HomeMy WebLinkAboutR-10949 approving the incurring of a tax exempt obligation by the Housing Authority for providing financing for rehab of various multifamily rental housingRESOLUTION NO. 10949 (2018 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
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, the Authority has been advised that the San Luis Obispo Nonprofit Housing
Corporation intends to establish a California limited partnership (the "Borrower") that will acquire
and rehabilitate various multifamily rental housing facilities identified in "Exhibit A" to this
Resolution (referred to in this Resolution collectively as the "Housing Facilities"); 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 $62,000,000, and a loan of the
proceeds of the Bonds to the Borrower; and
WHEREAS, all or a portion of the rental 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 all of the
Housing Facilities are 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
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Resolution No. 10949 (2018 Series) Page 2
WHEREAS, 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 by the Council of the City of San Luis Obispo
declares as follows:
SECTION 1. Approval of Issuance of Bonds. The Council of the City of San Luis Obispo
hereby approves the issuance of 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 Rivoire, seconded by Vice Mayor Christianson, and on
the following roll call vote:
AYES: Council Members Gomez, Pease and Rivoire,
Vice Mayor Christianson and Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 16th day of October, 2018.
ATTEST:
Teresa Purrington
City Clerk
R 10949
Resolution No. 10949 (2018 Series)
APPROVED AS TO
J. ghiistine Dietrick
'city 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 22'A day of O c J(j be.Ar 2,d 1
e ,
Teresa Purrington
City Clerk
R 10949
Resolution No. 10949 (2018 Series)
EXHIBIT A
HOUSING FACILITIES TO BE FINANCED
Page 4
Current Name
Location of Facility
Number of Rental
of Facility
flousing Units
King -South-
448 South Street, 441 Branch Street and
8
Branch
2173 King Street San Luis Obispo, CA
Torro Gardens
1600 Toro Street San Luis Obispo, CA
20
Hathway
508-520 Hathway Street, San Luis Obispo, CA
20
Apartments
Highland
478-480 High Street, San Luis Obispo, CA
10
Apartments
Palm View
11650-11690 Los Osos Valley Road, San Luis
20
Apartments
Obispo, CA
Leff Street
456-493 Leff Street, San Luis Obispo, CA
20
A artments
High Street
228 High Street, San Luis Obispo, CA
6
Loma Vista
2929 Augusta Street, San Luis Obispo, CA
16
Apartments
Harris
2126 Harris Street, San Luis Obispo, CA
3
Royal Wa
1497 Royal Wa , 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 Hi era, San Luis Obispo, CA
15
1172 Leff Street, 1175 Islay Street and
20
Arbor Place
1635 Toro Street, San Luis Obispo, CA
WTAL 172