HomeMy WebLinkAbout1996-03 HA
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RESOLUTION NO. 96-03
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 I (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, Bristol Associates I, a California limited partnership, and its successors and
assigns (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 and I or
reimbursing the Developer for the acquisition and rehabilitation of certain land and facilities
consisting of a 274-unit multifamily residential rental project and underlying land and related and
appurtenant facilities located at 2901 North Bristol Avenue in the City of Santa Ana (the
"Project"); and
WHEREAS, the Authority, in the course of assisting the Developer in the financing of the
Project expects that the Developer has paid or may pay certain expenditures (the "Reimbursement
Expenditures") in connection with the Project witlUn 60 days prior to the adoption of this
Resolution and prior to the issuance of the Bonds for the purpose of fmancing costs associated
with the Project on a long-tenn basis; 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
Executive Director of the Authority to submit a request for allocation for the Bonds to the
California Debt Limit Allocation ConmúUee ("CDLAC"), and for the Executive Director of the
Authority to obtain and hold a deposit nom the Developer in the amount required by CDLAC;
and
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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,
including reimbursement of the Reimbursement Expenditures, and the application to the State for
an allocation for the Bonds; and
WHEREAS, Section 1.103-8(a)(5) and Section 1.105-2 of the Treaswy Regulations
require the Authority to declare its reasonable official intent to reimburse prior expenditures for the
Project with proceeds of a subsequent bOITowing,
NOW, THEREFORE, BE IT RESOLVED by the Housing Authority of the City of Santa
Ana, as follows:
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I. The Authority hereby declares its present intention to issue the Bonds pursuant to the
procedures specified in the Law in an aggregate principal amOlUlt not to exceed $12,000,000 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 tenns and conditions as may be
mutuaIly 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
purposes,
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 ofthe Bonds to be an emergency 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 limited to, any fees and expenses
incUITed by the Authority in anticipation of the issuance of the Bonds, the costs of printing an
official statement, rating agency costs, bond cOlUlsel fees and expenses, financial advisor fees and
expenses, undetwriting discount and costs, trustee fees and expenses, and the cost of printing the
Bonds,
7. The payment of the principa~ 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 or other third party credit enhancement. The Bond shall not constitute a debt or
obligation of the Authority,
8. The Executive Director 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 housing bond project and to execute and deliver an appropriate agreement with
the Developer with respect to any deposit required in connection therewith,
9. 11ùs resolution is being adopted by the Authority for purposes of establishing
compliance with the requirements of Section 1.I03-8(a)(5) and Section 1.105-2 of the Treasury
Regulations, In that regard, the Authority hereby declares its official intent to use proceeds of
Bonds to reimburse the Reimbursement Expenditures,
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Notwithstanding the foregoing, this resolution does not obligate (i) the Authority to make
any expendinn-e, incur any indebtedness, or proceed with the Project, or (ii) the Authority, the City
of Santa Ana (the "City"), the Planning Commission of the City or any other department of the
City to approve any application or request for, or take any other action in connection with, any
pennit or other action necessary for the acquisition, rehabilitation or operation of the Project.
ADOPTED this
3 rd day of September 1996 by the following vote:
AYES:
7
NOES:
0
0
ABSENT:
Attest:
MEMBERS:
MEMBERS:
MEMBERS:
E=~A-
APPROVED AS TO FORM:
Espinoza, Lutz, Mills, Moreno
McGuigan, Pulido, Richardson
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Developer:
Project:
Principal Amount of Bonds Requested:
SCHEDULE A
Bristol Associates I, A California Limited
Partnership
location:
# of units:
$12,000,000
2901 North Bristol Avenue
Santa Ana, California
274