OBRES 2012-013RESOLUTION NO. OB 2012 -013
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO LA QUINTA REDEVELOPMENT
AGENCY APPROVING THE IMPLEMENTATION OF THE
WASHINGTON STREET APARTMENT REHABILITATION
PROJECT, APPROVING THE USE OF 2004 TAX - EXEMPT
HOUSING BOND PROCEEDS AND 2011 TAXABLE
HOUSING BOND PROCEEDS TO FUND THE PROJECT,
CONFIRMING THE STATUS OF THE HOUSING BOND
PROCEEDS AS HOUSING ASSETS TRANSFERABLE TO
THE LA QUINTA HOUSING AUTHORITY, AND
APPROVING AN AMENDMENT TO THE RECOGNIZED
OBLIGATION PAYMENT SCHEDULE TO REFLECT THE
PROJECT AND PAYMENTS
WHEREAS, the Oversight Board of the Successor Agency to La Quinta
Redevelopment Agency ( "Oversight Board ") has been established to direct the
Successor Agency to take certain actions to wind down the affairs of the former La
Quinta Redevelopment Agency ( "LQRDA ")in accordance with the California Health
and Safety Code; and
WHEREAS, the City Council of the City of La Quinta ( "City" or "City
Council," as applicable) has established the La Quinta Housing Authority (the
"Housing Authority ") to function in the City of La Quinta in accordance with the
California Housing Authorities Law (Health and Safety Code Section 34200 et
seq.); and
WHEREAS, prior to its dissolution, the LQRDA operated within the territorial
jurisdiction of the City to eliminate blight and to increase, improve, and preserve
the supply of low- and moderate - income housing in the City; and
WHEREAS, in fulfilling its purpose of increasing, improving, and preserving
the supply of low- and moderate - income housing in the City, in 2008 the LQRDA
expended tax - exempt bond proceeds to acquire a 72 -unit very low- income senior
and disabled adult affordable housing complex located on the east side of
Washington street, at Hidden River Road and commonly known as the Washington
Street Apartments ( "WSA "); and
WHEREAS, the LQRDA acquired the WSA with the intent of expending bond
proceeds from a 2004 tax - exempt housing bond issuance to substantially
rehabilitate the development, including the construction of additional units to avoid
the long -term displacement of any of the tenants at the development, for purposes
of preserving the units and affordability of the WSA; and
Resolution No. OB 2012 -013
Washington Street Apartments Rehabilitation
Adopted: June S. 2012
Page 2 of 4
WHEREAS, the WSA was developed in the 1970s, with assistance from the
U.S. Department of Agriculture, Rural Development Division ( "RD"), and is subject
to an outstanding RD loan ( "RD Loan "); and
WHEREAS, after an extensive application process, during which the LQRDA
represented and committed to RD that it would complete the planned rehabilitation;
RD permitted the LQRDA to assume the RD Loan; and
WHEREAS, in June 2011, to ensure that the rehabilitation of the WSA would
continue without delay in the event of the dissolution of the LQRDA, the LQRDA
added the Authority to the title of the WSA; and
WHEREAS, on January 2, 2012, the City Council adopted City Council
Resolution No. 2012 -002, affirmatively electing to be the "successor agency" to
the LQRDA (the "Successor Agency "); and
WHEREAS, on January 17, 2012, the Authority adopted Housing Authority
Resolution No. 2012 -02, electing to be the "housing successor" to the LQRDA; and
WHEREAS, on April 18, 2012, the Oversight Board adopted Oversight Board
Resolution No. 2012 -008 affirming that certain housing properties, including the
WSA, are "housing assets" of the LQRDA, as that term is used in Health and
Safety Code Sections 34176(a) and 34177(8) and approving the transfer of the
"housing assets" to the Authority; and
WHEREAS, Health and Safety Code Section 34177, which contains a
comprehensive list of successor agency obligations, provides in subdivision (i),
"bond proceeds shall be used for the purposes for which bonds were sold unless
the purposes can no longer be achieved "; and
WHEREAS, the bond documents for the 2004 tax - exempt housing bonds and
2011 taxable housing bonds expressly state that the bonds were issued to finance
low- and moderate - income housing projects benefiting the former LQRDA's project
areas; and
WHEREAS, the purpose for which the bonds were sold may still be achieved,
through the rehabilitation and improvement of the WSA; and
WHEREAS, each of the Successor Agency and Housing Authority have
adopted resolutions approving the implementation of the WSA rehabilitation
project, approving the use of 2004 tax - exempt housing bond proceeds and 2011
taxable housing bond proceeds to fund the rehabilitation project, confirming the
status of the housing bond proceeds as "housing assets" transferrable to the
Resolution No. OB 2012 -013 -
Washington Street Apartments Rehabilitation
Adopted: June S, 2012
Page 3 of 4
Authority, and amending the Recognized Obligation Payment Schedule to reflect
the project and payments.
