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HomeMy WebLinkAbout2016-007 - Issuance by the California Public Finance Authority of Multifamily HousingRESOLUTION NO. 2016-007 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE BY THE CALIFORNIA PUBLIC FINANCE AUTHORITY OF MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $15,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION AND REHABILITATION OF GUEST HOUSE APARTMENTS AND CERTAIN OTHER MATTERS RELATING THERETO, AND AUTHORIZING THE EXECUTION OF THE JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE CALIFORNIA PUBLIC FINANCE AUTHORITY TO BECOME AN ADDITIONAL MEMBER FOR THE PURPOSE OF APPROVING BONDS FOR THE GUEST HOUSE APARTMENTS PROJECT LOCATED AT 2151 EAST FIRST STREET, SANTA ANA WHEREAS, Guest House LP, a California limited partnership (the "Borrower"), has requested that the California Public Finance Authority (the "Authority") participate in the issuance of one or more series of revenue bonds issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, in an aggregate principal amount not to exceed $15,000,000 (the 'Bonds") for the acquisition, rehabilitation, improvement and equipping of a 72 -unit multifamily rental housing project located at 2151 E. First Street, Santa Ana, California, generally known as Guest House Apartments (the "Project') and operated by Solari Enterprises; and WHEREAS, the Project is located within the City of Santa Ana (the "City"); and WHEREAS, the City proposes to become an Additional Member of the Authority pursuant to Section 12 of the Joint Exercise of Powers Agreement (the "Agreement') relating to the California Public Finance Authority only for the limited scope and purpose of providing local government approval of the issuance of the Bonds to the Borrower by the Authority for the Project; and WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), the issuance of the Bonds by the Authority must be approved by the City because the Project is 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 the applicable elected representative under Section 147(f) of the Code; 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 Resolution No. 2016-007 Page 1 of 3 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 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, and are adopted herein. Section 2. The City Council hereby approves the issuance of the Bonds by the Authority for the purposes of financing the Project. 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 purpose of 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 located. 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 Council are hereby authorized and directed, jointly and severally, to do any and all things and execute and deliver any and all documents, certificates and other instruments 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. Any actions heretofore taken by such officers are hereby ratified and approved. Section 6. The City hereby requests to become an Additional Member of the Authority pursuant to Section 12 of the Agreement for the limited scope and purpose of providing local government approval of the issuance of the Bonds to the Borrower by the Authority for the Project. The Agreement is hereby approved and the Mayor of the City and all other proper officers and officials of the City, or a designee thereof, are hereby authorized and directed to execute the Agreement. Section 7. 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 Loan for the financing of the Project. Resolution No. 2016-007 Page 2 of 3 Section 8. This Resolution shall take effect from and after its passage and approval. ADOPTED this 191" day of January, 2016. APPROVED AS TO FORM: Sonia R._qarvalho, City Attorney By: ' Ryan O odc Assista t City AYES: NOES: ABSTAIN: Councilmembers: Benavides, Martinez, Pulido, Reyna, Sarmiento, Tinajero (6) Councilmembers: Councilmembers: None (0) NOT PRESENT: Councilmembers: Amezcua (1) CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2016-007 to be the original resolution adopted by the City Council of the City of Santa Ana on January 19, 2016, Date: 13g 7 / � ZD' Afy Clerk of the Council City of Santa Ana Resolution No. 2016-007 Page 3 of 3