Chapter 4.54 — AFFORDABLE HOUSING AND INFRASTRUCTURE BOND LAW

This chapter may be cited as the City of Oakland Affordable Housing and Infrastructure Bond Law.

(Ord. No. 13403, § 2, 11-29-2016)

The Council hereby finds and declares that it is necessary, essential, a public purpose and a municipal affair for the City to be authorized to issue bonds for the purpose of financing the cost of affordable housing projects and infrastructure projects.

(Ord. No. 13403, § 2, 11-29-2016)

Unless the context otherwise requires, the following definitions shall govern the construction of this Chapter. Certain definitions which govern the City's Affordable Housing Program are provided in Article IV herein.

"Affordable housing project" means any acquisition, rehabilitation, preservation, or new construction of real property, determined by the City to be in furtherance of affordable housing, including but not limited to the loan or grant of the proceeds of bonds to public or private entities or persons. Affordable housing projects shall be undertaken in accordance under the City's Affordable Housing Program as provided in Article IV herein.

"Bonds" means any general obligation bonds issued by the City pursuant to this Chapter. Bonds shall include the $600 million in general obligation bonds for infrastructure and affordable housing projects if approved by the voters at the November 8, 2016 election. Bonds shall include future issues of general obligation bonds for affordable housing projects and/or infrastructure projects that are identified by the City as issued pursuant to this Chapter, including but not limited to any refunding bonds.

"Chapter" means this Chapter 4.54 of the Oakland Municipal Code, as amended from time to time in accordance herewith.

"Charter" means the Charter of the City of Oakland, as amended from time to time.

"City" means the City of Oakland, California, a chartered city in the State existing under and exercising powers pursuant to the Charter and the Constitution of the State.

"Council" means the City Council of the City.

"Infrastructure Project" means any acquisition or improvement of real property, determined by the City to be in furtherance of a public purpose.

"Issuing instrument" means the bond ordinance of the Council adopted pursuant to this Chapter and any resolution, fiscal agent agreement, indenture, trust agreement or other written instrument pursuant to which the City issues bonds.

"State" means the State of California.

(Ord. No. 13403, § 2, 11-29-2016)

The City is authorized and empowered:

A.

To issue bonds for the purpose of financing the cost of affordable housing projects and infrastructure projects and for the purpose of refunding bonds.

B.

To establish the terms and conditions for the financings undertaken pursuant to this Chapter.

C.

To employ or contract for such legal, consultant, underwriting, economic feasibility, or other services, as may be necessary in the judgment of the Council for the issuance and sale of bonds.

D.

To establish a Public Oversight Committee to assure fair and equitable distribution of bond funds, comprised of nine members appointed by the Mayor and subject to confirmation by the City Council. Each Councilmember may recommend one Committee member to the Mayor for appointment.

E.

To broadly advertise the availability of the bond programs.

F.

To report semi-annually to the City Council on expenditures and programs related to the bonds.

G.

In addition to all other powers specifically granted in this Chapter, to do all things necessary or convenient to carry out the purposes of this Chapter.

(Ord. No. 13403, § 2, 11-29-2016)

The City may issue bonds pursuant to an ordinance of the Council for the purpose of financing the cost of affordable housing projects and infrastructure projects as authorized by this Chapter. Every issue of bonds

shall have such terms as described in the issuing instrument.

(Ord. No. 13403, § 2, 11-29-2016)

A.

The proceedings of the City authorizing the issuance of the bonds may provide all of the following for the bonds:

The form of the bonds, which may be issued as serial bonds or term bonds or any combination thereof.

The date or dates to be borne by the bonds.

The time or times of maturity of the bonds.

The interest, which may be taxable or tax-exempt, fixed or variable and which may be paid on a current interest or capital appreciation basis, to be borne by the bonds.

The time or times that the bonds shall be payable.

The denominations, form, and the registration privileges of the bonds.

The manner of execution of the bonds.

The place or places the bonds are payable.

The terms of redemption of the bonds.

Any other terms and conditions deemed necessary by the City.

B.

The bonds may be sold at either a public or private sale and at a price at, above or below the par value thereof.

(Ord. No. 13403, § 2, 11-29-2016)

The proceeds of the bonds shall be applied to the cost of affordable housing projects or infrastructure projects, including all costs of issuing the bonds and the costs of any insurance or other credit enhancement authorized by section 4.54.080.

The City may apply bond proceeds designated for affordable housing projects directly to acquire, rehabilitate, preserve or construct affordable housing and/or indirectly as loans, grants, or other disbursements to qualified individuals, business entities, corporations, partnerships, associations, and government agencies for such affordable housing projects. Proceeds of the bonds may be used to pay or reimburse the City for the costs of City staff when they are performing work on or necessary and incidental to the bond projects; but, as to the affordable housing bond funds, no more than five percent of bond proceeds may be spent on City staff costs.

(Ord. No. 13403, § 2, 11-29-2016)

The City may obtain insurance or other credit enhancement of the bonds and may enter into any credit, reimbursement agreement or other agreement with any person or entity. The agreement shall contain the terms of the credit, reimbursement, interest rate, security, and any other terms the City deems necessary or appropriate.

(Ord. No. 13403, § 2, 11-29-2016)

In connection with, or incidental to, the issuance or carrying of the bonds, the City may enter into investment agreements, forward purchase agreements and other investments relating to the investment of amounts held pursuant to an issuing instrument. These agreements and investments shall be entered into with the parties, selected by the means, and contain the payment, security, default, remedy, and other terms and conditions, determined by the City, after giving due consideration for the creditworthiness of the counter parties, where applicable, including any rating by a nationally recognized rating agency or any other criteria as may be appropriate.

(Ord. No. 13403, § 2, 11-29-2016)

Neither the members of the Council, officers, employees or agents of the City, nor any person executing the bonds shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.

(Ord. No. 13403, § 2, 11-29-2016)

The Council may provide for the issuance of bonds any portion of which is to be used for the purpose of refunding outstanding bonds, including the payment of the principal thereof and interest and redemption premiums, if any, thereon. The proceeds of bonds issued to refund any outstanding bonds may, in the discretion of the Council, be applied to the retirement of such outstanding bonds at maturity, or the redemption (on any redemption date) or purchase of such outstanding bonds prior to maturity, upon such terms and subject to such conditions as the Council shall deem advisable.

Bonds may be defeased by depositing cash and/or treasury securities in an escrow fund in an amount necessary to pay such bonds on and prior to redemption or maturity.

(Ord. No. 13403, § 2, 11-29-2016)

The principal and any premium of, and interest on, the bonds shall be payable from ad valorem taxes levied to pay such bonds. For the purposes of paying the principal and interest on the bonds, the City shall, annually levy and collect a tax sufficient to pay the annual interest on such bonds as it becomes due and such part of the principal that will become due before the proceeds of the next general tax levy is available for the payment of such principal. The City shall establish and separately maintain such collected tax revenues in a separate fund until the bonds and the interest thereon are fully paid, or until a sum is set apart to pay all amounts that will be due to cover the principal and interest on the bonds in the Treasury of the City of Oakland or held on behalf of the City.

(Ord. No. 13403, § 2, 11-29-2016)