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HomeMy WebLinkAboutCity Council - 5227 RESOLUTION NO. 5227 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF LOANS-TO-LENDERS REVENUE BONDS (HOME FEDERAL SAVINGS AND LOAN ASSOCIATION PROJECT) RESOLVED, by the City Council of the City of Huntington Beach, California, that: WHEREAS, the City is a duly constituted city and political subdivision of the State of California (within the meaning of those terms in Chapter 7, commenc- ing with Section 52075, Part 5, Division 31 of the Health and Safety Code of the State of California (the "Act") and in the Regulations of the Department of the Treasury and the rulings of the Internal Revenue Service prescribed and promul- gated pursuant to Section 103 of the Internal Revenue Code of 1954, as amended (the "Code")) ; WHEREAS, the Act authorizes the City to issue revenue bonds for the purpose of financing the construction or development of multi-family rental housing and to make or purchase loans to persons, firms, corporations, partnerships or other entities for the purpose of developing or providing such multi-family rental housing; and WHEREAS, in furtherance of the purposes of the Act and as part of the City's plan of financing residential housing, the City proposes to issue $16,000,000 aggregate principal amount of its revenue bonds designated "City of Huntington Beach, California, Loans-to-Lenders Revenue Bonds (Home Federal Savings and Loan Association Project)" (the "Bonds") , the proceeds of which will be placed on deposit with Home Federal Savings and Loan Association (the "Lender") which, in consideration of the Deposit, will issue to the Trustee certificates of deposit (the "Certificate") in the aggregate principal amount of the Bonds and will make a loan to the developer of the project (the "Owner") to finance the cost of a multi-family residential rental development (the "Project") to be located with- in the City of Huntington Beach, California (the "City") and occupied partially (at least 20 percent) by persons of low and moderate income, within the meaning of Section 103(b)(12)(C) of the Code, all for the public purpose of assisting persons of low and moderate income within the City to afford the costs of decent, safe and sanitary housing; and WHEREAS, the Bonds are proposed to be issued pursuant to and secured by an Indenture of Trust (the "Indenture") by and between the City and Albuquerque National Bank (the "Trustee"); WHEREAS, the City, the Lender, the Trustee and the Owner propose to enter into a Loans-to-Lenders Deposit Agreement (the "Deposit Agreement"'), providing for (i ) the purchase of the Certificate from the Lender with the proceeds of the sale of the Bonds, (ii) the terms and conditions under which the Lender will make loans to the Owner to finance the acquisition, construction and purchase of the Project and (iii ) the establishment of certain reserves for the benefit of the holders of the Bonds; and WHEREAS, in order to assure compliance with the Code, the City and the Owner propose to enter into Deed Restrictions with respect to the Project (the "Deed Restrictions") ; WHEREAS, the City has heretofore appointed L.F. Rothschild Unterberg Towbin to act as managing underwriter (the "Underwriter") with respect to the Bonds, and the Underwriter has caused to be prepared and presented to this meeting a form of Bond Purchase Contract (the "Purchase Contract") for the consideration of the Council ; WHEREAS, the City has now determined to issue the Bonds and to enter into the Indenture to secure the Bonds by a pledge and assignment of the Deposit Agreement, the Regulatory Agreement, the Certificate and various other funds and property more particularly described in the Indenture (the "Trust Estate"); WHEREAS, all things necessary to cause the Bonds, when authenticated by the Trustee and issued as in the Indenture provided, the valid, binding and legal limited obligations of the City according to the import thereof, and to constitute the Indenture a valid assignment and pledge of the amounts pledged to the payment of principal of and interest on the Bonds and a valid pledge and assignment of the rights of the City in and to the Trust Estate; WHEREAS, the City has caused to be prepared and presented to this meeting various documents and instruments, all of which are necessary to the consummation of the transaction and which are hereafter enumerated and identified; and WHEREAS, it appears that each of said documents and instruments which are now before this meeting is in appropriate form and is an appropriate document or instrument to be executed and delivered for the purpose intended, NOW, THEREFORE, IT IS ORDERED as follows: Section 1. Authorization of the Bonds. For the purpose of raising moneys with which to finance the Project, the City hereby