HomeMy WebLinkAboutReso 2022-085 - Accepting A Section 108 Guaranteed Loan Under Section 108 Of The Housing And Community Development Act Of 1974 RESOLUTION NO.2022-085
A RESOLUTION ACCEPTING A SECTION 108 GUARANTEED LOAN
UNDER SECTION 108 OF THE HOUSING AND COMMUNITY
DEVELOPMENT ACT OF 1974, AS AMENDED, PLEDGING THE CITY
OF REDDING'S GENERAL FUND AS SECURITY, AND AUTHORIZING
BARRY TIPPIN, CITY MANAGER, TO EXECUTE A HUD SECTION 108
LOAN GUARANTEE CONTRACT, NOTE, AND RELATED
DOCUMENTS CONTAINING THAT PLEDGE
WHEREAS, The City of Redding City Council, by resolution numbered 2022-085
authorized the City Manager to execute all necessary documents or contracts as might be
required by HUD as support of a loan in the amount of an application for a $3,737,00� Section
108 Loan Guarantee for Block 7 Infrastructure Project and Downtown Fa�ade Improvement
Program; and
WHEREAS, said resolution is hereby incorporated by reference; and
WHEREAS, California Government Code sections 37103 and 53060 authorize cities to
enter into agreements, including loan agreements, with the United States or any agency or
department thereof for any lawful public purpose; and
WHEREAS, City of Redding has successfully obtained a commitment in the amount of
$3,737,000 from the U.S. Department of Housing and Urban Development ("HUD") for the
Loan Guarantee; and
WHEREAS, HUD's guarantee of the Note will be governed by a Contract for Loan
Guarantee Assistance under Section 108 between the City and HUD (the "Contract"), in which
this Resolution is incorporated by reference, and in which the City pledges Community
Development Block Grants pursuant to 24 CFR 570.705(b)(2) and City of Redding' General
Fund for the repayment thereof;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redding
as follows:
Section 1. The City Council hereby authorizes and directs the City Manager to execute
any and all documents necessary to accept the loan guarantee referenced above and any
subsequent notes.
Section 2. The Note constitutes a general indebtedness of the City and is payable from
any money as is lawfully available and authorized or pledged by the City for the payment of
principal of and interest on the Note, including but not limited to CDBG block grant funds
pledged by the Borrower pursuant to 24 CFR 570.705(b)(2). For as long as the Note is
outstanding, the City irrevocably pledges that it shall, in the manner provided by law within the
canstitutional and statutory limitations provided by law withQut the assent af the voters, malce
the prompt payment of principal and interest on the Note as �he same sha11 become due. The
obligation af the City as Borrower to make payments under the Contract sha11 be payable first
from CDBG black grant funds pledged by the Barrower pursuant ta 24 CFR 5�0.705{b}(2}.
Section 3. The City Council hereby irrevocably pledges CDBG black grant funds
pledged by the Borrower pursuant to 24 CFR 570.705{b)(2) and the General Fund in support of
all obligations of the City as Borrower under any notes executed by the City, up to the amount of
HUD's commitment for Section 10& Loan Guarantee Assistance, evidencing the Section 108
guaranteed laan for the City's Block 7 Infrastructure and Downtawn Farade Improvement
Program pursuant to paragraph 15 of the related Contract fc�r Section 108 Loan Guarantee
Assistance between the City and HUD. This pledge shall be enforceable in mandamus against
the City.
Section 4. The provisions af this resalution are declared ta be separate and severable. If
a court of competent jurisdiction, a11 appeals having been exhausted or all appeal periods having
run, finds any provisian af this resfllution to be invalid or unenforceable as to any person or
circumstance, such affending pravisian sha11, if feasible, be deemed to be modified ta be within
the limits of enfc�rceability or validity. However, if the offending provision cannot be so
modified, it shall be nuil and void with respect to the particular person ar circumstance, and ail
other pravisions of this resolution in a11 other respects, and the offending provisian with respect
ta all other persons and aIl other circumstances, shall remain valid and enforceable.
I HER�BY CERTIFY that the foregoing resolution was intrc�duced at a regular meeting
of the City Cauncil of the City af Redding c�n the 2nd day of August, 2022, and was duly
adapted at said meeting by the follawing vote:
AYES: Council Members: Dacquisto,Mezzano,Resner, Winter,and Schreder
NOES: Council Members: Nane
ABSTAIN. Council Members: Nane
ABSENT: Council Members: None
�� �`� �,��,,�`` ��
I�RISTEN SCHREDER,Mayor
ATTEST: FORM APPROVED:
k ��� � g°
� j`rf � � .:� �x .r; �� +°s��
43� �,�'�.�j 4 p � �,��� �' � � �",
�
PAMELA MIZE, City BARRY E. DeWALT, City Attorney