HomeMy WebLinkAboutSA Resolution 2019-01 (Modification of Agreement in Connection with Bonds Funding a Loan Made by the SR Redevelopment Agency to Martinelli House in 2007)1
RESOLUTION NO. 2019-01
RESOLUTION OF THE SAN RAFAEL SUCCESSOR AGENCY BOARD
APPROVING AND AUTHORIZING THE SUCCESSOR AGENCY EXECUTIVE
DIRECTOR TO EXECUTE AN AMENDMENT TO A MASTER PLEDGE AND
ASSIGNMENT IN CONNECTION WITH THE SAN RAFAEL REDEVELOPMENT
AGENCY’S 2007 ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS
WHEREAS, by adoption of Assembly Bill x1 26 in 2011, the California State
Legislature approved the dissolution of redevelopment agencies, such as the San
Rafael Redevelopment Agency (“San Rafael RDA”), formed under the Community
Redevelopment Law (Health and Safety Code Section 33000 et seq.), effective as of
February 1, 2012; and
WHEREAS, on January 3, 2012, the San Rafael City Council adopted Resolution
No. 13279 declaring that the City of San Rafael would act as successor agency (the
"Successor Agency") for the dissolved San Rafael RDA effective February 1, 2012; and
WHEREAS, on February 1, 2012, the San Rafael RDA was dissolved pursuant
to Health and Safety Code Section 34172 and the Successor Agency is now the
successor entity to the San Rafael RDA; and
WHEREAS, under prior state law, the San Rafael RDA was authorized to issue
bonds and loan the proceeds thereof to qualified borrowers for the purpose of financing
the acquisition, rehabilitation and development of multifamily housing projects for
persons and families of low and very low income residing within its jurisdiction; and
WHEREAS, by adoption of its Resolution No. 2007-07 on March 5, 2007, the
San Rafael RDA authorized the issuance of its “San Rafael Redevelopment Agency
Multifamily Housing Revenue Bonds (Martinelli House Project) 2007 Series A” in the
maximum principal amount of $6,000,000 (the “Bonds”) for the purpose of loaning the
proceeds of the Bond sales to Mercy Housing California XXXI, a California Limited
Partnership (“Mercy Housing”), to finance the acquisition and rehabilitation of a 66-unit
multifamily housing apartment project known as Martinelli House, located at 1327
Lincoln Avenue, San Rafael, California; and
WHEREAS, Resolution No. 2007-07 also approved a “Master Pledge and
Assignment” agreement dated as of March 1, 2007 between the San Rafael RDA and
Citicorp North America, Inc., as agent, and Citibank N.A. as purchaser/holder of the
Bonds; and
WHEREAS, pursuant to the terms of the Master Pledge and Assignment the San
Rafael RDA thereafter issued the Bonds and the proceeds of the Bonds were used to
fund a loan in the total principal amount of $6,000,000 from the San Rafael RDA to
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Mercy Housing (the “Loan”) pursuant to a Loan Agreement between Mercy Housing and
Citicorp North America, Inc. in its capacity as agent for the San Rafael RDA; and
WHEREAS, payments due to holders of the Bonds are payable from the rental
income generated by Martinelli House, and in case of default, holders of the Bonds
have recourse only to the Martinelli House property and not to the Successor Agency;
and
WHEREAS, Citibank, N.A., the holder of the Bonds, is one of the largest lenders
to the affordable housing industry, and in order to maintain its ability to provide loans to
affordable housing projects at the pace the market demands, Citibank, N.A. desires to
sell the Bonds to the California Housing Finance Agency (“CalHFA”) for deposit into a
trust with other such loans, after which CalHFA will then issue new municipal securities
backed by the loans; and
WHEREAS, Citibank N.A. affiliates will continue to service the Loan as before,
and the proposed sale of the Bonds to CalHFA will not change the rights of the
Successor Agency as the issuer of the Bonds, nor the terms and conditions under which
Martinelli House operates; and
WHEREAS, an amendment to the Master Pledge and Assignment is required to
authorize Citibank, N. A. to sell the Bonds to a governmental entity such as CalHFA;
and
WHEREAS, the Successor Agency’s bond counsel has advised that the
proposed “Amendment to Master Pledge and Assignment”, in the form attached to the
Staff Report accompanying this resolution, does not create additional risk or other
detriment to the Successor Agency;
NOW, THEREFORE, BE IT RESOLVED by the San Rafael Successor Agency
Board that it consents to and authorizes the Executive Director to sign the proposed
“Amendment to Master Pledge and Assignment” in the form attached to the Staff
Report, subject to final approval as to form by the City Attorney.
I, LINDSAY LARA, Secretary of the San Rafael Successor Agency, hereby
certify that the foregoing Resolution was duly and regularly introduced and adopted at a
regular meeting of the Board of the San Rafael Successor Agency, held on Monday, the
2nd day of December 2019, by the following vote, to wit:
AYES: Members: Bushey, Colin, Gamblin, McCullough & Chairman Phillips
NOES: Members: None
ABSENT: Members: None
LINDSAY LARA, Secretary