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HomeMy WebLinkAbout2001-02 CRA . RESOLUTION NO. 2001- 02 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AUTHORIZING THE SUBORDINATION OF CERTAIN PAYMENTS TO BE MADE UNDER AN OWNER PARTICIPATION AGREEMENT WITH RESPECT TO THE HENINGER VILLAGE SENIOR.. APARTMENTS AND AUTHORIZING THE EXECUTION AND DELIVERY OF AND APPROVING OTHER RELATED DOCUMENTS AND APPROVING OTHER RELATED ACTIONS IN CONNECTION THEREWITH BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The Community Redevelopment Agency the City of Santa Ana hereby, finds, determines and declares as follows: . A. The Community Redevelopment Agency of the City of Santa Ana (the "Agency") has entered into an Owner Participation Agreement, dated March 17, 1987, with Syçamore Retirement Apartments, Ltd., a California limited partnership (the "Original Developer") and TEJV-1, loP., assuCC$SSOf-in-interest to the Resolution Trust Corporation, as sucœssor-in-interest to Mercury Savings and Loan Association (the "Owner Participation Agreement"), with respect to the acquisition, development and ownership of the a 58-unit multifamily residential rental facility located at 200 South Sycamore Street in the City of Santa Ana, currently known as Heninger Village Senior Apartments (forrner1y known as Sycamore Apartments) (the "Project"), a portion of which is made available to persons of low and moderate income; B. Pursuant to the terms and provisions of the Owner Participation Agreement, the Agency made a loan to the Original Developer for the purpose of financing, in part, the Project in the amount of $425.000.00 and the Borrower executed a Promissory Note, dated April 6, 1987, in the principal amount of $425,000.00 (the "Note") in favor of the Agency; C. The Housing Authority of the City of Santa Ana (the "Authority") is authorized by Chapter 1 of Part 2 of Division 24 (commencing with Section 34200) of the Health and Safety Code of the State of California (the "Law"), to issue and &ell its revenue bonds for the purpose of financing the acquisition, construction, rehabilitation or development of multifamily rental housing for families and individuals of low and very low income; and . D. In connection with the execution and delivery of the Owner Participation Agreement, the Housing Authority of the City of Santa Ana (the "Authority") issued and delivered its $3,290,000 aggregate principal amount of Variable Rate Demand Multifamily Housing Revenue Bonds (Mercury Savings and Loan Association/Sycamore " . . . l, Apartments Project), 1987 Series A, the proceeds of which were loaned to the Original Developer for the purpose of financing, in part, the Project; E. In December, 1997, the Agency agreed to amend the Owner Participation Agreement pursuant to the terms of a First Amendment to Owner Participation Agreement, dated as of December 1, 1997, to assist in the refinancing of the Project with the proceeds of the Housing AuthQrity of the City of Santa Ana Multi~mily Housing Revenue Refunding Bonds (Heninger VIllage Senior Apartments) 1997 Issue A in the original principal amount of $2,540,000; G. KDF Communities and Foundation For Human Resources (the Developers") have requested the Authority to issue and sell revenue bonds in a principal amount not to exceed four mUlion five hundred thousand dollars ($4,500,000) (the "Bonds") pursuant to the procedures specified in the Law for the purpose of financing the acquisition and rehabilitation by the Developers (or a limited partnership or limited liability company to be formed by the Developers) of the Project; and H. In the furtherance of providing very low and low and moderate income housing, the Developers have requested the Agency to subordinate payments to be made on the Note in the principal amount of $240,000 together with any due but unpaid interest to the date of the execution of a novation to the Note, plus interest on the Note from the date of such novation (the "Revised Note"), to assist the Developers in the purch8'S& of the Project, the purchase price of which is expected to be financed, in part, with the proceeds of the Bonds; and I. All conditions, things and acts required to exist, to have happened and to have been performed precedent to and in connection with the subordination of the payments under the Revised Note to the payments with respect to the Bonds as contemplated by this resolution and the documents referred to herein exist, have happened and have been performed in due time, form and manner as required by the laws of the State of California. Section 2. The Agency hereby finds and declares that the above recitals are true and correct. Section 3. The Agency hereby agrees to subordinate all payments to be made under the Revised Note to the payments to be made with respect to the Bonds (the .Subordination"). The Chairman, Executive Director, Ass.istant Executive Director and Finance Officer of the Agency (the "Designated Officers") are, and each of them acting alone is, hereby authorized and directed, for and in the name and on behalf of the Agency, to execute and deliver any amendment to the Owner Participation Agreement necessary to effect the Subordination. Section 4. All actions heretofore taken by the officers and agents of the Agency with respect to the Subordination and the execution and delivery of any necessary amendment to' the Owner Participation Agreement are hereby approved, . . . confirmed and ratified, and the proper officers of the Agency, including the Designated Officers, are hereby authorized and directed, for and in the name and on behalf of the Agency, to do any and all things and take any and all actions and execute and deliver any and all certificates, agreements and other documents which they, or any of them, may deem necessary or advisable in order to effect the Subordination and to further the purposes hereof. , .. Section 5. This resolution shall take effect immediately upon its adoption. ADOPTED this -.fruL day of Acri 1 ,2001. ;& J . Reekstin Executive Director I Secretary MEMBERS: Pulido McGuigan Alvarez Bist Christy Franklin Solorio -Ñ.L ~ ~ ~ ~ ~ ~ APPROVED AS TO FORM~ Joseph W. Fletcher Age~nsel By: . i a I Viglio Deputy Counsel \ ....