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HomeMy WebLinkAbout15-010 - Resolutions RESOLUTION NO. 15-010 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, AS HOUSING SUCCESSOR, APPROVING THE EXECUTION AND DELIVERY OF A HOUSING BOND PROCEEDS FUNDING AGREEMENT BY AND BETWEEN THE SUCCESSOR AGENCY TO THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY AND THE CITY, AS HOUSING SUCCESSOR, AND TAKING CERTAIN RELATED ACTIONS WHEREAS, the Rancho Cucamonga Redevelopment Agency (the"Former Agency') was a duly constituted redevelopment agency pursuant to provisions of the Community Redevelopment Law (the "Redevelopment Law") set forth in Section 33000 et seq. of the Health and Safety Code ("HSC") of the State of California; and WHEREAS, the Former Agency previously issued its 2007 Housing Tax Allocation Bonds, Series A in the principal amount of $73,305,000 and its 2007 Housing Tax Allocation Bonds, Series B in the amount of$82,315,000 pursuant to an indenture (the"Indenture") by and between the Former Agency and Wells Fargo Bank, National Association, as trustee (the "Housing Bonds"). The Housing Bonds were issued and sold to, among other things, finance low and moderate income housing activities; and WHEREAS, pursuant to AB X1 26 (which became effective in June 2011), and the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al. (53 Cal. 4th 231(2011), the Former Agency was dissolved as of February 1, 2012, the Successor Agency to the Rancho Cucamonga Redevelopment Agency was constituted as the successor entity to the Former Agency, and an oversight board of the Successor Agency (the "Oversight Board") was established; and WHEREAS, pursuant to HSC Section 34175(b), all assets, properties, contracts, leases, books and records, buildings, and equipment of the Former Agency, including the unspent proceeds of the Housing Bonds transferred to the control of the Successor Agency by operation of law. The proceeds of the Housing Bonds have not otherwise been obligated for approved enforceable obligations and there remains a balance in the Successor Agency's accounts of approximately $4,173,408 (the "Housing Bond Proceeds'); and WHEREAS, Pursuant to HSC Section 34176(a), the City Council of the City of Rancho Cucamonga (the "City") adopted Resolution No. 12-032 on February 15, 2012, electing for the City to retain the housing assets and housing functions previously performed by the Former Agency, as allowed by law, and thereby becoming the Housing Successor; and WHEREAS, HSC Section 34176(g) provides that the Housing Successor may designate the use of, and commit, the Housing Bond Proceeds provided that such use or commitment of Housing Bond Proceeds is consistent with the bond covenants in the Indenture (the "Bond Covenants'); and WHEREAS, HSC Section 34176(8) further provides that a designation of the use, or commitment, of the Housing Bond Proceeds must be listed on a Recognized Obligation Payment Schedule ("ROPS")and that the Housing Successor must provide notice to the Successor Agency Resolution No. 15-010— Page 1 of 8 regarding a designation of the use, or commitment, of the Housing Bond Proceeds before submitting the ROPS to the Oversight Board; and WHEREAS, HSC Section 34176(g) provides that the review by the Successor Agency, the Oversight Board and the State Department of Finance (the"DOF")of the Housing Successor's designations and commitments of Housing Bond Proceeds shall be limited to a determination that the designations and commitments are consistent with the Bond Covenants and that there are sufficient funds available therefor; and WHEREAS, the Successor Agency received notice from the City, acting in its capacity as the Housing Successor, designating the use of the Housing Bond Proceeds solely for projects that are consistent with applicable provisions of law, including the applicable provisions of the Community Redevelopment Law(Health and Safety Code Section 33000, et seq.), the respective redevelopment plan, the Bond Covenants, and the Housing Successor's Low and Moderate Income Housing Asset Fund and only in connection with projects forwhich the Housing Successor has determined that there are sufficient funds available (the "Housing Projects'); and WHEREAS, the Successor Agency and the Housing Successor desire to enter into a Housing Bond Proceeds Funding Agreement (the "Housing Funding Agreement") in connection with the transfer of the Housing Bond Proceeds to the Housing Successor; NOW, THEREFORE, the City Council of the City does resolve as follows: SECTION 1. The above