HomeMy WebLinkAboutRDA RES 285RESOLUTION NO.285
A RBSOLUTION OF THB PALM DSSBRT RgDBVgLOP1 I 1T
AGBNCY AUTHORIZII IG THB SBBCUTZVS DIRBCTOR OF
TI AG iCY TO BBBCUTB A COlOSI'PlB1 iT LSTTSR OF
T 3UMITOMO BAI i1C, LIMITSD ( CHICAGO BRANCH I Ild
CONNSCTIOId WITH THS PROPOSED ISSUANCS OF
RSNTAL HOUSING R$VS1iUB BOlIDS (D83gRT ROSS
PROJBCP ) BY TH ArGBNCY
RBCITALS:
A. Under and pursuant to the provisions of Health and
Safety Code Section 33750, g . sec. the "Bond Act") and the
Nonprofit Affordable Housing Financing Proqra (the "Proqra ") of
the AQency, the Aqency is authorized to issue bonda for the purpose
of makinq loans throuqh qualified mortqaqe lenders to participatinq
parties to finance_residential construction. Under and pursuant to
the Bond Act, the 3tate Leqislature has found and declared that it
is necessary and essential that redevelopaent agencies be
authorized to make long-term, low-interest loans throuqh qualified
mortqage lenders to finance residential construction in order to
encouraqe investaent and upqrade redevelope ent project areas and
increase the. sup lg of housirig: This Resolution is adopted under
and pursuant o the Bond Act, t iie Proqrae and ip furtherance of the
purposes of the Sond Act and the Proqras.
B. Civ c C n er Barrio Housinq Corporation, a nonprofit
public benefit cos oration (' CCBHC") described in Section 501 (c)
( 3) of Title 26 of ihe'Uai ed 3tates Code, pzoposes to develop, own
and oDerate resideatial construction consistinq. of 161 single-
family residential `.units to be located in Praject Area No. 1 of the
Aqency. Unde aad',pur uant to.the Sond.Act and tha Proqra , the
Aqency proposes to" i. sue bonds and. use the proceeds to purchase
mortgage loans without pre ium made by a qualified mortgaqe lender
to CCBHC, to finance the foregoinq described residential
construction.
C. Zn connection with the proposed issuance of bonds by
the Aqency, it will be necessary to the marketability of the bonds
to obtain a letter of credit. A letter of credit will provide the
bondholders with the necessary assurance that upon presentation of
any bond for paya ent of principal and interest, suff3cient monies
will be available for such payment. The Aqency and CCBHC have
received a co itaent from the Sumitomo Bank, Limited (Chicago
Branch) ("Sumitovo") to provide a letter of credit in connection
with the proposed issuance of the bonds. The coa mitment letter
describes the co it ent of Sumitovo to provide a letter of credit
RSSOLUTZOId NO. �'05
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and the obliqation of CCBHC to pay a facility fee for such letter
of credit. The obliqation of CCBHC to pay such facility fee will
be assumed by the Agency. In addition, the commitment letter
provid'es in effect that the costs and expenses, includinq leqal
fees, inCurred by Sunitomo must be paid by the Aqency in the event
the bonds are not sold and delivered.
NOH, ?HEREFORE, THE PALM DBSERT REDEVELOPNENT AGFNCY
HEREBY FINDS, DETERMINSS, RESOLVL3 AIdD ORDERS AS FOLLOWS:
,�ection �. The commitment letter of Sumitomo relating to
the proposed issuance of the Bonds, in substantially the form on
file with the Executive Director of the Agency and presented to the
Aqency qoverning board at this meeting, is hereby app�oved. The
Bxecutive Director ts herebp atrthorized for and in the na�e and on
behalf of the Aqencp, to execute the comnitment letter with such
insertions and chanqes in the interest of the Aqencp as may be
approved by the $xecutive Director, subject to the provisions of
Section 2 hereof, such approval to be conclusively evidenced by
such execution. ' "
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,gectfofn 2. Authoriie� Oificers. Tl�ie �aUtiiorization qiven
in this Resolution to execute �such coaitaent letter is qtven so
long as ti) the faCilitp fee"d�es not exceed 0.75 percent of the
original stated as�ount of the letter of c�edit and the fee payable
on the last day of eacb March, June, epteabe� and December, and on
the termination date, does nat e�ccee�C�:501percent per annum of the
ava32able a�ount oi the le�ter. o�f cred�t,^� (11) the costs and
expenses, includinq legal fees, to !Se patid by� the CCBHC or the
�►qency, as the case ■ay be,, in the event the bonds are not sold and
delivered, does not exceed�;20,000, and (iii)_in �he opinion of the
�xecutfve Director, thei`fe is a reasoir�ble likplihood that the bonds
described in the covmttverrt letter will�be sold and delivered prior
to the expiration oi the coi�aitment .' "' '
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RSSOLUTION N0. 285
Section 3. This Resolution shall become effective
immediately upon adoption.
APPROVED AND ADOPTED this 26th day of August, 1993.
AYTS: CRITF�S, KBLLY, SNYDER, WILSON, BENSON
NOES: NONE
ABSBNT: NONE
ABSTAIN: NONE
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J� M. Benson, Chairperson
74TTEST: -
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Sheila R. Gilligan,;'Secretary
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