
City of Irvine
17200 Jamboree. Road
P.O. Box 19575
Irvine, California 92713
SUBJECT: 'ARTICLE XXXIV REFERENDUM
pear Debby.: a.
It was a pleasure to .see you.again at the A.P.A. lunch on Friday, 'June 19, 1981
and; as you requested at., that time, I am transmitting herewith the .following infor-
mation on the subject matter. . ` .
1. Resolution. #4859. A Resolution of the City Council calling a special.
election for' Article. XXXIV
2. one copy of the voter's pamphlet with arguments .for and against the
measure on the June 3, 1980 ballot in Huntington Beach;.
3 a. copy of.my memo of Novem6er: 7, 1980 outlining the procedures necessary
to proceed with .the 100 percent subsidized housing project after the
passage of the Article .XXXIV referendum authority; and
4. a copy of the legal notice required -to. be published prior .to `the. impldo
mentation of a. 100 percent subsidized housing project. under. the provisions
of Article XXXIV.
The legislative review 'procedures and- publication requirements `included in the .City's.
Article XXXIV referendum (known as Proposition L) are not required by the State .
Constitution. These :were.. included in the Board Resolution calling a .speciai elec-
tion in. June, 1980 and were included in the .City's Proposition to make it consis
tent' With that on the- ballot within the County unincorporated territory: While
these legislative. review:and publication requirements are not essential , they: do
provide. additional participation by the local legislator's: and-can help. to reassure
such a body of its continuing control of a project provided under an .Article XXXIV
referendum authority.
I hope that this information will be.. 'of assistance to'you, and should you decidC.to
pursue this matter :further please do not .hesitate .to contact.me.
Ve you
Stephen .V...' Kohl r
Senior Community velopment Specialist
SVK:jb Telephone (714) 536-5542
a.
MEMORANDUM OQPNGE Co .
`
To: Y-E,fX &Ae Z Dote r
c rot �
ti From: A
Subject:
L
r
ARGU1 'T IN FAVOR OF PROPOSITION "L" AdWL
The rising cost of housing.has made it very difficult for many tamilies,
particularly senior citizens, to afford decent,.safe housing without sacrificing 1. K — L
other essential items. Many are forced to spend a high percentage of their : HUNTINGTON BEACH
incomes on housing which is substandard.
Approval of this measure will enable private developers,to qualify for federal i
and state housing funds to provide good quality new housing at rents which i Voters. Painphlet
these lower income persons can afford and to makeolder'rental units livable i
again.
The use of these programs requires no outlay of city or county funds and no
added cost to the taxpayer. In fact, the measure specifically prohibits use of
local general funds for this housing.
Approval of this measure does not mean the county must accept all housing
proposed. The housing must be designed to blend with the quality and style
of private housing in the neighborhood and it does not have to be in
apartment type projects. Notice of-any housing proposed would be given,
and approval by the City Council at a public hearing may be required; if
public sentiment demands it. The amount of housing is limited to a small
portion (5%) in the city. I.
The taxpayers of Orange County are already paying for state and federal _ PROPOSED MEASURES,
housing programs, while the money and benefits from many of these housing. CITY ATTORNEY'S IMPARTIAL ANALYSIS_
programs go to other areas. Each year the absence of Article XXXIV authority AND ARGUMENTS FOR AND AGAINST
continues, the county loses approximately two million dollars which CITY MEASURES
otherwise would be available for affordable housing. Passing of this ballot SPECIAL MUNICIPAL ELECTION
measure would enable Huntington Beach to get their fair share of state and CITY OF HUNTINGTON BEACH
federal housing dollars. CONSOLIDATED WITH THE
There is a pressing need for the housing this measure will provide. We STATEWIDE PRIMARY ELECTION
strongly recommend-approval of this proposition. TUESDAY,JUNE 3, 1980
- !r
RUTH BAILEY RUTH FINLEY
Mayor _ Mayor Pro Tem
City of Huntington Beach City of Huntington Beach
t, -
ARGUMENT AGAINST PROPOSITION "L"
(None Filed)
r-
4
r J;:
T cities participating in this measure are: heim, Buena Park,
° Costa. -sa, Huntington Beach, La Habra, Los Alam._-s,San Clemente, San
Juan Capistrano and Tusiin.
