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HomeMy WebLinkAboutResolution 2013-77 - Issuance by the California Statewide Co Dept. ID ED 13-43 Page 1 of 2 Meeting Date:12/16/2013 CITY OF HUNTINGTON BEACH REQUEST FOR, CITY COUNCIL ACTION MEETING DATE: 12/16/2013 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Fred A. Wilson, City Manager SUBJECT: Adopt Resolution No. 2013-77 approving the issuance by the California Statewide Communities Development Authority (CSCDA) a Multifamily Housing Revenue Bond in an amount not to exceed $33,000,000 for Huntington Villa Yorba located at 16000 Villa Yorba Lane Statement of Issue: The City Council is asked to conduct a public hearing under the Tax and Equity Fiscal Responsibility Act (TEFRA) in connection with the proposed tax-exempt Bond by the California Statewide Communities Development Authority (CSCDA) of Multifamily Housing Revenue Bonds for Huntington Villa Yorba located at 16000 Villa Yorba Lane. The Bond is not to exceed $33 million and is for acquisition and rehabilitation. Financial Impact: There is no fiscal impact to the City. California Statewide Communities Development Authority is a joint exercise of powers authority and public entity of the State of California and is the responsible fiscal agent for the bonds. Recommended Action: A) Conduct the public hearing under the requirements of TEFRA and the Internal Revenue Code of 1986, as amended (Code); and, B) Adopt Resolution No. 2013-77, °A Resolution of the City Council of the.City of Huntington Beach Approving the Issuance by the: California Statewide Communities Development Authority of Multifamily Housing Revenue Bonds for the Huntington Villa Yorba." Alternative Action(sl: Do not adopt the Resolution and direct staff as necessary. Analysis: The City Council is being asked to adopt a resolution that would approve the issuance of tax- exempt revenue bonds by CSCDA in one or more series in a maximum aggregate principal amount. of $33,000,000 (the "Bonds"). The purpose of the bond is to finance the acquisition and rehabilitation of a 396-unit multifamily low-Income residential housing facility called Huntington Villa Yorba, located at 16000 Villa Yorba Lane., As part of the City's 2013 adopted Housing Element, Huntington Villa Yorba was at-risk of converting from affordable housing to market rate housing. Currently, Huntington Villa Yorba has a. Section 8 project-based Housing Assistance Plan (HAP) contract with HUD subject to annual°. HB - 2 - Item 26. - 1 Dept.ID ED 13-43 Page 2 of 2 Meeting Date:12/16/2013 renewal. According to California Housing Partnership's February 2013 update of HUD-assisted Properties, the mortgage on Huntington Villa Yorba expired on May 1, 2013, with the Section 8 contract subject to expiration on May 31, 2014. The property owner placed Huntington Villa Yorba up for sale, which could have resulted in the loss of all 396 affordable units in the City. Preservation Partners Management Group has entered into escrow to purchase the property and has agreed to the preservation of 198 units for affordability. The preservation of these units meets the City's Housing Element goals. The City has been requested to conduct a TEFRA public hearing and approve the issuance of the Bonds for purposes of federal law. The Bonds are limited obligations of CSCDA payable solely by Preservation Partners Management Group and will not be direct obligations of CSCDA, the City, or any member of CSCDA. State law provides the ability for cities and counties to join together under cooperative agreements to form joint powers authorities to issue debt obligations to fund projects that provide a public benefit and serve the needs of residents within the jurisdictions of the participating members. Federal law allows these obligations to be issued on a tax-exempt basis under certain circumstances. Cities and counties in California have the ability to act as issuers of conduit bonds and other obligations, but many jurisdictions utilize joint powers authorities such as CSCDA, primarily for economies of scale and to access specialized transaction knowledge and resources. CSCDA was established 25 years ago to stimulate economic development throughout California by financing privately owned projects that provide public benefit by creating jobs, health care, affordable housing, infrastructure, schools and other fundamental services that enrich and improve the quality of life in local communities. Today it serves over 500 local agencies in California and provides financing programs that directly benefit local governments as well. The City is a member of CSCDA. It is not permitted to issue bonds or notes for a project without first conducting a public TEFRA hearing and obtaining