AHA-2016-002RESOLUTION NO. AHA 2016-002
RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY
REGARDING ITS INTENTION TO ISSUE TAX-EXEMPT
OBLIGATIONS FOR COBBLESTONE APARTMENTS
WHEREAS, the Anaheim Housing Authority ("Issuer") has the authority to finance the
acquisition, rehabilitation and equipping of a 64 -unit multifamily rental housing development
known generally as "Cobblestone Apartments," located at 870 South Beach Boulevard in the
City of Anaheim, California ("Project"); and
WHEREAS, the Issuer intends to finance the acquisition, rehabilitation and equipping of the
Project by Cobblestone 2016 LP, a California limited partnership ("Owner"), or an affiliate or assign
thereof, with the proceeds of the sale of multifamily housing mortgage revenue bonds, the interest on
which is excluded from gross income for federal income tax purposes ("Bonds"); and
WHEREAS, prior to the issuance of the Bonds, the Owner has incurred or will incur certain
expenditures with respect to the Project from available moneys of the Owner, which expenditures are
desired to be reimbursable from a portion of the proceeds of the sale of the Bonds; and
WHEREAS, Section 146 of the Internal Revenue Code of 1986 limits the amount of
multifamily housing mortgage revenue bonds that may be issued in any calendar year by entities
within a state and authorizes the governor or the legislature of a state to provide the method of
allocation within the state; and
WHEREAS, Chapter 11.8 of Division 1 of Title 2 of the Government Code of the State of
California ("Government Code") governs the allocation of the state ceiling among governmental
units in the State of California having the authority to issue multifamily housing mortgage revenue
bonds; and
WHEREAS, Section 8869.85 of the Government Code requires a local agency to file an
application with the California Debt Limit Allocation Committee ("CDLAC") prior to the issuance of
multifamily housing mortgage revenue bonds.
NOW, THEREFORE, THE GOVERNING BOARD OF THE ANAHEIM HOUSING
AUTHORITY DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:
SECTION 1. The Issuer hereby states its intention and reasonably expects to reimburse
the Owner for acquisition, rehabilitation, equipping and associated costs of the Project incurred prior
to the issuance of the Bonds with proceeds of the Bonds.
SECTION 2. The reasonably expected maximum principal amount of the Bonds for the
Project is $10,000,000.
SECTION 3. This Resolution is being adopted no later than sixty (60) days after the date
("Expenditure Date or Dates") that the Owner will expend moneys for the portion of Project costs to
be reimbursed from proceeds of the Bonds.
SECTION 4. The expected date of issue of the Bonds will be within eighteen (18) months
of the later of the Expenditure Date or Dates and the first date the Project is placed in service and, in
no event, later than three years after the Expenditure Date or Dates.
SECTION 5. Proceeds of the Bonds to be used to reimburse the Owner for Project costs
are not expected to be used directly or indirectly to pay debt service with respect to any obligation
(other than to pay current debt service coming due within the next succeeding one-year period on any
tax-exempt obligation of the Issuer (other than the Bonds) or to be held as a reasonably required
reserve or replacement fund with respect to an obligation of the Issuer or any entity related in any
manner to the Issuer, or to reimburse any expenditure that was originally paid with the proceeds of
any obligation, or to replace funds that are or will be used in such manner.
SECTION 6. No moneys from sources other than the Bonds are, or are reasonably
expected to be reserved, or allocated on a long-term basis, or otherwise set aside by the Issuer (or any
related party) with respect to Project costs. To the best of its knowledge, the Issuer is not aware of
the previous adoption of official intents by the Issuer that have been made as a matter of course for
the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued
or were not intended to be so issued at the time of adoption.
SECTION 7. This Resolution is adopted as official action of the Issuer in order to comply
with Treasury Regulation § 1.150-2 and any other regulations of the Internal Revenue Service
relating to the qualification for reimbursement of expenditures incurred prior to the date of issue of
the Bonds, is part of the Issuer's official proceedings, and will be available for inspection by the
general public at the main administrative office of the Issuer.
SECTION 8. The determination by the Executive Director to file an application with
CDLAC for a private activity bond allocation for application by the Issuer to the issuance of the
Bonds for the Project in an aggregate approximate amount of $10,000,000, to collect from the Owner
and hold on deposit pursuant to CDLAC requirements an amount equal to one-half of one
percent (.5%) of the requested allocation, or such other amount as may be necessary or appropriate,
and to certify to CDLAC that such amount has been placed on deposit in an account in a financial
institution is hereby ratified, confirmed and approved to the full extent as if such action had occurred
at the regularly scheduled meeting of this governing board on June 14, 2016. In the alternative, staff
of the Issuer may cooperate with the Owner relative to an application to CDLAC by a statewide
issuer, subject to subsequent transfer of any CDLAC allocation to the Issuer.
SECTION 9. The proper officers of the Issuer are hereby authorized and directed to take
whatever further action relating to the aforesaid financial assistance may be deemed reasonable and
desirable, provided that in no event shall this Resolution bind the Issuer in any way, shape or form to
proceed with the Project and shall be subject in all respects to the unfettered discretion of the Issuer
with respect to the issuance of Bonds for the Project. Moreover, the issuance of any Bonds shall be
subject to compliance in all respects with all environmental, regulatory and other requirements which
the Issuer is subject to or may reasonably impose.
SECTION 10. The limitations described in Section 3 and Section 4 do not apply to
(a) costs of issuance of the Bonds, (b) an amount not in excess of the lesser of $100,000 or five
percent (5%) of the proceeds of the Bonds, or (c) any preliminary expenditures, such as architectural,
engineering, surveying, soil testing, and similar costs other than land acquisition, site preparation,
and similar costs incident to commencement of construction, not in excess of twenty percent (20%)
2
of the aggregate issue price of the Bonds that finances the Project for which the preliminary
expenditures were incurred.
THE FOREGOING RESOLUTION IS PASSED APPROVED AND ADOPTED BY
THE GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORITY THIS
FOURTEENTH (14th) DAY OF JUNE, 2016 BY THE FOLLOWING ROLL CALL VOTE:
AYES: Vice Chairman Kring and Authority Members Murray, Brandman,
and Vanderbilt
NOES: None
ABSTAIN: None
ABSENT: Chairman Tait
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AUTHORITY SECRETARY
APPROVED AS TO FORM:
OIC TIE,CITY ATTORNEY
Theodore
Assistant
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