HomeMy WebLinkAboutR-10706 - Approving incurring tax exempt obiligation by the Housing Authority to Provide Financing - Laurel Creek, Ironbar, Pismo Buchon AptsRESOLUTION NO. 10706 (2016 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, the Authority has expressed an interest in establishing a California limited
partnership (the "Borrower") and in assisting the Borrower in acquiring and rehabilitating the
following three apartment facilities (collectively referred to in this Resolution as the "Housing
Facilities"): Laurel Creek Apartments, located at 1092 Orcutt Road, Ironbark Apartments located
at 1102 Ironbark Street, and Pismo Buchon Apartments, located at 1363 Pismo Street; 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
$6,000,000, and a loan of the proceeds of the Bonds to the Borrower; and
WHEREAS, a portion of the housing units in the Housing 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 City Council 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
Projects 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. 10706 (2016 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. Environmental Determination. The City Council has determined that the
above actions will not have a significant impact on the environment, as defined by § 15061(b)(3)
of the California Environmental Quality Act and are exempt from environmental review.
SECTION 2. Action. The Council of the City of San Luis Obispo hereby approves the
issuance 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 Ashbaugh, seconded by Council Member Christianson, and on
the following roll call vote:
AYES: Council Members Ashbaugh, Christianson and Rivoire,
Vice Mayor Carpenter and Mayor Marx
NOES: None
ABSENT: None
The foregoing resolution was adopted this 19th day of April 2016.
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Mayo ] Marx
Interim City Clerk
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Resolution No. 10706 (2016 Series)
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Page 3
IN WITNESS WHEREOF, I have hereunto set inand affixed the official seal of the City
of San Luis Obispo, California, this day of Y/�A akl�� 0
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Lee F Fri+ e, MMC
Interim City Clerk
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