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Resolution Number 06-05-02-051 RESOLUTION NO. 06-05-02-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING THE ISSUANCE OF MOBILE HOME PARK REVENUE BONDS BY THE INDEPENDENT CITIES LEASE FINANCE AUTHORITY FOR THE SAN JUAN MOBILE ESTATES WHEREAS, the Independent Cities Lease Finance Authority (the "Authority') is authorized pursuant to the provisions of California Health and Safety Code Section 52100 and the terms of the Joint Powers Agreement Creating the Independent Cities Lease Finance Authority (the "Authority'), to issue revenue bonds in accordance with Chapter 8 of Part 5 of Division 31 of the California Health and Safety Code for the purpose of financing multifamily rental housing projects, including mobile home parks; and WHEREAS, the City of San Juan Capistrano is joining the Authority as an associate member; and WHEREAS, Millennium Housing Corporation, a California nonprofit corporation ("Millennium") has requested that the Authority issue mobile home park revenue bonds in one or more series in an aggregate principal amount not to exceed $43,000,000 (the "Authority Bonds") for the purpose of providing financing for the acquisition of a 312 -unit mobile home park located at 32302 Alipaz Street, San Juan Capistrano, California, and known as San Juan Mobile Estates (the "Project'); and WHEREAS, the Project will be owned by Millennium, or a successor, assign or affiliate thereof (the "Owner"); and WHEREAS, the Authority Bonds will be qualified "private activity bonds" for purposes of the Internal Revenue Code of 1986 (the "Code"); and WHEREAS, pursuant to Section 147(f) of the Code, the proposed issuance of private activity bonds is required to be approved by the "applicable elected representative" of the governmental unit having jurisdiction over the area in which the facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; and WHEREAS, the Project is located in the City of San Juan Capistrano (the "City") and the members of the City Council (this "City Council") are the applicable elected representatives of the City; and WHEREAS, 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 proposed issuance of the Authority Bonds would be held on the date hereof; and SP Page 1 of 2 05-02-2006 WHEREAS, such public hearing was conducted on said date by this City Council, at which time an opportunity was provided to interested parties to be heard with respect to the proposed issuance of the Authority Bonds and financing of the Project; and WHEREAS, it is intended that this resolution shall constitute the approval of the proposed issuance of the Authority Bonds required by Section 147(f) of the Code; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Juan Capistrano does hereby: Section 1. Approval of Issuance of Authority Bonds. This City Council hereby approves the issuance of the Authority Bonds by the Authority. It is the purpose and intent of this City Council that this resolution constitutes approval of the Authority Bonds for the purposes of Section 147(f) of the Code. This City Council further finds that, based on information provided by the Owner, the financing of the Project by the Authority will result in savings in the costs of the Bond financing. Section 2. Effective Date. This resolution shall take effect Oqediate)y-npon its passage. STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) I, MARGARET R. MONAHAN, appointed City Clerk of the City of San Juan Capistrano, do hereby certify that the foregoing Resolution No. 06-05-02-05 was duly adopted by the City Council of the City of San Juan Capistrano at a Regular meeting thereof, held the 2"d day of May 2006, by the following vote: AYES: COUNCIL MEMBERS: Hart, Bathgate, Soto, Allevato, and Mayor Swerdlin NOES XUUX J.EMBER: None AB N I EMBER: None Clerk Page 2 of 2 05-02-2006 SP