AHA-2013-001 RESOLUTION NO. AHA- 2013 -001
A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY
AUTHORIZING THE ISSUANCE OF ITS MULTIFAMILY
HOUSING REVENUE NOTES IN AN AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $20,501,782 FOR
THE PURPOSE OF FINANCING THE ACQUISITION,
REHABILITATION AND EQUIPPING OF THE PASEO
VILLAGE APARTMENTS MULTIFAMILY RENTAL
HOUSING PROJECT; APPROVING AND AUTHORIZING THE
EXECUTION AND DELIVERY OF ANY AND ALL
DOCUMENTS NECESSARY TO ISSUE THE NOTES,
COMPLETE THE TRANSACTION AND IMPLEMENT THIS
RESOLUTION, AND RATIFYING AND APPROVING ANY
ACTION HERETOFORE TAKEN IN CONNECTION WITH
THE NOTES
WHEREAS, pursuant to the Housing Authorities Law, Chapter 1 of Part 2 of Division 24
of the California Health and Safety Code ( "Housing Authorities Law "), the Anaheim Housing
Authority, a public body, corporate and politic organized, existing and operating pursuant to the
Housing Authorities Law ( "Authority "), is empowered to issue revenue bonds or notes for the
purpose of financing the acquisition, construction, rehabilitation, refinancing, development, and
operation of multifamily rental housing; and
WHEREAS, Paseo Village Housing Partners, L.P., a California limited partnership (the
"Developer "), intends to acquire, rehabilitate and equip a 174 -unit plus two manager's units
project on that certain real property located at 1115 North Citron Street in the City of Anaheim,
California (together, the "Project "); and
WHEREAS, the Developer has requested Authority to issue tax - exempt multifamily
housing revenue notes in an aggregate principal amount not to exceed $20,501,782 (the
"Obligations ") and to loan the proceeds of the Obligations to the Developer to finance the
acquisition, rehabilitation and equipping through completion of the Project, and
WHEREAS, Authority, by action of its Governing Board ( "Governing Board "), desires to
assist the Developer and to increase the supply of affordable housing by making a portion of the
units in the Project available for low and very low income persons or families, and in order to
accomplish such purposes it is desirable for Authority to provide for the issuance of the
Obligations and financing of the Project; and
WHEREAS, the Authority intends to enter into a Funding Loan Agreement, by and
between the Authority and Citibank, N.A. (the "Funding Lender "), dated as of February 1, 2013
(the "Funding Loan Agreement "), whereby the Funding Lender will loan the Authority up to
$20,501,782 (the "Funding Loan") to loan to the Borrower pursuant to that certain Borrower
Loan Agreement, to be entered into by and between the Authority and the Borrower, dated as of
February 1, 2013 (the `Borrower Loan Agreement ") to provide the Borrower with up to
$20,501,782 (the "Borrower Loan") to provide financing to acquire, rehabilitate and equip the
Project; and
WHEREAS, pursuant to the Funding Loan Agreement, the Authority intends to execute
and deliver to the Funding Lender its Obligations evidencing its obligation to make the payments
due to the Funding Lender under the Funding Loan as provided in this Funding Loan Agreement;
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and
WHEREAS, the Authority's obligation to repay the Obligations shall be limited solely to
the multifamily note executed and delivered by the Borrower to the Authority (the "Borrower
Note ") and other moneys and security pledged under the Funding Loan Agreement and Borrower
Loan Agreement; and
WHEREAS, the Authority will loan the proceeds of the Obligations to the Borrower and
the Borrower will use the proceeds of the Obligations exclusively to finance the costs of
acquisition and rehabilitation of the Project and the costs of issuing the Obligations; and
WHEREAS, Government Code Section 8869.85 requires a local agency to file an
application with the California Debt Limit Allocation Committee ( "Committee ") prior to the
issuance of tax - exempt multifamily housing revenue notes and the Authority has filed such an
application; and
WHEREAS, the Committee has allocated to the Project $20,501,782 of the State of
California 2012 State ceiling for private activity bonds or notes under Section 146 of the Internal
Revenue Code of 1986; and
WHEREAS, it is the intent of the Authority to enter into bond documentation to govern
the Obligations to be issued (collectively, the "Transaction Documents "), including: (1) the
Funding Loan Agreement; (2) the Borrower Loan Agreement; and (3) a regulatory agreement
and declaration of restrictive covenants, by and between the Authority and the Borrower, dated
as of February 1, 2013 (the "Regulatory Agreement "); and
WHEREAS, it appears that each of the documents and instruments described herein now
before this meeting is in a substantially appropriate form and is an appropriate instrument to be
executed and delivered for the purposes intended.
