HA Resolution 2012-004RESOLUTION NO. HA 2012 - 004
A RESOLUTION OF THE LA QUINTA HOUSING
AUTHORITY 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, AMENDING THE
RECOGNIZED OBLIGATION PAYMENT SCHEDULE TO
REFLECT THE PROJECT AND PAYMENTS, AND
APPROPRIATING $7,008,718 IN 2011 TAXABLE
HOUSING BOND PROCEEDS TO FUND THE PROJECT
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 former La Quinta Redevelopment
Agency ( "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. HA 2012 -004
Washington Street Apartments Rehabilitation
Adopted: June 5, 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 ofthe Successor Agency
to La Quinta Redevelopment Agency 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(g) 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.
NOW, THEREFORE, BE IT RESOLVED by the La Quinta Housing Authority of
the City of La Quints, California, as follows:
Resolution No. HA 2012 -004
Washington Street Apartments Rehabilitation
Adopted: June 5, 2012
Page 3 of 4
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 Authority hereby approves the WSA rehabilitation project, and the
Authority Executive Director is hereby authorized and directed to administer and
implement the WSA rehabilitation project, including, without limitation, entering into
the agreements necessary to affect the same.
SECTION 4. The Authority 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 (collectively, the "WSA Bond Proceeds ") to fund the WSA rehabilitation
project.
SECTION 5. The Authority 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 Authority 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 Provision ,- --,May
Revision.
SECTION 6. The Authority hereby consents to the Successor :Agency,-- ,ar�reriding.5
Item 6 of the Recognized Obligation Payment Schedule for the July 2012 through;
% December 2012 time period, relating to the WSA rehabilitation project ;'to ii)= add,''
under Project Name /Debt Obligation, "and Implementation of 2004 and 2011
Housing Bond Covenants," (ii) revise the Description to read as 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
Resolution No. HA 2012 -004
Washington Street Apartments Rehabilitation
Adopted: June 5, 2012
Page 4 of 4
of $40,000 to each of July "12, August "12, September "12, October "12,
November "12, and December "12.
SECTION 7. The Authority hereby consents to the - Successor Agency's
appropriation of $7,008,718 in 2011 taxable housing bond proceeds to fund the
project, and the Authority appropriates -such funds for the,project, conditioned upon
its receipt of the funds from the Successor Agency and/or the trustee.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta
Housing Authority held on this 5th day of June, 2012, by the following vote:
AYES: Authority Members Adolph, Franklin, Henderson, Osborne, Chair Evans
NOES: None
ABSENT: None
ABSTAIN: None
L W� �
LINDA EVANS, Chairperson
La Quinta Housing Authority
ATTEST:
t
SUSAN .MAYSELS, InterVn Secretary
I f`Q*rJA a 114u ng Authority
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AP,PI ClVEt 'AS TO FORM:
M. KATHIfRM JEN § ON, Auf ority Coun I
La Quinta Housing Authority/
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