Resolution - 9547RESOLUTION NO. ,O547
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA APPROVING THE ISSUANCE OF HOUSING
SET -ASIDE TAX ALLOCATION BONDS BY THE
REDEVELOPMENT AGENCY OF THE CITY OF WEST COVINA
is FOR THE PURPOSE OF PROVIDING FINANCING FOR A
MULTIFAMILY RENTAL HOUSING DEVELOPMENT TO BE
OWNED BY EXECUTIVE LODGE APARTMENTS, A
CALIFORNIA LIMITED PARTNERSHIP
WHEREAS, the Redevelopment Agency of the City of West Covina (the "Agency") is
authorized by Part 1 of Division 24 of the Health and Safety Code of the State of California, as
amended (the "Redevelopment Law"), and particularly Chapter 8 thereof, to issue and sell revenue
bonds for the purpose of financing the acquisition and rehabilitation of multifamily rental housing
facilities; and
WHEREAS, Executive Lodge Apartments, a California Limited Partnership, as successor in
interest to The Southern California Housing Development Corporation (the "Borrower") has requested
that the Agency issue and sell 1998 Housing Set -Aside Tax Allocation Bonds (Executive Lodge
Project), Series A and 1998 Housing Set -Aside Tax Allocation Bonds (Executive Lodge Project),
Taxable Series B (collectively, the "Tax Allocation Bonds") under the Redevelopment Law secured by
a pledge of tax increment revenues required to be deposited to the Agency's Low and Moderate
Income Housing Fund under and pursuant to the Redevelopment Law, including Section 33334.3
thereof, in the aggregate principal amount of not to exceed $7,200,000 all for the purpose of making a
loan to the Borrower to enable the Borrower to acquire and rehabilitate a multifamily rental housing
development known as Executive Lodge Apartments (the "Development") located in the City of West
Covina (the "City"), and
WHEREAS, the Borrower has also requested that the Agency enter into a Financing
Agreement (the "Financing Agreement") with Sanwa Bank California ("Sanwa") and the Borrower
providing for issuance by the Agency and purchase by Sanwa of the Agency's Multifamily Housing
Revenue Bonds (Executive Lodge Apartments) 1998 Series C (the "Series C Bonds") to provide
' further construction financing therefor in the aggregate principal amount of not to exceed $2,800,000;
and
WHEREAS, a portion of the housing units in the Development will be rented to persons and
families of very low income as required by the Redevelopment Law and the Internal Revenue Code of
1986, as amended (the "Code"), and the financing of the acquisition and rehabilitation of the
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Development with the proceeds of the Tax AIlocation Bonds and the Series C Bonds will otherwise
allow the Borrower to maintain other units in the Development as rental housing affordable by persons
and families of very low and low income; and
S WHEREAS, the Tax Allocation Bonds and the Series C Bonds will be considered to be
"qualified exempt facility bonds" under Section 142(a) of the Code, and Section 147(f) of the Code
requires that the "applicable elected representative" with respect to the Agency hold a public hearing
on the issuance of the Series A Bonds and the Series C Bonds and approve the issuance of the Series A
Bonds and the Series C Bonds following such hearing; and
WHEREAS, the Agency has determined that the City Council of the City is the "applicable
elected representative" to hold said public hearing; and
WHEREAS, notice of said public hearing has been duly given as required by the Code, and
this City Council has heretofore held such public hearing at which all interested persons were given an
opportunity to be heard on all matters relative to the location, operation and financing of the
Development and the Agency's issuance of the Series A Bonds and the Series C Bonds therefor and
has previously adopted its Resolution No. approving said issuance; and
WHEREAS, the Redevelopment Law also requires that the City Council approve the issuance
of the Tax Allocation Bonds by reason of the pledge of said tax increment revenues as. security for the
payment of the Tax Allocation Bonds; and
WHEREAS, it is in the public interest, for the public benefit and in furtherance of the public
purpose of the City that the City approve the issuance of the Tax Allocation Bonds by the Agency for
the foresaid purposes;
follow:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of West Covina as
SECTION 1. The City Council of the City of West Covina hereby approves the issuance of the
Tax Allocation Bonds by the Agency under the Redevelopment Law and the Code for the purpose of
providing funds to make a loan to the Borrower to enable the Borrower to finance the acquisition,
rehabilitation and operation of the Development.
' SECTION 2. This Resolution shall take effect immediately upon its adoption.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution.
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APPROVED AND ADOPTED this i7th day of hla rch 1998.
V Mayor
ATTEST:`•'
City Clerk
I HEREBY CERTIFY that the foregoing Resolution No. 9547 was duly adopted by the City
Council of the City of West Covina at a regular meeting thereof held on the 17thday of Ha rch
1998, by the following vote:
AYES: Herfert, t1elendez, Touhey, Wong
NOES: Howard
ABSENT: None
ABSTAIN: None
City Clerk,
APPROVED AS TO FORM:
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