/2 ~()111-S! MOTION HOUSING, COMM & ECON. DEVELOP.

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1 /2 ~()111-S! MOTION HOUSING, COMM & ECON. DEVELOP.,JIJN OJ 1 Intercontinental Affordable Housing, Inca California non-profit corporation, has request~d that the California Statewide Conununities Development Authority ("CSCDA") issue one or more series of revenue bonds in an aggregate principal amount not to exceed $20,000,000 for the purpose of financing the acquisition and rehabilitation of the Columbia Apartments, comprised of 127 units at scattered sites located at 415 E. Adams Blvd., Los Angeles, CA 90011, 1034 S. Catalina St., Los Angeles CA 90006, 1043 S. Kingsley Dr., Los Angeles, CA 90006, 1137 S. Bronson Ave., Los Angeles, CA 90019, 1147 S. Bronson Ave., Los Angeles, CA and 1522 W. 11th Pl., Los Angeles, CA In order to ensure the units remain affordable, it is necessary for the City Council to conduct a public hearing in accordance with the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). Following the TEFRA public hearing, the Council should adopt the attached Resolution approving the issuance of the bonds by CSCDA. I THEREFORE MOVE that the Council: 1. Waive the Council approved LAHD Multifamily Bond Policy relative to the issuance of taxexempt bonds by CSCDA, a statewide issuer relative to the Columbia Apartments ("Project") 415 E. Adams Blvd., Los Angeles, CA 90011, 1034 S. Catalina St., Los Angeles CA 90006, 1043 S. Kingsley Dr., Los Angeles, CA 90006, 1137 S. Bronson Ave., Los Angeles, CA 90019, 1147 S. Bronson Ave., Los Angeles, CA and 1522 W. 11th Pl., Los Angeles, CA 90015) based on!)los Angeles City subsidies will not be used or directed to the.project; 2) Preservation of at-risk units and 3) Financial feasibility could not be achieved without the bond requirements. 2. Instruct the City Clerk to schedule a TEFRA Hearing on the agenda for the City Council Meeting to be held on Friday, June 15, 2012 located at 200 N. Spring Street, Room 300, Los Angeles, CA Instruct the City Clerk to place on the Agenda for the City Council Meeting to be held on Friday, June 15,2012 consideration of the TEFRA hearing results and adoption of the TEFRA hearing Resolution to follow the conduct of the public hearing. 4. Require the developer, Intercontinental Affordable Housing, Inc. ("IAHI''), as General Partner of Columbia One, LP, to comply with payment of prevailing wages for the project labor, occupancy compliance requirements to be monitored by the Los Angeles Housing Department with monitoring costs to be reimbursed by IAHI, and payment of a minimum of $3,000 for TEFRA notice publication and hearing fee, or an amount as appropriate. 5. Authorize Kutak Rock,the developer's bond counsel, to publish the required public hearing notice in a CD LAC approved local newspaper or periodical, on behalf of the City Council, with publication cost to be reimbursed by Intercontinental Affordable Housing, Inc. PRESENTED BY: / \ SECONDED BY:

2 MOTION I HEREBY MOVE that Council ADOPT the following recommendations relative to the issuance of revenue bonds pursuant to the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) for the acquisition and rehabilitation of the Columbia Apartments located at 415 E. Adams Blvd., Los Angeles, CA 90011, 1034 S. Catalina St., Los Angeles, CA 90006, 1043 S. Kingsley Dr., Los Angeles, CA 90006, 1137 S. Bronson Ave., Los Angeles, CA 90019, 1147 S. Bronson Ave., Los Angeles, CA and 1522 W. llth Pl., Los Angeles, CA (Item No. [ ] Council file No. ), SUBJECT TO THEAPPROV AL OF THE MAYOR: 1. HOLD a public hearing as required by Section 147(f) of the Internal Revenue Code ofl986 regarding the proposed issuance by the California Statewide Communities Development Authority of its revenue bonds in one or more series in an amount of approximately $20,000,000 to be used to finance the acquisition and rehabilitation of a 127 unit scattered site multifamily housing rental facility located at 415 E. Adams Blvd., Los Angeles, CA 90011, 1034 S. Catalina St., Los Angeles, CA 90006, 1043 S. Kingsley Dr., Los Angeles, CA 90006, 1137 S. Bronson Ave., Los Angeles, CA 90019, ll47 S. Bronson Ave., Los Angeles, CA and 1522 W. 11th Pl., Los Angeles, CA 90015, known as the Columbia Apartments and pay certain expenses incurred in connection with the issuance of the bonds. 2. ADOPT the accompanying RESOLUTION approving the issuance of Multifamily Housing Revenue Bonds by the California Statewide Communities Development Authority for the purpose of financing the acquisition and rehabilitation of Columbia Apartments

