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HomeMy WebLinkAboutCC RES 26-19 RESOLUTION NO. 26-19 RESOLUTION OF THE CITY COUNCILOFTHE CITY OF TUSTINAPPROVING A PLAN OF FINANCE INCLUDING THE ISSUANCE OF EXEMPT FACILITY BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE OUTSTANDING PRINCIPAL AMOUNT NOT TO EXCEED $80,000,000 TO FINANCE AND REFINANCE A QUALIFIED RESIDENTIAL RENTAL PROJECT FOR THE BENEFIT OF TUSTIN 738, L.P. (OR AN AFFILIATE), AND CERTAIN OTHER MATTERS RELATING THERETO WHEREAS,USA Properties Fund, Inc. (the “Sponsor”), on behalf of Tustin 738, L.P.,a California limited partnership, or another limited partnership of which the Sponsor or a related person to the Sponsor is the general partner(such limited partnership being referred to herein as the “Borrower”), has requested that the California Municipal Finance Authority (the “Authority”) undertake a proposed plan of finance that includes the issuance and reissuance from time to time of one or more series of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986, as amended (the “Code”),in an aggregate principal amount not to exceed $80,000,000 (the “Bonds”) to finance and refinance the acquisition, development, construction and equipping of a 334-unit (including four manager’s units) multifamilyrental housing project (the “Project”) to be owned and operated by the Borrowerand located on an approximately 5.46-acre site generally bounded by Warner Avenue to the north, Compass Avenue to the west, Legacy Roadto the eastand Airpship Avenueto the south within the City of Tustin, California (the “City”), and; WHEREAS, an “applicable elected representative” of the jurisdiction in which the Project is located is required to approve the proposed plan of finance for the Projectunder Section 147(f) of the Code; and WHEREAS, the City Council of the City (the “City Council”) is the elected legislative body of the City and is an “applicable elected representative” of a governmental unit having jurisdiction over the area in which the Project is located for purposes of conducting a public hearing pursuant to Section 147(f) of the Code and Treasury Regulation Section 1.147(f)-1; and WHEREAS, the Authority has requested that the City Council approve the proposed plan of finance for the Project in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds (the “TEFRA Hearing”) and now desires to approve the proposed plan of finance for the Project; and WHEREAS, in evaluating the Project for purposes of this public hearing, the City Council has relied upon the written facts, representations, and information presented by ______________________ Resolution 26-19 Page 1 of 4 the Authority and the Borrower, and the City has made no independent investigation or verification of such facts, representations, or information; and WHEREAS, it is in the public interest and for the public benefit that the City Council adopt this Resolution. NOW, THEREFORE, BE IT RESOLVED, by the City Councilof the City of Tustin, California, as follows: Section 1. The foregoing recitals are true and correct. Section 2. The City Council hereby approves the proposed plan of finance for the Projectthatincludestheissuanceand reissuancefrom time to timeof the Bondsin an outstanding principal amount not to exceed $80,000,000. It is the purpose and intent of the City Council that this Resolution constitute approval of the proposed plan of finance for the Project for the purposes of: (a) Section 147(f) of the Code by the applicable elected representative of a governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and Treasury Regulation Section 1.147(f)-1, and (b) Section 4 of the Agreement. Such approval is given solely to satisfy the public approval requirement of Code Section 147(f) and Treasury Regulation Section 1.147(f)-1, and does not constitute an endorsement, guaranty, or approval of the Project or the financing thereof for any other purpose. Section 3. The City, the County of Orange, and the State of California (and any political subdivision, agency, or instrumentality thereof) shall have no obligation or liability whatsoever with respect to the Bonds, the Project, or the plan of finance therefor, beyond (i) conducting the TEFRA Hearing and (ii) making the findings set forth in this Resolution. The Bonds shall not constitute a debt, liability, or obligation of the City, the County of Orange, or the State of California, and neither the faith and credit nor the taxing power of the City, the County, or the State shall be pledged to the payment of the principal of or interest on the Bonds. Section 4. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents 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. Section 5. The City Clerk shall forward a certified copy of this Resolution to the Authority in care of its counsel: Ronald E. Lee, Esq. Jones Hall LLP 4 West Fourth Avenue, Suite 406 San Mateo, CA 94402 Section 6. This Resolution shall take effect immediately upon its adoption. ____________________ Resolution 26-19 Page 2 of 4 PASSED AND ADOPTED at a regular meeting of the City Council of the City of st Tustin held on the 21day of April, 2026. AUSTIN LUMBARD, Mayor ATTEST: ERICA N. YASUDA, City Clerk APPROVED AS TO FORM: _____________________________ DAVID E. KENDIG, City Attorney ______________________ Resolution 26-19 Page 3of 4 STATE OF CALIFORNIA) COUNTY OF ORANGE) SS CITY OF TUSTIN) I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No.26-19was duly passed st and adopted at a regular meeting of the Tustin City Council, held on the 21day of April, 2026, by the following vote: COUNCILMEMBER AYES:Lumbard, Schnell, Gallagher, Fink, Nielsen(5) COUNCILMEMBER NOES:(0) COUNCILMEMBER ABSTAINED:(0) COUNCILMEMBER ABSENT:(0) COUNCILMEMBER RECUSED:(0) ____________________________ ERICA N. YASUDA, City Clerk ____________________ Resolution 26-19 Page 4of 4