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HomeMy WebLinkAboutR-10794 - Resolution approving the incurring of tax exempt obligation by the Housing Authority of city of SLO for the purpose of providing financing for the acquisition and rehabilitation of Laurel Creek, Ironbark and Pismo BuchoRESOLUTION NO. 10794 (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 ACQUISITION AND REHABILITATION OF LAUREL CREEK, IRONBARK AND PISMO BUCHON 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, SLO 55, L.P., a California limited partnership (the `Borrower") intends to acquire and rehabilitate the following three apartment facilities (collectively referred to in this Resolution as the "Housing Facilities"): Laurel Creek Apartments, located at 1092 Orcutt Road in the City, Ironbark Apartments located at 1102 Ironbark Street in the City, and Pismo Buchon Apartments, located at 1363 Pismo Street in the City; 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 $5,600,000, and a loan of the proceeds of the Bonds to the Borrower; and WHEREAS, a portion of the housing units in the Housing Facilities 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 Facilities are all located within the City; and WHEREAS, notice of a public hearing by the Council regarding 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 location, operation and financing of the Housing Facilities, including the Authority's issuance of the Bonds and subsequent lending of the proceeds thereof to the Borrower to pay costs of the acquisition and rehabilitation by the Borrower of the Housing Facilities; and R 10794 Resolution No. 10794 (2017 Series) Page 2 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 Facilities, 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 Facilities 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 Council Member Gomez, 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. Ma or H di Harmo ATTEST: (Aaj,4-11(,Z� IJO Carrie Gallagher City Clerk R 10794 Resolution No. 10794 (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 l Zik day of , 2017. Carrie Gallagher City Clerk R 10794