HomeMy WebLinkAboutR04- Economic Development 0
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: Barbara J. Lindseth Subject: RAMONA SENIOR HOUSING
Acting Director BOND ISSUE
Date: March 15, 1995
-------------------------------------------------------------------------------
S;Tnopsis of Previous Commission/Council/Committee Action(s):
None.
-------------------------------------------------------------------------------
Recommended Motion(s):
(Community Development Commission)
MOTION: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO, APPROVING A LOW- AND MODERATE- INCOME
MULTIFAMILY RESIDENTIAL RENTAL FACILITY FOR RAMONA SENIOR
PROJECT, A CALIFORNIA LIMITED PARTNERSHIP, AS PURCHASER,
PRELIMINARILY AUTHORIZING THE ISSUANCE OF REVENUE BONDS IN
CONNECTION THEREWITH, PROVIDING FOR REIMBURSEMENT OF MONEYS
UPON ISSUANCE OF THE BONDS AND AUTHORIZING REPRESENTATIVES OF
THE AGENCY TO TAKE ACTION INCIDENTAL THERETO.
� C 0..c.c.� ✓ '� / of �'' /
Administrator Barbara J. Lindseth
Acting Director
-------------------------------------------------------------------------------
Contact Person(s) : Tim Steinhaus/Barbara Lindseth Phone: 5081
Project Area(s) : Low-Moderate Housing Ward(s) : First
Supporting Data Attached: Staff Report; Resolution
Funding Requirements: Amount: N/A Source: N/A
Budget Authority: N/A
----------------------------------------------------------------------------
Commission/Council Notes:
BJL:2046A
COMMISSION MEETING AGENDA
Meeting Date: 3/20/1995 ,
Agenda Item Number: /
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
STAFF REPORT
----------------------------------------------------
Ramona Senior Housing Bond Issue
On August 19, 1991, the Community Development Commission approved
construction financing for Ramona Senior Housing in the amount of
$2,326,215, which includes $490,030 in secondary, subordinate
financing. The developer subsequently executed an Owner Participation
Agreement (OPA) with the the Agency. In return, the developer agreed
to set-aside 35 units for low-income households and 9 units for very
low-income households for a period of 30 years. The construction
financing has facilitated in the development of 44 high-quility senior
housing units located at Ramona Senior Complex at 1524 West 7th Street.
In October 1993, the developer submitted an application to the
California Tax Credit Allocation Committee for its approval of tax
credits, which was subsequently denied. Ramona Senior Housing
previously intended to utilize CHFA permanent financing, the
availability of which has now expired. Ramona Senior Housing is
seeking alternative solutions to its need to provide permanent
financing for the project to thus repay the construction loan, in the
forms of tax-exempt bond financing and low-income housing tax credits.
In order to proceed with the Project and the application process, the
Agency must adopt an inducement resolution. This resolution confirms
the Agency's current intent to issue private activity bonds, and serves
to mark the time under federal tax law after which expenditures on the
Project may qualify for tax-exempt financing. The inducement
resolution does not obligate the Agency to proceed with the financing.
The State of california ("State") also requires that any issuer of
private activity housing bonds apply to the State prior to the issuance
of said bonds. A State application has been prepared and forwarded to
the State to meet its deadline of March 15, 1995. It is required that
an inducement resolution be passed prior to April 1, 1995, in order for
the State application to be considered in the third week of April, 1995.
Based upon the foregoing, staff recommends adoption of the form motion.
Barbara J. Lindseth, Acting Director
BJL:2046A
COMMISSION MEETING AGENDA
Meeting Date: 3/20/1995 ,
Agenda Item Number: ( '