GAIL HUTTON
f City Attorney
The following arguments for and against the city measures have been filed with .
the City Clerk' pursuant to.Article 4, Chapter 3, Division 5 (Sections 5010 to
5016, inclusive) of the Elections Code of the State of California. Arguments in
support or opposition of the proposed laws are the opinions of the authors.
Under requirements of the 1975 amendments to the Federal Voting Rights Act,the City has
arranged to provide translation of these ballot materials into the Spanish language.A transla-
tion of these ballot materials may be obtained in person at the City Clerk's office in the City
Hall or,if requested by letter or telephone,a translation-will be promptly mailed.
Ba)o los requisitos do los cnmendamientos do 1975 al Acto Federal de Derechos de Vota-
cion, la Ciudad ha hecho arreglos para proporcionar traducci6n del teeto de la balota al
idioma Espanol. Una traducci6n del texto de la balota se puede obtener en persona en la
oficina del Secretario Municipal situada en la Alcaldfa. o si es solicitada pof carts o por
teicfono•una traducci6n se enviara por correo prontamente.
ALICIA M. WENTWORTH,City Clerk
City Hall, 2000 Main Street
P. O. Box 190
Huntington Beach,California 92648
Phone: 536-5227
M
1
a
CITY ATTORNEN&PARTIAL ANALYSIS OF PROPOSI' I "L" I PROF 'TION K
Before a low rent housing project can be developed, constructed, or ADVISORY PROPOSITION:
acquired by' a state public body, such as the Orange County Housing
Authority, within a county or city,,Article 34 of the California Constitution That the Governor and the Legislature YES
requires approval by a majority of the voters of-that county or city. The apportion the existing six cent sales tax so that two
Constitution defines-such housing projects, in part, as "any development cents rather than the one cent presently allocated,-
composed of. . . living accommodations for persons of low income, financed may be used by local agencies for priority. local
in whole or in part by the federal government or a state public body or to services rather than state _distribution or state: NO
which the federal government.or a state public body extends assistance . . ." reserves.
Proposition "L" gives the voters of those•cities within Orange County '
which have chosen to participate in this election under Article 34, an IMPARTIAL ANALYSIS BY CITY ATTORNEY OF PROPOSITION K
opportunity to decide whether such housing shall be provided, with certain
limitations as discussed below, for the elderly, handicapped, and other low. The sales tax advisory proposition proposes that the governor and legislature
income persons of the county or participating city. The decision,of-the voters adopt.legislation to apportion the existing 6% sales and use tax so that 2 cents
of a participating city shall apply only within that city. a rather than 11/4 cents presently allocated, be returned to local governments.
% If approved, this proposition imposes several limitations on the The effect of the-adoption of such legislation would be for the state govern-
production of such housing. The limitations are: ment to incur a substantial reduction of its revenues and the local govern-
1. No city general fund money can be used. ments to reap a substantial increase in their revenues with the total amount
r of the sales tax remaining the same.
2. Notice of a specific, proposed project must be given to each member
of the City.Council and to the public. , Currently the City of Huntington Beach receives 1 cent of the 11/4 cents with
the County of Orange receiving the remainder. .
3. Notice to the public must be placed in an established newspaper with
the greatest circulation within the area of the proposed housing project site �, Adoption of the proposition would be advisory only and a reflection of the
and must be posted in at least,three conspicuous places on the proposed 1 will of the electorate of this city.
site. GAIL HUTTON
4. If application to a noncounty body for funding or approval of such City Attorney
housing is to be made, notice to the Council and to the public must be given (
before such an application for approval or funding is made. ,
5. The City Council must approve the proposed application and project. '
6. Approval by the City Council can occur in one of two ways: (a)A
Council member,within thirty days of the notice,can place the matter before
the entire Council and, after a public hearing, the Council can approve or
conditionally:approve the project,nor (b) if no Council member submits the
matter to the entire Council for a public hearing within thirty days of the
notice, the project is deemed approved.
