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HomeMy WebLinkAboutRES HA-102RESOLUTION NO. HA-102 A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY AUTHORIZING AND APPROVING THE NEGOTIATION, MODIFICATION, PREPARATION, EXECUTION AND DELIVERY OF DOCUMENTS AND AGREEMENTS IN CONNECTION WITH THE RE - SYNDICATION OF PD HOVLEY LIMITED PARTNERSHIP, AND THE REFINANCING AND REHABILITATION OF THE HOVLEY GARDENS PROJECT, AND TAKING RELATED ACTIONS RECITALS: A. Pursuant to AB X1 26 (which became effective in June 2011) and the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et aL, 53 Cal.4th 231 (2011), the former Palm Desert Redevelopment Agency ("Former Agency") was dissolved as of February 1, 2012, and the successor agency to Former Agency was constituted ("Successor Agency"). B. Pursuant to Section 34175(b) of the California Health and Safety Code ("HSC"), assets of the Former Agency transferred to the control of the Successor Agency by operation of law. C. Pursuant to HSC Section 34176(b), the City Council of the City of Palm Desert ("City") adopted Resolution No. 2012-07, electing for the City not to retain the responsibility for performing housing functions previously performed by the Former Agency, and determining that all of the assets, as allowed by law, and all rights, powers, liabilities, duties, and obligations associated with the housing activities of the Former Agency be transferred to the Palm Desert Housing Authority ("Housing Authority"). D. The Housing Authority, as successor -in -interest to the Former Agency, is a party to that certain Disposition and Development Agreement with PD Hovley Limited Partnership ("Partnership"), as successor -in -interest to Palm Desert Development Company ("PDDC") (now known as Palm Communities), dated as of June 14, 2001 (as subsequently amended, the "DDA"), pursuant to which the Former Agency made a loan to PDDC in the original principal amount of Seven Million Six Hundred Fifty -Nine Thousand Four Hundred Thirty -Seven Dollars ($7,659,437.00) ("Housing Authority Loan") for the development of a 163-unit apartment complex commonly known as Hovley Gardens Apartments ("Project") located on certain real property located in the City and acquired by the Partnership ("Property"). The current principal balance of the Housing Authority Loan is approximately Six Million One Hundred Forty -Eight Thousand Eight Hundred Thirteen Dollars ($6,148,813.00). E. The Housing Authority, as successor -in -interest to the Former Agency, is a party to that certain Regulatory Agreement and Option with the Partnership, as successor -in -interest to PDDC, dated as of October 5, 2001, ("Regulatory Agreement"), pursuant to which 162 units in the Project are restricted for rental to very low and low income households at an affordable rent for a period of 55 years. RESOLUTION NO. HA-102 F. The Partnership desires to re -syndicate and restructure the financing of the Project and rehabilitate the Project. In connection therewith, on June 25, 2020, pursuant to its Resolution No. HA-97, the Housing Authority Board ("Board") conditionally approved the re -syndication and restructuring, as described in the Conditional Agreement Regarding Hovley Gardens Re -Syndication, dated June 25, 2020, and on file in the office of the Housing Authority Secretary ("Conditional Agreement"). The Board's approval was conditioned, in part, upon the Project receiving an allocation of 9% Low Income Housing Tax Credits, and the Project has received such allocation. G. The re -syndication and restructuring are to be evidenced by, among other things, an amended DDA and an amended Regulatory Agreement, each to be entered into by the Housing Authority and PD Hovley 1 R Limited Partnership ("Developer"), which will acquire the Property from the Partnership. H. Documents and agreements, including an amended DDA and amended Regulatory Agreement, necessary to effectuate the proposed re -syndication and restructuring of the financing of the Project, including modification of the Housing Authority Loan, as described in the Conditional Agreement, have been presented to the Board at this meeting and are on file in the office of the Housing Authority Secretary. NOW, THEREFORE, THE PALM DESERT HOUSING AUTHORITY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals, and each of them, are true and correct. Section 2. Approval of Amended Documents. The Board hereby approves the (i) Amended and Restated Disposition and Development Agreement by and between the Authority and the Developer; (ii) the Amended and Restated Regulatory Agreement by and between the Authority and the Developer; (iii) Amended and Restated Promissory Note Secured by Deed of Trust, made by the Developer to the Authority; and (iv) Assignment and Modification to Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing among the Developer, Partnership, and Authority, all substantially in the form presented to the Board at this meeting and incorporated herein by reference (collectively, the "Amended Documents"). Section 3. Authorized Actions. The Board hereby authorizes (i) Authority staff and legal counsel to negotiate and modify the Amended Documents, provided such modifications are materially consistent with the terms set forth in the Conditional Agreement, (ii) Authority staff and legal counsel to negotiate and prepare all other necessary or proper documents and instruments; (iii) the Executive Director or Chairman, in consultation with legal counsel, to execute and deliver, for and in the name of the Authority, the Amended Documents, provided such modifications are materially consistent with the terms set forth in the Conditional Agreement; and (iv) the Executive Director and Chairman, and all other officers of the Housing Authority, in consultation with legal counsel, to execute and deliver, for and in the name of the Authority, all other necessary documents and instruments, and to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution. Any actions previously taken by officers of the Housing Authority consistent with the purposes of this Resolution are hereby ratified and confirmed. 12812-0001 \ 1632445.1 P6401-0001\2515401 v3.doc RESOLUTION NO. HA-102 PASSED, APPROVED, AND ADOPTED by the Authority Board of the Palm Desert Housing Authority, at its regular meeting held on the 8th day of April, 2021, by the following vote, to wit: AYES: HARNIK, JONATHAN, NESTANDE, QUINTANILLA, and KELLY NOES: NONE ABSENT: NONE ABSTAIN: NONE t) KATHLEEN I EL LY, IAI ATTEST: GRACE L. ROCHA TING SECRETARY PALM DESERT HOUSING AUTHORITY 12812-0001\1632445.1 P6401-0001\2515401 v3.doc