permission from the governing board of the jurisdiction in which the project is located. In this case, the City Council of Huntington Beach will hold the hearing. Environmental Status: Not applicable Strategic Plan Goal: Enhance economic development Attachment(s): 1. Resolution No. 2013-77, "A Resolution of the City Council of the City of Huntington Beach Approving the Issuance by the California Statewide Communities Development Authority of Multifamily Housing Revenue Bonds for the Huntington Villa Yorba." Item 26. - 2 HB - - RESOLUTION NO. 2013-7 7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING THE ISSUANCE BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY OF MULTIFAMILY HOUSING REVENUE BONDS FOR HUNTINGTON VILLA YORBA WHEREAS, the California Statewide Communities Development Authority (the "Authority") is authorized pursuant to the provisions of California Govermnent Code Section 6500 et seq. and the terms of an Amended and Restated Joint Exercise of Powers Agreement, dated as of June 1, 1988 (the "Agreement"), among certain local agencies throughout the State of California, including the City of Huntington Beach (the "City"), to issue revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of the California Health and Safety Code for the purpose of financing multifamily rental housing projects; and Huntington Villa Yorba Preservation Limited Partnership or related entities, has requested that the Authority adopt a plan of financing providing for the issuance of multifamily housing revenue bonds (the"Bonds")in one or more series issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, and at no time to exceed $33,000,000 in outstanding aggregate principal amount, to finance the acquisition and rehabilitation of a 396-unit multifamily rental housing project located at 16000 Villa Yorba Lane, Huntington Beach, California, generally known as Huntington Villa Yorba (the "Project") and operated by Preservation Partners Management Group; and The Bonds or a portion thereof will be "private activity bonds" for purposes of the Internal Revenue Code of 1986 (the"Code"); and Pursuant to Section 147(f) of the Code, prior to their issuance, private activity bonds are required to be approved by the "applicable elected representative" of the governmental units on whose behalf such bonds are expected to be issued and by a governmental unit having jurisdiction over the entire area in which any facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; and The members of this City Council (this "City Council") are the applicable elected representatives of the City; and There has been published, at least 14 days prior to the date hereof, in a newspaper of general circulation within the City, a notice that a public hearing regarding the Bonds would be held on a date specified in such notice; and Such public hearing was conducted on such date, at which time an opportunity was provided to interested parties to present arguments both for and against the issuance of the Bonds; and 1 Resolution No. 2013-77 The Authority is also requesting that the City Council approve the issuance of any refunding bonds hereafter issued by the Authority for the purpose of refinancing the Bonds which financed the Project (the "Refunding Bonds"), but only in such cases where federal tax laws would not require additional consideration or approval by the City Council; and It is intended that this resolution shall constitute the approval of the issuance of the Bonds required by Section 147(f) of the Code and Section 9 of the Agreement; NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: l. The above recitals are true and correct. 2. The City Council hereby approves the issuance of the Bonds and the Refunding Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the Bonds for the purposes of(a) Section 147(f) of the Code and (b) Section 9 of the Agreement. 3. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents that they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing approved hereby. 4. The City Clerk shall forward a certified copy of this Resolution to: Justin Cooper,Esq. Orrick,Herrington& Sutcliffe LLP 405 Howard Street San Francisco, California 94105 5. This resolution shall take effect immediately upon its passage. 