HomeMy WebLinkAboutR-11384 adopting the Reissuance of a Tax-Exempt Note by the Housing Authority of San Luis Obispo (TEFRA)R 11384
RESOLUTION NO. 11384 (2023 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE REISSUANCE OF A TAX-
EXEMPT NOTE BY THE HOUSING AUTHORITY OF THE CITY OF SAN
LUIS OBISPO THAT PROVIDED FINANCING FOR VARIOUS
MULTIFAMILY RENTAL HOUSING FACILITIES LOCATED IN THE CITY
IN ORDER TO PRESERVE EXISTING AFFORDABLE HOUSING
WHEREAS, the Housing Authority of the City of San Luis Obispo (the “Authority”)
is authorized by Chapter 1 of Part 2 of Division 24 of the Health and Safety Code of the
State of California, as amended (the “Act”), to incur indebtedness and to make loans for
housing purposes specified in the Act; and
WHEREAS, on October 16, 2018, the City Council of the City adopted Resolution
No. 10949 (2018 Series) approving the incurrence by the Authority of a tax-exempt
obligation of the Authority (the “Note”) for the purpose of providing financing for the
acquisition and rehabilitation of various multifamily rental housing facilities located in the
City in order to preserve existing affordable housing; and
WHEREAS, on August 13, 2019, the Authority issued the Note in the principal
amount of $57,000,000 and loaned the proceeds of the Note to RAD 175, L.P., a
California limited partnership (the “Borrower”), the managing general partner of which is
the San Luis Obispo Nonprofit Housing Corporation, and the Borrower used the proceeds
of the loan to acquire and rehabilitate the housing facilities identified in Exhibit A to this
Resolution (the “Housing Facilities”); and
WHEREAS, all or a portion of the rental housing units in the Housing Facilities are
being rented to persons and families of low or very low income as required by the Act and
the Internal Revenue Code of 1986, as amended (the “Code”); and
WHEREAS, the interest payable on the Note is exempt from federal income taxes
under the provisions of the Code; and
WHEREAS, the Note is payable solely from payments made by the Borrower, and
the Note is currently outstanding in the principal amount of $13,664,227.77; and
WHEREAS, the Borrower and Pacific Western Bank, the entity currently holding
the Note, have agreed to modify some of the documents executed in connection with the
issuance of the Note to change the amortization schedule for the repayment of the
principal of the Note (the “Modification”), and the Modification will result in a “reissuance”
of the Note for purposes of the Code; and
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WHEREAS, in order for the interest on Note to continue to be tax-exempt, Section
147(f) of the Code requires that the “applicable elected representative” with respect to the
Authority approve the reissuance by the Authority of the Note following the holding of a
public hearing with respect thereto; and
WHEREAS, the Authority has determined that the Council of the City is the
“applicable elected representative” to approve the reissuance by the Authority of the Note
because all of the Housing Facilities are located within the City; and
WHEREAS, notice of a public hearing by the Council regarding the reissuance of
the Note and the financing of the Housing Facilities has been duly given as required by
the Code, and the Council has held the public hearing at which all interested persons
were given an opportunity to be heard on all matters relative to the financing of the
Housing Facilities, including the Authority's reissuance of the Note; and
WHEREAS, the City has no liability or responsibility related to the repayment or
administration of the Note, and the reissuance of the Note will not impose any legal,
financial or moral obligation on the City; and
WHEREAS, it is in the public interest, for the public benefit and in furtherance of
the public purpose of the City that the Council approve the reissuance by the Authority of
the Note for the aforesaid purposes.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Approval of Reissuance of Note. The Council of the City of San Luis
Obispo hereby approves the reissuance by the Authority of the Note for purposes of the
Code.
SECTION 2. Effective Date. This Resolution shall take effect upon its adoption.
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SECTION 3. Authorization to Execute. The Council hereby authorized the City
Manager, Community Development Director and/or Finance Director of the City of San
Luis Obispo to execute any documents necessary to effectuate the purposes of this
Resolution.
Upon motion of Vice Mayor Marx, seconded by Council Member Francis, and on
the following roll call vote:
AYES: Council Member Francis, Pease, Shoresman, Vice Mayor Marx, and
Mayor Stewart
NOES: None
ABSENT: None
The foregoing Resolution was adopted this 10th day of January 2023.
Mayor Erica A. Stewart
ATTEST:
Teresa Purrington,
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
Teresa Purrington
City Clerk
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EXHIBIT A
HOUSING FACILITIES THAT WERE FINANCED
Current Name
of Facility Location of Facility
Number
of Rental
Housing
Units
King-South-Branch 448 South Street, 441 Branch Street and
2173 King Street, San Luis Obispo, CA 8
Torro Gardens 1600 Toro Street, San Luis Obispo, CA 20
Hathway Apartments 508-520 Hathway Street, San Luis Obispo, CA 20
High Street 478-480 High Street, San Luis Obispo, CA 10
Palm View Apartments 11650-11690 Los Osos Valley Road, San Luis
Obispo, CA 20
Leff Street Apartments 456-493 Leff Street, San Luis Obispo, CA 20
Highland Apartments 228 High Street, San Luis Obispo, CA 6
Loma Vista Apartments 2929 Augusta Street, San Luis Obispo, CA 16
Harris 2126 Harris Street, San Luis Obispo, CA 3
Royal Way 1497 Royal Way, San Luis Obispo, CA 8
Southwood 1240 Southwood Drive, San Luis Obispo, CA 3
Upham 711 Upham Street, San Luis Obispo, CA 3
Puerta Del Sol 4280 South Higuera, San Luis Obispo, CA 15
Arbor Place 1172 Leff Street, 1175 Islay Street and
1635 Toro Street, San Luis Obispo, CA 20
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