HomeMy WebLinkAbout2013/12/10 Item 17 CHULA VISTA �I � � ,� �
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DECEn4BER 10, 2013; Item�
ITEAZ TITLE: P�LIC HEARRvG: CITY COU1'CIL CONSIDERATION OF
THE ISSUANCE OF TAX EXEMPT OBLIGATIONS WITH
RESPECT TO THE PROPOSED FIi�TANCI�'G OF THE
ACQUISITION A\TD REHABILITATION OF EXISTii�'G
AFFORDABLE UI�TITS AT KIKU GARDENS
APAR"]T4ENTS (1260 THIRD AVE\'LiE)_
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA r1PPROVII��G THE ISSUAI�'CE. SALE AI�TD
DELIVERY OF nNLTIFAMILY HOUSII�'G REVENUE
BONDS OF THE HOUSII�TG AUTHORITY OF THE CITY OF
CHULA VISTA FOR ICIKU GARDENS APARTA4EIvTS
RESOLUTION OF THE HOUSIi�'G AUTHORITl'
REGARDI\'G ITS INTENTION TO ISSUE T.AX E?iEMPT
OBLIGATIOI�'S FOR A PROPOSED AQUISITION AND
REIIABILITATIOI�' OF EXISTI2�'G AFFORDABLE LINITS
AT KIKU GARDENS APARTA�fEI�'TS
SUB�ZITTED BY: DEVELOPA4ENT SE VICES DIRECTOR I�, Rj
REVIE�L'ED Bl': CITI' A4ANAGER
ASSISTA�\iT CIT A9ANAGE�
4/STHS VOTE: 1'ES � NO X❑
SLT�VIARI'
The Cit}� of Chula Vista has recei�ed a request from CRC Development Group; dba
RAHD Group (`Applicanr`) to consider the issuance of ta� e�empt obligations to finance
the acquisition and rehabilitation of 100 esistine affordable units at I:iku Gazdens
Apanments (the "Project"). The Project is located at 1260 "Ihird Avenue in south��est
Chula Vista. The rehabilitation «ill impro��e the propert}� and extend the term of the
affordable rents for » veazs.
EN�'IRONP�NTAL REVIE��'
The Environmental Re��ie�i� Coordinator has re��iewed the proposed Project for compliance
�»th the Califomia Environmental Qualiq� Act (CEQA) and has determined that the Project is
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December 10, 2013, Item�
Paee 2
categorically ezempt pursuant to Section 15301 (eaisting facilities) of the State CEQA
Guidelines.
RECOMMENDATION
]t is recommended that the Cit}� Council and Housing Authority take tl�e following actions:
L That the City Council conduct the required public hearing regarding the Nousing
Authority's intent to issue the taa exempt obligations for the proposed acquisition
and rehabilitation of existing affordable units at Kiku Gardens Apartments.
2. That the Cit}� Council adopt a resolution approving the issuance, sale and deli�ery
of multifamily revenue bonds of the Housing Authority of the City of Chula Vista
for the proposed acquisition and rehabilitation of existing affordable units at Kiku
Gardens Apartments; and authorizing the City Manager, or his designee, to
e�+ecute all necessary documents to further such purpose.
3. That the Housinc Authority adopt the resolution regarding its intention to issue
ta�-exempt obli�ations for the proposed acquisition and rehabilitation of existing
affordable units at Kiku Gardens Apartments.
BOARDS/COMAZISSION RECOMMENDATION
On November 13, 2013, the Housing Advisory Commission voted to recommend the
issuance of Tax E�empt Multi-Family Revenue Bonds to assist in the Project financing.
DISCUSSION
Applicant is requesting that the Housing Authority of the City of Chula Vista be the
conduit bond issuer for tai-exempt private activity bonds for multi-family projects ("ta�-
e�empt bonds ') in an aggregate amount not to esceed $12 million for the acquisition and
rehabilitation of the Project (Attachment 1: Locatar Map). An application will be
submiried b}� March 21, 2014, to the California Debt Limit Allocation Committee
(CDLAC), the State bonding authorit}�, and for the companion tax credits. The bond
allocation and tax credit contributions ��ill be used to substantially finance the Project.
