HomeMy WebLinkAboutRESOLUTION 2001-01 BONDS
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RESOLUTION NO. 2001-01
A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA
DECLARING ITS IN'rEN'rION TO
REIMBURSE EXPENDITURES FROM THE PROCEEDS OF
TAX-EXEMPT OBLIGATIONS AND DIRECTING CERTAIN ACTIONS
WHEREAS, 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 rnaking a loan
to Civic Center Barrio Housing Corporation and Avalon Communities, or
a lirnited partnership or a limited liability company to be forrned by
such entities (the "Developer"), the proceeds of which shall be used
by the Developer to finance the acquisition, rehabilitation and
developrnent of a l27-unit multifarnily housing facility to be located
at 805, 810, 815, 816, 825, 828, 835 and 904 South Minnie Street,
Santa Ana, California and to be commonly known as Cornerstone Village
Apartments (the "Project"); and
WHEREAS, United States Income Tax Regulations section 1.103-18
provides generally that proceeds of tax-exernpt 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, arnong which is a requirernent that
(with certain exceptions), prior to the payment of any such
expenditure, the issuer must declare an intention to reimburse such
expenditure; and
WHEREAS, it is in the pUblic
that the Authority declare its
expenditures referenced herein;
interest and for the public benefit
official intent to reimburse the
NOW, THEREFORE, BE IT RESOLVED that the Housing Authority of the
City of Santa Ana DECLARES and ORDERS as follows:
1. The Authority intends to issue the Obligations for the
purpose of paying the costs of financing the acquisition,
rehabilitation and development of the Project.
2. 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.
3. The rnaxirnum 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
$8,300,000.
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4. 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.
5. 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 staternent, 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 prernium, 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.
6. 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
frorn the proceeds of the Obligations or directly by the Developer.
7. The appropriate officers or staff of the Authority are
hereby authorized, for and in the name of and on behalf of the
Authority, to rnake an application to the California Debt Lirnit
Allocation Conunittee for an allocation of private activity bonds for
the financing of the Project.
8. 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.
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adoption.
This
immediately
upon
its
resolution
shall
take
effect
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PASSED AND ADOPTED by the Housing Authority of the City of Santa
Ana, California, at a regular meeting thereof held on the February 20,
2001, by the following vote:
ATTEST:
¿((eeked"
Executive Director
Housing Authority
AUTHORITY MEMBERS:
Pulido
McGuigan
Alvarez
Bist
Christy
Franklin
Solorio
ABSTAIN
m.
AYE
AYE
AYF.
AYE
AYE
cfti; C-- £. ~
Jì.r Joseph W. Fletcher
Housing Authority Attorney
APPROVED AS TO FORM:
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