1 RESOLUTION NO.
2 RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO,
3 APPROVING A LOW- AND MODERATE-INCOME MULTIFAMILY
RESIDENTIAL RENTAL FACILITY FOR RAMONA SENIOR
4 PROJECT, A CALIFORNIA LIMITED PARTNERSHIP, AS
PURCHASER, PRELIMINARILY AUTHORIZING THE ISSUANCE
5 OF REVENUE BONDS IN CONNECTION THEREWITH,
PROVIDING FOR REIMBURSEMENT OF MONEYS UPON
F ISSUANCE OF THE BONDS AND AUTHORIZING
REPRESENTATIVES OF THE AGENCY TO TAKE ACTION
7 INCIDENTAL THERETO
8 WHEREAS, the Redevelopment Agency of the City of San
9 Bernardino, California (the "Agency" ) is a public body corporate
10 and politic organized and existing under and pursuant to the laws
11
12 of the State of California; and
13 WHEREAS, by application lication made to the Agency (the
14 Application" ) , the Ramona Senior Project, a California Limited
15 Partnership (the "Company" ) has requested that the Agency assist
16
17 in financing the acquisition, construction and rehabilitation of
18 land and certain buildings, improvements and equipment located in
19 the City (the "Project" ) , to be owned by the Company for use as
20 a low- and moderate-income multifamily residential rental
21 facility; and
22 WHEREAS, the Agency desires to encourage -the Company to
23
24 proceed with the Project to further the purposes of Health and
25 Safety Code Section 33000, et seg. (the "Act" ) ; and
26 WHEREAS, the Community Development Commission (the
27 "Commission" ) , the governing board of the Agency, reasonably
28
expects that when the permanent financing contemplated hereunder
1 is completed, certain expenditures will be reimbursed with the
2 proceeds of the permanent financing; and
3
4 WHEREAS, to comply with the provisions of the Internal
5 Revenue Code of 1986, as amended (the "Code" ) and the Treasury
6 regulations thereunder, the Agency desires that this Resolution
7 constitute its declaration of "official intent" to reimburse such
8 expenditures with proceeds of the permanent financing of the
9 Project .
10
11 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION
12 ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF
13 SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS
14 FOLLOWS:
15
16 Section 1 . Approval of the Project ; Findings.
17 Based upon representations made and information supplied by the
18 Company as on file with the Agency Secretary, the Agency hereby
19 approves the Project and makes the following findings in
20 connection therewith:
21
22 (a) The Agency is authorized to issue
23 special revenue bonds for the acquisition and permanent
24 financing of the Project .
25
26 (b) The Project constitutes a project which
27 may be financed under the Act by the issuance of
28 special revenue bonds.
-2-
Q
1 (c) The Project will promote the public
2 purposes of the Act and the Agency by increasing the
3 supply of adequate, safe and sanitary housing for low-
4 and middle-income families and persons through the
5 inducement of the Company to acquire, maintain and
6 operate the Project.
8 Section 2 . Authorization of Bond Financing. The
9 Application and permanent financing are hereby preliminarily
10 approved, and the Agency preliminarily authorizes permanent
11 financing for the Project which will (i) not exceed a maximum
12 aggregate principal amount of $1, 500, 000, and (ii) be
13 accomplished by the issuance of special revenue bonds by the
14 Agency (the "Bonds") , the interest of which is to be excluded
15 from gross income for Federal income tax purposes . Such Bonds
16 shall be issued in compliance with the Act and the Code, shall be
1r subject to such terms and conditions as the Company and the
18 Agency approve by resolution, shall be granted an allocation from
19 the State ceiling for "private activity bonds" pursuant to
20 Section 146 of the Code, through a grant of allocation of the
21 State' s housing credit for "private activity bonds" for 1995, and
22 shall be payable solely from the revenues derived from payments
23 to be made by the Company in respect of the financing of the
24 Project and other funds to be pledged pursuant thereto.
25
26 This Resolution expresses the Agency' s expectations as
27 of the date hereof with respect to the financing of the Project.
28 Future events or extraordinary circumstances beyond the control
-3-
1 of the Agency may result in the Project being financed in a
2 manner other than as described herein, and nothing contained
3 herein constitutes an irrevocable commitment by the Agency to
4 finance the Project .
5
6 Section 3 . Expenditures to be Reimbursed. The
7 Company has expended and intends to expend more of its own funds
8 to finance all or a certain portion of the acquisition,
9 construction and rehabilitation of the Project prior to the
10 issuance of the Bonds. The Company and the Commission reasonably
11 expect that proceeds of the Bonds will be used to reimburse such
12 expenditures .
