HomeMy WebLinkAboutReso 28-25 HASLO TEFRA Reso in City Format - signed
4932-8836-0764v3/202084-0001
RESOLUTION NO. 28-25
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
APPROVING THE INCURRING OF A TAX EXEMPT OBLIGATION BY
THE HOUSING AUTHORITY OF THE CITY OF SAN LUIS OBISPO
FOR THE PURPOSE OF PROVIDING FINANCING FOR THE
DEVELOPMENT OF MORRO BAY APARTMENTS
T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the Housing Authority of the City of San Luis Obispo (the “Authority”) is
authorized by Chapter 1 of Part 2 of Division 24 of the Health and Safety Code of the
State of California, as amended (the “Act”), to incur indebtedness and to make loans for
housing purposes specified in the Act; and
WHEREAS, after a duly noticed public hearing, on February 23, 2021, the City
Council (the “City Council”) of the City of Morro Bay (the “City”) adopted Resolution 09 -
21 (the “Original TEFRA Resolution”) approving a tax-exempt bond issue by the Authority
to finance a 35 unit affordable housing project to be located at 405 Atascadero Frontage
Road in the City known as “Morro Bay Apartments” (the “Housing Facility”), developed
and owned by Morro Bay Apartments, L.P., a California limited partnership (the
“Borrower”); and
WHEREAS, subsequent to the Original TEFRA Resolution, the Authority executed
and delivered a its Housing Authority of the City of San Luis Obispo Housing Revenue
Note, 2022 Note A (Morro Bay Apartments) in the aggregate principal amount of
$8,773,900 (the “Obligation”); and
WHEREAS, the Obligation has been issued pursuant to the provisions of Chapter
1 of Part 2 of Division 24 of the Health and Safety Code of the State of California (the
“Act”), and a Loan Agreement, dated as of February 1, 2022 (the “Bank Loan
Agreement”), by and between the Housing Authority and Banc of California, formerly
known as Pacific Western Bank, a California state-chartered bank (the “Bank”); and
WHEREAS, a portion of the housing units in the Housing Facility are rented to
persons and families of low or very low income as required by the Act and the Internal
Revenue Code of 1986, as amended (the “Code”); and
WHEREAS, in connection with the conversion of the Housing Facility to the
permanent phase of financing under the Loan Agreement, the Borrower and the Bank
have proposed certain amendments to the Loan Documents (as defined in the Loan
Agreement) which would cause the Obligation to be reissued for purposes of the Code;
and
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WHEREAS, the Obligation will be considered to be a “qualified exempt facility
bond” under Section 142(a) of the Code, and Section 147(f) of the Code requires that the
“applicable elected representative” with respect to the Authority approve the issuance by
the Authority of the Obligation following the holding of a public hearing with respect
thereto; and
WHEREAS, the Authority has determined that the City Council is the “applicable
elected representative” to approve the issuance by the Authority of the Obligation
because the Housing Facility is located within the City; and
WHEREAS, notice of a public hearing by the City Council regarding the financing
of the Housing Facility has been duly given as required by the Code, and the City Council
has held the 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 Housing
Facility, including the Authority's issuance of the Obligation and subsequent lending of
the proceeds thereof to the Borrower to pay costs of the acquisition, construction and
development by the Borrower of the Housing Facility; 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 Council approve the issuance by the Authority
of the Obligation for the aforesaid purposes.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay, California, as follows:
1. The above recitals are true and correct.
2. The City Council hereby approves the reissuance of the Obligation by the
Authority for the purpose of providing funds to make a loan to the Borrower to enable the
Borrower to finance costs of the Housing Facility. It is the purpose and intent of the City
Council that this Resolution constitute approval of the issuance of the Obligation by the
Authority for the purposes of section 147(f) of the Code, by the governmental unit having
jurisdiction over the area in which the Housing Facility is to be located, in accordance with
said section 147(f).
3. The reissuance of the Obligation shall be subject to approval of the Authority of
all financing documents relating thereto to which the Authority is a party. T he City shall
have no responsibility or liability whatsoever with respect to repayment or administration
of the Obligation.
4. The City Council hereby consents to the operation by the Authority within the
boundaries of the City in connection with the financing, development and operation of the
Housing Facility, pursuant to Section 34208 of the Health and Safety Code.
5. The adoption of this Resolution shall not obligate the City or any department
thereof to (a) provide any financing to acquire or con struct the Housing Facility; (b)
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approve any application or request for or take any other action in connection with any
planning approval, permit or other action necessary for the acquisition, construction or
operation of the Housing Facility; (c) make any contribution or advance any funds
whatsoever to the Authority; or (d) take any further action with respect to the Authority or
its membership therein.
6. The City Manager, the City Clerk and all other officers and officials of the City
are hereby authorized and directed to do any and all things and to execute and deliver
any and all agreements, documents and certificates which they deem necessary or
advisable in order to carry out, give effect to and comply with the terms and intent of this
Resolution and the financing transaction approved hereby.
7. The City Clerk is hereby directed to forward a certified copy of this Resolution
to the bond counsel for the Obligation, addressed as follows:
Bradley Neal, Esq.
Stradling Yocca Carlson & Rauth LLP
660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660
8. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 27th day of May, 2025 on the following vote:
AYES: Wixom, Eckles, Edwards, Landrum, Luffee
NOES: None
ABSENT: None
ABSTAIN: None
RECUSE: None
Carla Wixom, Mayor
ATTEST:
Dana Swanson, City Clerk
Carla Wixom (May 28, 2025 15:19 PDT)
Carla Wixom
Reso 28-25 HASLO TEFRA Reso in City
Format
Final Audit Report 2025-05-28
Created:2025-05-28
By:Heather Goodwin (hgoodwin@morrobayca.gov)
Status:Signed
Transaction ID:CBJCHBCAABAA6vsE4faRhywbEPNn_itBpbpb62K5xgcU
"Reso 28-25 HASLO TEFRA Reso in City Format" History
Document created by Heather Goodwin (hgoodwin@morrobayca.gov)
2025-05-28 - 8:43:21 PM GMT
Document emailed to cwixom@morrobayca.gov for signature
2025-05-28 - 8:44:04 PM GMT
Email viewed by cwixom@morrobayca.gov
2025-05-28 - 10:05:50 PM GMT
Signer cwixom@morrobayca.gov entered name at signing as Carla Wixom
2025-05-28 - 10:19:32 PM GMT
Document e-signed by Carla Wixom (cwixom@morrobayca.gov)
Signature Date: 2025-05-28 - 10:19:34 PM GMT - Time Source: server
Document emailed to Dana Swanson (dswanson@morrobayca.gov) for signature
2025-05-28 - 10:19:35 PM GMT
Email viewed by Dana Swanson (dswanson@morrobayca.gov)
2025-05-28 - 10:20:08 PM GMT
Document e-signed by Dana Swanson (dswanson@morrobayca.gov)
Signature Date: 2025-05-28 - 10:20:22 PM GMT - Time Source: server
Agreement completed.
2025-05-28 - 10:20:22 PM GMT