Form Rev 3/6/2023
HA RESOLUTION NO. __________
RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY
OF CHULA VISTA REGARDING ITS INTENTION TO ISSUE
TAX-EXEMPT BOND OBLIGATIONS UP TO $25 MILLION
FOR THE PROPOSED DEVELOPMENT OF A 96 -UNIT
AFFORDABLE HOUSING DEVELOPMENT TO BE KNOWN
AS ENCLAVE MONTECITO
WHEREAS, the Chula Vista Housing Authority (the “Issuer” or “CVHA”) desires to assist Baldwin & Sons, Inc. a California corporation, or an affiliate (the “Applicant”) in financing the costs of developing a 96-unit multifamily rental housing project known as Enclave Montecito, to be located at the southwest corner of Santa Victoria Road and Santa Diana Road, as further depicted and described in Attachment 1, attached hereto and incorporated herein (the “Project”) ; and
WHEREAS, the Issuer intends to assist in the financing of the development of the Project or portions of the Project with the proceeds of the sale of bond or note obligations the interest upon which is excluded from gross income for federal income tax purposes (the “Bonds”), which Bonds are expected to be issued pursuant to Chapter 1 of Part 2 of Division 24 of the Health and Safety Code of the State of California; provided, however, that this Resolution shall not authorize the issuance of the Bonds and provided further that neither the faith and credit nor the taxing power of the Issuer shall be pledged to repay such Bonds if, and when, authorized; and
WHEREAS, prior to the issuance of the Bonds the Applicant expects to incur certain expenditures with resp ect 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 Bonds if, and when, issued; and
WHEREAS, Section 146 of the Internal 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 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 hous ing 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.
Resolution No.
NOW, THEREFORE, BE IT RESOLVED by the Chula Vista Housing Authority as follows:
SECTION 1. The Issuer has received an application for the financing of the Project on behalf of the Applicant (the “Application”). The Applicant will incur costs with respect to the Project prior to the issuance of the Bonds. The Issuer hereby states its intention and re asonably expects to reimburse the Applicant for such costs with proceeds of the Bonds; provided, however, that nothing herein obligates the Issuer to issue the Obligations or provides the Applicant with any legal right to compel the issuance of the Bonds, which decision remains in the final discretion of the Issuer.
SECTION 2. The reasonably expected maximum principal amount of the Bonds is $25,000,000. This Resolution is being adopted no later than sixty (60) days after the date that the Applicant will expend monies for the portion of Project costs to be reimbursed from proceeds of the Bonds (the “Expenditure Date or Dates”).
The expected date of issue of the Bonds is within eighteen (18) months of the later of the Expenditure Date or Dates and the firs t date the Project is placed in service and shall in no event be later than three years after the Expenditure Date or Dates.
SECTION 3. Proceeds of the Bonds to be used to reimburse for Project costs are not expected to be used directly or indirectly to p ay debt service with respect to any obligation 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 that manner.
SECTION 4. This Resolution is consistent with the budgetary and financial circumstances of the Issuer, as of the date hereof. No monies from source s other than the Bonds are, or are reasonably expected to be, reserved, allocated on a long -term basis, or otherwise set aside by the Issuer (or any related party) pursuant to its budgetary or financial policies with respect to the portion of the Project c osts to be financed with the Bonds. The Issuer is not aware of any previous adoption of official intents by the Issuer that have been made as a matter of course for the purpose of reimbursing expenditures relating to the Project and for which tax -exempt bonds have not been issued.
SECTION 5. This Resolution is adopted as official action of the Issuer in order to comply with Treasury Regulation §1.103 -8(a)(5) and 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 6. The officers and employees of the Issuer are hereby authorized and directed to apply to CDLAC for a portion of the private activity bond allocation set -aside for the calendar years 2025 and 2026 for the Project in an aggregate amount not to exceed $25,000,000, to collect Resolution No.
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 are also authorized to resubmit the application to CDLAC one or more times during the calendar years 2025 or 2026 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 execute and deliver any and all documents which any of them deem necessary or advisable, with the advice of Legal Counsel, in orde r to effectuate the purposes of this Resolution, and such actions previously taken by such officers and employees are hereby ratified and confirmed; provided, however, that the terms and conditions under which the Bonds are to be issued and sold must be approved by the Issuer in the manner provided by law 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
Stacey Kurz Marco A. Verdugo
Director of Housing and Homeless Services Legal Counsel