NOW, THEREFORE, BE IT RESOLVED by the Oversight Board of the
Successor Agency to La Quinta Redevelopment Agency, as follows:
SECTION 1. The above recitals are true and correct.
SECTION 2. The purposes for which the 2004 tax - exempt housing bonds and
2011 taxable housing bonds were issued - to finance low- and moderate - income
housing in the City - can still be achieved. The bond documents, including the
indenture, the official statement, the bond purchase agreement, and other related
documents for the 2004 and 2011 housing bond issuances require that the net
bond proceeds be used for affordable housing.
SECTION 3. The Oversight Board hereby approves the WSA rehabilitation project,
and consents to the authorization and direction to the Authority Executive Director
to administer and implement the WSA rehabilitation project, including, without
limitation, entering into the agreements necessary to effect the same.
SECTION 4. The OversightBoard.,hereby approves the expenditure of $3,006,360
in 2004 tax - exempt housing bond proceeds and $15,523,220 in 2011 taxable
housing bond proceeds (collectivelji; the "WSA Bond Proceeds ") to fund the WSA
rehabilitation project.
SECTION 5. The Oversight Board hereby confirms that the 2004 tax - exempt
housing bond proceeds and the 2011 taxable housing bond proceeds are "housing
assets" and that the WSA Bond Proceeds are to be transferred to the Authority
pursuant to Health & Safety Code Section 34176(b)(1) for implementation of the
WSA rehabilitation project. The Oversight Board further confirms that the 2004 -
and 2011 housing bond proceeds are funds that are encumbered by an enforceable
obligation to build or acquire low- and moderate - income housing as defined in the
Community Redevelopment Law, and therefore the funds meet the definition of the
term "Housing asset „ set forth in the Department of Finance's Questions and
Answers section of its website, and further meeting the definition of "Housing
asset” proposed by DOF to be codified as Health & Safety Code Section
34176(d )(2) in the Redevelopment Agencies Dissolution Clean -up and Liquid Asset
Provisions, May Revision.
SECTION 6. The Oversight Board hereby approves the Successor Agency's
amendment of Item 6 of the Recognized Obligation Payment Schedule for the July
2012 through December 2012 time period, relating to the WSA rehabilitation
project, to (i) add, under Project Name /Debt Obligation, "and Implementation of
2004 and 2011 Housing Bond Covenants," (ii) revise the Description to read as
Resolution No. OB 2012 -013
Washington Street Apartments Rehabilitation
Adopted: June 6, 2012
Page 4 of 4
follows: "Implementation of written commitment to US Department of Agriculture
Rural Development to Rehabilitate & Construct Improvements to Washington Street
Apartments and Implementation of covenants in 2004 and 2011 housing bond
documents to utilize bond proceeds for affordable housing ", and (iii) add the
amount of $40,000 to each of July '112, August "12, September "12, October "12,
November "12, and December ' 12.
PASSED, APPROVED, and ADOPTED at a regular meeting of the Oversight
Board held on this 6th day of June, 2012, by the following vote:
AYES: Board Members Ellis, Marshall, Maysels, McDaniel, Nelson, Osborne,
Chairperson Pefia
NOES: None
ABSENT: None
ABSTAIN: None
I
Oversight Board tif. the Successor Agency
to La Quinta Redevelopment Agency
ATTEST:
ph M "AA
tary