In accordance �vith Section 147(� of the Internal Revenue Code of 1986, a public hearing
by the elected legislative body of the jurisdiction must be held to provide the public an
opportunity to comment on the use of the tax-etempt funds to finance the Project. Proof
of the public hearing is required for application to CDLAC for consideration of a bond
allocation.
At this time, the City Council is asked to hold a public hearing regarding whether the
Housing Authority should issue tax exempt bonds to finance the Project and to approve
the issuance, sale; and delivery of multi-family housing revenue bonds by the Housing
Authority after a bond allocation is received from CDLAC. Additionally, it is requested
that the Housing Authoritt� adopt a resolution expressing its preliminary intention to issue
bonds. The requested actions are preliminary and do not commit the Housing Authority
to issue the bonds. Such preliminary actions are necessary in order to allow the HousinQ
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December ]0; 2013, Item ( /
Page 3
Authority to submit an application to CDLAC on behalf of the Applicant and to ailow the
Applicant to receive reimbursement out of bond proceeds for costs it incurs leadina up to
the actual sale of bonds. If successful in obtainine a bond allocation from CDLAC, the
Housine Authorin� �iill then consider fmal approval oF bond documents for the issuance
of the bonds.
Resolutions presented for the Cih Council's and Housine Authority`s consideration have
been prepared b}� Stradiine Yocca Cazlson R Rauth; semine as bond counsel for the Cit}
of Chula Vista and its Housing Authoritv. All fumre bond documents �+�ill also be
prepazed by bond counsel.
The Develoament Team
DAL De��elopment; LLC ("DAL'-) is a for-profit housin� de�eloper that will assist CRC
De��elopment Group, LLC. dba RAHD Group in the acquisition and derelopment of the
Project. CRC De�elopment Group; LLC is currentiv under coniract to purchase the
propeRy located at 1260 Third Avenue.
C&C Development Group, LLC has successfulh� acquired and rehabilitated over 4�0
residential units in Califomia; 3�� in San Dieeo, previousl�� funded ttuoueh the U.S.
Department of Housine and Urban Development (HUD). Upon close of escro�v, the
Applicant and Heanhstone Housing Foundation (Hearthstone). a nonprofit sen�ice a�encv
organized under section �O1(c)(3) of the Internal Re��enue Service Code, will create a
ne��� limited partnership; F:iku Gardens Housing Partners; LP to o�m and operate the
Project. The ne�v partner, Hearthstone is a non-profit oraanization formed in 1991 and
currently provides sen�ices to Hillside Apartments in San Dieeo and Sprins Villa
Apartments in Spring Valley. V
The Proposed Proiect
The Project is an e�istina 100-unit affordable complex orieinally built and financed in
1983 through HLiD: The affordabilit}� covenants aze set to expire in ten ��ears. To take
advantaee of ta.i credit financins; the existine o��ner, Kiku Gazdens.�i�ill sell the project
to a ne�v partnership formed b} the Applicant; named Kiku Gardens Housing Partners,
LP, a Califomia limited partnership. Given the age and the desire to preserve the
affordability, the Applicant is proposin� the acquisition and rehabilitation of the propert}�
using bond financing and tax credits to ensure continued lona term use and �iabilirv.
The scope of the proposed renovation includes interior renovations to the units; new roof
upgrades to mechanical systems; electrical system, plumbine svstem, and other esterior
finishes. Impro��ements «�ill be made to common azeas includine the community room;
libran�, central laundry; outside Qarden patio area and computer lab for all residents.
