AHA-2016-008RESOLUTION NO. AHA -2016-008
A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY
AUTHORIZING THE ISSUANCE OF ITS MULTIFAMILY HOUSING
REVENUE NOTE ("NOTE") IN AN AGGREGATE PRINCIPAL
AMOUNT NOT TO EXCEED $38,000,000 FOR THE PURPOSE OF
FINANCING THE ACQUISITION, REHABILITATION AND
EQUIPPING OF THE MIRACLE TERRACE SENIOR APARTMENTS
MULTIFAMILY RENTAL HOUSING PROJECT; APPROVING AND
AUTHORIZING THE EXECUTION AND DELIVERY OF ANY AND
ALL DOCUMENTS NECESSARY TO ISSUE THE NOTE,
COMPLETE THE TRANSACTION AND IMPLEMENT THIS
RESOLUTION, AND RATIFYING AND APPROVING ANY ACTION
HERETOFORE TAKEN IN CONNECTION WITH THE NOTE
WHEREAS, pursuant to the Housing Authorities Law, Chapter I 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, Miracle Terrace Community Partners, LP, a California limited partnership (the
"Borrower"), intends to acquire, rehabilitate and equip a 178 -unit plus one manager's unit
multifamily residential project on that certain real property located at 225 South Western Avenue, in
the City of Anaheim, California (together, "Project"); and
WHEREAS, the Borrower has requested Authority to issue a tax-exempt multifamily
housing revenue notes in one or more series in an aggregate principal amount not to exceed
$38,000,000 (the "Obligations") and to loan the proceeds of the Notes to the Borrower 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 Borrower 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 (the "Funding
Loan Agreement"), by and among the Authority, Wilmington Trust, National Association (the
"Fiscal Agent") and Citibank, N.A. (the "Funding Lender"), whereby the Funding Lender will loan
the Authority up to $38,000,000 (the "Funding Loan") and the Authority will use the proceeds of
such Funding Loan to make a loan to the Borrower pursuant to that certain Borrower Loan
Agreement, to be entered into by and between the Authority and the Borrower (the "Borrower Loan
Agreement."), in an amount up to $38,000,000 (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 Notes in one or more series evidencing its obligation to make the
payments due to the Funding Lender under the Funding Loan as provided in this Funding Loan
Agreement; and
WHEREAS, the Authority's obligation to repay the Notes shall be limited solely to the
multifamily notes executed and delivered by the Borrower to the Authority in one or more series (the
"Borrower Notes") 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 Notes to the Borrower and the
Borrower will use the proceeds of the Notes exclusively to finance the costs of acquisition and
rehabilitation of the Project and the costs of issuing the Note; 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 $38,000,000 of the State of
California 2016 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
Notes 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 (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 Note. 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 Notes in one or more series in an aggregate principal amount not to exceed $38,000,000, 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 Note; provided, however, that the maximum interest rate on
the Notes shall not exceed 12 percent per annum and the final maturity of the Notes shall not exceed
40 years from the date of issuance. The outstanding principal amount of the Notes shall be in the
amounts advanced by the owner of each Notes from time to time to fund the loan to the Borrower,
not to exceed the aggregate principal amount of $38,000,000. The Notes 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 each Note shall be attested by the manual or facsimile signature
of the Secretary of the Authority ("Secretary").
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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 the Borrower
Notes to be executed by the Borrower in connection with the issuance of the Notes presented at this
meeting is hereby approved.
3. Approval of Changes to Documents. Any Authorized Officer executing a document
approved herein, in consultation with 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 Borrower from the proceeds of the Note.
4. Actions Ratified and Authorized. All actions heretofore taken by the officers,
employees and agents of Authority with respect to the issuance of the Notes 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 Notes 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 Note, 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 Notes 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 Note, or any redemption of the Notes 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 Note, 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.
THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE
GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORITY THIS 20TH DAY OF
DECEMBER, 2016, BY THE FOLLOWING ROLL CALL VOTE:
AYES: Chairman Tait and Authority Members Vanderbilt, Murray,
Barnes, Moreno, Kring, and Faessel
NOES: None
ABSTAIN: None
ABSENT: None
APPROVED AS TO FORM:
OFFICE OF THE CITY,ATTORNEY
By:
VICE CHAIR
Ll
SECRETARY'S CERTIFICATE
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LINDA ANDAL, Secretary of the Anaheim Housing Authority, do hereby certify that the foregoing is
the original Resolution No. AHA 2016-008 adopted at a regular meeting provided by law, of the
Anaheim Housing Authority held on the 20th day of December, 2016, by the following vote of the
members thereof:
AYES: Chairman Tait and Authority Members Vanderbilt, Murray, Barnes, Moreno, Kring,
and Faessel
NOES: None
ABSTAIN: None
ABSENT: None
IN WITNESS WHEREOF, I have hereunto set my hand this 20th day of December, 2016.
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SECRETARY OF THE ANAHEIM HOUSING AUTHORITY
(SEAL)