AHA-2008-007RESOLUTION NO. AHA- 2008 -007
RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY
REGARDING ITS INTENTION TO ISSUE TAX - EXEMPT
OBLIGATIONS FOR LINCOLN ANAHEIM PHASE B
WHEREAS, the Anaheim Housing Authority (the "Issuer ") has the authority to finance
the acquisition and development of a 74 -unit multifamily rental housing development known
generally as "Lincoln Anaheim Phase B" and generally located at 1275 -1287 East Lincoln
Avenue in the City of Anaheim (the "Project "); and
WHEREAS, the Issuer intends to finance the acquisition and development of the Project by
Lincoln Anaheim II Housing Partners, L.P., a California limited partnership (the "Developer "),
or its assigns, 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 (the `Bonds "); and
WHEREAS, prior to the issuance of the Bonds, the Developer has incurred or will incur
certain expenditures with respect to the Project from available moneys of the Developer, 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 (the "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 Developer for acquisition and development 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 525,000,000.
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SECTION 3. This Resolution is being adopted no later than sixty (60) days after the date
(the "Expenditure Date or Dates ") that the Developer 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 Developer 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 proper officers of the Issuer are hereby authorized and directed to apply
to 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 $25,000,000, to collect from the
Developer 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. In the alternative, staff of the Issuer may cooperate with the Developer 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
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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 %)
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
EIGHTEENTH (18 DAY OF NOVEMBER, 2008 BY THE FOLLOWING ROLL CALL
VOTE:
AYES: Chairman Pringle, Authority: Members Hernandez, Galloway, Kring
NOES: NONE
ABSTAIN: NONE
ABSENT: Authority Member Sidhu
ANAHEUWOUSING AUT"RITY
ATTEST:
By:
Secretary
APPROVED AS TO FORM:
STRADLING YOCCA CARLSON & RAUTH,
as BonPCnse
By:
APPR O FORM:
JACK L. Wfflft CITY ATTORNEY
JOHN ODHEAD, IV
Assist nt ity Attorney
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