13
14 Section 4 . Reimbursement Period. The reimbursement
15
allocation to be made with respect to such expenditures will
16 occur not later than 18 months after the later of (i) the date on
11 which the expenditure is paid, or (ii) the date on which the
18 Project is placed in service, but in no event more than three
19 years after the original expenditure is paid. No reimbursement
20 allocation will be made with respect to an expenditure paid prior
21 to the 60-day period preceding the date of this Resolution unless
22 otherwise expressly permitted under Section 1 . 150-2 of the
23 Treasury regulations.
24
25 Section S . Reimbursement Allocation. A written
26 reimbursement allocation described in Section 1 . 150-2 of the
27 Treasury regulations shall be made, being generally the transfer
28 of the appropriate amount of Bond proceeds to reimburse the
-4-
1 source of temporary financing issued by the Company to pay the
2 reimbursed costs of the Project. Each allocation shall (i) be
3 evidenced by an entry on the official books and records of the
4 Agency maintained for the Bonds, and (ii) specifically identify
5 the actual prior expenditure being reimbursed or, in the case of
6 reimbursement of a fund or account in accordance with
7 Section 1 . 150-2 of the Treasury regulations, the fund or account
8 from which the expenditure was paid. Such allocation shall be
9 made within 30 days of the issuance of the Bonds .
10
11 Section 6 . Action by Agency Representatives . The
12 appropriate officials of the Agency are hereby authorized and
13 directed to take all action necessary to accomplish the purposes
14 of this Resolution, including the negotiation of agreements in
15 connection with the financing of the Project .
16
17 The Chairman, Vice-Chairman, Administrator, Executive
18 Director and Secretary are hereby specifically authorized and
19 directed to make application, if requested by the Company, in a
20 form and with the materials provided by the Company, subject to
21 the Agency' s approval, to the State of California and to take
22 such other action as may be necessary or desirable in the best
23 interest of the Agency, to obtain an allocation of the State' s
24 housing credit for the Project, provided that such action shall
25 be in the absolute discretion of the Agency and the Company shall
26 have no recourse if the Agency does not apply for or obtain an
27 allocation of the State' s housing credit for the Project .
28
-5-
0 0
1 Section 7 . Invalid Etc Provisions Disregarded.
2 If any provision of this Resolution is judicially determined to
3 be invalid or unenforceable, such determination shall not affect
4 the remaining provisions hereof, the intention being that the
5 provisions hereof are severable.
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26 -
27
28
-6-
Auk
1 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
2 SAN BERNARDINO APPROVING A LOW- AND MODERATE-INCOME MULTIFAMILY
RESIDENTIAL RENTAL FACILITY FOR RAMONA SENIOR PROJECT, A
3 CALIFORNIA LIMITED PARTNERSHIP, AS PURCHASER, PRELIMINARILY
AUTHORIZING THE ISSUANCE OF REVENUE BONDS IN CONNECTION
4 THEREWITH, PROVIDING FOR REIMBURSEMENT OF MONEYS UPON ISSUANCE OF
THE BONDS AND AUTHORIZING REPRESENTATIVES OF THE AGENCY TO TAKE
5 ACTION INCIDENTAL THERETO
6 Section 8 . Effective Date . The findings and
7 determinations herein shall be final and conclusive . This
8 Resolution shall take effect upon the date of its adoption.
9
10 I HEREBY CERTIFY that the foregoing Resolution was duly
11 adopted by the Community Development Commission of the City of
12 San Bernardino at a meeting
13 thereof, held on the day of
k. 14 1995, by the following vote, to wit :
15 Commission Members : AYES NAYS ABSTAIN ABSENT
16 NEGRETE
17 CURLIN
HERNANDEZ
18 OBERHELMAN
DEVLIN
19 POPE-LUDLAM
MILLER
20
21 Secretary
22 The foregoing resolution is hereby approved this
23 day of , 1995 .
24 Tom Minor, Chairman .
Community Development Commission
25 of the City of San Bernardino
26 Approved as t form and legal content :
27 �V
By: r�_�k -
Agency nsel
SBE0\0139\D0C\1
-7-