Income and Rent Restrictions
For the bond financing, Section 142 (d) of the Intemal Revenue Sen�ices Code requues
either a minimum of 20 percent of the rental units in the Project to be a��ailable for
occupanc�� by persons or families ���hose income does not e�ceed �0 percent of the azea
median income (A1�4I) for the San Diego Priman� D4etropolitan Statistical Area or
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December 10, 2013, Item�
Page 4
altematively, at least 40 percent of the rental units are required to be available for
occupancy by persons or families ��hose income does not exceed 60 percent of the AMI.
The units aze made available at affordable rents established by the applicable State law.
The project w711 e�ceed the affordability requirements by setting aside 30 units for very
low income households at 50 percent of AMI, and 69 units for low income households at
60 percent of AI�4I, with one unit reserved for the resident manager. The Project
proposes to maintain the income a�id rent restrictions for Kiku Gazdens for a period not
less than fift}�-fi��e years, eaceeding the 30-year tenn of the bonds. These income and
rent restrictions will be outlined within a bond regulatory agreement to be recorded
against the property.
The Project also has an eaisting Section 8 financing contract ���ith HUD. This allows the
tenants to pay onl}� 30 percent of their income, with HUD paying the remaining portion
of the rent. HUD will continue to provide a Section S contract for the property for a 20
year period. Additionally, the applicant has applied for an increase in the Section 8 rent
based on post rehabilitation market rent; ���hich is $1;150 for a One Bedroom unit. The
actual rent currently paid by the tenants �vill not increase due to the HUD assistance.
Unit Description No. of Units Target Income Bond Reut Tenant Rent
Level Limit (Section 8)
1 Bd/1 Ba 69 60%AMI $907 30% of their
income
1 Bd/1 Ba 30 50% AMl $756 30%of their
income
Mana er's Unit 1 N/A N/A -
Tota1 Restricted 1�0 'f'' qk::_-aY�?�rz."+`.wF�i�, 'Yg r+�x i:�s.�.vt';i.c 4f�� F2�:t4'-Syc+w��,y.R w"�;`r'�'d�l'i
�.2�::'�:_<,r.a . :k'U :i..:.:f . "".�'�t+ `r:�3:' �:�.:C _ �Y:?._'._ -�.�f"k,�e�
Compliance with the income and rent restrictions will be subject annually to a regulatory
audit and annual tax credit certification. Compliance �vith strict property management
policies and procedures.will ensure that income and rent restrictions will be maintained
for the full �5-year compliance period.
Proposed Financing of Proiect
The Tax E�empt Multi-Family Revenue Bonds and Low Income Housing Tax Credit
financing will support the majority of the estimated $15.75 million total development
cost of the Project. The Applicant has requested the Housing Authority consider the
issuance of$12 million in tax exempt bonds to be made available as a public offering for
short term taY esempt bonds, with a long term taxable loan from Freddie Mac, as
guarantor and Citi Community Capital as servicer. The Applicant will also apply for
approximately $4.6 million in Lo��� Income Housing Ta�: Credits. With the bond and taz
credit financing, no additional City financing is needed far the Project. Final approval of
the issuance of the bonds and the related bond documents ��-ill be presented to the City
and its Housing Authority for approval at such time Applicant is successfu] in receiving a
commitment from CDLAC for a bond allocation.
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December ]0; 2013, Item �7
Page �
Article 3d
Article 34 of the Califomia Constimtion requires that voter approval be obtained before
an}� "state public body' de��elops; constructs or acquires a `90��� rent housine project' .
The Project is e�istine and has a contract for financial assistance from the Federal
Go��emment for affordable uniu. Therefore, the project is exempt from the requirement.
DECISION �1AKER CONFLICT
Staff has re��ie���ed the propem� holdings of the Ciry Council and has found no property
holdines �+�ithin �00 feet of the boundaries of the propert}� �vhich is the subject of this
action. Staff is not independentiv a«�aze, nor has staff been informed bv anv Cit}�
Councilmember, of anv other fact that mav constitute a basis for a decision maker
conflict of interest in this matter.
