RES FA-36RESOLUTION NO. FA- 36
A RESOLUTION OF THE PALM DESERT FINANCING
AUTHORITY DECLARING ITS INTENT TO REIMBURSE
EXPENDITURES FOR THE ACQUISITION OF PROPERTY
FROM THE PROCEEDS OF BONDS
THE PALM DESERT FINANCING AUTHORITY HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. On April 24, 2002, the Palm Desert Redevelopment Agency
acquired two parcels (the "Parcels") in Palm Desert, Califomia consisting of Lot 5 and
Lot 12 of the Palm Village Garden Tract, which will constitute a portion of the site for the
construction of approximately 36 rental units to be known as the Palm Village
Apartments.
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 Parcels. 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 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 to pay for the acquisition of the Parcels is $250,000.
P6402\0001 \693576.2
RESOLUTION NO. FA- 36
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 23rd day of May, 2002.
AYES: BENSON, CRITES, SPIEGEL, KELLY
NOES: NONE
ABSENTS: FERGUSON
ABSTAINS: NONE
A it:
�7i,1,1Jii
,/ Sheila R. Gillman, Se-r: ary
P6402\0001 \693 576.2
-2-
Richard S. Kelly, President