recitals are true and correct and are a substantive part of this Resolution. SECTION 2. The Housing Bond Proceeds Funding Agreement, in the form attached hereto as Exhibit A, is hereby approved. The Mayor (or, in the Mayor's absence, the Mayor Pro Tem) is hereby authorized to execute and deliver, for and in the name of the City, the Housing Funding Agreement in substantially such form, with changes therein as the Mayor (or the Mayor Pro Tem, as the case may be) may approve (such approval to be conclusively evidenced by the execution and delivery thereof). SECTION 3. The Mayor, the Mayor Pro Tem, the City Manager, the Finance Director and all other officers of the City are hereby authorized,jointly and severally, to do all things and execute and deliver any and all such documents or instruments as they may deem necessary or proper to effectuate the purposes of this Resolution and the Housing Funding Agreement, and any such actions previously taken by such officers are hereby ratified and confirmed. Resolution No. 15-010 — Page 2 of 8 PASSED, APPROVED, AND ADOPTED this 4'" day of February 2015. AYES: Alexander, Kennedy, Michael, Spagnolo, Williams NOES: None ABSENT: None ABSTAINED: None L. Dennis Michael, Mayor ATTEST: 4,ir Janice C. Reynolds, City Clerk I, JANICE C. REYNOLDS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting of said City Council held on the 4t' day of February 2015. Executed this 5th day of February 2015, at Rancho Cucamonga, California. VVI 'V4,UA— Janice C. Reynolds, City Clerk Resolution No. 15-010 – Page 3 of 8 EXHIBIT A HOUSING BOND PROCEEDS FUNDING AGREEMENT (in substantial final form) Resolution No. 15-010 —Page 4 of 8 HOUSING BOND PROCEEDS FUNDING AGREEMENT This HOUSING BOND PROCEEDS FUNDING AGREEMENT (this "Agreement"), dated as of February 4, 2015, is entered into by and between the City of Rancho Cucamonga, in its capacity as the successor to the housing assets and functions of the former Rancho Cucamonga Redevelopment Agency (the "Housing Successor") and the Successor Agency to the Rancho Cucamonga Redevelopment Agency (the "Successor Agency," and together with the Housing Successor, the "Parties"). RECITALS: The former Rancho Cucamonga Redevelopment Agency (the "Former Agency") previously issued its 2007 Housing Tax Allocation Bonds, Series A in the principal amount of $73,305,000 and its 2007 Housing Tax Allocation Bonds, Series B in the principal amount of $82,315,000, both pursuant to an indenture (the "Indenture") by and between the Former Agency and Wells Fargo Bank, National Association as trustee (collectively the "Housing Bonds"). The Housing Bonds were issued and sold to, among other things, finance low and moderate income housing activities. Pursuant to AB X1 26 (enacted in June 2011), as modified by the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal.41h 231(2011), the Former Agency was dissolved as of February 1, 2012, the Successor Agency to the Rancho Cucamonga Redevelopment Agency was constituted as the successor entity to the Former Agency, and an oversight board of the Successor Agency (the "Oversight Board") was established. Pursuant to California Health and Safety Code ("HSC") Section 34175(b), all assets, properties, contracts, leases, books and records, buildings, and equipment of the Former Agency, including the unspent proceeds of the Housing Bonds transferred to the control of the Successor Agency by operation of law.The proceeds of the Housing Bonds have not otherwise been obligated for approved enforceable obligations and there remains a balance in the Successor Agency's accounts of approximately $4,173,408 (the "Housing Bond Proceeds"). Pursuant to HSC Section 34176(a), the City Council of the City of Rancho Cucamonga ("the City") adopted Resolution No. 12-032 on February 15, 2012, electing for the City to retain the housing assets and housing functions previously performed by the Former Agency, as allowed by law, and thereby becoming the Housing Successor. HSC Section 34176(8) provides that the Housing Successor may designate the use of, and commit, the Housing Bond Proceeds provided that such use or commitment of Housing Bond Proceeds is consistent with the bond covenants in the Indenture (the "Bond Covenants"). HSC Section 34176(8) further provides that a designation of the use, or commitment, of the Housing Bond Proceeds must be listed on a Recognized Obligation Payment Schedule ("ROPS")and that the Housing Successor must provide notice to the Successor Agency regarding a designation of the use, or commitment, of the Housing Bond