RELATIONSHIP TO THE CIT1"S STRATEGIC PLAN
The Citv`s StrateQic Plan has five major eoals: Operational Escellence; Economic
Vitaliri�; Healthy Communitv, Strone and Secure I�Teiehborhoods and a Connected
Communitv. The acquisition and rehabilitation of Kiku Gazdens apartments to preser��e
the ongoine affordability suppons the follo���ing strateeic goals:
:• Economic Vitalit��
• Pro��ides an opportunity for investment in���estem Chula Vista;
• Promotes an environment for residents to prosper; and;
4• Connected Communirv
• Provides opportunities that enrich the communit��'s qualih�of life.
CURRENT YE.aR FISCAL IA4PACT
Bond financin� is a self-suppoRing program �i�ith the .borron�er responsible for the
pa}�ment of all costs of issuance and other costs of the bonds. The Housine Authoritv
�cill recei��e compensation for its sen�ices in issuino the bonds by charging an orieination
fee of 1/8 of-1% of the bond loan, approximately $1�,600. Other costs related to the
issuance of the bonds �vill be paid from bond proceeds. The bonds «�il] be secured by the
Project and will not constitute a liability to or an obligation of the City's General Fund.
ONGOING FISCAI. IAZPACT
Staff costs associated ���ith monitoring compliance of the regulatory restrictions and
administration of the outstandine bonds �rill be reimbursed from an annual administrati��e
fee of approximately �1�,600 (based upon 1/8 of 1% of the permanent bond loan) paid to
the Housins Authoriri br the o«�ner.
ATTACIII�4E\'TS
1. Locator Map
2. Disclosure Form
Prepared b}c' Leilani Hines, Housing Alanager, Development Sen•ices Departme�et, Housing D'n•ision
17-5
Attachment1
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Attachment 2
- �`tr� Development Services DtNa� ��������
�� Housing Division � Development Processing
a,,.� �F�ORDe���E HQ!!SlN�' APPLl��T[O �
CtIUTAVLSTA
Disclosure Statement
Pursuant to City Council Policy 101-01, prior to any action on a ma�ter that requires discretionary ac6on
by the City Council, Planning Commission or other official legislative body of the City, a statemeni of
disclosure of certain ownerships, financial interest, payments, and campaign contributions must be filed.
The following in`ormation must be disclosed:
1. List the names of all persons having a financial Interest in the project that is the subject of the
application, project or contract(e.g., owner, applicant, contractor, subcontractor, material
supplier).
Colin Rice
Casey Haeling
David Beacham
Steve Whyte
2. If any person' identified in Section 1 above is a corporation or partnership, list the names of all
individuals with an investment of$2000 or more in the business (corporatioNpzrtnership) entiry.
WA
3. If any person`idenufied in Section 1 above is a non-profit organization or trust, list the names o�
any person who is �e director of the non-pro£t organiza+Jon or the names of the trustee,
beneficiary and Lvstor of the Wst.
NIA
4. Please identify every person, induding any agents, employees, consult�nts, or inCependent
contractors,whom you have 2uthorized to represeni you before tne City in this matter.
Colin Rice
Casey Haeling
David Beacham
Coco Vasquez
276 Fourth Avenue � Ch�la Vista � CaliforniP�1�10 I www.chulavistaca.gov � (619) 691-5047
�`t�j Development Services Department
� Housing Division � Development Processing
aiuiXv�srn
AFFORDABLE HOUSING APPLfCATIOIV Page , s
5. Has any person* identified in 1, 2, 3, or 4, above, or otherwise associated with this contract,
proj�t or application, had any financial dealings with an o�cial** of the City of Chula Vista as it
relates to this contract, project or application within the past 12 montlis? ❑ No
No.
