2017-059 - Bonds for the Heninger Village Apartments

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RESOLUTION NO. 2017-059 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY OF MULTIFAMILY HOUSING REVENUE BONDS FOR THE HENINGER VILLAGE APARTMENTS WHEREAS, the California Statewide Communities Development Authority (the "Authority") is authorized pursuant to the provisions of California Government Code Section 6500 et seq. and the terms of an Amended and Restated Joint Exercise of Powers Agreement, dated as of June 1, 1988 (the "Agreement"), among certain local agencies throughout the State of California, including the City of Santa Ana (the "City"), to issue revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of the California Health and Safety Code for the purpose of financing multifamily rental housing projects; and WHEREAS, Heninger 2016 LP or a partnership created by KDF Communities LLC (the "Developer'), consisting at least of the Developer or a related person to the Developer and one or more limited partners, has requested that the Authority adopt a plan of financing providing for the issuance of multifamily housing revenue bonds (the "Bonds") in one or more series issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, and at no time to exceed $14,000,000 in outstanding aggregate principal amount, to finance the acquisition and rehabilitation of a 58 -unit senior multifamily rental housing project located at 200 S. Sycamore Street, Santa Ana, California, generally known as Heninger Village Apartments (the "Project") and operated by VPM Management Inc.; and WHEREAS, the Bonds or a portion thereof will be "private activity bonds" for purposes of the Internal Revenue Code of 1986 (the "Code"); and WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, private activity bonds are required to be approved by the "applicable elected representative" of the governmental units on whose behalf such bonds are expected to be issued and by a governmental unit having jurisdiction over the entire area in which any facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; and WHEREAS, the members of this City Council (this "City Council") are the applicable elected representatives of the City of Santa Ana (the "City"); and WHEREAS, on August 2, 2016, the City Council conducted a TEFRA hearing in consideration of the issuance of tax exempt bond financing by the Authority for the benefit of the Developer and adopted a resolution approving the issuance of bonds; and Resolution No. 2017-059 Page 1 of 4