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HomeMy WebLinkAboutRES NO 009-2023RESOLUTION NO. 0 0 9- 2 0 2 3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAKERSFIELD APPROVING A PLAN OF FINANCE INCLUDING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS IN AN AMOUNT NOT TO EXCEED $25 MILLION BY THE HOUSING AUTHORITY OF THE COUNTY OF KERN FOR THE PURPOSE OF FINANCING AND REFINANCING THE ACQUISITION AND REHABILITATION OF THE ADELANTE VISTA APARTMENTS, LOCATED AT 1104 S. ROBINSON STREET WITHIN THE CITY OF BAKERSFIELD, CALIFORNIA, AND AN INDEMNITY AGREEMENT RELATING THERETO. WHEREAS, the Housing Authority of the County of Kern (the "Housing 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 developments; and WHEREAS, the Housing Authority has started the process of converting all of its Low -Income Public Housing ("LIPH") developments to the Section 8 Housing Choice Vouchers ("HCV") platform under the U.S. Department of Housing and Urban Development's ("HUD") Rental Assistance Demonstration program ("RAD") which allows housing authorities to leverage financing resources such as private activity bonds and Low -Income Housing Tax Credits to stabilize and renovate LIPH developments; and WHEREAS, the Housing Authority proposes to finance the acquisition, rehabilitation, and conversion of 142 units known as Adelante Vista Apartments (the "Development") through a plan of finance including the issuance of tax- exempt bonds authorized by the California Debt Limit Allocation Committee and 4% Low -Income Housing Tax Credits; and WHEREAS, the Housing Authority will enter into a purchase and sale agreement with a to -be -determined limited partnership which will include a limited liability corporation ("LLC") controlled by Golden Empire Affordable Housing, Inc. as the managing general partner and an LLC controlled by the Housing Authority as the administrative general partner. The Housing Authority will retain ownership until it is sold to the to -be -determined limited partnership. At the time of the construction loan closing both the sale of the development and its conversion under the RAID program will occur; and WHEREAS, the tax-exempt bonds will be qualified "Private Activity Bonds" ("Bonds") for purposes of the Internal Revenue Code of 1986, as amended (the "Code"); and oAONKF�� Page 1 of 4 Pages ti � 'OR101NAI WHEREAS, pursuant to Section 147(f) of the Code, a plan of finance that includes the proposed issuance of 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 is held following reasonable public notice (collectively, the "TEERA Actions"); and WHEREAS, the Development 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, a public hearing notice has been published, at least 7 days prior to the date hereof, in a newspaper of general circulation within the City; and WHEREAS, the public hearing described in said notice was conducted on January 25, 2023, by this City Council, at which time an opportunity was provided to interested parties to be heard with respect to the plan of finance including the proposed issuance of the Bonds for the financing and refinancing of the Development; and WHEREAS, the City shall not have any liability for the repayment of the Bonds or any responsibility for the Development; and WHEREAS, it is intended that this Resolution shall constitute the approval of the proposed issuance of the 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: 1. Findings. The City Council finds and declares that the foregoing recitals are true and correct and are incorporated herein by reference. 2. Approval of the Issuance of Bonds. The City Council hereby approves a plan of finance that includes the issuance of Bonds by the Housing Authority for the purposes of financing and refinancing the Development. It is the purpose and intent of this City Council that this Resolution constitute approval of a plan of finance that includes issuance of the Bonds for the purposes of Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Development is located, in accordance with such Section 147(f). 3. No City Liability for Bonds. The issuance of the Bonds shall be subject to the approval by the Housing Authority of all financing documents relating thereto to which the Housing Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the plan of finance or the Bonds. 0AKf,?s Page 2 of 4 Pages O m � r 0 t9ORIGINAr 4. No City Responsibility for the Development. The adoption of this Resolution shall not obligate the City or any department thereof to: i. Provide any financing to construct the Development or any refinancing of the Development, as a result of the TEFRA Actions; ii. Approve any application or request for or take any other action in connection with any planning approval, permit, or other actions necessary for the acquisition, construction, or operation of the Development; iii. Make any contribution or advance any funds whatsoever to the Housing Authority; or iv. Take any further action with respect to the Housing Authority, its issuance of the Bonds, or its acquisition, construction, or operation of the Development. 5. City Manager Authorization. The City Manager of the City and his designees are hereby authorized and directed to do any and all things and to execute and deliver any and all documents that they deem necessary or advisable to carry out, give effect to, and comply with the terms and intent of this Resolution and the financing transaction approved hereby. 6. City Clerk Action. The City Clerk shall attest and certify to the passage and adoption of this Resolution and it shall become effective immediately upon its approval. 7. Effective Date. This Resolution shall take effect immediately upon its passage. ------- 0000000----- 1<gAKF> Page 3 of 4 Pages �O 'PI m �_ Z5ORIOINAL 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 January 25, 2023, by the following vote: ✓ ✓ ✓ ✓ v VE COUNCILMEMBER ARIAS, GONZ LES, WEIR, SMITH, FREEMM1N, GRAY, KAUR NOES: COUNCILMEMBER ABSTAIN. COUNCILMEMBER BS COUNCILMEMBER O_Q2tVLQS1 APPROVED JAN 2 5 2023 KAREN GOH MAYOR of the City of Bakersfield APPROVED as to form: VIRGINIA GENNARO City Attorney J SHUA H. RUDNICK eputy City Attorney Ult LIE DRIMAKIS, MMC CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield �gAK$,,i Page 4 of 4 Pages 'ORIGINAL