SA Resolution 2012-007RESOLUTION NO. SA 2012 - 007
A RESOLUTION OF THE CITY OF LA QUINTA ACTING
AS THE SUCCESSOR AGENCY TO THE DISSOLVED 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, 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. SA 2012 -007
Washington Street Apartments Rehabilitation
Adopted: June 5, 2012
Page 2 of 5
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; 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 of the 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 City of La Quinta Acting as the
Successor Agency to the Dissolved La Quinta Redevelopment Agency ( "Successor
Agency"), as follows:
Resolution No. SA 2012 -007
Washington Street Apartments Rehabilitation
Adopted: June 5, 2012
Page 3 of 5
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 Successor Agency hereby approves the WSA rehabilitation
project, and consents to the Authority's authorization and direction to its
Executive Director to administer and implement the WSA rehabilitation project,
including, without limitation, entering into the agreements necessary to affect the
same.
SECTION 4. The Successor Agency 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 Successor Agency 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 Successor Agency 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 Successor Agency hereby approves an amendment to Item 6 of
the Recognized Obligation Payment Schedule for the July 2012 through - December
2012 time period, relating to the WSA rehabilitation project, to-fl) dd, 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
Resolution No. SA 2012 -007
Washington Street Apartments Rehabilitation
Adopted: June 5, 2012
Page 4 of 5
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 "12, August "12, September "12, October "12, November "12, and
December "12.
SECTION 7. The Successor Agency hereby appropriates $7,008,718 in 2011
taxable housing bond proceeds to fund the project, and consents to the Authority's
appropriation of such funds for the project, conditioned upon the Authority's
receipt of the funds from the Successor Agency and /or the trustee.
PASSED, APPROVED, and ADOPTED at a regular meeting of the Successor
Agency held on this 5th day of June, 2012, by the following vote:
AYES: Agency Members Evans, Franklin, Henderson, Osborne, Chair Adolph
NOES: None
ABSENT: None
ABSTAIN: None
V�� �- -
DON ADOLPH, C rperson
City of La Quinta Acting as Successor
Agency to the Dissolved La Quinta
Redevelopment Agency
ATTEST:
57 v '-
SUSAN MAYSELS, In rim Secretary
City of La Quinta Acting as Successor Agency
to the Dissolved La Quinta Redevelopment Agency
(AGENCY' SEAEK
Resolution No. SA 2012 -007
Washington Street Apartments Rehabilitation
Adopted: June 5, 2012
Page 5 of 5
APPROVED AS TO FORM:
KATHERIN JENSON /Attorney
City of La Quinta Actin�as Successor Agency
to the Dissolved La Quinta Redevelopment Agency