HomeMy WebLinkAbout2014-149 1 RESOLUTION NO. 2014-149
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3 RESOLUTION OF THE MAYOR AND COMMON COUNCIL ACTING
AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
4 OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CONSENT
5 TO SUBORDINATE ITS TAX REGULATORY AGREEMENT TO THE
LOAN OF THE DEPARTMENT OF HOUSING AND URBAN
6 DEVELOPMENT IN CONNECTION WITH THE REFINANCING OF
THE HUD LOAN ON THE GLEN AIRE MOBILE HOME PARK AND
7 SUCH ACTIONS AS ARE NECESSARY TO ACCOMPLISH THE
8 FOREGOING.
9 WHEREAS, on January 9, 2012, the Mayor and Common Council of the City of Sa
10 Bernardino ("Council") adopted Resolution No. 2012-12 confirming that the City of S.
11 Bernardino would be the Successor Agency to the Redevelopment Agency of the City of Sa
Bernardino ("Successor Agency") effective February 1, 2012, pursuant to AB1X 26 (Th:
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Redevelopment Agency Dissolution Act); and
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WHEREAS, on January 23, 2012, the Council adopted Resolution No. 2012-1•
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providing for the City to become the Housing Successor and to perform housing function,
15 previously performed by the Agency; and
16 WHEREAS, pursuant to Health & Safety Code Section 34181(c) of AB1X 26 the
17 Oversight Board is to direct the transfer of housing responsibilities, including all rights, powers,
18 duties, obligations and assets, to the Housing Successor; and
19 WHEREAS, the former Redevelopment Agency ("Agency") acquired the Glen Aire
20 Mobile Home Park (Park) with funds loaned to the Agency from the proceeds of the San
21 Bernardino Joint Powers Financing Authority's mortgage revenue bonds (1995 Bonds) issued
22 for the Park in 1995; and
23 WHEREAS, the purchase of the Park by the Agency was to further low and moderate
24 income housing within the City of San Bernardino; and,
25 WHEREAS, prior to the purchase of the Park, the Agency expended Agency funds on
26 behalf of the mobile home park conversion program, without any formal intent or
27 documentation to provide for any reimbursement or recoupment of such expended funds, for (i)
28 the initial analysis of the Park, (ii) due diligence investigation, engineering and financial
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1 analysis for the converted Park, (iii) administrative and consultant expenses to implement the
2 program, and (iv)payment of the Park conversion consultant fees and expenses; and
3 WHEREAS, in May, 1996, the Agency caused the formation of the California Mobile
4 Home Park Corporation, formerly The San Bernardino Mobile Home Park Corporation
5 (Corporation) and eight subsidiaries thereof representing each of the parks it purchased through
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the conversion program; and
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WHEREAS, the sole purpose of the Corporation and its subsidiaries is to provide low
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income housing to the residents within the City of San Bernardino and other cities within the
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State of California; and
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WHEREAS, the Agency transferred its ownership interest in the Park to the Glen Aire
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Mobile Home Park Corporation; and
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WHEREAS, in an attempt to recoup a portion of its expenditures incurred prior to the
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purchase of the Parks, the Agency required the Corporation to execute a note and deed of trust
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(the "Park Reimbursement Obligation") securing the Park Reimbursement Obligations for the
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benefit of the Agency; and
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WHEREAS, in 1999, control of the Corporation and its subsidiaries was transferred to
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an independent non-profit board of directors to alleviate the further costs and time associated
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with Agency administration of the Corporation; and
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WHEREAS, in connection with the issuance by the County of San Bernardino Housing
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21 Authority ("County Housing Authority") of its $27,195,000 mortgage revenue notes (the "1999
22 Notes"), the Agency reconveyed the deeds of trust upon receipt of a new deed of trust securing
23 the Park Reimbursement Obligations; and
24 WHEREAS, the County Housing Authority assisted the Corporation with refinancing a
25 portion of the 1999 Notes and pursuant to that transaction, the County Housing Authority issued
26 GNMA Collateralized Bonds ("Refunding Bonds") for the Park; and
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1 WHEREAS, the Corporation applied a portion of the proceeds of the Refunding Bonds
2 to pay the Park Reimbursement Obligations in full upon the issuance of each series of the
3 Refunding Bonds; and
4 WHEREAS, the purpose of the expenditures made by the Agency prior to the transfer
5 of the Park to the Corporation has been satisfied, as the Park has been acquired, partially
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rehabilitated, and transferred to a non-profit corporation which is organized to ensure the Park is
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reserved for low-and moderate-income tenants; and
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WHEREAS, the Agency then loaned funds to the Corporation pursuant to the 2001
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Loan Agreement and 2001 Note evidencing such obligation; and
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WHEREAS, the Agency entered into a Subordinate Tax Regulatory Agreement dated
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November 1, 2001, recorded in the records of the County Recorder for the County of San
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Bernardino on July 9, 2002, as Instrument Number 2002-0352537; to restrict certain units in the
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Park to low- and moderate-income tenants as long as such Regulatory Agreement does not
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violate any provision of the FHA documents which are recorded against the Park in connection
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with the issuance of the Bonds; and
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WHEREAS, on May 14, 2012 the Oversight Board recommended that the Successo
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Agency approve the Subordination of the Redevelopment Agency of the City of San Bernardino
1s
Tax Regulatory Agreement Liens Existing on the Property Comprising the Glen Air:
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Mobilehome Park within the City of San Bernardino to the New Lien of HUD in Order to
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Provide for a Refinancing of the Current Lien of the Department of Housing and Urba
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Development Existing on the Subject Properties.
