Loading...
HomeMy WebLinkAboutRDA RES 533� RESOLUTION NO. 533 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY DECLARING ITS INTENT TO REIMBURSE EXPENDITURES FOR THE ACQUISITION AND REHABILITATION OF PROPERTY FROM THE PROCEEDS OF BONDS THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The Palm Desert Redevelopment Agency has acquired the property known as the Candlewood Apartments, located at 74-002 Shadow Mountain Drive, in the City of Palm Desert. Section 2. The Agency used moneys on hand in the Agency's low and moderate income housing fund to pay for the acquisition of the subject property and intends to pay for certain rehabilitation costs of the property from the housing fund. The Agency intends that such payments be reimbursed to the low and moderate income housing fund from the proceeds of bonds or other obligations to be issued by the Agency 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 Ftegulations governs the � allocation of expenditures of a reimbursement bond. A reimbursement bond is that portion of an issue of bonds (or other obligations) allocaf�d 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 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 by the Agency or by a related public entity to pay for such acquisition and rehabilitation costs of the subject property is $4,000,000. P6402100011913627v 1.doc RESOLUTION NO. 533 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 2 hereof. PASSED, APPROVED and ADOPTED this 14th day of September 2006 by the following vote, to wit: AYES: BENSON, KELLY, SPIEGEL, and FERGUSON NOES: IVONE ABSENTS: NONE ABSTAINS: NONE �vJIM F�RGUSON, CHAI ATTEST: CHELLE C. KLASSEN, SECRETARY PALM DESERT REQEVELOPMENT AGENCY P6402100011913627v1.doc 2