7. The total number of units produced cannot exceed five percent(5%)
of the total number of dwelling units-within the city,limit area. _
F
ARGL 4T IN FAVOR OF PROPOSITION "Kr F OSITION L.
Want to send a message to Sacramento?Then vote YES on Proposition"K"1 (a) "Shall rental housing developments, as con-
Ask yourself, what public services are of the greatest importance to you? templated by Article 34 of the California Constitu-
Police protection? tion, for elderly,handicapped,low or moderate in-
Fire protection? come persons be developed, constructed, financed
or acquired in the unincorporated area of the
Libraries? County of Orange and in participating cities, sub-
Parks and Recreation? ject to the following conditions:
All these services are provided by local government and essential-to a good No county or city general fund monies shall be ex-
quality of life. "pended for such housing.
Certainly they are of far greater value than those championed by overstaffed No project shall be authorized by authority of this
measure in the unincorporated area of the county
state and federal bureaucracies, which produce questionable benefits to the unless notice of any such proposed project is first YES
public while=unquestionably devouring your tax dollars. submitted to each member of the Board of Super
Did you know that the state collects locally a 6% sales tax, yet returns.only. visors for approval and, at the same time, notice is
given to the public.
slightly more than 1%?The rest stays in Sacramento where a budget surplus
has proven to be an irresistible temptation for Sacramento politicians to Notice to the public shall-be legal notice in the
newspaper having the greatest circulation within
underwrite their pet projects. the affected area where the property is located and
Yet, local government is faced with having to reduce or hold the line on these by posting the property in at least three (3) con-
most important public services.
spicuous places.
Notice shall be submitted to each member of the
It simply does not make sense! Board and to the public before any funding ap-
Proposition"K" tells Sacramento it had better get the priorities straight,and plication to a non-County entity is made for project
address our most critical needs without increasingthetax burden. approval or funding. After submittal to the Board
members,any Board member shall have thirty(30)
Proposition "K".proposes that some of that money-that now goes to and is days to place the matter on the Board agenda for
spent in Sacramento be returned to local government so that city and county the purpose of initiating a public hearing on the
government does not have to be concerned with providing you with the kind proposed project. If the matter is so placed, the
of police and fire protection or other critical services you need and deserve. project shall not be deemed approved until the
P P y Board, after such public hearing,approves,or con-
Remember that our spending limit and that proposed under-the "Spirit of ditionally approves, the project. If no action is
13" initiative requires that any extra revenue would have to be returned to taken by a member of the Board during the thirty"
(30) day period, the application, including the
you, or be used for much needed public improvements. project applied for, shall be considered approved.
To assure essential local services,-to reduce that surplus in Sacramento, vote Any project proposed to be located in incorporated NO
for local control and for Proposition "K' areas of the County shall be submitted to the ap-
propriate City Council members for action in the
DON MACALLISTER ROBERT MANDIC, JR. same manner as hereinabove described.
Mayor Mayor Pro TernHousing built or rehabilitated pursuant to this
City of Huntington Beach- - City of Huntington Beach measure shall not exceed 5% of the total dwelling
units within the unincorporated area of the County
of Orange or,.for participating cities, within the
ARGUMENT AGAINST PROPSITION "K" city.
i
(None Filed) ! A city is a participating city if the city council
adopted a resolution requesting participation in
this measure and submitted it to the Registrar of
Voters on or before March 21, 1980."
CITY OF HUNTINGTON . BEACH
2000 MAIN STREET CALIFORNIA 92648
P. O. Box 190.:
TO: City Council
ATTN: Frank B..Arguello, Acting City Administrator
FROM: . _ Stephen V. Kohler, Senior Community Development Specialist
DATE: November 7, 1980
SUBJECT: 100 PERCENT SUBSIDY FOR HUNTINGTON SEAVIEW (OLD CIVIC CENTER
SENIOR HOUSING) .
