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HomeMy WebLinkAboutRES NO 089-15RESOLUTION NO. 0 8'9— 1 9 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAKERSFIELD APPROVING THE ISSUANCE BY THE HOUSING AUTHORITY OF THE COUNTY OF KERN OF MULTIFAMILY HOUSING BONDS (NOT TO EXCEED $6.5 MILLION) FOR THE PURCHASE AND REHABILITATION OF AFFORDABLE HOUSING AT 2300 SOUTH UNION AVENUE, WITHIN THE CITY OF BAKERSFIELD. WHEREAS, the Housing Authority of the County of Kern (the "Authority ") is authorized pursuant to the provisions of Chapter 1 of Part 2 of Division 24 of the California Health and Safety Code to issue revenue bonds for the purpose of financing rental housing projects; and WHEREAS, the Authority proposes to issue its rental housing revenue bonds in one or more series in an aggregate principal amount not to exceed $6,500,000 (the "Authority Bonds ") for the purpose of financing the purchase and rehabilitation of approximately 104 multi - family units of affordable rental housing known as Green Gardens, located at 2300 South Union Avenue within the City of Bakersfield, California (the "Project "); and WHEREAS, proceeds of the Authority Bonds are expected by the Authority to be used to make a loan to a to -be- formed limited partnership, the initial owner of the Project, of which Golden Empire Affordable Housing, Inc. II will be the Managing General Partner, to finance the Project; and WHEREAS, the Authority Bonds will be qualified "private activity bonds" for purposes of the Internal Revenue Code of 1986, as amended (the "Code "); and WHEREAS, pursuant to Section 147(f) of the Code, the proposed issuance of private activity bonds is required to be approved by the "applicable elected representative" of the governmental unit having jurisdiction over the area in which the facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; and WHEREAS, the Project is located in the City of Bakersfield (the "City ") and the members of the City Council (this "City Council ") are the applicable elected representatives of the City; and WHEREAS, there has been published, at least 14 days prior to the date hereof, in a newspaper of general circulation within the City, a notice that a public hearing regarding the proposed issuance of the Authority Bonds would be held on the date hereof; and WHEREAS, such public hearing was conducted on June 24, 2015 by this City Council, at which time an opportunity was provided to interested parties to be heard with respect to the proposed issuance of the Authority Bonds and financing of the Project; and 1 WHEREAS, the City shall not have any liability for the repayment of the Authority Bonds or any responsibility for the Project; and WHEREAS, it is intended that this resolution shall constitute the approval of the proposed issuance of the Authority Bonds required by Section 147(f) of the Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Bakersfield as follows: Section 1. Approval of Issuance of Authority Bonds. This City Council hereby approves the issuance of the Authority Bonds by the Authority. It is the purpose and intent of this City Council that this resolution constitutes approval of the Authority Bonds for the purposes of Section 147(f) of the Code. Section 2. No City Liability for Authority Bonds. The issuance of the Authority Bonds shall be subject to the approval by 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 the Authority Bonds. Section 3. No City Responsibility for Project. The adoption of this resolution shall not obligate the City or any department thereof to: i. Provide any financing to the Project or any refinancing of 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, its issuance of the Authority Bonds, or its acquisition, rehabilitation, or operation of the Project. Section 4. Effective Date. This resolution shall take effect immediately upon its passage. S: \EDCD_Shared \Ryan \TEFRA \Green Gardens \Bakersfield TEFRA Reso Green Gardens Ir.doc I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on 11-I612 L 2015 by the following vote: AYE ES: ABSTAIN: ABSE ✓ ✓ ✓ COUNCILMEMBER, MAXWELL, WEIR, SMITH, COUNCILMEMBER COUNCILMEMBER COUNCILMEMBER APPROVED JUN 2 4 HARVEY L. HALL MAYOR of the City of Bakersfield APPROVED as to form: VIRGINIA GENNARO City Attorney by: _ JOSHL Deputy SULLIVAN, POL 1,0-l' ROBERTA GAFFORD, CITY CLERK and Ex Officio Clerk of the C94cil of the City of Bakersfield 'H. RUDNICK ity Attorney S: \EDCD_Shared \Ryan \TEFRA \Green Gardens \Bakersfield TEFRA Reso Green Gardens Indoc