NOW, THEREFORE, THE ANAHEIM HOUSING AUTHORITY DOES HEREBY
RESOLVE AS FOLLOWS:
1. Authorization of Obligations. In accordance with the Act and pursuant to the
Funding Loan Agreement and the Borrower Loan Agreement, the City is authorized to issue,
execute and deliver the Obligations in an aggregate principal amount not to exceed $20,501,782,
with an interest rate or rates, a maturity date or dates and other terms as provided in the Funding
Loan Agreement as finally executed for the Obligations; provided, however, that the maximum
interest rate on the Obligations shall not exceed 12 percent per annum and the final maturity of
the Obligations shall not exceed 40 years from the date of issuance. The outstanding principal
amount of the Obligations shall be in the amounts advanced by the owner of the Obligations
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from time to time to fund the loan to the Borrower, not to exceed the aggregate principal amount
of $20,501,782. The Obligations shall be in the form set forth in and otherwise in accordance
with the Funding Loan Agreement, and shall be executed on behalf of Authority by the manual
or facsimile signature of the Chairman of the Authority ( "Chairman") or the Executive Director
of the Authority ( "Executive Director," and, together with the Chairman, the "Authorized
Officers "), and the manual or facsimile seal of the Authority shall be impressed or reproduced
thereon and the Obligations shall be attested by the manual or facsimile signature of the
Secretary of the Authority ( "Secretary").
2. Approval of Transaction Documents. The proposed form of each of the
Transaction Documents presented at this meeting is hereby approved, and any Authorized
Officer is authorized to execute, and the Secretary is authorized to attest, the Transaction
Documents in substantially said form, with such additions thereto and changes therein as such
Authorized Officer may approve or recommend in accordance with Section 3 hereof.
Additionally, the proposed form of Borrower Note to be executed by the Borrower in connection
with the issuance of the Obligations presented at this meeting is hereby approved.
3. Approval of Changes to Documents. Any Authorized Officer executing a
document approved herein, in consultation with by General Counsel and Special Counsel, is
authorized to approve and make such modifications, changes or additions to the Transaction
Documents or other documents as may be necessary or advisable, and the approval of any
modification, change or addition to any of the aforementioned agreements shall be evidenced
conclusively by the execution and delivery thereof by such Authorized Officer and approval as to
form by General Counsel and Special Counsel. Further, any Authorized Officer, acting alone, is
authorized to execute any assignment agreement related to any mortgage note, mortgage, deed of
trust or other document related to the loan made to the Developer from the proceeds of the
Obligations.
4. Actions Ratified and Authorized. All actions heretofore taken by the officers,
employees and agents of Authority with respect to the issuance of the Obligations are approved,
confirmed and ratified, and the officers, employees and agents of Authority are authorized and
directed, for and in the name and on behalf of Authority, to do any and all things and take any
and all actions and execute and deliver any and all certificates, agreements and other documents,
including, but not limited to, those documents described in the Transaction Documents and the
other documents herein approved, which they, or any of them, may deem necessary or advisable
in order to consummate the lawful issuance and delivery of the Obligations and to effectuate the
purposes thereof and of the documents herein approved in accordance with this resolution and
resolutions heretofore adopted by the Governing Board. In the event that the Secretary is
unavailable to sign any document related to the Obligations, any Deputy Secretary of the
Authority may sign on behalf of the Secretary.
5. Further Consents, Approvals and Other Actions. All consents, approvals, notices,
orders, requests and other actions permitted or required by any of the documents authorized by
this Resolution or otherwise appropriate in the administration of the Obligations and the lending
program financed thereby, including without limitation any of the foregoing that may be
necessary or desirable in connection with any amendment of such documents, any transfer of the
Project, any substitution of security for the Obligations, or any redemption of the Obligations
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may be taken or given by the Chairman or the Executive Director, and the Chairman or the
Executive Director are hereby authorized and directed to give any such consent, approval, notice,
order or request and to take any such action which such officer may deem necessary or desirable
to further the purposes of this Resolution.
6. Conflicting Resolutions Repealed. As to the Obligations, all prior resolutions or
parts thereof, if any, in conflict herewith are, to the extent of such conflict, repealed.
7. Severability. If any section, paragraph or provision of this Resolution shall be
held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such
section, paragraph or provision shall not affect any remaining sections, paragraphs or provisions
of this Resolution.
8. Effectiveness of Resolution and Date Thereof. This Resolution shall take effect
upon its adoption.
9. Certification. The Secretary shall certify to the passage and adoption of this
Resolution.
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THE FOREGOING RESOLUTION is approved and adopted by the Housing Authority
of the City of Anaheim this 5th day of February, 2013, by the following roll call vote:
AYES: Chairman Tait, Authority Members Eastman, Brandman, Kring, Murray
NOES: None
ABSENT: None
ABSTAIN: None
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CHAIRMAN
ANAHEIM HOUSING AUTHORITY
ATTEST:
SECRETARY
ANAHEIM HOUSING AUTHORITY
93427v2/TReynolds
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