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HomeMy WebLinkAbout2017-014 - Issuance of Revenue Bonds by the California Municipal Finance AuthorityRESOLUTION NO. 2017 -014 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $10,000,000 TO FINANCE A 58 -UNIT AFFORDABLE MULTIFAMILY RENTAL FACILITY FOR THE BENEFIT OF SANTA ANA ARTS COLLECTIVE, L.P., OR ANOTHER ENTITY TO BE FORMED BY META HOUSING CORPORATION AND /OR WESTERN COMMUNITY HOUSING, INC. (OR AN AFFILIATE OF EITHER) AND CERTAIN OTHER MATTERS RELATING THERETO WHEREAS, Meta Housing Corporation and Western Community Housing, Inc., on behalf of Santa Ana Arts Collective, L.P., a California limited partnership, or another entity to be established by Meta Housing Corporation and /or Western Community Housing, Inc. or an affiliate thereof (the 'Borrower "), has requested that the California Municipal Finance Authority (the "Authority') issue one or more series of revenue bonds in an aggregate principal amount not to exceed $10,000,000 (the "Bonds ") for the acquisition, construction, improvement and equipping of a 58 -unit affordable multifamily rental housing facility (the "Project') to be owned and operated by the Borrower and located at 1666 North Main Street within the City of Santa Ana (the "City'); and WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the "Code "), the issuance of the Bonds by the Authority must be approved by the City because the Project is to be located within the territorial limits of the City; and WHEREAS, the City Council of the City (the "City Council ") is the elected legislative body of the City and is one of the "applicable elected representatives" required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement'), among certain local agencies, including the City; and WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority; and WHEREAS, the City Council understands that its actions in holding this public hearing and in approving this Resolution do not obligate the City in any manner for Resolution No. 2017 -014 Page 1 of 3 payment of the principal, interest, fees or any other costs associated with the issuance of the Bonds, and said City Council expressly conditions its approval of this Resolution on that understanding. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Santa Ana as follows: Section 1. The foregoing recitals are true and correct. Section 2. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is to be located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement. Section 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds. Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to: (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation installation or operation of the Project; or, (iii) make any contribution or advance any funds whatsoever to the Authority. Section 5. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby. Section 6. The City Council expressly conditions its approval of this Resolution on its understanding that the City shall have no obligation whatsoever to pay any principal, interest, fees or any other costs associated with the Authority's issuance of the Bonds for the financing of the Project. Section 7. The Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the Authority in care of its counsel: Ronald E. Lee, Esq. Jones Hall, APLC 475 Sansome Street, Suite 1700 San Francisco, CA 94111 Section 8. This resolution shall take effect immediately upon its adoption. Resolution No. 2017 -014 Page 2 of 3 ADOPTED this 4t" day of April, 2017. APPROVED AS TO FORM: Sonia R,,.9arvalho, City Attorney ge Attorney AYES: Councilmembers Benavides, Martinez, Pulido, Sarmiento, Solorio, Tinaiero, Villegas (7) NOES: Councilmembers None (0) ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2017 -014 to be the original resolution adopted by the City Council of the City of Santa Ana on April 4, 2017. Date: ' �1 20) -1 Maria D. Huizar Clerk of Council City of Santa Ana Resolution No. 2017 -014 Page 3 of 3