HomeMy WebLinkAboutAgenda - 08-19-2008- 4nnORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: August 19, 2008
Action Agenda
Item No. ~~
SUBJECT: Reimbursement Resolution for Affordable Housing Bonds
DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
Resolution
INFORMATION CONTACT:
Gary Humphreys, 245-2453
Robert Jessup, 919-755-1800
PURPOSE: To approve a resolution providing for reimbursement of capital expenses for
Affordable Housing from the proceeds of a future financing.
BACKGROUND: In 2001, the voters approved the issuance of $4 million of Affordable Housing
Debt to be used for capital costs of providing housing for the benefit of persons of low and
moderate income. The County has issued $2.6 million of this debt. The County staff is planning
to ask the Board to authorize moving forward with the issuance of $1.4 million of Affordable
Housing debt to occur early in calendar year 2009. The use of previously issued debt proceeds
for various Affordable Housing projects are such that the Affordable Housing programs may
need to provide funds for approved projects before the issuance of the additional $1.4 million in
debt. In order to allow the County to reimburse itself from the proceeds of this future issuance, it
is necessary to adopt the attached resolution prepared by the County's bond counsel.
FINANCIAL IMPACT: There is no fiscal impact associated with approval of this reimbursement
resolution.
RECOMMENDATION(S): The Manager recommends that the Board approve the
reimbursement resolution.
2
REIMBURSEMENT RESOLUTION -
AFFORDABLE HOUSING PROJECTS
WHEREAS, the Manager has described to the Board the desirability of
adopting a resolution, as provided under federal tax law, to facilitate the County's
using proceeds of tax-exempt financing to restore the County's funds when the
County makes capital expenditures prior to closing on the financing.
BE IT RESOLVED by the Board of Commissioners of Orange
County, North Carolina, as follows:
Section 1. The project is the payment of capital costs of providing
housing for the benefit of persons of low and moderate income.
Section 2. The County intends to finance the project. The
expected type of financing (which is subject to change) is the general obligation
bonds approved at the County's 2001 bond referendum, or in the alternative
installment financing pursuant to 160A-20 of the General Statutes. The expected
maximum amount of bonds or other obligations to be issued or contracted for the
project is $1,400,000.
Section 3. The County intends that funds that have been
advanced, or may be advanced, from the County's general fund for project costs
will be reimbursed from the financing proceeds.
Section 4. The County intends that the adoption of this resolution
will be a declaration of this County's official intent to reimburse project
expenditures from financing proceeds.
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I certify that the foregoing resolution was duly adopted at a meeting of
the Board of Commissioners of Orange County, North Carolina, duly called and
held on 2008, and that a quorum was present and acting
throughout such meeting. Such resolution remains in full effect as of today.
Dated this day of , 2008.
[SEAL]
Donna Baker
Clerk, Board of Commissioners
Orange County, North Carolina