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HomeMy WebLinkAbout2011-46 Creekside Village apts RCHDCRESOLUTION NO. 2011-46 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR THE PURPOSE OF FINANCING THE ACQUISITION AND REHABILITATION OF A MULTIFAMILY RENTAL HOUSING FACILITY KNOWN AS CREEKSIDE VILLAGE APARTMENTS WHEREAS, pursuant Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Act"), certain public agencies (the "Members") have entered into a Joint Exercise of Powers Agreement, effective on January 1, 2004 (the "Agreement") in order to form the California Municipal Finance Authority (the "Authority"), for the purpose of promoting economic, cultural and community development, and in order to exercise any powers common to the Members, including the issuance of bonds, notes or other evidences of indebtedness; and WHEREAS, the Authority is authorized to issue and sell revenue bonds for the purpose, among others, of financing or refinancing the acquisition and rehabilitation of multifamily rental housing projects; and WHEREAS, Pine Gardens 1, Inc., a California nonprofit public benefit corporation (the "Borrower"), an affiliate of Rural Communities Housing Development Corporation ("RCHDC"), has requested that the Authority issue debt obligations one or more series (which may be in the "Bonds") in an aggregate principal amount not to exceed $2,400,000, and lend the proceeds of the Bonds to the Borrower for the purpose of financing the costs of the acquisition and rehabilitation by the Borrower of a 44-unit senior rental housing facility located at 751 Waugh Lane in the City of Ukiah, California (the "City"), currently identified as Creekside Village Apartments (the "Project"), to be owned by the Borrower and to be operated initially by RCHDC; and WHEREAS, in order for the interest on the Bonds to be tax-exempt, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code") requires that the "applicable elected representative" with respect to the Project approve the issuance of the Bonds by the Authority following the conduct of a public hearing regarding the issuance of the Bonds and the financing of the Project; and WHEREAS, the City Council of the City is the elected legislative body of the City and is an applicable elected representative with respect to the approval of the issuance of the Bonds under Section 147(f) of the Code because the Project is located in the City; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Agreement; and WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds and the financing of the Project at which all those interested in speaking with respect to the financing of the Project and the Authority's issuance of the Bonds therefore were heard, and now desires to approve the issuance of the Bonds by the Authority. follows: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah, as Section 1. The City Council hereby approves the issuance of the Bonds by the Authority for the purpose of providing funds to make a loan to the Borrower to enable the Borrower to finance costs of the Project. It is the purpose and intent of the City Council that this Resolution constitute approval of the issuance of the Bonds by the Authority for the purposes of (a) Section 147(f) of the Code, by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement. Section 2. The issuance of the Bonds shall be subject to approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to repayment or administration of the Bonds. Section 3. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or rehabilitate the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, rehabilitation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. Section 4. The City Manager, City Clerk and all other officers and officials of the City are hereby authorized and directed to do any and all things and to execute and deliver any and all agreements, documents and certificates which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this Resolution and the financing transaction approved hereby. Section 5. The City Clerk is hereby directed to forward a certified copy of this Resolution-to-the-bond-counsellor-the Bonds, addressed-as-follows. Paul J. Thimmig, Esq. Quint & Thimmig LLP j 575 Market Street, Suite 3600 San Francisco, CA 94105-2874 Section 6. This Resolution shall take effect from and after the date of its passage and adoption. PASSED AND APPROVED this 2nd day of November, 2011, by the following roll call vote: AYES: Councilmember Landis, Thomas, Crane, Baldwin, and Mayor Rodin NOES: None ABSTAIN: None ABSENT: None ATTEST: 0 JoAnne M. Currie, City Clerk 03042.53:J 11512 10/5/11 82661.00001\6991016.2 -2-