3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS ANGELES APPROVING FOR PURPOSES OF SECTION 147(f) OF THE INTERNAL REVENUE CODE OF 1986 THE ISSUANCE OF MULTIFAMILY BONDS BY CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO FINANCE OR REFINANCE THE ACQUISITION, REHABILITATION AND EQUIPPING OF A SCATTERED-SITE MULTIFAMILY RESIDENTIAL RENTAL PROJECT LOCATED WITHIN THE CITY OF LOS ANGELES. WHEREAS, the City of Los Angeles (the "City") is a member of the California Statewide Communities Development Authority, a joint powers authority organized and existing under the laws of the State of California (the "Authority"); and WHEREAS, the Authority is authorized, pursuant to the prov1s10ns of California Government Code Section 6500 et seq and the terms of the Amended and Restated Joint Exercise Powers Agreement, dated as of June 1, 1988 among certain local agencies throughout the State of California (the "Agreement"), including the City of Los Angeles, to issue its revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of California Health and Safety Code for the purpose of providing financing for the acquisition, rehabilitation and equipping of scattered-site multifamily rental housing for persons and families of low or moderate income; and WHEREAS, Intercontinental Affordable Housing, Inc. ("Intercontinental") has requested that the Authority issue one or more series of revenue bonds in an aggregate principal amount not to exceed $20,000,000 (the "Bonds") and lend the proceeds of the Bonds to Columbia, LP for the purpose of financing the costs of acquisition, rehabilitation and equipping of the multifamily rental housing project described in paragraph 7 hereof (the "Project"); and WHEREAS, the Project (and each site comprising the Project) is located wholly within the City; and WHEREAS, the interest on the Bonds may qualify for a federal tax exemption under Section 142(a)(7) of the Internal Revenue Code of 1986(the "Code"), only if the Bonds are approved in accordance with Section 147(f) of the Code; and WHEREAS, pursuant to Section 9 of the Agreement, the issuance of the Bonds by the Authority must be approved by the City because the Project is located within the territorial limits of the City; and WHEREAS, Intercontinental will comply with the City's prevailing wages requirements for the Project labor, reimburse the Los Angeles Housing Department for any occupancy compliance requirements as appropriate; and WHEREAS, the City Council of the City (the "City Council")is the elected legislative body of the City and is an "applicable elected representative" with respect to the approval of the issuance of the Bonds under section 147(f) of the Code; and !3.!

4 WHEREAS, the Authority has requested that the City Council approve the issuance of Bonds by the Authority in order to satisfy the public approval requirement of section 147(f) of the Code; and WHEREAS, pursuant to Section 147(f) of the Code, the City caused a notice to appear in the [NEWSPAPER OF GENERAL CIRCULATION], which is a newspaper of general circulation in the City, on, 2012to the effect that a public hearing would be held with respect to the Project on, 2012regarding the issuance of the Bonds; and WHEREAS, the City Council held said public hearing on such date, at which time an opportunity was provided to present arguments both for and against the issuance of the Bonds; and WHEREAS, the minutes of said hearing have been presented to this City Council; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Los Angeles, as follows: 1. The recitals hereinabove set forth are true and correct, and this City Council so finds. 2. Pursuant to and solely for purposes of Section 147(f) of the Code, the City Council hereby approves the issuance of the Bonds by the Authority in one or more series to finance the Project. It is intended that this Resolution constitute approval of the Bonds by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located in accordance with: (i) said Section 147(f) of the Code; and (ii) Section 9 of the Agreement. 3. The payment of the principal, prepayment premium, if any, and purchase price of and interest on the Bonds shall be solely the responsibility of the Project owner. The Bonds shall not constitute a debt or obligation of the City. 4. The adoption of this Resolution shall not obligate the City or any depa1iment thereof to (i) provide any financing to acquire or rehabilitate the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the rehabilitation or operating of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. 5. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this Resolution and the financing transaction approved hereby. 6. The City Clerk is hereby directed to forward a certified copy of this Resolution to the Bond Counsel for the Bonds, addressed as follows: !3.I 2

5 Toger Swanson, Esq. Kutak Rock LLP 1650 Farnam Street Omaha, NE The "Project" referred to hereof is as follows: Name: Columbia Apartments #Units: Sponsor/Developer: 127 Columbia, LP and (scattered site) Intercontinental Affordable Housing, Inc. Est: Project Addresses: $20,000, E. Adams Blvd., Los Angeles, CA 900 II, I 034 S. Catalina St., Los Angeles, CA 90006, I 043 S. Kingsley Dr., Los Angeles, CA 90006, 1137 S. Bronson Ave., Los Angeles, CA 90019, 1147 S. Bronson Ave., Los Angeles, CA 90019and 1522W.Jl"'PI.,Los Angeles, CA This Resolution shall take effect immediately upon its passage and adoption. [Remainder of page intentionally left blank]