Resolution Number 15-06-16-02 RESOLUTION NO. 15-06-16-02
L� RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN JUAN CAPISTRANO, CALIFORNIA, RELATING TO
THE ISSUANCE OF BONDS BY THE INDEPENDENT
CITIES FINANCE AUTHORITY FOR THE SAN JUAN
MOBILE ESTATES
WHEREAS, certain cities of the State of California (collectively, the "Members")
have entered into a Joint Powers Agreement (the "Joint Powers Agreement")
establishing the Independent Cities Finance Authority (the "Authority") and prescribing
its purposes and powers, and providing, among other things, for associate members of
the Authority (an "Associate Member"); and,
WHEREAS, the Authority has been formed for the purpose, among others, of
assisting its Members and Associate Members in the raising of capital to finance the
capital improvement needs of Local Agencies (as defined in the Joint Powers
Agreement), to provide for home mortgage financing with respect to those Members or
Associate Members that are either a city or a county of the State of California, to
provide financing in connection with the improvement, construction, acquisition,
creation, rehabilitation and preservation of affordable housing within the boundaries of
the Members and Associate Members, and to provide financing in accordance with the
provisions of applicable law in connection with other projects and programs that are in
the public interest and which benefit Members and Associate Members including
making loans to tax-exempt organizations from the proceeds of mortgage revenue
bonds to finance the acquisition of multifamily rental housing, including mobile home
parks, under the provisions of Chapter 8 of Part 5 of Division 31 (commencing with
Section 52100) of the Health and Safety Code; and,
WHEREAS, the City of San Juan Capistrano (the "City") is an Associate Member
of the Authority; and,
WHEREAS, the Authority proposes to issue its Mobile Home Park Revenue
Refunding Bonds (San Juan Mobile Estates) in one or more series (the "Bonds"); and,
WHEREAS, Millennium Housing, LLC, a California limited liability company (the
"Owner"), has requested that the Authority issue and sell the Bonds in an aggregate
principal amount of not to exceed $40,000,000 to, along with other funds available to
the Owner, (i) refund certain revenue bonds previously issued by the Authority, the
proceeds of which were loaned to Millennium Housing Corporation, a California
nonprofit public benefit corporation (the "Prior Owner"), to finance the acquisition and
renovation of a mobilehome park with 312 spaces known as San Juan Mobile Estates
located at 32302 Alipaz St., San Juan Capistrano, California 92675 (the "Project"), (ii)
finance additional renovations to be made to the Project, (iii) fund a rental assistance
fund and (iv) finance certain costs of issuing the Bonds; and,
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WHEREAS, in connection with the issuance of the Bonds, the Prior Owner will
transfer ownership of the Project to the Owner; and,
WHEREAS, the 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
Project is to be located, after a public hearing held after reasonable public notice; and,
WHEREAS, the members the 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 Bonds would be held on the date hereof; and,
WHEREAS, such public hearing was conducted on the date hereof by the City
Council at which time an opportunity was provided to interested parties to be heard with
respect to the proposed issuance of the Bonds and financing of the Project; and,
WHEREAS, it is intended that this resolution shall constitute the approval of the
proposed issuance of the 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. The City Council approves the issuance of the Bonds by the
Authority solely to satisfy the requirements of Section 147(f) of the Code.
Section 2. The issuance of the Bonds shall be subject to the approval of the
Authority of all financing documents relating thereto to which the Authority is a party.
The City shall have no responsibility or liability whatsoever with respect to the Bonds or
the Project.
Section 3. The adoption of this Resolution shall not obligate the City or any
department thereof to (i) provide any financing to acquire or construct the Project or to
provide any refinancing of the Project; (ii) approve any application or request for or take
any other action in connection with any planning approval, permit or other action
necessary for the acquisition or operation of the project; (iii) make any contribution or
advance any funds whatsoever to the Authority; or (iv) take any further action with
respect to the Authority or its membership therein.
This Resolution shall take effect immediately upon its adoption.
(Signature Page Follows)
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PASSED, APPROVED, AND ADOPTED this16" day of June 2015.
Derek Reeve, Mayor
ATTEST:
LL
M is Morris, C ty Cle k
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
I, MARIA MORRIS, appointed City Clerk of the City of San Juan Capistrano, do hereby
certify that the foregoing Resolution No. 15-06-16-02 was duly adopted by the Cit
Council of the City of San Juan Capistrano at the Special meeting thereof, held the 16t
day of June 2015, by the following vote:
AYES: COUNCIL MEMBERS: Allevato, Ferguson, Perry, and Mayor Reeve
NOES: COUNCIL MEMBER: Mayor pro tem Patterson
ABSEN(-T: COUNCIL MEMBER: None
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W V)2a&(
MARJA MORR StyClerk
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