HomeMy WebLinkAboutMC-386U
San Bernardino
60,0'09 -2,-'14
ORDINANCE NO. HC-386
ORDINANCE OF THE CITY OF SAN BERNARDINO
AMENDING ORDINANCE NO. 3815 BY ADDING
SUBSECTION V TO SECTION 1; AMENDING
SUBSECTION (e-l) (3) (A) (i) OF SECTION 2;
ADDING SUBSECTION k-2 TO SECTION 2;
AMENDING SUBSECTION (n) OF SECTION 2;
AND AMENDING SUBSECTION (0) AND
ADDING SUBSECTION (v) TO SECTION 5; AND
DECLARING THE URGENCY THEREOF TO TAKE
EFFECT IMMEDIATELY.
WHEREAS, section 2(e-l) (3) of Ordinance No. 3815
(the "Ordinance") states, in applicable part, that:
"The above definitions of 'Bonds'
and 'Bond' are intended to include all
types of industrial development bond
facilities that can be financed on a
tax-exempt basis under the applicable
Federal laws (including the regulations
promulgated thereunder), and it is
intended that this definition in this
Ordinance will be amended to correspond
with any changes in said Federal laws"....
and
WHEREAS, section 21(b) (iii) states that the City
may amend the Ordinance and
"so as to make it more efficient, cure ambi-
guities, defects, inconsistent provisions,
clarify matters or questions arising under
this Ordinance, take advantage of new legal
or conceptual developments or otherwise
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improve this Ordinance and the applica-
tion thereof to the benefit of the City
and its citizens; and such right to so
alter or change is hereby reserved."
and
WHEREAS, it is now necessary and desirable to
proceed in accordance with the above provisions and amend
the Ordinance (i) to specifically provide for projects for
residential rental property within the meaning of the Internal
Revenue Code of 1954, as amended, and the regulations promul-
gated thereunder, and (ii) to provide for a new legal
development in financing commonly known as "loans to lenders".
NOW, THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS:
SECTION 1. Amendment re Purpose. Subsection V
shall be added to Section 1 of the Ordinance to read as
follows:
"V. It is hereby determined that
in furtherance of the findings set
forth above, it is necessary that the
City exercise all of its powers to
improve the quality of life for its
residents, for the reason that improv-
ing the quality of life will result in
a better work force which will make the
City more attractive to industry, com-
mercial or service-related enterprises
considering locating in the City. One
of the vital parts in the quality of
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life in modern society is the availa-
bility of decent, safe, sanitary and
affordable rental housing. This
finding deals with one program by which
the City can help to improve the quality
of life for its citizens, namely, to
encourage the availability of affordable
rental housing. Specifically, applicable
to this finding are the following such
findings:
1. The cost of rental
housing in Southern California is among
the highest in the nation. The City is
not immune from this situation. High
rental costs particularly impact on low
and moderate income people who desire to
live in the City but are unable to find
decent, safe, sanitary housing they can
afford.
2. By facilitating the
financing of rental housing for people
of low or moderate income, the City will
enable its residents to stay in the City
and live in decent and sanitary conditions."
SECTION 2. Amendment re Residential Rental Property.
Subsection 2(e-l) (3) (A) (i) shall be amended to read as
follows:
"(i) Projects for residential
rental property if at all times during
the qualified project period:
(a) 15 percent or more in
the case of targeted area projects,
or
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(b) 20 percent or more in
the case of any other project,
of the units in each project, are to be occupied
by individuals of low or moderate income."
SECTION 3. Amendments re Loans-to-Lenders.
Amendment A. Subsection (k-2) shall be added to
Section 2 as follows:
"(k-2) 'Lending Institution' means
a bank, savings and loan association or
another institution qualified under
state or federal law to receive deposits
and make loans."
Amendment B. Subsection 2(n) shall be amended by
deleting the period at the end thereof and adding the follow-
ing:
"and agreements between the City and
a Lending Institution in which the
City loans funds to a Lending
Institution so that a Company shall
receive a loan from the Lending
Institution to finance the Project."
Amendment C. Subsection 5(0) shall be amended by
deleting the "and" prior to "(iv)" and the period at the end
thereof and adding the following:
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"and (v) to enter into agreements
with a Lending Institution in which
the City loans funds to a Lending
Institution so that a Company shall
receive a loan from the Lending
Institution to finance the Project."
SECTION 4. Effective Date. This Ordinance is an
urgency measure and shall take effect upon adoption. The
facts constituting urgency are: There is a shortage of
decent, safe, sanitary, and habitable residential rental
housing within the City for people of low or moderate incomes.
The construction of such housing would not only upgrade the
city and benefit the citizens of the City, but also it is
vital to the health and safety of the citizens of the City.
Decent, safe, sanitary and habitable residential rental
housing helps to reduce high crime rates and gang activity.
Such problems affect the entire City and are not often
confined to the area involved. Frequently these types of
projects are financed under a "loans to lenders" financial
structure. Decent, safe, sanitary and habitable rental
housing for low- and mOderate-income people discourages the
antisocial conduct described above and will be provided by
the implementation of the provisions of this Ordinance.
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I HEREBY CERTIFY that the foregoing Ordinance was
duly adopted by the Mayor and Common Council of the City of
San Bernardino at a regular meeting thereof, held on the
20t~ day of June ,1984, by the following vote, to wit:
AYES:
. Members Castaneda, Reilly, Harks,
Frazier, Strickler
NOES: Members None
ABSENT: Members Council Members Hernandez, Quiel
ABSTAIN: Members None
~/2a/l.l:1/~
Ci ty Clerk
The foregoing Ordinance is hereby approved this
.z.znl day of June , 1984.
Approved as to form:
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?1 --; V2"__
~City Attorney
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