HomeMy WebLinkAbout2002-53 - Section 108 Loan Guarantee DocumentsRESOLUTION NO. 2002- 53
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
AUTHORIZING THE CITY MANAGER TO SUBMIT THE FINAL SECTION 108 LOAN
GUARANTEE DOCUMENTS TO THE UNITED STATES DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT AND TO USE ITS ANNUAL CDBG ALLOCATION AS THE CITY'S
PRIMARY SOURCE OF COLLATERAL FOR THE REPAYMENT OF THE SECTION 108
FUNDS AND USE THE CITY'S UNRESERVED GENERAL FUND RESERVES AS
SECONDARY SOURCE OF COLLATERAL.
WHEREAS, the City of Newport Beach has determined that a high priority exists for public
facility improvements on a portion of the Balboa Peninsula in order to stimulate economic revitalization
and residential neighborhood improvements and that the implementation of the Balboa Village Pedestrian
and Streetscape Improvement Plan is an activity that meets these priorities; and
WHEREAS, the proposed project is included in the City's adopted One Year Action Plan of the
Consolidated Plan; and
WHEREAS, the Section 108 Loan Guarantee program, implemented by the United States
Department of Housing and Urban Development (HUD), is designed to provide funds to assist with these
types of projects; and
WHEREAS, the City is requesting a total of $2.4 million in Section 108 Loan Guarantee funds to
assist with the implementation of the Balboa Village Pedestrian and Streetscape Improvement Project;
and
WHEREAS, the City Manager was authorized under Resolution No. 2001 -75 to submit the initial
Section 108 Loan Guarantee application and amendments thereto and all understandings and assurances
contained therein, and to act in connection with the application to provide such additional information as
may be required; and
WHEREAS, HUD requires City Council approval of security agreement; and
WHEREAS, the City's primary source of collateral for the repayment of the Section 108 funds
will be the City's annual CDBG allocation. The secondary source of collateral for the repayment of the
Section 108 funds will be the City's unreserved general fund reserves.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach as
follows:
SECTION 1. The City hereby certifies and assures with respect to its application for a loan
guarantee pursuant to Section 108 of the Housing and Community Development Act of 1974, as
amended, that it possesses the legal authority to make the pledge of grants required under 24 CFR
570.705 (b) (2).
SECTION 2. As a prerequisite for submission of the application to HUD, the City certified that
it has:
(a) Furnished citizens with information required by Section 570.704 (a)(2)(i) of Title 1 of the
Housing and Community Development Act of 1974, as amended;
(b) Held at least one public hearing, on August 14, 2001, to obtain the views of citizens on
community development and housing needs; and
(c) Prepared an application in accordance with Section 570.704(a)(1)(iv) of Title 1 of the
Housing and Community Development Act of 1974, as amended, and made the application available to
the public.
SECTION 3. The City has and will continue to follow a detailed citizen participation plan that
meets the requirements described in Section 570.704(a)(2) of Title 1 of the Housing and Community
Development Act of 1974, as amended.
SECTION 4. The City has and will continue to affirmatively further fair housing, and the
guaranteed loan funds will be administered in compliance with:
(a) Title VI of the Civil Rights Act of 1964 (Public Law 88 -352, 42 U.S.C. 2000d et
seq.); and
(b) The Fair Housing Act (42 U.S.C. 3601 -20).
SECTION 5. The City will expend in the aggregate, at least 70 percent of all CDBG funds, as
defined in Section 570.303 (e) of Title 1 of The Housing and Community Development Act of 1974, as
amended, during the one, two, or three consecutive years specified by the City for its CDBG program on
activities which benefit low /moderate income persons, as described in criteria in Section 570.208 (a) of
the Act.
SECTION 6. The City hereby assures and certifies with respect to its application for a loan
guarantee pursuant to Section 108 of the Housing and Community Development Act 1974, as amended
that it has made efforts to obtain financing for the activities described herein without the use of such
guarantee, that it will maintain documentation of such efforts for the term of the loan guarantee, and that
it cannot complete such financing consistent with the timely execution of the program plans without such
guarantee.
SECTION 7. The City hereby assures and certifies that it will use its annual CDBG allocation
as the primary source of collateral for the repayment of the Section Loan 108 funds. The secondary
source of collateral for the repayment of the Section 108 funds will be the City's unreserved general fund
reserves.
This Resolution shall be effective immediately upon its adoption.
Adopted this 23M day of July 2002
ATTEST:
t
Mayor
Ne
L/J
NiA
STATE OF CALIFORNIA }
COUNTY OF ORANGE } as.
CITY OF NEWPORT BEACH }
I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven; that the foregoing
resolution, being Resolution No. 2002 -53 was duly and regularly introduced before and adopted by
the City Council of said City at a regular meeting of said Council, duly and regularly held on the
23rd day of July, 2002, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Heffernan, Bromberg, Adams, Proctor, Mayor Ridgeway
Noes: None
Absent: O'Neil, Glover
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 24th day of July, 2002.
(Seal)
�
.g2
City Clerk
Newport Beach, California