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HomeMy WebLinkAboutReso 09-21 TEFRA HearingRESOLUTION NO. 09-21 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, 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 DEVELOPMENT OF MORRO BAY APARTMENTS THE CITY COUNCIL City of Morro Bay, California 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, a California limited partnership to be established by the Authority (the "Borrower") intends to develop a 35 unit affordable housing project to be located at 405 Atascadero Frontage Road in the City of Morro Bay (the ' City') currently identified as Morro Bay Apartments (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 maximum amount of $11,260,000, and a loan of the proceeds of the Bonds to the Borrower; and WHEREAS, a portion of the 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 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 will be located within the City; and WHEREAS, notice of a public hearing by the City Council regarding the financing of the Housing Facility has been duly given as required by the Code, and the City 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 acquisition, construction and development by the Borrower of the Housing Facility; and WHEREAS, it is in the public interest, for the public benefit and in furtherance of the public purpose of the City that the City Council approve the issuance by the Authority of the Bonds for the aforesaid purposes. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, as follows: 1. The above recitals are true and correct. 2. 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 Housing Facility. 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 section 147(f) of the Code, by the governmental unit having jurisdiction over the area in which the Housing Facility is to be located, in accordance with said section 147(f). 3. 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. 4. The City Council hereby consents to the operation by the Authority within the boundaries of the City in connection with the financing, development and operation of the Housing Facility, pursuant to Section 34208 of the Health and Safety Code. 5. The adoption of this Resolution shall not obligate the City or any department thereof to (a) provide any financing to acquire or construct the Housing Facility (b) 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, construction or operation of the Housing Facility (c) make any contribution or advance any funds whatsoever to the Authority; or (d) take any further action with respect to the Authority or its membership therein. 6. The City Manager, the 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. 7. The City Clerk is hereby directed to forward a certified copy of this Resolution to the bond counsel for the Bonds, addressed as follows: Paul J. Thimmig, Esq. Quint & Thimmig LLP 900 Larkspur Landing Circle, Suite 270 Larkspur, CA 94939-1726 8. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 23rd day of February, 2021 on the following vote: AYES' Headding, Addis, Barton, Davis, Heller NOES None ABSENT: None JOHN H ADDING, Mayor ATTEST: Ctw2ruJ A A D SWANSON, City Clerk 19051.17: J 17363 2/2/2021