2 Resolution No. 2013-77 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting of said Council held on the 16th day of December ,2013. or TE APPROVED A : ssistant City Manager APPROVED AS TO FORM: City , , !J _ RE AND APPROVED: C' AVager 3 Res. No. 2013-77 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, qualified City Clerk 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 at least a majority of all the members of said City Council at a Regular meeting thereof held on December 16, 2013 by the following vote: AYES: Katapodis, Hardy, Shaw, Harper, Boardman, Sullivan, Carchio NOES: None ABSENT: None ABSTAIN: None City , k and ex-officio° rk of the City Council of the City of ; Huntington Beach, California City ®f Huntington Beach 2000 Main Street • Huntington Beach, CA 92 648 OFFICE OF THE CITY CLERK {EB 771899 a° 0 JOAN L. FLYNN ® CITY CLERK December 18, 2013 Justin Cooper, Esq. Orrick, Herrington&Sutcliffe, LLP 405 Howard Street San Francisco, CA 94105 Dear Mr. Cooper: Enclosed for your records is a certified copy of Resolution No. 2013-77, "A Resolution of the City Council of the City of Huntington Beach Approving the Issuance by the California Statewide Communities Development Authority of Multifamily Housing Revenue Bonds for Huntington Villa Yorba". Sincerely, J n L. Flynn, CMC City Clerk JF:pe Enclosure Sister Cities: Anjo, Japan • Waitakere, New Zealand (Telephone:714-536-5227 Esparza, Patty From: Fritzal, Kellee Sent: Friday, December 13, 2013 12:05 PM To: Esparza, Patty Subject: Fw: Huntington Villa Yorba Attachments: D00001.pdf Sent from my BlackBerry 10 smartphone on the Verizon Wireless 4G LTE network. From: Sommerhauser, Lauren Sent: Friday, December 13, 2013 12:04 PM To: Fritzal, Kellee Cc: Scott Carper Subject: RE: Huntington Villa Yorba He Kellee, Attached is the affidavit of publication. Please let me know if you need anything else. Thanks, Lauren O :RR1CK PIUSUC IFINA,NCE LA4JREN S MMERHAUSER RR " ,,„ HERRINGTON &SUT LIFFE LLP THE ORRICK BUILDING 405 l,OWARD STREET 4Af`I #RANCISCO, CA 94105 fax 415-773-5759 3t1fblfG...i 9 1 } ENV ii I .clui i www.,orrick.com From: Scott Carper [mailto:scarper@cacommunities.org] Sent: Monday, November 18, 2013 3:14 PM To: Sommerhauser, Lauren; Cooper, Justin S. Subject: FW: Document2 Importance: High 1 FYI...see below. Scott Carper Program Manager CSCDA 2999 Oak Road, Suite 710 Walnut Creek, CA 94597 Ph: (925) 478-4912 Cell: (925) 765-8525 www.cacommunities.org Notice to recipient:This e-mail is only meant for the intended recipient of the transmission, and may be a confidential communication or a communication privileged by law. If you received this e-mail in error, any review, use, dissemination, distribution, or copying of this e-mail is strictly prohibited. Please notify us immediately of the error by return e-mail and please delete this message from your system.Thank you in advance for your cooperation. From: Fritzal, Kellee [mailto:KFritzal(&surfcity-hb.org] Sent: Monday, November 18, 2013 2:53 PM To: Scott Carper Subject: FW: Document2 Importance: High This looks good to me. Have them place it in the HB Independent which prints the week of November 251h and date it the 251h. BUT, have them send it to the paper right away so that it makes the deadline for that week. Patty can give you the contact info if they need it. We would like the affidavit of publishing (when it arrives to Orrick)emailed to us for the record. Thanks. Also, are we to expect labels for any type of a mailing? From: Fritzal, Kellee Sent: Monday, November 18, 2013 10:45 AM To: Estanislau, Robin; Esparza, Patty; Flynn, Joan Subject: Document2 Attached is the public hearing document—if we have Orrick place the ad—they will pay directly. How would you like me to handle? ----------------------------------------------------------- ----------------------------------------------------------- IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication, unless expressly stated otherwise, was not intended or written to be used, and cannot be used, for the purpose of(i) avoiding tax-related penalties under the Internal Revenue Code or(ii)promoting, marketing or recommending to another party any tax-related matter(s) addressed herein. ---------------------------------------------------------- ----------------------------------------------------------- NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT OF THE TRANSMISSION, AND MAY BE A COMMUNICATION PRIVILEGED BY LAW. IF YOU RECEIVED THIS E- MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN E-MAIL AND 2 PROOF OF PUBLICATION STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not NOTICE OF PUBLIC NEARING a party to or interested in the notice REGARDING ISSUANCE OF published. I am a principal clerk of the INULiIFAMILYHOUSWG REVENUE BONDS FOR, HUNIHUNTINGTON BEACH INDEPENDENT, NOTICE IS HEREBY GIVEN that,ILLA at 6:00 p.m.,or as soon thereafter as the matter can be heard, 0n which was adjudged a newspaper of Monday, December 16, 2013, at the City Council Chambers, 2000 Main Street, Huntington'Beach; general circulation on August 26, 1994, California,the City Council of the City of Hunting-. ton Beach(the'"City")will conduct a public hearing case A50479, for the City of Huntington