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HomeMy WebLinkAboutRES FA-34RESOLUTION NO. FA- 34 A RESOLUTION OF THE PALM DESERT FINANCING AUTHORITY DECLARING ITS INTENT TO REIMBURSE EXPENDITURES FOR THE ACQUISITION OF RENTAL HOUSING UNITS FROM THE PROCEEDS OF BONDS THE PALM DESERT FINANCING AUTHORITY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. Staff of the Palm Desert Redevelopment Agency has entered into negotiations for the acquisition a 141-unit apartment complex known as Country Club Estates. Section 2. The Agency expects to use moneys currently on hand in the Agency's low and moderate income housing fund to pay for the acquisition of such apartment complex and to pay for certain capital improvements thereto. The Agency intends that such payment be reimbursed to the low and moderate income housing fund from the proceeds of bonds or other obligations to be issued by the Financing Authority, by the Agency, or by a related public entity. The Financing Authority and the Agency expect that all such expenditures will be reimbursed with proceeds of such bonds. Section 3. Section 1.150-2 of the Treasury Regulations governs the allocation of expenditures of a reimbursement bond. A reimbursement bond is that portion — of an issue of bonds (or other obligations) allocated to reimburse an original expenditure (i.e., an expenditure for a govemmental purpose that is originally paid from a source other than a reimbursement bond) that was paid before the date of issue of the bonds. Section 1.150-2 provides rules to determine when an allocation of proceeds of bonds to reimburse an original expenditure will be treated as an expenditure of those proceeds. Section 4. In order for such an allocation of those proceeds to be treated as an expenditure, the issuer (or in certain cases, a conduit borrower) of the bonds must, in accordance with Section 1.150-2, adopt an official intent for the original expenditure. The official intent is a declaration of intention by the issuer to reimburse the original expenditure with proceeds of bonds. Such official intent is declared in Section 2 hereof. Section 5. The maximum principal amount of bonds or other obligations expected to be issued to pay for the acquisition of such apartment complex and the capital improvements thereto is $10,500,000. P6402\0001 \687810.1 RESOLUTION NO. FA- 34 Section 6. This official intent is not declared as a matter of course and is not declared in an amount substantially in excess of the amounts expected to be necessary to reimburse the expenditures described in Section 3 hereof. PASSED, APPROVED and ADOPTED this 11'h day of April, 2002. AYES: BENSON, FERGUSON, SPIEGEL, KELLY NOES: NONE ABSENTS: CRITES ABSTAINS: NONE Sheila Giili.. , etary P6402\0001 \687810.1 -2- Richard S. Kelly, President'