6. If yes, briefly describe the nature of the financial interest the official"may have in this contract.
N/A
7. Has any person"identified in 1, 2, 3, or 4, above, or otherwise associated with this contract,
project or application, made a campaign contribution of more than $250 within the past(12)
months to a current member of the City of Chula Vista Council ? ❑ No
No.
8. If yes, if yes which council member?
N/A
9. Has any person' identified in 1,2, 3, or 4, above, or otherwise associated with this contract,
project or application, provided more than $420(or an item of equivalent value)to an official"*of
the City of Chula Vista in the past(12) months?(This includes any payment that confers a
personal beneft on the recipient, a rebate or discount in the price of anything of value, money to
retire a legal debt, gift, loan, etc.) ❑ No
No.
10. If yes, which of�icial"and what was the nature of the item provided?
N/A
276 Fovrth Avenue � Chula Vista � California 91910 � www.chulavisTaca.gov � �619) 691-5101
� �-8
�tt�� Development Services Department
�� Housing Division � Development Processing
aiu�v�su
AFFORDABLE HOUSING APPLICATION Pnge � s
11. Has any person'ident�ed in i, 2, 3, or 4, above, or otherwise associated with this conVact,
project or application, been a source of income of S500 or more to an official"of the City of
Chula Vista in the past(12) months? ❑ No
No.
12. If yes, which official��and the naf�re of the item provided?
N/A
10/1/13 /�D�
Date Signature of Contrector/Applicant
Colin Rice
Print or type name of Contractor/Applicant
` Person is identified as: any individual, firm, co-partnership,joint venture, assxiation, social club,
fraternal organization, corporation, estate, tnist, receiver, syndicate, any other county, city;
municipality, district, or other political subdivision, or any other group or combination acting as a unit.
" Official ir.cludes, but is not limi�ed to: Mayor, Council member, Planning Commissioner, Member of a
board, commission or committee of the City, and City employee or staff inembers.
"` This disclosure SEatement must be completed at ihe time the project application, or contract, is
submitted to City staff for processing, and updaied within one week prior to consideration by
legisla`ive body.
276 Fourfh Avenue � Chulo Vista � California 91970 � www.chulavistaca.gov � (619) 691-5101
� �-9
RESOLUTION NO.
RESOLUTION OF TH� CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE ISSUANCE, SALE AND
DELIVERY OF MULTIFAMILY HOUSING REVENUE
BOI�TDS OF THE HOUSING AUTHORITY OF THE CITY OF
CHULA V1STA FOR KIKU GARDENS APARTMENTS
WHEREAS, the Housing Authority of the City of Chula Vista (the "Authority") intends
to issue not to eaceed $12,000;000 aggregate principal amow�t of multifamily housing revenue
bonds (the "Bonds") to finance the acquisition and rehabilitation of a 100-unit multifamily rental
housing project (the "ProjecP') located at 1260 Third Avenue in the City of Chula Vista;
Califomia (the "City'); and
WHEREAS, the Project �i�ill be owned and/or operated by Kiku Gardens Housing
Partners, LP, a California limited partnership, or another limited partnership affiliated with
Hearthstone Housing Foundation (the "Owner"); and
WHEREAS, pursuant to Section 147(fl of the Internal Revenue Code of 1986; as
amended (the "Code"), the Bonds are required to be approved, following a public hearing, by an
elected representative of the govemmental unit having jurisdiction over the area in which the
Project is located; and
WHEREAS, the Project is located wholly within the geographic jurisdiction of the City;
and
WHEREAS, the City Council (the "City Council") is the elected legislative bod}� of the
City; and
WHEREAS, the City has caused a notice to appear in the Star Ne�i�s, �i�hich is a
newspaper of general circulation in the City, on November 22, 2013 to the effect that a public
hearing would be held by the City Council on December 10, 2013, regarding the issuance of the
Bonds by the Authority; and
WHEREAS, On December 10, 2013, the City Council held said public hearing, at which
time an opportunity was provided to present arguments both for and against the issuance of the
Bonds.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula
Vista, as follows:
Section 1. The Cit}� Council does hereby find and declare that the above recitals are true
and correct.