Proceeds before submitting the ROPS to the Oversight Board. Resolution No. 15-010— Page 5 of 8 HSC Section 34176(g) provides that the review by the Successor Agency, the Oversight Board and the State Department of Finance (the "DOF") of the Housing Successor's designations and commitments of Housing Bond Proceeds shall be limited to a determination that the designations and commitments are consistent with the Bond Covenants and that there are sufficient funds available therefor. The Successor Agency received notice from the City, acting in its capacity as the Housing Successor, designating the use of the Housing Bond Proceeds solely for projects that are consistent with applicable provisions of law, including the applicable provisions of the Community Redevelopment Law (Health and Safety Code Section 33000, et sem.), the respective redevelopment plan, the Bond Covenants, and the Housing Successor's Low and Moderate Income Housing Asset Fund ("LMIHAF") and only in connection with projects for which the Housing Successor has determined that there are sufficient funds available (the "Housing Projects"). The Housing Successor and the Successor Agency desire to enter into this Agreement in connection with the use of Housing Bond Proceeds by the Housing Successor for the Housing Projects. This Agreement provides for the inclusion of the Housing Bond Proceeds on ROPS 15- 16A and the transfer of the Housing Bond Proceeds to the Housing Successor. NOW,THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS: Section 1. (a) The Successor Agency shall prepare and submit ROPS 15-16A to the Oversight Board and the DOF and, subject to the approval of the Oversight Board and DOT, shall include therein the transfer of the Housing Bond Proceeds to the Housing Successor, with the amount of Housing Bond Proceeds to include estimated interest earnings through the date of transfer under Section 2(b). (b) The Successor Agency shall transfer the Housing Bond Proceeds to the Housing Successor, in the amount approved by the DOF per ROPS 15- 16A, no later than December 31, 2015. Section 2. Upon receipt, the Housing Successor shall deposit the Housing Bond Proceeds into the LMIHF, which fund has been established and is maintained by the Housing Successor pursuant to HSC Sections 34176 and 34176.1. Section 3. The Housing Successor covenants that it shall hold and use the Housing Bond Proceeds solely for projects that are consistent with applicable provisions of law, including applicable provisions of the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.), the respective redevelopment plan, the Bond Covenants, and the LMIHAF and only in connection with projects for which the Housing Successor has determined that there are sufficient funds available. Resolution No. 15-010— Page 6 of 8 Section 4. Each Party shall maintain books and records regarding its duties pursuant to this Agreement. Such books and records shall be available for inspection by the officers and agents of the other Party at all reasonable times. Section 5. The Parties agree to take all appropriate steps and execute any documents which may reasonably be necessary or convenient to implement the intent of this Agreement. Section 6. This Agreement may be amended from time to time by written instrument executed by both Parties. Section 7. No official, agent, or employee of the Successor Agency or the City or members of the City Council, or members of the Successor Agency Board of Directors or Oversight Board shall be individually or personally liable for any payment hereunder in the event of any default or breach by the Successor Agency or the City, or for any amount which may otherwise become due to the City or Successor Agency, or successor thereto, or on any obligations under the terms of this Agreement. Section 8. This Agreement is made in the State of California under the Constitution and laws of the State of California, and is to be so construed. Section 9. This Agreement will not be effective unless it is approved by the Oversight Board and the DOF (or the DOF fails to request review within the time prescribed by law). Resolution No. 15-010— Page 7 of 8 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized officers. SUCCESSOR AGENCY TO THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY By L. Dennis Michael, Chairman ATTEST: Secretary CITY OF RANCHO CUCAMONGA, as HOUSING SUCCESSOR By L. Dennis Michael, Mayor ATTEST: City Clerk APPROVED: OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY By Date: Mike Costello, Chair Resolution No. 15-010— Page 8 of 8