determines to issue its Loans- to-Lenders Revenue Bonds, (Home Federal Savings and Loan Association Project) , in the aggregate principal amount of $16,000,000, maturing and bearing interest at the rates provided and subject to all of the terms and conditions set forth in the Purchase Contract. The Bonds shall be limited obligations of the City and shall be payable as to principal and interest, and the obligations of the City under the Indenture shall be paid and satisfied, solely from the revenues, receipts and other moneys and property pledged therefor under the Indenture. Section 2. Approval of Indenture. To provide for the details of and to prescribe the terms and conditions upon which the Bonds are to be issued, secured, executed, authenticated and held, the Mayor or Mayor Pro Tem of the City is hereby authorized and directed to execute and the City Clerk or Deputy City Clerk of the City is authorized to attest and to affix the official seal of the City to, and to deliver the Indenture to the Trustee in the form presented to this meeting or with such changes as may be approved by the officers of the City executing the same, subject to the advice and counsel of the City's Underwriter, Bond Counsel and City Attorney, such execution thereof to constitute conclusive evi- dence of the approval of such officers and of the City of all changes from the form of Indenture presented to this meeting, which form of Indenture is hereby in all respects approved and incorporated by reference and made a part hereof. Section 3. Approval of Various Instruments. Each of the following docu- ments is hereby approved and the City Administrator is authorized to execute and to affix the official seal of the City and to deliver each of the following documents: a) The Deed Restrictions; b) The Deposit Agreement; and c) The Purchase Contract. The foregoing authorization applies to the Purchase Contract only if the Purchase Contract provides for an annual stated interest rate on the Bonds which does not exceed eight and one-half percent (82%) per annum. The foregoing authorization applies to each of the foregoing documents in the form presented to this meeting or with such changes as may be approved by the officer of the City executing the same, subject to the advice and counsel of the City's Under- writer, Bond Counsel and City Attorney, such execution thereof to constitute conclusive evidence of the approval of such officer and of the City of all changes from the form of each such document presented to this meeting, which form of document, respectively, is hereby in all respects approved and incor- porated by reference and made a part thereof. Section 4. Approval of Official Statement. The Official Statement per- taining to the offer and sale of the Bonds and its use by the Underwriter in the offer and sale of the Bonds, is hereby approved and the City Administrator is hereby authorized and directed to execute and deliver the Official Statement in the form presented to this meeting or with such changes as may be approved by the officer of the City executing the same, subject to the advice and counsel of the City=s Underwriter, Bond Counsel and City Attorney,. his execution thereof to constitute conclusive evidence of the approval by such officer and the City of all changes from the form of such Official Statement presented to this meet- ing, which form of Official Statement is hereby in all respects approved and incorporated by reference and made a part hereof. Section 5. Authority to Consummate Transaction. The Mayor, Mayor Pro Tem, City Clerk, Deputy City Clerk, City Administrator and other proper officers of the City are hereby authorized and directed to execute and deliver any and all papers and instruments and to do and cause to be done any and all acts and things necessary or, proper for carrying out the transaction contemplated by this Reso- lution. Section 6. Effective Date. This Resolution shall be effective upon its adoption. PASSED AND APPROVED this 22nd day of February 1983. ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED AS TO FORM AND CONTENT: City Attorney STRADLING, YO CA, CARLSON, AUTH Special Redevelopment Counsel INITIATED AND APPROVED AS TO CONTENT: Director, Business and In ustrial Enterprise APPROVED: X, City Administrator Res. No. 5227 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF HUNTINGTON BEACH ) I, ALICIA M. wENTwORTH, the duly elected, qualified City C1drk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of more than a majority of all the members of said City Council at a regular meeting thereof held on the 22nd day of February , 19 83 by the following vote: AYES: Councilmen: Pattinsnn, Ma AllittPr, Finlpy- Raile„, K NOES: Councilmen: Thomas , Mandi c ABSENT: Councilmen: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California