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HomeMy WebLinkAbout06.B- City Manager t RESOLUTION (ID #3359) DOC ID: 3359 CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION Agreement/Contract From: Allen Parker M/CC Meeting Date: 07/21/2014 Prepared by: Brandon Mims, (909) 384-5122 Dept: City Manager Ward(s): All Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Approving the Issuance of Multifamily Housing Revenue Bonds by the California Statewide Communities Development Authority for the Benefit of the New Zion Manor. (#3359) Current Business Registration Certificate: Not Applicable Financial Impact: The City will receive a small payment of approximately$1,000 for performing an evaluation of the application from the California Tax Credit Allocation Committee. The proposed Bonds do not constitute a debt of the City, or pledge of the faith and credit of the City. Mayor to open the hearing. . . Motion: Close the hearing; and adopt the Resolution. Background American Community Developers, Inc., (ACD) is a Michigan based affordable housing developer that specializes in the acquisition and rehabilitation of HUD assisted properties. Over the past 30 years, ACD has acquired and rehabilitated over 11,000 units in 82 properties across 10 states. Independent Management Services (IMS), ACD's captive property management company, manages all of ACD's properties nationwide and has over 26 years experience managing HUD assisted properties. ACD is also the parent organization to St. Clair Construction Company, a general contractor that specializes in apartment rehabilitation. ACD has submitted an application to the California Statewide Communities Development Authority (the "Authority") to issue tax-exempt bonds in an amount not to exceed $12,000,000. The proceeds from the sale of the tax-exempt bonds will be used in conjunction with a HUD FHA mortgage and 4%LIHTCs to acquire and rehabilitate Little Zion Manor. Little Zion Manor is a 33 year old, 125-unit, 100% Section 8 housing complex located at the northeast corner of the intersection of California Street and 19th Street in the City of San Bernardino. The complex consists of 32 buildings situated on a 12.24 acre site: 31 residential buildings and one community building that includes a property manager's office, community room with a computer lab, community kitchen, and laundry facility. The current unit mix for Little Zion Manor is as follows: Unit Type Number of Units 1 BR/ 1 BA 28 1 BR/ 1 BA 2 Updated: 7/16/2014 by Georgeann"Gigi"Hanna Packet Pg. 694 3359 Handicapped 2 BR/ 1 BA 60 2 BR/ 1 BA 3 Handicapped 3 BR/2 BA 31 3 BR/2 BA 1 Handicapped A portion of the bonds will finance over $3,000,000 in improvements to the interior of the residential units, exterior of the buildings, and the site. The goal of the rehabilitation is to upgrade the functionality, aesthetics, security, ADA accessibility, and energy efficiency of the complex in order to improve the living standards for current residents and become a better corporate citizen in the community. Current Issue The Authority has requested that the City Council conduct a Tax and Equity Fiscal Responsibility Act (TEFRA) public hearing, as required by federal law regarding ACD's proposed $12,000,000 financing that includes the acquisition and rehabilitation of Little Zion Manor. The Authority is a joint exercise of powers authority consisting of numerous California cities, counties and special districts, including the City. The Authority, pursuant to its Amended and Restated Joint Exercise of Powers Agreement, is authorized to assist in the financing of 0 facilities for profit and non-profit organizations. The Bonds are limited obligations of the Authority payable solely by ACD, and will not be direct obligations of the Authority, City or any member of the Authority. City Attorney Review: Supporting Documents: reso 3359 (PDF) Q Updated:7/16/2014 by Georgeann"Gigi"Hanna Packet Pg. 695 6.B.a I RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY 3 OF SAN BERNARDINO APPROVING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA STATEWIDE 4 COMMUNITIES DEVELOPMENT AUTHORITY FOR THE BENEFIT OF THE NEW ZION MANOR 5 6 WHEREAS,the California Statewide Communities Development Authority (the "Authority") 7 is authorized pursuant to the provisions of California Government Code Section 6500 et seq. and the 8 terms of an Amended and Restated Joint Exercise of Powers Agreement, dated as of June 1, 1988 (the 9 "Agreement"), among certain local agencies throughout the State of California, including the City of o R 10 San Bernardino (the"City"), to issue revenue bonds in accordance with Chapter 7 of Part 5 of Division J 11 31 of the California Health and Safety Code for the purpose of financing multifamily rental housing 12 cc projects;and a 13 14 WHEREAS,New Zion Manor Limited Partnership, or related entities, has requested that the U- 15 Authority adopt a plan of financing providing for the issuance of multifamily