RES 19-1062 - Laserfiche WebLink

RESOLUTION NO. 19-1062 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON AUTHORIZING PARTICIPATION IN THE HUD PUBLIC OFFERING AS PART OF THE SECTION 108 LOAN GUARANTEE ASSISTANCE PROGRAM TO CONVERT FROM INTERIM FINANCING TO A PERMANENT, FIXED RATE FINANCING OF AN EXISTING NOTE IN THE ORIGINAL PRINCIPAL AMOUNT OF $950,000, RELATED TO THE FINANCING OF THE AXIS COMMUNITY HEALTH CLINIC EXPANSION PROJECT WHEREAS, the City authorized an application seeking loan guarantee assistance under Section 108 of the Housing and Community Development Act of 1974, as amended, from the United States Department of Housing and Urban Development ("HUD"); and did authorize the City Manager to execute documents necessary to accomplish this transition, and did accept HUD's guarantee of Section 108 note number B-14-MC-06-0050 for the Axis Community Health Clinic Expansion Project under a Section 108 Contract for Loan Guarantee Assistance Dated August 28, 2015; and WHEREAS, the assistance provided by HUD was the guarantee of a note in the maximum amount of$1,250,000, plus interest thereon, of which only $950,000 was utilized; and WHEREAS, HUD has notified the City that a public offering will occur on March 28, 2019, and to participate, the City must immediately notify HUD of its intention to refinance all or a portion of its existing Section 108 commitment through the public offering; and WHEREAS, HUD may require, as a condition of participation in the public offering, that the City execute documents related to the transaction, and whereas the City has previously agreed to pay the City's share, as determined by HUD, of the customary and usual issuance, underwriting and other costs related to the public offering and future administration of the Note and trust certificates; and WHEREAS, it is economically sound and in the best interest of the City to accept more favorable fixed rates and interest under the Section 108 Loan Guarantee program offered by HUD under this upcoming public offering. NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING: SECTION 1. Authorizes the City Manager or his designee to notify HUD of the City's interest in participating in the March 2019 public offering by HUD through the loan guarantee assistance program under Section 108 of the Housing and Community Development Act of 1974, as amended, for the existing obligation B-14-MC-06-0050 in the maximum principal amount of $1,250,000, of which only $950,000 was utilized, at such rates that will be determined by HUD at the time of the public offering. SECTION 2. Authorizes the City Manager or his designee to execute all documents and take all action necessary to refinance the existing guaranteed Section 108 Note, and to execute such other documents, contracts, amendments and agreements with HUD, and to authorize payment of any required fees, as may be necessary to effectuate this refinancing transaction.