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WHEREAS, the Corporation has informed the Successor Agency that they desire to
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refinance the HUD Loan and have requested that the Successor Agency agree to subordinate the
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Series B Tax Regulatory Agreement in order for the new HUD loan to remain a senior lien o
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the Park; and
26 WHEREAS, the Corporation has represented to the Successor Agency that; 1) the
27 refinancing of the HUD loan by the Glen Aire Mobile Home park Corporation will result in .
28 lower interest rate providing the Corporation a greater opportunity to pay the Series B Bonds;
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2014-149
1 and 2) the Corporations will take no money out of the refinancing other than for the payment o 1
2 the reasonable refinancing costs; and
3 WHEREAS, the Successor Agency has duly considered the terms of such transactions a
4 contemplated herein and desire to consent to the subordination of the Series B Tax Regulator
Agreement subject to review of the new HUD loan documents by Successor Agency staff an.
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legal counsel; and payment of any Successor Agency costs associated with the subordination an•
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any outstanding Successor Agency fees.
7 NOW THEREFORE, BE IT RESOLVED THAT THE MAYOR AND COMMON
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COUNCIL ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT
9 AGENCY OF SAN BERNARDINO HEREBY FINDS, DETERMINES AND DECLARES
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AS FOLLOWS:
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Section 1. The Successor Agency hereby consents and agrees to subordinate it
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Series B Tax Regulatory Agreement to the new respective HUD loan, subject to and condition•
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upon the review and satisfaction of Successor Agency staff and legal counsel.
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Section 2. The Executive Director of the Successor Agency or any other officer o
15 employee of the Successor Agency designated by the Executive Director is hereby authorized to
16 do all such acts and things necessary to accomplish the subordination of the Series B Ta
17 Regulatory Agreement to the new HUD Loan
18 Section 3. This Resolution shall take effect upon the date of its passage and adoption.
19 III
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2014-149
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL ACTING
2 AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO AUTHORIZING THE CONSENT
3 TO SUBORDINATE ITS TAX REGULATORY AGREEMENT TO THE
LOAN OF THE DEPARTMENT OF HOUSING AND URBAN
4 DEVELOPMENT IN CONNECTION WITH THE REFINANCING OF
5 THE HUD LOAN ON THE GLEN AIRE MOBILE HOME PARK AND
SUCH ACTIONS AS ARE NECESSARY TO ACCOMPLISH THE
6 FOREGOING
7
8
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Community Development Commission of the City of San Bernardino at a j oint regular
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meeting thereof, held on the 19th`day of May , 2014, by the following vote to wit:
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Commission Members: Ayes Nays Abstain Absent
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12 MARQUEZ x
13 BARRIOS x
14 VALDIVIA x
15 SHORETT x
16 NICKEL x
17 JOHNSON x
18 MULVIHILL x
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20 GeorgeaiHanna, Cit Clerk
T-
2 1 The foregoing resolution is hereby approved this 2/ --day of May , 2014.
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23 /L.e{ ELLS
24 R. Carey Davis Mayor
City of San B ardino
25 Approved as to form:
26 Gary D. Saenz, City Attorney
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By: (Q Ar3.1
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