HomeMy WebLinkAboutCDC/2001-01
CDC/2001-1
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RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO
APPROVING THE MODIFICATION OF CERTAIN LOAN
DOCUMENTS IN CONNECTION WITH A LOAN TO THE
SAN BERNARDINO MOBILE HOME PARK CORPORATION,
A NON-PROFIT CORPORATION
WHEREAS, the Redevelopment Agency of the City of San Bernardino (the
6 "Agency")is a public body corporate and politic duly organized and validly existing under the laws
7 ofthe State of California and is authorized under the Community Redevelopment Law (Health and
8 Safety Code Sections 33000, et. ~) to make loans for redevelopment purposes; and
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10 WHEREAS, the Agency purchased eight mobile home parks (the "Parks") with the
11 assistance of the San Bernardino Joint Powers Financing Authority (the "Authority") through the
12 issuance of eight issues of bonds in 1995 and 1996; and
13 WHEREAS, the Agency also applied CDBG funds and HOME funds to assist in financing
14 the purchase of the Parks; and
15 WHEREAS, the Agency caused the formation ofthe San Bernardino Mobile Home Park
16 Corporation (the "Non-Profit Corporation") and eight subsidiaries thereto in May, 1996 in order to
17 cause the transfer of each Park to the Corporation or its subsidiaries; and
18 WHEREAS, upon the transfer of the Parks to the Non-Profit Corporation, the Non-Profit
19 Corporation executed notes and deeds of trust evidencing the amounts to be repaid to the Agency
20 (the "Agency Loans") for HOME funds and CDBG funds expended to purchase the Parks; and
21 WHEREAS, in 1999, in order to refinance the Parks and take advantage of more favorable
22 interest rates, the Housing Authority of the County of San Bernardino (the "County Housing
23 Authority") issued its $27,195,000 mortgage revenue notes (the "1999 Notes") which come due in
24 September, 2002; and
25 WHEREAS, the Non-Profit Corporation desires to refinance the Rancho Meridian Mobile
26 Home Park and Sequoia Mobile Home Park at this time and has submitted an application to HUD
27 for FHA mortgage insurance which will allow for a Triple A rating on the bonds thereby lowering
28 the rate of interest on the bonds; and
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CDC/2001-1
1 WHEREAS, the FHA mortgage program does not permit any subordinate debt to be
2 recorded against the property, and thus the Non-Profit Corporation has requested that the Agency
3 agree to modify its loan agreement with the Non-Profit Corporation for the repayment ofthe Agency
4 Loans to (i) eliminate the deed of trust, (ii) secure the Agency Loans with a regulatory agreement
5 recorded against the Sequoia Mobile Home Park and Rancho Meridian Mobile Home Park; and (iii)
6 make the obligation to repay the Agency Loans that of the parent Non-Profit Corporation and not
7 the subsidiaries; and
8 WHEREAS, the proposed financing will result in sufficient funds to allow for the repayment
9 of the 1999 Note debt secured by the Rancho Meridian Mobile Home Park and Sequoia Mobile
10 Home Park and provide funds to repay the Agency the full amount of the Agency Loan, however,
11 the Agency will be required to re-loan said funds to the parent Non-Profit Corporation to provide
12 a reserve fund until additional Parks are refinanced; and
13 WHEREAS, the Agency desires to modify the loan agreement at this time to reconvey the
14 deed of trust on the Parks and instead record a Regulatory Agreement against the Parks and execute
15 a loan agreement with the parent Non-Profit Corporation.
16 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF
17 THE CITY OF SAN BERNARDINO, CALIFORNIA, ON BEHALF OF THE REDEVELOPMENT
18 AGENCY OF THE CITY OF SAN BERNARDINO DOES HEREBY FIND, RESOLVE,
19 DETERMINE AND ORDER AS FOLLOWS:
20 Section 1. Recitals. The Recitals contained herein are true and correct and are
21 incorporated herein by this reference.
22 Section 2. Determinations. The Agency hereby approves the amendments to the Agency
23 Loan documents described above and finds and determines that said amendments will result in
24 significant public benefits to the Agency and its residents by assisting in maintaining low and
25 moderate income housing within the City of San Bernardino and structuring a financing plan which
26 will allow repayment of the Agency Loans.
27 Section 3. Approval. The Agency hereby approves the modification of the loan
28 agreement with the Corporation for the repayment of the Agency Loans in order to (i) eliminate the
deeds of trust, (ii) secure the Agency Loans with a regulatory agreement recorded against the
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1 Sequoia and Rancho Meridian Parks; and (iii)make the obligation to repay the Agency Loans that
2 of the parent Non-Profit Corporation and not the subsidiary Non-Profit corporations.
3 Section 4. Official Action. The officers of the Agency are hereby authorized and
4 directed, jointly and severally, to do any and all things and to execute and deliver any and all
5 documents which they deem necessary or advisable in order to carry out, give effect to and comply
6 with the terms and intent of this Resolution and the financing transaction approved hereby.
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HASB/0004/DOC/8
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CDC/2001-1
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING
THE MODIFICATION OF CERTAIN LOAN DOCUMENTS IN
CONNECTION WITH A LOAN TO THE SAN BERNARDINO
MOBILE HOME PARK CORPORATION, A NON-PROFIT
CORPORATION
Section 5.
Effective Date. This Resolution shall take effect from and after the
6 date of its passage and adoption.
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
Joint
9 Development Commission of the City of San Bernardino at a Regular meeting thereof, held
r;cL/
;ec~ary
The foregoing resolution is hereby approved tIfu /" .fJ1 day of January
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10 on the
8th day of January
II Commission Members:
12 ESTRADA
LIEN
13 McGINNIS
SCHNETZ
14 SUAREZ
ANDERSON
15 McCAMMACK
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Approved as 0 form and legal content:
By:
HASB/0004/DOC/8
AYES
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, 200 I, by the following vote, to wit:
NAYS ABSTAIN ABSENT
,2001.
, mrperson
Development Commission
of San Bernardino
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