Loading...
HomeMy WebLinkAboutR-10816 - Approving the Incurring of a tax-exempt obiligation by the Housing Authority for Laurel Creek, Ironbark and Pismo BuchonRESOLUTION NO. 10816 (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 ADDITIONAL FINANCING FOR THE 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") 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, following the conduct by the Council of a public hearing on May 2, 2017, regarding the issuance of the Bonds by the Authority, the City Council adopted a resolution approving the issuance by the Authority of $5,600,000 of Bonds for the Housing Facilities; and WHEREAS, the costs of the rehabilitation of the Housing Facilities has unexpectedly increased, and the Authority has now requested that the Council hold a public hearing regarding the issuance of an additional $900,000 in Bonds by the Authority to finance costs of the Housing R 10816 Resolution No. 10816 (2017 Series) Page 2 Facilities (the "Additional Bonds"), and approve the issuance of the Additional Bonds by the Authority; and WHEREAS, notice of a public hearing by the Council regarding the issuance of the Additional Bonds by the Authority to provide financing for 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 Additional Bonds and subsequent lending of the proceeds thereof to the Borrower to pay costs of the rehabilitation by the Borrower of the Housing Facilities; and WHEREAS, the City will not be a party to any of the agreements or other documents related to the Bonds or the Additional Bonds, or the use of the proceeds thereof for the financing of the Housing Facilities, the City will have no liability or responsibility related to the repayment or administration of the Bonds or the Additional Bonds, and the issuance of the Bonds, the issuance of the Additional Bonds and the financing of the Housing Facilities with the proceeds thereof 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 Additional 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 Additional 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. SECTION 3. This resolution shall take effect immediately upon its adoption. R 10816 Resolution No. 10816 (2017 Series) Page 3 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 20th day of June, 2017. Ayo eidi Harm/ ATTEST: Carrie Gallagher City Clerk APPROVED AS TO' FO 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, this d j 4k day of a b 1 Carrie Gallagher City Clerk R 10816