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
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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