HomeMy WebLinkAboutResolution 2005-081 RESOLUTION NO. 2005-081
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ATASCADERO APPROVING THE BORROWING OF FUNDS BY
THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO
FOR THE PURPOSE OF PROVIDING ADDITIONAL FINANCING
FOR A RESIDENTIAL RENTAL HOUSING FACILITY
SPONSORED BY THE SAN LUIS OBISPO NON-PROFIT HOUSING
CORPORATION
WHEREAS, the Housing Authority of the City of San Luis Obispo (the "Authority") is
authorized by Chapter I of Part 2 of Division 24 of the Health and Safety Code of the State of
California, as amended (the "Law"), to make loans for housing purposes specified in the Law;
and
WHEREAS, on November 25, 2003, the City Council of the City of Atascadero (the
"City") adopted Resolution No. 2003-067 approving the borrowing of funds by the Authority in
order for the Authority to make a loan to Atascadero Senior Housing, a California limited
partnership (the "Borrower") of which the San Luis Obispo Non-Profit Housing Corporation is
the general partner, in connection with the financing of a 19 unit residential rental housing
facility known as Atascadero Senior Housing (the "Project") located at 9705 El Camino Real in
the City; and
WHEREAS, on April 22, 2004, the Authority issued a nate in the principal amount of up
to $1,592,507 to provide financing for the Project, but the Authority and the Borrower have
determined that additional funds in the amount of $907,493 (the "Additional Financing") are
now needed to complete the construction of the Project; and
WHEREAS, the Borrower has requested that the Authority use its powers under the Law
to borrow monies (the "Housing Authority Load') for the purpose of providing the Additional
Financing to enable the Borrower to complete the Project; and
WHEREAS, a portion of the housing units in the Project will be rented to persons and
families of very low income as required by the Law and the Internal Revenue Code of 1986, as
amended (the "Code"); and
WHEREAS,the instrument (the"Bond')evidencing the Housing Authority Loan will be
considered to be a "qualified exempt facility bond" 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 borrowing consisting of the Housing Authority Loan evidenced by the
Bond following the holding of a public hearing with respect thereto; and
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City of Atascadero
Resolution No. 2005-081
Page 2 of 3
WHEREAS, the Authority has determined that the City Council of the City is the
"applicable elected representative" to approve the Housing Authority Loan and the Bond; and .
WHEREAS, notice of said public hearing has been duly given as required by the Code,
and the City Council has heretofore held such 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 Project and the Authority's borrowing consisting of the Housing Authority Loan
evidenced by the Bond, and the Authority's loan of the proceeds thereof to the Borrower; and
WHEREAS, it is in the public interest and for the public benefit that the City Council
approve the issuance by the Authority of the Bond, and the Additional Financing to be provided
to the Borrower with the proceeds thereof, for the purpose of financing the Project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Atascadero, as follows:
Section 1. The City Council of the City of Atascadero hereby approves the Housing
Authority Loan and the issuance of the Bond by the Authority under the Law and the Code for
the purpose of providing the Additional Financing to the Borrower to enable the Borrower to
finance the Project.
Section 2. The foregoing approvals and consent shall in no way obligate the City to take
any actions related to the Project, including but not limited to any land use or building approvals,
and shall in no way obligate the City to make any contribution or payment with respect to the
Housing Authority Loan or the Project Loan. The City shall have no liability whatsoever with
respect to the financing of the Project or the repayment of any loan with respect thereto.
Section 3. This Resolution shall take effect immediately upon its adoption.
City of Atascadero
Resolution No.2005-081
Page 3 of 3
On motion by Council Member O'Malley and seconded by Council Member Clay, the
foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES: Council Members Clay,Luna, O'Malley,Pacas and Mayor Scalise
NOES: None
ABSENT: None
ADOPTED: September 13, 2005
CITY OF AT CADE
By: C�
Wendy calise ayor
ATTEST:
Marcia McClure Torgerson, C.M.Cd
City Clerk
APPROVE AS T : M:
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Patric4/En ity Attorney