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Resolution ivo.
Pase 2
� Section 2. Pursuant to Section 147(fl of the Code; the City Council hereby approves
the issuance of the Bonds by the Authorit}� in one or more series; in an aeoresate principal
amount not to esceed S12,000,000 and «�ith a final maturity not later than 4� years from the date
of issuance to finance the acquisition, rehabilitation and equippin� of the Project. It is the
purpose and intent of the City Council that this Resolution constirute approval of the issuance of
the Bonds by the applicable elected representati��e of the governmental unit ha��ine jurisdiction
over the area in ���hich the Project is located, in accordance �vith said Section 147(�.
Section 3. This Resolution shall take effect from and afrer its adoption.
Presented b}� Appro�ed as to form by
�
Kellv G. Brouahton Glen R. Goosins _
Director of Development Services Cih�Attomey
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RESOLUTION NO.
RESOLUTION OF THE HOUSING AUTHORITY OF THE
CITY OF CHULA VISTA REGARDING ITS INTENTION TO
ISSUE TAX-EXEMPT OBLIGATIONS FOR A PROPOSED
ACQUISITION AND REHABILITATION OF EXISTING
AFFORDABLE UNITS AT KIKU GARDENS APARTMEI��TS
WHEREAS, the Housing Authority of the City of Chula Vista (the "Issuer') desires to
assist Kiku Gardens Housing Partners, LP, a Califomia limited partnership, or another limited
partnership affiliated with Hearthstone Housing Foundation (the "ApplicanP') in financing the costs
of acquiring and rehabilitating a multifamily rental housing project, as described Exhibit A
attached hereto and incorporated herein (the "Project"); and
WHEREAS, the Issuer intends to assist in thc financing of the acquisition and
rehabilitation of the Project or portions of the Project with the proceeds of the sale of obligations
the interest upon which is excluded from gross income for federal income tax purposes (the
"Obligations"), which Obligations are expected to be issued pursuant to Chapter lof Part 2 of
Division 24 the Health and Safety Code of the State of California; provided, ho���ever, that this
Resolution shall not authorize the issuance of the Obligations and provided further that neither
the faith and credit nor the taxing po�ver of the Issuer shall be pledged to repay such Obligations
if, and when, authorized; and
WHEREAS, prior to the issuance of the Obligations the Applicant expects to incur
certain expenditures with respect to the Project from its own available monies which
expenditures it desires to have reimbursed from a portion of the proceeds of the sale of the
Obligations if, and when, issued; and
WHEREAS, Section 146 of the Intemal Revenue Code of 1986, as amended (the
"Code") limits the amount of multifamily housing 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 �vithin 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
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 revenue bonds; and
WHEREAS, the Issuer desires to apply to CDLAC for an allocation for the Project.
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Resolution No.
Paee 2
NOW; THEREFORE, THE BOARD OF COMMISSIO\TERS OF THE HOUSII�'G
AUTHORITY OF THE CITY OF CHULA VISTA DOES HEREBY RESOLVE. ORDER AND
DETERI�4Ii�iE AS FOLLO�VS:
SECTION 1. The Issuer has received an application for the financine of the Project on
behalf of the Applicant (the "Application'). The Applicant «�ill incur costs ���ith respect ro the
Project prior to the issuance of the Obligations. The Issuer hereb�� states its intention and
reasonablv expects to reimburse to the Applicant for such costs �vith proceeds of the Oblieations;
pro��ided, ho�ti�ever, that nothing herein obligates the Issuer to issue the Obligations or pro��ides
the Applicant ��ith any le�al rieht to compel the issuance of the Obligations; �vhich decision
remains in the final discretion of the Issuer. Exhibit A describes the general character. type.
purpose, and function of the Project.
