HomeMy WebLinkAboutResolution No. 96-R56RESOLUTION NO. 96—R5
6
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF
THE CITY OF AZUSA AUTHORIZING A LOAN FROM THE MERGED REDEVELOPMENT PROJECT
AREA CAPITAL PROJECT FUND TO THE 20% SET ASIDE LOW -TO -MODERATE INCOME HOUSING
FUND
WHEREAS, the Redevelopment Agency of the City of Azusa ("Agency") is authorized to undertake certain
actions which are necessary and incidental to the carrying out of the Redevelopment Plan which has previously been
adopted by the City of Azusa, for purposes of the 20% Set Aside Low -to -Moderate Income Housing Program; and
WHEREAS, the Agency has incurred and will continue to incur obligations for such purpose; and
WHEREAS, the 20% Set Aside Low -to -Moderate Income Housing Fund requires additional funds for the
purposes of defraying said expenses and curing a deficit; and
WHEREAS, the Merged Redevelopment Project Area Capital Projects Fund has funds available to loan to the
20% Set Aside Low -to -Moderate Income Housing Fund for the purposes of defraying said expenses and curing a deficit;
NOW, THEREFORE, BE IT RESOLVED by the Directors of the Redevelopment Agency of the City of Azusa
that:
Section 1. The Board of Directors hereby authorizes the Redevelopment Agency of the City of Azusa Merged
Redevelopment Project Area Capital Projects Fund to loan funds on a revolving basis to the 20% Set Aside Low -to -
Moderate Income Housing Fund for purposes of the 20% Set Aside Low -to -Moderate Income Housing Program.
Section 2. The Agency pledges to accept and administer any funds loaned pursuant to this request in accordance
with the provisions of Section 33334.2 and 33620, et. seq., of the Health and Safety Code.
Section 3. The Agency requests that authorization for repayment of the loan shall be evidenced by a Note (in the
form attached as Exhibit A) of the Agency containing the following terms, in addition to all usual and customary terns:
LOAN AMT, INTEREST RATE
Variable Rate
calculated monthly
at current LAIF
$1,000,000 earnings rate
TERM
I Year, with Roll
Over Option Not to
Exceed 5 Years
7 1 " 1 ' § U
Merged
Redevelopment
Project Area Capital
Projects Fund
PLEDGED
REVENUE
SOURCES
20% Set Aside Tax
Increment Funds,
Other Misc.
Low/Mod Funds
The loan listed herein is payable according to the terms of the Note. Payments will be made at least annually, on or before
June 30. The tern of the note shall be one (1) year, with a roll over option not to exceed a term of five (5) years. The roll
over option may be exercised at the discretion of the Redevelopment staff. Final payment is due by June 30, 2001, unless
extended by the Agency Board, and may be prepaid at any time without penalty. The Note is payable from accumulated
20% Set Aside tax increment funds in excess of those pledged for payment of Agency bonded indebtedness, and/or from
any other low -to -moderate income funds available from which such payment may legally be made.
Section 4. The Chairman of the Agency is hereby authorized and directed to execute, on behalf of the Agency,
the Note between the Merged Redevelopment Project Area Capital Projects Fund and the 20% Set Aside Low -to -Moderate
Income Housing Fund in accordance with the provisions of Section 3 hereof.
PASSED AND ADOPTED this 4th day of November , 1996.
:,hairman
HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the City
of Azusa at a regular meeting held on the4th day of November , 1996.
AYES: BOARD MEMBERS: Hardison, Madrid, Naranjo, Beebe, Alexander
NOES: BOARD MEMBERS: None
ABSTAIN: BOARD MEMBERS: None„
ABSENT: BOARD MEMBERS: None
Secretary
0 0
REVOLVING PROMISSORY NOTE
20% SET ASIDE LOW -TO -MODERATE INCOME HOUSING FUND
AZUSA, CALIFORNIA
JULY 1, 1996
For value received, the REDEVELOPMENT AGENCY OF THE CITY OF AZUSA 20% SET ASIDE LOW -TO -
MODERATE INCOME HOUSING FUND ("20% Set Aside Fund"), promises to pay the REDEVELOPMENT AGENCY
OF THE CITY OF AZUSA MERGED PROJECT CAPITAL PROJECT FUND ("Capital Project Fund"), on a revolving
basis, the sum of ONE MILLION DOLLARS ($1,000,000). Interest will be calculated at the end of each month on the
principal amount then outstanding. The interest rate utilized in the calculation will be based on that month's current State
of California Local Agency Investment Fund (LAIF) earnings rate, not to exceed 12% annually. Principal and interest
will be paid at least annually by June 30, as provided herein. The Note is payable from 20% Set -Aside tax increment
revenues in excess of those pledged for Agency bonded indebtedness and/or any other resources available to the 20% Set
Aside Fund and miscellaneous Low/Mod Fund from which such payment may legally be made. The term of the note shall
be one (1) year, with a roll over option not to exceed a term of five (5) years. The roll over option may be exercised at
the discretion of the Redevelopment staff. Final payment is due by June 30, 2001, unless extended by the Agency Board,
and may be prepaid at any time without penalty.
This note is issued in connection with the provision of funds to finance redevelopment activities of the 20% Set Aside
Fund. The 20% Set Aside Low -to -Moderate Income Housing Program provides for tax increment financing in accordance
with the provisions of the California Health and Safety Code. The 20% Set Aside Fund is authorized, with the consent
of the Board of Directors, to undertake certain actions which are necessary and incidental to carrying out the
Redevelopment Plan which has previously been adopted by the City of Azusa for purposes of the 20% Set Aside Low -to -
Moderate Income Housing Program. The Agency Board has authorized the loan for purposes of defraying expenses and
curing a deficit incurred in the carrying out of the 20% Set Aside Low -to -Moderate Income Housing Program. This note
is issued under the authority and pursuant to the Community Redevelopment Law, Sections 33334.2 and 33620 of the
Health and Safety Code of the State of California, as amended.
Each payment shall be credited first to interest due and the remainder to principal; and interest shall thereupon cease upon
the principal so credited. Any unpaid interest shall accrue and be added to the outstanding principal balance. Principal
and interest shall be payable in lawful money of the United States at AZUSA, CALIFORNIA. Demand, presentment for
payment, protest and notice of protest are hereby waived.
REDEVELOPMENT AGENCY OF THE
CITY OF AZUSA
By, J'" ' Lk
C airman
20% SET ASIDE FUND
11'.IWYR(I000RRPSRTAGENOAILOW LN WW