HomeMy WebLinkAboutRDA RES 442RESOLUTION NO. 442
A RESOLUTION OF THE PALM DESERT
REDEVELOPMENT AGENCY DECLARING ITS INTENT TO
REIMBURSE EXPENDITURES FOR THE ACQUiSITION OF
RENTAL HOUSING UNITS FROM THE PROCEEDS OF
BONDS
THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FlNDS,
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 Agency, by the Palm
Desert Financing Authority, or by a related public entity. The Agency expects 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 governmental 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 deciaration of intention by the issuer to reimburse the original expenditure
with proceeds of bonds. Such o�cial 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.
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RESOLUTION NO. 442
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 11th day of April, 2002.
AYES:
NOES:
ABSENTS:
assTaiNs
BENSON, FERGUSON, SPIEGEL, KELLY
NONE
CRITES
NONE
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�
Richard S. Kelly, Chairman