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HomeMy WebLinkAbout04 - RESOLUTION 2006-004 RESOLUTION NO. HA 2006-004 A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA DECLARING ITS INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF TAX-EXEMPT OBLIGATIONS AND DIRECTING CERTAIN ACTIONS WITH REGARD TO FINANCING THE ACQUISITION AND REHABILITATION OF SEVENTEEN PROPERTIES LOCATED AT 1201, 1209, 1213, 1221, 1225,1229, AND 1233 E. WILSHIRE AVENUE AND 1401, 1403, 1409, 1413, 1421, 1425, 1429, 1433, 1437, and 1439 S. MINNIE STREET IN THE CITY OF SANTA ANA BE IT RESOLVED BY THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1: The Board of the Housing Authority of the City of Santa Ana hereby finds, determines and declares as follows: A. The Housing Authority of the City of Santa Ana (the "Authority") intends to issue tax-exempt obligations (the "Obligations") for the purpose, among other things, of making a loan to Wilshire/Minnie, L.P., a California limited partnership (the "Developer"), formed by Orange Housing Development Corporation, a California nonprofit public benefit corporation and C&C Development Company, LLC, the proceeds of which shall be used by the Developer to finance the acquisition, rehabilitation and development of seventeen apartment buildings with multifamily rental housing located at 1201, 1209, 1213, 1221, 1225, 1229, and 1233 E. Wilshire Avenue and 1401,1403,1409,1413,1421,1425,1429,1433,1437, and 1439 S. Minnie Street in the City of Santa Ana in the City of Santa Ana, California (the "Project"). B. United States Income Tax Regulations section 1.103-18 provides generally that proceeds of tax-exempt debt are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such debt unless certain procedures are followed, among which is a requirement that (with certain exceptions), prior to the payment of any such expenditure, the issuer must declare an intention to reimburse such expenditure. C It is in the public interest and for the public benefit that the Authority declares its official intent to reimburse the expenditures referenced herein. Section 2: The Authority intends to issue the Obligations for the purpose of paying the costs of financing the acquisition, rehabilitation and development of the Project. Section 3: The Authority hereby declares that it reasonably expects that a portion of the proceeds of the Obligations will be used for reimbursement of Resolution No. HA 2006-004 Page 1 of 3 expenditures for the acquisition, rehabilitation and development of the Project that are paid before the date of initial execution and delivery of the Obligations. Section 4: The maximum amount of proceeds of the Obligations to be used for reimbursement of expenditures for the acquisition, rehabilitation and development of the Project that are paid before the date of initial execution and delivery of the Obligations is not to exceed $15,500,000. Section 5: The foregoing declaration is consistent with the budgetary and financial circumstances of the Authority in that there are no funds (other than proceeds of the Obligations) that are reasonably expected to be (i) reserved, (ii) allocated or (Iii) otherwise set aside, on a long-term basis, by or on behalf of the Authority, or any public entity controlled by the Authority, for the expenditures for the acquisition and rehabilitation of the Project that are expected to be reimbursed from the proceeds of the Obligations. Section 6: The Developer shall be responsible for the payment of all present and future costs in connection with the issuance of the Obligations, including, but not limited to, any fees and expenses incurred by the Authority in anticipation of the issuance of the Obligations, the cost of printing any official statement, rating agency costs, bond counsel fees and expenses, underwriting discount and costs, trustee fees and expense, and the costs of printing the Obligations. The payment of the principal, redemption premium, if any, and purchase price of and interest on the Obligations shall be solely the responsibility of the Developer. The Obligations shall not constitute a debt or obligation of the Authority. Section 7: The law firm of Jones Hall, A Professional Law Corporation, is hereby named as bond counsel to the Authority in connection with the issuance of the Obligations. The fees and expense of bond counsel and any financial advisor employed by the Authority in connection with the issuance of the Obligations are to be paid solely from the proceeds of the Obligations or directly by the Developer. Section 8: 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 financing of the Project. Section 9: The adoption of this Resolution shall not obligate (i) the Authority to provide financing to the Developer for the acquisition, rehabilitation and development of the Project or to issue the Obligations for purposes of such financing; or (ii) the Authority, of or any department of the Authority or the City of Santa Ana to approve any application or request for, or take any other action in connection with, any environmental, General Plan, zoning or any other permit or other action necessary for the acquisition, rehabilitation, development or operation of the Project. Section 10: This resolution shall take effect immediately upon its adoption. Resolution No. HA 2006-004 Page 2 of 3 ADOPTED this 181h day of December, 2006. APPROVED AS TO FORM: Joseph W. Fletcher, Housing Authority Counsel .t..~ .' .' By: " / ,: . // t..'" Lis" E:Storck' (' . GeI1eral Counsel , c AYES Councilmembers Alvarez, Benavides, Bustamante, Martinez. Pulido Tinaiero (6) NOES: Councilmembers None (0) ABSTAIN: Council members None (0) NOT PRESENT: Councilmembers None (0) CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY. Secretary for the Housing AuthOrity, do hereby attest to and certify the attached Resolution No 2006-004 to be the original resolution adopted by the Housing Authority for the City of Santa Ana on December /18~2006. . _ -. a6 Date ~/.p 7 u=;?fr'. ,-r" - / ~ Secretary Housing Authority Resolution No HA 2006-004 Page 3 of3