SECTIOI�' 2. The reasonably expected maximum principal amount of the Oblieations is
$12;000,000. This Resolution is being adopted no later than sixn� (60) days after the date (the
"E�penditure Date or Dates') that the Applicant will expend moneys for the portion of Project
costs to be reimbursed from proceeds of the Bonds.
The expected date of issue of the Bonds is 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 yeazs afrer the Expenditure Date or Dates.
SECTIO\' 3. Proceeds of the Bonds to be used to reimburse for Project.costs are not
expected to be used directiv or indirectly to pav debt service �ti�ith respect to any oblieation or to
be held as a reasonably required reserve or replacement fund ���ith respect to an oblieation of the
Issuer or any entity related in anv manner to the Issuer, or to reimburse any expenditure that was
orieinally paid with the proceeds of an�� oblieation, or to replace funds that aze or ���ill be used in
such manner.
SECTION 4. This Resolution is consistent ���ith the budgetary and financial
circumstances of the Issuer, as of the date hereo£ No monies from sources other than the
Obligations are, or aze reasonabl}� e�pected to be reserved, allocated on a lone-term basis; or
other�vise set aside by the Issuer (or any related part}�) pursuant to their budget or financial
policies �+�ith respect to the ponion of the Project costs to be financed �ti�ith the Oblieations. This
Boazd of Commissioners is not a�;�aze of any previous adoption of official intents by the Issuer
that have been made as a matter of course for the purpose of reimbursine expenditures relatine to
the Project and for H-hich ta�c-exempt oblieations have not been issued.
SECTION �. This Resolution is adopted as official action of the Issuer in order to
comply ���ith Treasury Regulation § 1103-8(a)(5) and Treasury Reeulation § 1.1�0-2 and any
other regulations of the Internal Revenue Service relating to the qualification for reimbursement
of e�penditures incurred prior to the date of issue of the Obligations, is part of the Issuer's
official proceedines, and will be a��ailable for inspection by the eeneral public at the main.
administrative offi�ce of the Issuer. �
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Resolution No.
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SECTION 6. The officers and employees of the Authority are hereby authorized and
directed to apply to CDLAC for a portion of the private activity bond allocation set aside for the
calendar year 2012 for the Project in an aggregate amount not to exceed �12,000,000, to collect
from the Applicant and hold pursuant to CDLAC requirements the required CDLAC deposit for
the requested allocation, and to certify to CDLAC that such amount has been placed on deposit
in an account in a financial institution. Because the amount of private activity bond allocation is
limited, such officers aze also authorized to resubmit the application to CDLAC one or more
times during the calendar year 2014 in the event the application is denied by CDLAC.
SECTION 7. The officers and employees of the Issuer are hereby authorized and
directed,jointly and severally; to take any actions and esecute and deliver any and all documents
which any of them deem necessary or advisable, with the advice of City Attomey, in order to
effectuate the purposes of this Resolution, and such actions previously taken by such officers and
employees are hereby ratified and confirmed; provided that the terms and conditions under
which the Bonds are to be issued and sold must be approved by this Board in the manner
provided by la�v prior to the sale of the Bonds.
SECTION 8. All the recitals in this Resolution are true and correct.
SECTION 9. This Resolution shall take effect immediately upon its adoption.
Presented by Approved as to form by
�
Kelly G. Brouehton Glen R. Googins
Director of Development Services City Attorney
1:�Attomey�F'IIJAL RESOS AND ORDINANCES�2013\12 10 ]3\DSD-Inducement Resulution(Kiku Gardens).doc
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EXHIBIT A
DESCRIPTIOI�T OF PROJECT
A multifamily rental housine project of approximately 100 units I:no���n as "I�iku
Gardens Apartments ' and located at 1260 Third Avenue; in the City of Chula Vista, California.
J:Wnomev�FINAL RESOS A\�D ORDINANCES�2013\I? 10 13�DSD-Inducement Resolution(Kiku Gardens).doc
12/3R013 2:54 PM
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