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HomeMy Public PortalAbout2005.002 LRARESOLUTION NO. 2005.002 A RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AUTHORIZING THE EXECUTIVE DIRECTOR, ON DEHALF OF THE AGENCY, TO ENTER INTO AN AGREEMENT WITH THE FANNIE MAE COMMUNITY EXPRESS FINANCING PROGRAM FOR $10,000,000.00 WHEREAS, The Lynwood Redevelopment Agency (hereinafter referred to as "LRA") is authorized by law to assist in the acquisition, development and creation of low and moderate income housing for the City of Lynwood; WHEREAS, one of the major impediments to the development and creation of additional low and moderate income housing in the City of Lynwood is the high cost of land acquisition. including, but not limited to the associated relocation costs for some projects, and the cost of construction; and WHEREAS, LRA does not have sufficient financial resources to fulfill all of the needs of the City of Lynwood for the acquisition, development and creation low and moderate income housing including the future needs for such housing and to replace necessary housing lost by, among other things, new school construction and new and expanded commercial development within the City of Lynwood; and WHEREAS, LRA is desirous of seeking and obtaining additional financial resources to help with, assist and facilitate the acquisition, development and creation of low and moderate income housing for the City of Lynwood; and WHEREAS, LRA and its staff have received information from and have been informed that Fannie Mae operates a program that provides low interest funding to assist Redevelopment Agencies in the form of loans for the acquisition, development, construction and creation of low and moderate income housing; and WHEREAS, LRA and its staff have been informed that representatives from Fannie Mae have made a preliminary determination that LRA may qualify for as much as ten million dollars ($10,000,000.00) in low interest loans from Fannie Mae's American Community Express Financing Program which can be used for, among other things, the acquisition, development, construction and creation of low and moderate income housing; WHEREAS, LRA and its staff believe that it is in the best interests of the citizens of the City of Lynwood and in furtherance of the goals and purposes of LRA to obtain as much as ten million dollars ($10,000,000.00) in low interest loans from Fannie Mae's American Community Express Financing Program which can be used for, among other things, the acquisition, development, construction and creation of low and moderate income housing; and WHEREAS, LRA and its staff, after a review and analysis LRA's financial condition and resources and after consultation with financial experts who are familiar with LRA's financial condition and resources, have determined that LRA has the ability to repay the ten million dollar ($10,000,000.00) low interest loan from Fannie Mae's American Community Express Financing Program in accordance with the proposed term sheet. NOW, THEREFORE, BE IT RESOLVED by the Lynwood Redevelopment Agency as follows: Section 1. The Lynwood Redevelopment Agency does hereby approve, direct and authorize the Executive Director and/or his designee, on behalf of the Agency to enter into an Agreement for low interest loans from Fannie Mae's American Community Express Financing Program which can be used for assistance with the acquisition, development, construction and creation of low and moderate income housing for the City of Lynwood; Section 2. The Executive Director of the Agency is hereby authorized to take all necessary steps and execute all necessary documents including, but not limited to, loan and security agreements, promissory notes, general certificates of borrower, required consents, the PAGE 1 OF 3 account control agreement, collateral documentation and requests for the advances to implement the purposes of this resolution and to consummate the application and approval process as reasonably required by Fannie Mae; Section 3. The Executive Director of the Agency, or her authorized designee, be and hereby are directed and authorized to execute such documents to acquire Fannie Mae low interest loans in an amount not to exceed ten million dollars ($10,000,000.00); Section 4. Agency Counsel shall review and approve as to form and content all necessary documents including, but not limited to, loan and security agreements, promissory notes, general certificates of borrower, required consents, the account control agreement, collateral documentation and requests for the advances used to implement the purposes of this resolution for said Fannie Mae indebtedness before signing and/or execution by the Executive Director; Section 5. The Executive Director and/or his designee shall prepare and submit to the Agency for approval a written document that specifically designates and identifies the source or sources for the repayment or retirement of any such Fannie Mae low interest loan indebtedness authorized by this resolution prior to making a legally binding commitment for the expenditure of any such Fannie Mae funds received as authorized hereby; Section 6. The Executive Director shall exercise his discretion and such reasonable diligence as is necessary to ensure that the indebtedness authorized by this resolution does not conflict with nor create a default or other contractual violation with respect to any of LRA's or the City of Lynwood's other financing obligations including, but not limited to, any bonded indebtedness, loans, security agreements or other similar financing instruments. Section 7. The City Treasurer working with the Executive Director and/or his designee are hereby authorized to open a Trust Account upon such terms and conditions as they deem to be in the best interests of the Agency at a financial institution selected by them for the purpose of providing collateral in compliance with the Agency's Loan and Security Agreement with Fannie Mae. The Executive Director and Treasurer are. further hereby authorized to transfer a sum equal to 25% of the borrowed funds up to $2.5 million dollars from the proceeds received by the Agency from the Fannie Mae Community Express Financing Program into said Trust Account. The Lynwood Redevelopment Agency, based on the foregoing findings and determinations, hereby adopts this resolution. PASSED, APPROVED, and ADOPTED this 4th day of January, 2005 ATTEST: ~' Andrea L. Hooper, Secretary APPROVED A Ronald N. Wilson, Agency STATE OF CALIFORNIA ~MON RODRIQUEZ, CHAI N J eph Wang, I t xecutive ' ector AS TO CONTEN .~ Morales,~Deputy Executive Director PAGE20F3 STATE OF CALIFORNIA ) SS. COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing Resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the 4th day of January 2005 and passed by the following vote: AYES: COUNCILMEN BYRD, PEDROZA, SANTILLAN, VASQUEZ AND RODRIGUEZ NOES: NONE ABSTAIN: NONE ABSENT: NONE o< < Andrea L. Hooper, City Cierk STATE OF CALIFORNIA ) SS. COUNTY OF LOS ANGELES ) I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. 2005.002 in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 4th day of January 2005. ~~ Andrea L. Hooper, City Clerk