HomeMy WebLinkAboutR-10859 Issuance of tax-exempt loan to the Housing Authority fo develop 3175 Violet StRESOLUTION NO. 10859 (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 CONSTRUCTION OF COURTYARD AT THE
MEADOWS.
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 constructing the Courtyard at the
Meadows affordable rental project at 3175 Violet Street (referred to in this Resolution as the
"Housing Facility"); 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 amount not to exceed $10,000,000, and a loan of the
proceeds of the Bonds to the Borrower; and
WHEREAS, all housing units in the Housing Facility 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
WHEREAS, 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 Facility
is located within the City; and
WHEREAS, notice of a public hearing by the Council regarding the financing of the
Housing Facility has been duly given as required by the Code; and
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Resolution No. 10859 (2018 Series) Page 2
WHEREAS, 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 Facility, including the Authority's issuance of the Bonds and subsequent lending of
the proceeds thereof to the Borrower to pay costs of the construction by the Borrower of the
Housing Facility; and
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 Facility, 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 Facility 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. 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. This Resolution shall take effect immediately upon its adoption.
Upon motion of Council Member Pease seconded by Council Member Gomez and on the
following vote:
AYES: Council Members Gomez, Pease, Rivoire and Mayor Harmon
NOES: None
ABSENT: Vice Mayor Christianson
The foregoing resolution was adopted this 6th day of February 2018.
ATTEST:
Carrie Gallagher
City Clerk
Resolution No. 10859 (2018 Series) Page 3
VED AS TO FORM:
+.fstine Dietrick
Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this 14 fA day of T--1
�o 1
r ,,
Carrie Gallagher
City Clerk
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