2003-01 Pac. Pines T/fer RESOLUTION NO. 2003-01
A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF
ENCINITAS AUTHORIZING THE TRANSFER OF THE PACIFIC PINES
HOUSING PROJECT FROM THE CITY OF ENCINITAS TO THE HOUSING
AUTHORITY, THE EXECUTION AND DELIVERY OF NOT TO EXCEED
$2,000,000 PRINCIPAL AMOUNT OF ITS MULTIFAMILY HOUSING LOAN
FOR PACIFIC PINES HOUSING PROJECT APPROVING DOCUMENTS,
MAKING CERTAIN FINDINGS IN CONNECTION WITH THE EXECUTION
AND DELIVERY OF SAID LOAN
WHEREAS, there is a shortage in the City of Encinitas (the "City") of decent, safe
and sanitary housing which is affordable by persons in the lowerend of the income spectrUm and
a consequent need to encourage the constrUction and availability of rental units affordable by such
persons and otherwise to increase the housing supply in the City for such persons; and
WHEREAS, the Housing Authority of the City of Encinitas (the "Authority") is
authorized pursuant to Article 5 of Chapter 1 of Part 2 of Division 24 of the California Health and
Safety Code (the "Act") to provide assistance in financing muir;family residential rental housing
developments; and
WHEREAS, the Authority proposes to execute a loan for the acquisition of 16 units
of condominium rental housing project known as Pacific Pines Condominiums (the "Proj~t") to
be owned by the Authority, which Project is to be located at 1720 S. El Cam;no Real, Encinitas,
California; and
WHEREAS, said loan is to be executed pursuant to a Loan Agreement by and
between the Authority and Southwest Community Bank (the "Bank"), in a principal amount not
to exceed $2,000,000 (the "Loan"); and
WHEREAS, the Authority has adopted Resolution No. 2003-57 on August 27, 2003
(the "Inducement Resolution") which established the intent of the City to issue bonds to reimburse
the City for the acquisition of the Project; and
WHEREAS, all acts, conditions and things required by the Act, and by all other
laws of the State of California, to exist, to have happened and to have been performed precedent
to and in connection with the execution and delivery of the aforesaid loan exist, have happened,
and have been performed in regular and due time, form and manner as required by law, and the
Authority is now duly authorized and empowered, pursuant to each and every requirement of law,
to issue such revenue bonds for the purpose, in the manner and upon the terms herein provided;
and
WHEREAS, there has been presented to this meeting supporting
documentation to the Loan in the form of a promissory note, deed of trust and assignment of rents,
and financing statements, whereby the Bank will secure its lien on payments to be made by the Authority;
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY
THE HOUSING AUTHORITY OF THE CITY OF ENCINITAS AS FOLLOWS:
1. Section Recitals. The above recitals, and each of them, are true and
correct.
Section 2. Transfer of Project. The Authority hereby approves the acquisition of
the Project and accepts the transfer of the project from the City.
Section 3. Loan Agreement. The form of the Loan Agreement (the "Loan
Agreement") by and between the Authority and the Bank, whereby the proceeds of the Bonds are
to be loaned to the Authority for the purpose of financing the Project is hereby approved and the
President or the Executive Director of the Authority is, and each of them are, hereby authorized
and directed, for and in the name of the Authority to execute the Loan Agreement in mbstantially
the form hereby approved, with such changes therein as the officer executing the same may
approve, such approval to be conclusively evidenced by the execution and delivery thereof.
(i) Section 4. Executive Director Authorized to Establish Final Terms of Sah,
f_qLB_o_oAl The Executive Director of the Authority, based on such advice of staff as he may dean
necessary, is authorized and directed to act on behalf of the Authority to establish and determine
the final principal amount of the Loan, which amount shall not exceed $2,000;000; the interest
rates on the Loan, provided that in the event of a variable rate loan, 'the maximum interest rate
which may be paid shall not exceed 12 % per annum; and such ether matters as may relate to the
final terms and provisions for the Loan as may be consistent with the Loan Agreement.
Section 5. Other Acts. The officers and staff of the Authority are hereby
authorized and directed, jointly and severally, to do any and all things, to execute and deliver any
and all documents, including but not limited to, a deed of trust and assignment of rents, a
promissory note, financing statements or any other document requested by the Bank which is
deemed necessary to effectuate the pu~oses of this Resolution, and any such actions previously
taken by such officers are hereby ratified and confirmed.
Section 6. S cia~. The law firm of Best Best & Krieger LLP is hereby
retained as Special Counsel on the terms set forth in its proposalletter on file with the Authority.
adoption. Section 7. Effective Date-. This Resolution shall take effect immediately upon
PASSED, APPROVED AND ADOPTED this 17th day of December, 2003.
AYES: Bond, Crepeau, Dalager, Guerin, Houlihan, Stocks.
rv~u~^~o
NOES: None.
ABSENT: Chavez.
residen! of 4~he Board of Direc[ors
ATTEST:
Secret~r~ of ~e Board o~irectors -
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