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HomeMy WebLinkAbout1991-11 HA . . . . . REL:mb 8/13/91 RESOLUTION NO. 91- 11 A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA RELATING TO THE ISSUANCE OF BONDS FOR THE PURPOSE OF FINANCING THE ACQUISITION AND REHABILITATION OF A MULTIFAMILY RESIDENTIAL RENTAL PROJECT AND RELATED FACILITIES. WHEREAS, the Housing Authority of the city of Santa Ana (the "Authority") is authorized to issue bonds pursuant to the provisions of California Health and Safety Code, Division 24, Part 2, Chapter 1 (the "Law") for the purpose of providing financing for the acquisition and development of multifamily residential rental projects located within the Authority's jurisdiction; and WHEREAS, the property owner and/or developer listed in Exhibit A hereto (the "Developer") has requested the Authority to issue and sell its revenue bonds (the "Bonds") pursuant to the procedures specified in the Law for the purpose of financing the acquisition and rehabilitation of certain land and facilities consistinq of a multifamily residential rental project and underlying land and related and appurtenant facilities located at the address set forth in Exhibit A (the IIproject") to be acquired and' rehabilitated by the Developer within the Authority's jurisdiction, and the Authority wishes to induce the Developer to acquire, construct and develop the Project within the Authority's jurisdiction; and WHEREAS, in order for the interest on the Bonds to be excluded from the gross incomes of the purchasers thereof for purposes of federal income taxation, it will be necessary for the City Manager of the City of Santa Ana (the "City Manager") to submit a request for allocation for the Bonds to the California Debt Limit Allocation Committee (CDLAC"), and for the Executive Director of the Authority to obtain and hold a deposit from the Developer in the amount required by CDLAC; and WHEREAS, it is in the public interest, for the public benefit and in furtherance of the public purposes of the Authority that the Authority authorize the Bonds for the aforesaid purpose and the application to the State for an allocation for the Bonds. NOW, THEREFORE, BE IT RESOLVED by the Housing Authority of the City of Santa Ana, as follows: 1. the Bonds aggregate The Authority hereby authorizes the issuance and sale of pursuant to the procedures specified in the Law in an principal amount not to exceed the maximum principal 1 . . . . . amount set forth in Exhibit A for the purposes of providing financing for the acquisition and rehabilitation of the Project. 2. The issuance and sale of the Bonds shall be upon such terms and conditions as may be mutually agreed upon by the Authority, the Developer and the purchaser of said Bonds, and shall be authorized by resolution of the Authority at a meeting duly held and conducted for such purpose. 3. The proceeds of the Bonds shall include such related and necessary issuance expenses, administrative costs and debt service reserves as may be required to accomplish successfully the financing. 4. The Authority declares the issuance of the Bonds to be an emerqency matter within the meaning of section 34292 of the California Health and Safety Code. 5. The Authority hereby finds that the issuance of the Bonds is a substantial inducement to the Developer to acquire and rehabilitate the Project. 6. The Developer shall be responsible for the payment of all present and future costs in connection with the issuance of the Bonds, including, but not limi ted to, any fees and expenses incurred by the Authority in anticipation of the issuance of the Bonds, the costs of printing an official statement, rating agency costs, bond counsel fees and expenses, underwriting discount and costs, trustee fees and expenses, and the cost of printing the Bonds. 7. The payment of the principal, redemption premium, if any, and purchase price of and interest on the Bonds shall be the sole responsibility of the Developer, and the payment of such amounts shall be insured by bond insurance provided by an insurance company acceptable to the Authority or secured by a letter of credit issued by a financial institution acceptable to the Authority. The Bonds shall not constitute a debt or obligation of the Authority. 8. The City Manager and the appropriate officers or staff of the Authority are hereby authorized, for and in the name of and on behalf of the Authority, to make an application to the California Debt Limit Allocation Committee for an allocation of private activity bonds for a multifamily rental housinq bond project and to execute and deliver an appropriate agreement with the Developer with respect to any deposit required in connection therewith. 9. The adoption of this Resolution shall not obligate (i) the Authority to provide financing to the Developer for the acquisition and rehabilitation of the Project or to issue the Bonds for purposes of such financing; or (ii) the authority, the city of Santa Ana (the "city"), the Planning commission of the city or any 2 . . . . . other department of the city to approve any application or request for, or take any other action in connection with, any permit or other action necessary for the acquisition, rehabilitation or operation of the Project. ADOPTED this the followinq vote: 19 day of AYES: 7 MEMBERS: NOES: MEMBERS: ABSENT: 0 MEMBERS: ATTEST: APPROVED AS TO FORM: Housing August , 1991, by Young, Acosta, Griset, McGuigan Norton, Pulido, Richardson ~~ 3