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11/22/05 LES
RESOLUTION NO. HA 2005-001
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
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 Ross & Durant, L.P., a partnership of Orange Housing Development Corporation
(OHDC) and C&C R&D, LLC, the Limited Tax Credit Equity Partner (the "Developer"), the
proceeds of which shall be used by the Developer to finance the acquisition and
rehabilitation of two multifamily properties located at 1501 N. Ross,1401 and 1411 N.
Durant (Exhibit 1), in the Willard Neighborhood (the "Project"). The effect of the rehabilitation
will be increased larger family units (18 one-bedroom units, 16 two-bedroom units and 15
three-bedroom units) and reduced overall density.
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; and
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 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
$10,000,000.
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.
11/22/05 LES
ADOPTED this 5th day of December. 2005.
APPROVED AS TO FORM:
Joseph W. Fletcher, Housing Authority Counsel
BY:~'<- C ~
Lisa E. Storck
General Counsel
AYES:
Boardmembers: Alvarez. Bustamante. Bist, Garcia. Pulido. Solorio (6)
NOES:
Boardmembers: None (0)
ABSTAIN:
Boardmembers: None (0)
NOT PRESENT: Boardmembers: Christy (1)
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Secretary for the Housing Authority, do hereby attest to and certify the
attached Resolution NO.HA 2005-001 to be the original resolution adopted by the Housing
Authority for the City of Santa Ana on December, 5, 2005.. ~ /~
Date: ;P/hC /~~~ c::..
/ Secretary - [)
Housing Authority
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