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HomeMy WebLinkAboutR-10707 - Approving incurring tax exempt obiligation by the Housing Authority to Provide Financing - Iron Works AptsRESOLUTION NO. 10707 (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE INCURRING OF A TAX EXEMPT OBLIGATION BY THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO FOR THE PURPOSE OF PROVIDING FINANCING FOR THE CONSTRUCTION OF IRON WORKS APARTMENTS 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, the Authority has expressed an interest in establishing a California limited partnership (the "Borrower") and in assisting the Borrower to develop Iron Works Apartments, a 46 unit affordable housing project located at 3680 Broad Street (referred to in this Resolution as the "Housing Facility"); and WHEREAS, such assistance will involve the issuance by the Authority of debt obligations (which may be in the form of a loan evidenced by a note or tax-exempt revenue bonds, and referred to in this Resolution as the "Bonds") in the approximate amount of $10,000,000, and a loan of the proceeds of the Bonds to the Borrower; and WHEREAS, a portion of the housing units in the Housing Facility will be 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 Bonds will be considered to be a "qualified exempt facility bonds" under Section 142(a) of the Code; and WHEREAS, Section 147(f) of the Code requires that the "applicable elected representative" with respect to the Authority approve the issuance by the Authority of the Bonds following the holding of a public hearing with respect thereto; and WHEREAS, the Authority has determined that the City Council is the "applicable elected representative" to approve the issuance by the Authority of the Bonds because the Housing Facility is located within the City; and WHEREAS, notice of a public hearing by the Council regarding the financing of the Project has been duly given as required by the Code; and R 10707 Resolution No. 10707 (2016 Series) Page 2 WHEREAS, 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 location, operation and financing of the Housing Facility, including the Authority's issuance of the Bonds and subsequent lending of the proceeds thereof to the Borrower to pay costs of the construction by the Borrower of the Housing Facility; and WHEREAS, the City will not be a party to any of the agreements or other documents related to the Bonds and the financing of the Housing Facility, the City will have no liability or responsibility related to the repayment or administration of the Bonds, and the issuance of the Bonds and the financing of the Housing Facility 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 issuance by the Authority of the Bonds for the aforesaid purposes. NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Luis Obispo does declare, determine and order as follows: SECTION 1. The Council of the City of San Luis Obispo hereby approves the issuance by the Authority of the Bonds for purposes of the Code. SECTION 2. Environmental Determination. The City Council has determined that the above actions will not have a significant impact on the environment, as defined by §15061(b)(3) of the California Environmental Quality Act and are exempt from environmental review. SECTION 3. This Resolution shall take effect immediately upon its adoption. Upon motion of Council Member Christianson seconded by Council Member Ashbaugh and on the following roll call vote: AYES: Council Members Ashbaugh, Christianson and Rivoire, Vice Mayor Carpenter and Mayor Marx NOES: None ABSENT: None R 10707 Resolution No. 10707 (2016 Series) The foregoing Resolution was adopted this 19th day of April 2016. cl=�= O?�� Mayor an Iarx A TTT7Orr. Interim City Clerk [ristine Dietrick t Attorney Page 3 IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this day of (� Lee PiTcU, MMC Interim City Clerk R 10707