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HomeMy WebLinkAbout1997-06 HA . . RESOLUTION 97-06 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 rnultifamily residential rental projects located within the Authority's jurisdiction; and WHEREAS, PA Heritage Village, a California lirnited 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/or reimbursing the Developer for the acquisition and rehabilitation of certain land and facilities consisting of a 123-unit rnultifamily residential rental project and underlying land and related and appurtenant facilities located at 2833 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 rnay pay certain expenditures (the "Reimbursement Expenditures") in connection with the Project within 60 days prior to the adoption of this resolution and prior to . the issuance of the bonds for the purpose of financing costs associated with the Project on a long-term basis; and WHEREAS, in order for the interest on the Bonds to be excluded frorn the gross incornes of the purchasers thereof for purposes of federal incorne 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 Lirnit Allocation conunittee ("CDLAC"), and for the Executive Director of the Authority to obtain and hold a deposit frorn the Developer in the arnount 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, including reimbursement of the Reimbursernent 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 Treasury Regulations require the Authority to declare its reasonable official intent to reimburse prior expenditures for the Project with proceeds of a subsequent borrowing; and WHEREAS, the Authority has determined, pursuant to Section 34292 of the Health and Safety Code of the State of California (the "Housing Authorities Law") that the issuance and delivery of the bonds and the execution and delivery of related documents, and the adoption of this resolution is an "ernergency rnatter" within the meaning of the Housing Authorities Law without . the need for the review by or reconunendations of the Redevelopment and Housing Conunission. . NOW, THEREFORE, BE IT RESOLVED by the Housing Authority of the City of Santa Ana, as follows: 1. The Authority hereby declares its present intention to Bonds pursuant to the procedures specified in the Law in an principal amount not to exceed $8,000,000 for the purposes of financing for the acquisition and rehabilitation of the Project. issue the aggregate providing 2. The issuance and sale of the Bonds shall be upon such terrns and conditions as rnay be rnutually agreed upon by the Authority, the Developer and the purchasers of said Bonds, and shall be authorized by resolution of the Authority at a meeting duly held and conducted for such purposes. 3. issuance required The proceeds of the Bonds shall include such related and necessary expenses, administrative costs and debt service reserves as rnay be to accomplish successfully the financing. 4. The Authority declares the issuance of matter within the meaning of Section 34292 of the Code. the Bonds to be an emergency California Health and Safety 5. The Authority hereby substantial inducement to 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 incurred by the Authority in . anticipation of the issuance of the Bonds, the costs of printing an official staternent, rating agency costs, bond counsel fees and expenses, financial advisor fees and expenses, underwriting discount and costs, trustee fees and expenses, and the cost of printing the Bonds. finds that the issuance of the Bonds in a Developer to acquire and rehabilitate the 7. The payment of the principal, redernption 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 cornpany 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 the project and to execute and deliver an appropriate agreement with the Developer with respect to any deposit required in connection therewith. 9. This resolution is being adopted by the Authority for purposes of establishing cornpliance with the requirernents of Section 1.103-8 (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. . . . . . . . 10. Notwithstanding the foregoing, this resolution does not obligate (I) the Authority to make any expenditure, incur any indebtedness, or proceed with the Project, or (ii) the Authority, the City of Santa Ana (the "City"), the Planning conunission 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 permit or other action necessary for the acquisition, rehabilitation or operation of the Project. 11. This resolution shall take effect inunediately upon its adoption. ADOPTED this ~ day of December , 1997. ATTEST: Cynth a J. N son Executive Director Housing Authority AUTHORITY MEMBERS: APPROVED AS TO FORM: Espino za AY E Franklin AYE Lutz ...AYE . McGuigan --AYE Moreno AYE Pulido --ADsent Richardson ....AYE ~~ 4".~ vtr oseph W. Fletcher Attorney for Housing Authority h:\actions\97Jld\Jlerit~gp .