HomeMy WebLinkAboutResolution 2003-067 RESOLUTION 2003-067
A RESOLUTION OF THE 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 FINANCING FOR A RESIDENTIAL RENTAL
HOUSING FACILITY SPONSORED BY THE SAN LUIS OBISPO
NON-PROFIT HOUSING CORPORATION
(9705 El Camino Real)
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 "Law"), to make loans for housing purposes as specified in the Law;
and
WHEREAS, the San Luis Obispo Non-Profit Housing Corporation, a California nonprofit
public benefit corporation (the "Corporation") has requested that the Authority use its powers
under the Law to borrow monies (the "Housing Authority Loan") for the purpose of having the
Authority make a loan (the "Project Loan") to a limited partnership (the "Borrower") of which
the,Corporation will be a partner, to enable the Borrower to finance the acquisition and
construction of a 19-unit residential rental housing facility for seniors (the "Project") to be
located at 9705 El Camino Real in the City of Atascadero (the "City"); 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 "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 borrowing consisting of the Housing Authority Loan evidenced by the
Bond following the holding of a public hearing with respect thereto;and
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 Bonds; and
WHEREAS, notice of said public hearing has been duly given as required by the Code,
and the 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, Section 34208 of the Law allows a housing authority located in a city to
operate within the territorial boundaries of another city if the governing body of the other city
City of Atascadero
Resolution No.2003-067
Page 2 of 3
consents to such operation by resolution, and the City council now desires to consent to the
operation by the Authority within the City with respect to the financing of the Project and matters
related thereto; and
WHEREAS, it is in the public interest and for the public's benefit that the City Council
approve the Loan and the Bond, and the operation by the Authority within the City, for the
aforesaid purposes.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Atascadero,
as follows:
SECTION 1. The 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 funds to make the Project Loan to the Borrower to enable the Borrower
to finance the acquisition and construction of the Project.
SECTION 2. The City Council hereby consents to the operation by the Authority within
the City with respect to the financing of the Project and all matters related thereto, as
contemplated by the documents evidencing the Authority Loan and the Project Loan, and as
otherwise necessary or deemed appropriate by the Authority to discharge any obligations and/or
the enforcement of any rights related to the Project and the financing thereof.
SECTION 3. The foregoing approvals and consents 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 4. This Resolution shall take effect immediately upon its adoption.
City of Atascadero
Resolution No.2003-067
Page 3 of 3
On motion by Council Member O'Malley and seconded by Council Member Luna, the
foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES: Council Members Luna, O'Malley,Pacas, Scalise and Mayor Clay
NOES: None
ABSENT: None
ADOPTED: November 25, 2003
CITY OF ATASCADERO
e L. Cl Sr.,Mayor
ATTEST:
Marcia McClure Torgerson,C.M.C., Ci Clerk
APPROVED AS TO FORM
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Roy anley. City Att ey