HomeMy WebLinkAboutReso 2024-157RESOLUTION NO. 2024-157
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE CONVERSION TO THE
PERMANENT PHASE OF FINANCING OF THE
MULTIFAMILY HOUSING REVENUE NOTES OF THE
HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR
OTAY RANCH APARTMENTS, LOCATED AT 1910 ENCELIA
CIRCLE
WHEREAS, pursuant to City Council Resolution No. 2020-263, in December 2020, the
Chula Vista Housing Authority (the “Authority”) executed and delivered its Multifamily Housing
Revenue Note (Otay Ranch Apartments), 2020 Series A in an original aggregate principal amount
of $35,000,000 (the “2020 Note”), and loaned the proceeds of the 2020 Note to Otay Affordable I
V8, L.P., a California limited partnership (the “Owner”) to finance the acquisition, construction
and equipping of a 173-unit plus two manager’s units multifamily rental housing project located
east of La Media Parkway and bounded by Main East Street and Main West Street within the Otay
Ranch Escaya master-planned community in the City of Chula Vista, California (the “City”)
known as the “Otay Ranch Apartments” and marketed as “Encelia at Cota Vera” (the “Project”);
and
WHEREAS, in 2023, due to cost overruns due in part to the COVID pandemic, the Owner
requested additional tax-exempt financing for the Project, and the Authority executed and
delivered additional not to exceed $4,000,000 aggregate principal amount of multifamily housing
revenue notes (the “2023 Notes”, and, together with the 2020 Notes, the “Notes”) to provide
additional financing for finance the acquisition, construction and equipping of the Project, pursuant
to Authority Resolution No. 2023-001; and
WHEREAS, the Project will be owned and/or operated by Owner; and
WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended
(the “Code”), the execution and delivery of the Notes were previously approved by the City
Council of the City (the “City Council”), as the elected representatives of the governmental unit
having jurisdiction over the area in which the Project is located, following a public hearing for
each series of Notes; and
WHEREAS, the Notes are now being converted to the permanent phase of financing (the
“Conversion”) pursuant to the Funding Loan Documents, as defined in the Funding Loan
Agreement among Citibank, N.A., as Funding Lender (the “Funding Lender”), the Authority and
U.S. Bank National Association, as Fiscal Agent (the “Fiscal Agent”), dated as of December 1,
2020 (the “2020 Funding Loan Agreement”), and the Funding Loan Agreement among the
Funding Lender, the Authority and the Fiscal Agent, dated as of April 1, 2023 (the “2023 Funding
Loan Agreement,” and, together with the 2020 Funding Loan Agreement, the “Funding Loan
Agreements”); and
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Resolution No. 2024-157
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WHEREAS, in connection with the Conversion the weighted average maturity of the Notes
may be longer than originally contemplated at the time of the execution and delivery of the Notes;
and
WHEREAS, there has been published, at least 7 days prior to the date hereof, in a
newspaper of general circulation within the City, a notice that a public hearing would be held on
July 16, 2024 regarding the Conversion of the Notes; and
WHEREAS, on July 16, 2024, the City Council held said public hearing, at which time an
opportunity was provided to present arguments both for and against the Conversion of the Notes.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista,
as follows:
Section 1. The City Council does hereby find and declare that the above recitals are true
and correct.
Section 2. Pursuant to Section 147(f) of the Code, the City Council hereby approves
the Conversion of the Notes with the final maturities not later than the respective final maturity set
forth in the applicable Funding Loan Agreement. It is the purpose and intent of the City Council
that this Resolution constitute approval of the Conversion of the Notes by the applicable elected
representative of the governmental unit having jurisdiction over the area in which the Project is
located, in accordance with said Section 147(f).
Section 3. Owner shall issue payment to the City in the amount of $3,500 as reimbursement
for the costs associated with the public hearing and related actions authorized by this resolution.
Section 4. This Resolution shall take effect from and after its adoption.
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Resolution No. 2024-157
Page No. 3
Presented by Approved as to form by
Stacey Kurz Marco A. Verdugo
Director of Housing and Homeless Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 16th day of July 2024 by the following vote:
AYES: Councilmembers: Chavez, Gonzalez, Preciado, and McCann
NAYS: Councilmembers: None
ABSENT: Councilmembers: Morineau
John McCann, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2024-157 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 16th day of July 2024.
Executed this 16th day of July 2024.
Kerry K. Bigelow, MMC, City Clerk
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