housing revenue bonds M M_ 16 (the `Bonds") in one or more series issued from time to time, including bonds issued to refund such a) LO M Cl) 17 revenue bonds in one or more series from time to time, and at no time to exceed $12,000,000 in N d L 18 outstanding aggregate principal amount, to finance the acquisition and rehabilitation of a 125-unit = a� 19 E multifamily rental housing project located at 2000 Jubilee Court, San Bernardino, California, 20 r 21 generally known as New Zion Manor (the "Project") and operated by Independent Management Q 22 Services; and 23 WHEREAS,the Bonds or a portion thereof will be "private activity bonds" for purposes of the 24 Internal Revenue Code of 1986 (the"Code");and 25 WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, private activity 26 bonds are required to be approved by the"applicable elected representative" of the governmental units 27 on whose behalf such bonds are expected to be issued and by a governmental unit having jurisdiction 28 1 C Users\,riderjol AppDataT ocal\Templ ilinui cTraq\sanbernarditiocityaasanbernardinoci lyca.]QM2.coin\Work`..AttachmentA267.doc Packet Pg '.696 1 over the entire area in which any facility financed by such bonds is to be located, after a public hearing 2 held following reasonable public notice; and 3 WHEREAS, the members of the Mayor and Common Council of the City of San Bernardino 4 (the"Council")are the applicable elected representatives of the City; and 5 WHEREAS,there has been published, at least 14 days prior to the date hereof, in a newspaper 6 7 of general circulation within the City, a notice that a public hearing regarding the Bonds would be held g on a date specified in such notice; and 9 WHEREAS, such public hearing was conducted on such date, at which time an opportunity o N 10 was provided to interested parties to present arguments both for and against the issuance of the Bonds; 11 J and c, c 12 WHEREAS, the Authority is also requesting that the Council approve the issuance of any v 1.3 a refunding bonds hereafter issued by the Authority for the purpose of refinancing the Bonds which w 14 � 15 financed the Project (the "Refunding Bonds"), but only in such cases where federal tax laws would 0) M M 16 not require additional consideration or approval by the Council; and in M 17 WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of o N 18 the Bonds required by Section 147(f)of the Code and Section 9 of the Agreement; L a� j19 NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF 20 SAN BERNARDINO DOES HEREBY RESOLVE AS FOLLOWS: a 21 22 SECTION 1. The above recitals are true and correct. 23 24 SECTION 2. The Mayor and Common Council hereby approves the issuance of the Bonds 25 and the Refunding Bonds by the Authority. It is the purpose and intent of the Mayor and Common 26 Council that this resolution constitute approval of the Bonds for the purposes of(a) Section 147(f) of 27 the Code and(b)Section 9 of the Agreement. 28 2 C C.1Users,griderJo\,4ppbatalLocat\Temp\minuteTray;5anbemardinocityca(t?isanbernardinocityca.IQN42,coin\14'ork'.4ttachments'R267.doc Packet Pg. V9 6.B.a 1 SECTION 3. The officers of the City are hereby authorized and directed, jointly and 2 severally, to do any and all things and to execute and deliver any and all documents that they deem 3 necessary or advisable in order to carry- out, give effect to and comply with the terms and intent of this 4 resolution and the financing approved hereby. 5 6 7 SECTION 4. The City Clerk shall forward a certified copy of this Resolution and a copy of 8 the affidavit of publication of the hearing notice to: 9 Justin Cooper,Esq. o Orrick,Herrington& Sutcliffe LLP N 10 405 Howard Street San Francisco, California 94105 11 12 L SEC'T'ION 5. This resolution shall take effect immediately upon its passage. 13 Q 14 W 15 LO M 16 I/I CD M M 17 //1 N a� L 18 a� 19 U 20 a 21 22 23 Ill 24 25 /Il 26 27 /ll 28 C\[lsers�grider jo`.4ppData\Local\Temp!MinuteTmil%sanbernardinoc hycatsenbernardinocityw.QM2.com\WorkvktachmemsiSM7.doc kAMOMMi I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING THE ISSUANCE OF 2 MULTIFAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA 3 STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR THE BENEFIT OF THE NEW ZION MANOR 4 5 1 HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 6 Common Council of the City of San Bernardino at a joint regular meeting thereof,held on the 21 st 7 day of July, 2014, by the following vote,to wit: S 9 Commission Members: AYES NAYS ABSTAIN ABSENT c 0 10 MARQUEZ 11 BARRIOS c 12 VALDIVIA x 13 SHORETT w 14 NICKEL � 15 M JOHNSON 16 M 1 MULVIHILL M 0 N 18 eorgeann Hanna, City Clerk i 19 The foregoing resolution is hereby approved day of ,2014. 20 a 21 R. Carey Davis, Mayor 22 City of San Bernardino Approved as to form: 23 Gary D. Saenz, City Attorney 24 25 B 26 27 2s C\Users�eriderjo\AppData\Loca]\Temp\Minute'P raq\sanbernarNnocttyca©sanbernarditwcityca.QM2.com\Wort\Atmchments,8267.doc Packet Pg.699