as required by Section 147(f) of the Internal Revenue Code of 1986, at which it will hear and Beach, County of Orange, and the State consider information concerning a proposed"plan of financing providing for the issuance by the of California. Attached to this Affidavit is California Statewide Communities Development Authority of multifamily housing revenue bonds in a true and complete copy as was printed one or more-series issued from time to time, including bonds issued to refund such revenue and published on the following date(s): bonds in one or more series from time to time,and at no time to exceed $33,000,000 in outstanding aggregate principal amount, to finance the acqui- siti0n and rehabilitation of a 396-unit multifamily rental housing project located at 16000 Villa Yorba Lane, Huntington Beach, California. The facilities November 28 2013 are to be owned by Huntington Villa Yorba Preservation Limited Partnership(the"Borrower"), operated by Preservation Partners Management Group,and are ggnerally known as Huntington Villa Yorba(the"Project'). certify (or declare) under penalty of Those wishing to comment on the proposed financing and the nature and location of the Project perjury that the foregoing is true and may either appear in person at the public hearing or submit written comments, which must be correct. received by the City prior to the hearing. Written comments should be sent to City of Huntington Beach at 2000 Main Street, Huntington Beach, California 92648,Attention:City Clerk.For additional information, please contact the Office of Business Development,Kellee Fritzal at(714)374-1519. Executed on December 13 2013 CITY CLERK CITY OF HUNTINGTON BEACH Dated:November 28,2013 at Costa Mesa, California Published Huntington Beach Independent November 28, 2013 114-896 „`��L-GJGL y2 Csit�'"%rrr-s-L� c Signature PROOF OF PUBLICATION STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) I am a citizen of the United States and a resident of the County aforesaid; I am "-_ NOTI(EOFPUBU(HEARING over the age of eighteen years, and not REGARDING ISSUANCE OF a party to or interested in the notice MULTIfAMR NGREVENUE BONDS FOR HUNTINGTTINGiON VILLA YORBA ' published. I am a principal clerk Of the NOTICE IS HEREBY GIVEN that,at 6:00 p.m.,or as, soon thereafter as the matter can be heard, I o HUNTINGTON BEACH INDEPENDENT, Monday, December >61 2013, at the City Chambers, 2000 Main Street, Huntmgton Beach,' which was adjudged a newspaper Of Calif ornia, the City Council of the City of Hunting general circulation on August 26 1994 !.ton Beach(the"City")will conduct a public hearing , as required by, Section 147(f) of the Internals Revenue Code of 1986, at which it will hear and', case A50479, for the City of Huntington consider information concerning a proposed*plan of financing providing for the issuance by the Beach, County of Orange, and the State California Statewide Communities Development Authority of multifamily, housing revenue bonds in of California. Attached to this Affidavit is i one or more series issued from time to time, including bonds .issued to refund such revenue a true and complete copy as Was printed i bonds in one or more series from time to time,and at no time to exceed $33,000,000 in outstanding and published On the fOIIOWIng date(s). I aggregate princi al amount, to finance the.acqui- P sition and rehabilitation of a 396-unit multifamily rental housing project located at 16000 Villa Yorba Lane, Huntington Beach,'California. The facilities are to be owned by Huntington Villa' Yorba Preservation'Limited Partnership (the"Borrower"), operated by Preservation Partners Management November 28, 2013 Group,and are generally known as Huntington Villa Yorba(the"Project".). Those wishing to comment on the proposed financing and the nature and location of the Project i certify (or declare) under penalty of may either'appear in parson at the public hearing or submit written comments, which must be perjury that the foregoing is true and received by the City prior to the hearing. correct. comments should be sent to City Huntington' t Beach at 2000 Main Stree, Huntington Beach, California 92648,Attention:City Clerk.For additional information, please'contact the Office of Business' Development,Kellee Fritzal at(714)374-1519.. CITY CLERK CITY OF HUNTINGTON,BEACH Dated:November 28;2013 Executed on December 13, 2013 Published Huntington Beach Independent-Novemberr� at Costa Mesa, California -= Signature PROOF OF PUBLICATION STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not -NOTICE OFPusucHEARING a party to or interested in the notice REGARDING ISSUANCE OF published. I am a principal clerk of the MULTIFAMILY HOUSING REVENUE BONDS FOR HUNTINGTON BEACH INDEPENDENT, NOTICE IS