The passage of Article.XXXIV Authority (Proposition L) permits the California Housing
Finance Agency to provide Section 8 rental subsidies.for 100 percent.of theunits in the
Huntington Seaview project. The wording of the ballot measure approved.by the voters in
June of 1980 provides for certain notification procedures before construction of a 100
percent subsidy project.may begin. Specifically, these procedures are:
I. A published notice in a newspaper of general circulation (copy attached, published . .
II-13-80);
2. Written.notice to the legislative body of the jurisdiction within which the project
is to be located.
This memo constitutes the written notice to the City Council of Huntington Beach
regarding the allocation of subsidies to 100 percent of the units within Huntington
Seaview. There is.no indication of public protest to the full subsidization of Huntington
Seaview; however, a member of the City Council may requesta public hearing.on the
matter if it is felt to be appropriate.
If any Council member wishes to request a public hearing, or if you should have any
questions, .please contact me at 536-5542.
SVK:jb
cc: Dan Villella
LEGAL NOTICE
NOTICE OF 100 PERCENT SUBSIDY
HUNTINGTON SEAVIEW
Notice is hereby given that Huntington Seaview, the Senior Citizen Housing Project to be
located at Fifth and Orange, in the .City of Huntington Beach, is to be .100 percent'
subsidized through the California Housing Finance Agency's Section 8 New Construction
Program.
This program.provides Section 8 assistance to all of the units, which will keep rent. levels
at the fair market levels established. by HUD, guarantee that no tenant would pay more
than 25 percent of their income toward rental payments, and maximize the number of
residents receiving assistance.
This notice complies with the requirements of the City's referendum authority for
projects of this nature as provided by the passage of Proposition L, June, 1980.
CITY OF HUNTINGTON BEACH
INTER-DEPARTMENT COMMUNICATION
HUNTINGTON BEACH
To Floyd. G. Belsito From James W. Palin, Director
City Administrator Development Services .
Subject PROPOSITION "L" , JUNE 3 , 1980 Date May 22 , 1980
BALLOT; OLD CIVIC CENTER SENIOR
HOUSING
On March 17 , 1980, the City Council passed a. resolution to place on the
June 3 , 1980 primary election ballot a referendum in conformance with
the requirements of Article XXXIV of the California Constitution. If
passed, this referendum (Proposition L) would permit the State and Federal
governments broader participation in financing and subsidizing housing
within Huntington Beach and would make additional funds available while
still maintaining local control of the type and location of housing.
This Proposition will also have an impact on the timing and eventual
benefit of the senior housing on the Old Civic Center site. Specifically:
1. The California Housing Finance Agency (CHFA) has determined
that it can provide subsidies for only 49 percent of the
units in this project without passage of Proposition L.
Since the original RFP for this project requested that 20-
50 percent of the units be subsidized, this is still con-
sistent with the City' s goal.
2. However, increases in the mortgage interest rates for long-
term financing available even from the CHFA will have an
impact on the rents of the non-subsidized units. For example,
the increase in mortgage interest rates from the original
of seven and one half (7 1/2) to the current projected rate
of over ten percent translates to an approximate rent in-
crease on the non-subsidized units of $50/month. Such an
increase would take the rents beyond the reach of those
senior citizens .which the City. wishes to help.
Therefore, it would be more beneficial to strive for the
passage of Proposition' L and garner the additional CHFA
subsidies necessary to subsidize all the units in the project.
3 . It is not true that the CHFA has refused to provide financing
for this project. The Agency did notify the sponsors of pend-
ing projects (including the Wm. Lyon Co. ) that mortgage funds
were not immediately available due to the impact of higher
prime interest rates on the bond market from which .all CHFA
.revenue originates. It is anticipated that mortgage funds
will be available at the time needed for this project; how-
ever, at anew higher rate.
0
Y
»--noyd G. Belsito
May 22,' 1980
Page 2
. In conclusion, the passage of Proposition L will have a direct and
immediate impact on the outcome of the Old Civic Center Senior Housing
project. The Lyon Company is committed to the project and intends
to proceed, but the passage of Proposition L will greatly increase
the benefits of the project to local residents and is necessary to
assure the long-term financial feasibility of the project.
JWP:SVK: jb