HomeMy WebLinkAboutR-10793 - Resolution approving the incurring of a tax exempt obligation by the Housing Authority of the city of SLO for the purpose of providing financing for the development of Iron Works aptsRESOLUTION NO. 10793 (2017 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 DEVELOPMENT 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, Iron Works Apartments, L.P., a California limited partnership (the
"Borrower") intends to develop Iron Works Apartments, a 46 unit affordable housing project to be
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 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 Council of the City is the "applicable
elected representative" to approve the issuance by the Authority of the Bonds because the Housing
Facility will be located within the City; and
WHEREAS, notice of a public hearing by the Council regarding the financing of the
Housing Facility 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 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
acquisition, construction and development 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
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Resolution No. 10793 (2017 Series) Page 2
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. Approval of Issuance of Bonds. 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 Council of the City of San Luis Obispo
has determined that the above action will not have a significant impact on the environment, as
defined by §15061(b)(3) of the California Environmental Quality Act and is exempt from
environmental review.
Upon motion of Council Member Christianson, seconded by Vice Mayor Rivoire, and on the
following roll call vote:
AYES: Council Members Christianson, Gomez, and Pease
Vice Mayor Rivoire and Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 2nd day of May 2017.
/n/- — ZZ
M or eidi Harm;
ATTEST:
Carrie Gallagher
City Clerk
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Resolution No. 10793 (2017 Series)
APPROVED AS TO FORM:
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 , 2017.
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Carrie Gallagher
City Clerk
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