HEREBNGTONY IVEN IA that,at 6:00 p.m.,or as newspaper which was adjud adjudged aof soon thereafter as the matter can be heard, on gMonday, December 16, 2013, at the City Council i general circulation on August 26 1994 Chambers, he C Main Council of, a City of Hunting- , � , California, the City Council of the City of Hunting- ton Beach(the"City")will conduct a public hearing case A50479, for the City of Huntington as required by Section 147(f) of the Internal Beach County of Orange and the State Revenue Code of 1986, at which if will hear and e , consider information concerning a proposed plan of financing providing for the issuance by the of California. Attached to this Affidavit is California Statewide Communities Development Authority of multifamily housing revenue bonds in a true and complete copy as was printed one or more series issued from time to time, including bonds issued to refund such revenue and published on the following date(s): bonds in one or more series from time to time,and at no time to exceed $33,000,000 in outstanding i aggregate principal amount, to finance the acqui. sition and rehabilitation of a 396-unit.multifamily rental housing project located at 16000 Villa Yorba Lane,-Huntington Beach, California. The facilities November 28, 2013 are to be owned by .Huntington Villa Yorba Preservation Limited Partnership (the"Borrower"), Operated by, Preservation Partners Management Group,and are generally known as Huntington Villa certif or declare uner Yorba Project' y � � d enalt p y of Thossee w wishing too comment on the proposed financing and the nature and location of the Project perjury that the foregoing is true and may either appear in person at the public hearing or submit written comments, which must be correct. received`.by the City prior to the hearing. Written comments should be sent to City.of Huntington Beach at 2000 Main Street, Huntington' Beach, California 92648,Attention:City Clerk.For additional information, please contact the Office of Business Development;Kellee Fritzal at(714)374.1519. Executed on December 13 2013 CITY CLERK � CITY OF HUNTINGTON BEACH Dated:November 28,2013 at Costa Mesa, California Published Huntington Beach Independent November 28, 2013 114-896 . s� Signature CCASSifIED �i .� Daily Plot A D v E R T IS I N;G Daily Plot Printed by:996�' usan Channels Dec 13,2013,2`17�pm H P I Salesperson H I I o o Phone: Ad#35704210 0 0 0 ,M Accountlnformation Adlnformation Name: (415)Orrick-Herrington � �e .: Phone#: 415 7734133� - ,r,$tart date; 11-28-13 � � Size 2x45.870 &Sutcliffe LLP Stop�date 11-28-13 jBilledsize 4.50 TCN Inch !l Ad_dress:',405 Howard St Insertions 1 Keyword San Francisco,CA 94105 V r<<<�R'ate3c„ode?&Legal Open Ad type Multi-Column Liner ` -Taker by 9962 Susan Channels Acct#:,� C000301203 Classification 1 3000-Legal Notices Publications TCN HBI Client: Placed by: Lauren Sommerhauser Fax#: Ad Copy: NOTICE OF PUBLIC HEARING REGARDING ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS FOR HUNTINGTON VILLA YORBA NOTICE IS HEREBY GIVEN that, at 6:00 p.m., or as soon thereafter as the matter can be heard, on Monday,December 16,2013,at the City Council Chambers, 2000 Main Street, Huntington Beach, California,the City Council of the City of Huntington Beach (the "City") will conduct a public hearing as required by Section 147(f) of the Internal Revenue Code of 1986, at which it will hear and consider information concerning a proposed plan of financing providing for the issuance by the California Statewide Communities Development Authority of multifamily housing revenue bonds in one or more series issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, and at no time to exceed $33,000,000 in outstanding aggregate principal amount,to finance the acquisition and rehabilitation of a 396-unit multifamily rental housing project located at 16000 Villa Yorba Lane, Huntington Beach,California.The facilities are to be owned by Huntington Villa Yorba Preservation Limited Partnership(the"Borrower"), operated by Preservation Partners Management Group, and are generally known as Huntington Villa Yorba(the"Project'). Those wishing to comment on the proposed financing and the nature and location of the Project may either appear in person at the public hearing or submit written comments, which must be received by the City prior to the hearing. Written comments should be sent to City of Huntington Beach at 2000 Main Street, Huntington Beach, California 92648,Attention:City Clerk.For additional information, please contact the Office of Business Development;Kellee Fritzal at(714)374-1519. CITY CLERK CITY OF HUNTINGTON BEACH Dated:November 28,,2013 Published Huntington Beach.Independent,November 28, 2013 n. 114 8,96 ib --- ad proof pg. 1 --- "