HomeMy WebLinkAboutr 10482 approve multi family housing rev bonds 433 pacificRESOLUTION NO. 10482 (2013 Series)
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO APPROVING THE
REISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS BY THE HOUSING
AUTHORITY OF THE CITY OF SAN LUIS OBISPO FOR THE CARMEL STREET
APARTMENTS LOCATED AT 433 PACIFIC STREET
\ryHEREAS, the Housing Authority of the City of San Luis Obispo (the "Authority") is
authorized by Chapter 1 of Part 2 of Division24 of the Health and Safety Code of the State of
California, as amended (the "Law"), to issue bonds to finance multifamily rental housing
facilities located within the area of operation of the Authority; and
\ryHEREAS, on April 4, 2002, the Authority issued $ 1,550,000 principal amount of its
Housing Authority of the City of San Luis Obispo Multifamily Housing Revenue Bonds (Carmel
Street Apartments), Series 2002A (the "Bonds") pursuant to an Indenture of Trust, dated as of
April I ,2002 (the "lndenture"), between the Authority and First Bank of San Luis Obispo, as the
then bondowner representative; and
WHEREAS, the Authority loaned the proceeds of the Bonds (the "Loan") to Carmel
Street Associates, a California limited partnership (the "Borrower") pursuant to a Loan
Agreement, dated as of April 7,2002 (the "Loan Agreement"), between the Authority and the
Borrower; and
WHBREAS, the Borrower used the proceeds of the Loan to finance the acquisition and
construction of 19 units of multifamily rental housing known as Carmel Street Apartments (the
"Project"), located at 433 Pacific Street in the City of San Luis Obispo (the "City"); and
WHEREAS, the Bonds are considered to be "qualihed exempt facility bonds" under
Section 142(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and Section
147(Ð of the Code requires that the "applicable elected representative" with respect to the
Authority approve the issuance of the Bonds by the Authority following the holding of a public
hearing with respect thereto; and
\ryHEREAS, the Authority determined that the Council of the City was the "applicable
elected representative" to approve the issuance of the Bonds by the Authority and on October 16,
2007, the Council held a public hearing regarding issuance of the Bonds and adopted Resolution
No. 923 8 (200 1 Series) approving the issuance of the Bonds by the Authority for the purpose of
providing financing to the Borrower for the Project; and
WHEREAS, the City is not a party to any of the agreements or other documents relating
to the Bonds or the financing of the Project, and neither the financing of the Project nor the
Bonds impose any legal, financial or moral obligation upon the City with respect to the financing
of the Project; and
\ryHEREAS, Union Bank, N.A. (the "Bank"), has succeeded to the interests of the
bondowner representative under the Indenture and is the current owner of the Bonds; and
WHEREAS, the Bank has agreed to allow modifications to be made to the Indenture and
the Loan Agreement to lower the interest rate on the Bonds and on the Loan, but such
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modifications will, under the Code, cause a "teissuance" of the Bonds; and
WHEREAS, in order to maintain the tax-exempt status of the interest on the Bonds paid
by the Authority to the Bank, prior to the modification of the Indenture and the Loan Agreement,
the Authority needs the Council to approve the reissuance of the Bonds following a public
hearing on the matter; and
WHEREAS, notice of the required public hearing has been duly given as required by the
Code, and the Council has heretofore held the public hearing at which all interested persons were
given an opportunity to be heard on all matters relative to the reissuance of the Bonds and the
ownership and operation of the Project; and
\ryHEREAS, it is in the public interest and for the public benefit that the Council approve
the reissuance of the Bonds for the aforesaid pulposes.
NOW, THEREFORE BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Action. The Council of the City of San Luis Obispo hereby approves the
reissuance of the Bonds by the Authority for purposes of the Code. This resolution shall take
effect immediately upon its adoption.
Upon motion of Council Member Carpenter, seconded by Vice Mayor Christianson, and
on the following roll call vote:
AYES: Council Members Ashbaugh, Carpenter and Smith, Vice Mayor
Christianson and Mayor Marx
NOES: None
ABSENT: None
The foregoing resolution was adopted this lOtl'day of December 2013
ATTES
J
ty Clerk
APPR
Dietrick
City Attorney
RM