Salinas Municipal Code § 10-72 Definitions

This division of Chapter 10 may be cited as the city of Salinas Multifamily Rental Housing and Health Facilities Revenue Bond Law.

(Ord. No. 1883 (NCS), § 1.)

(a) The lack of sufficient multifamily rental housing opportunities, especially for low and moderate income persons and families, is a factor which contributes directly to urban blight, crime and the destabilization of the community at large. Therefore, it is essential to the well-being of the city that the city provide assistance to promote the development of multifamily rental housing in the city.

(b) The availability of the assistance authorized by this division will serve the legitimate public purposes and municipal affairs of the city, and the general plan of the city, by providing private enterprise with new methods of financing multifamily rental housing beneficial to the city and its residents and by ensuring that multifamily rental housing development within the city will reflect the community's needs and objectives.

(c) The development of affordable multifamily rental housing within the city will promote:

(1) The full and gainful employment of residents of the city;

(2) The provision of decent, safe and sanitary housing opportunities to residents of the city;

(3) The encouragement of new industrial, commercial and business facilities;

(4) The growth of the city's tax base through increased property values and consumer purchasing;

(5) The reduction of the need for and costs of welfare and other remedial programs;

(6) The reduction of urban ills such as crime attributable in part to inadequate housing facilities;

(7) The stability and diversification of the city's economy; and

(8) The enhancement of the general economic prosperity and the health, safety and welfare of the residents of the city.

(d) The utilization of local resources in stimulating the resurgence of private investment in housing within the city is of peculiar and unique concern to the city.

(e) The health and welfare of the citizens of the city and the surrounding area is a matter of vital concern to the city and the promotion and protection of such health and welfare is the responsibility of the city. It is a necessary and essential public purpose and municipal affair for the city to be authorized to provide financing to health institutions within the city that provide essential health care services to residents of the city. At present, there is a need for additional health facilities in and around the city to meet properly the demand for health care in the city. The financing authorized by this division will serve the legitimate public purpose of aiding health institutions in building an adequate number of facilities, in containing or lowering costs to the public and in providing better and more efficient service than would otherwise prevail. Unless the city intervenes to provide such financing, the costs of health care may increase at an ever-accelerating pace because such health institutions cannot obtain financing at reasonable rates from private sources.

(f) The city can promote the public interest pursuant hereto without adversely affecting areas outside the city and without conflicting with efforts by the state to solve similar problems of statewide concern. Encouraging development of multifamily rental housing and health institutions pursuant to this division (1) promotes the public health, safety and welfare, and will improve the social, moral, economic and physical condition of the community; and (2) constitutes a municipal affair of the city, a valid exercise of the police powers of the city, and a public purpose in which the city has a peculiar and unique interest.

(Ord. No. 1883 (NCS), § 1.)

Unless the context otherwise requires, as used in this division the terms defined in this section shall have the following meanings:

(a) "Bonds" means revenue bonds authorized by this division and includes bonds, refunding bonds, notes, bond anticipation notes, certificates, debentures and any and all other limited obligations or evidences of indebtedness issued or entered into by the city pursuant to this division which are payable as provided herein.

(b) "City" means the city of Salinas, a municipal corporation organized and existing under the constitution of the state and the charter of the city.

(c) "Costs," as applied to a project financed in whole or in part under the provisions of this division, means and includes any and all reasonable or necessary costs incurred by or on behalf of a participant to carry out all works and undertakings and to obtain all rights and powers necessary or incident to the acquisition, construction, installation, reconstruction, rehabilitation or improvement of a project. "Costs" also includes but is not limited to all costs of issuance of bonds for such purposes; the cost of studies, surveys, architectural and engineering services; funded interest on the bonds prior to, during and for a reasonable period following construction of a project; reserves for debt service and for repairs, replacements, additions and improvements to a project; and other working capital incident to the operation of a project. "Costs" also includes amounts paid or to be paid to a participant in reimbursement of amounts previously paid or incurred by such participant for any of the items described in this subsection.

(d) "Health facility" means any structure or building or portion thereof (and the land on which the same is located) whether or not within the city and suitable for use as a hospital, clinic, ambulatory care facility, nursing home, home for the aged or infirm, care and residential facilities for the aged or infirm or other health care or rehabilitation facility, whether such facilities provide inpatient care, outpatient care or both; laboratories; laundries; administration buildings; research facilities; maintenance, storage or utility facilities; auditoriums; dining halls; food services and preparation facilities; mental or physical health care facilities; dental care facilities; nursing schools; medical or dental teaching facilities; mental or physical health facilities related to any such structure or facility; and any equipment, furnishings and appurtenances necessary or useful in the operations of a health facility by a health institution and the acquisition, preparation and development of all real and personal property necessary or convenient as a site or sites for any such structure or facility.

(e) "Health institution" means any person, partnership, corporation, whether for profit or not, trust, association or institution, or any public hospital or institution, which provides or operates a health facility or health facilities.

(f) "Multifamily project" means any project for residential rental property of which, at all times during the qualified project period, fifteen percent or more, in the case of targeted area projects, or twenty percent or more, in the case of any other project, of the units are to be occupied by individuals of low or moderate income and which complies with all other applicable requirements, all as further specified and defined in Sections 103(b)(4)(A) and 103(b)(12) of the Internal Revenue Code of 1954, as amended, and any regulations adopted pursuant thereto.

(g) "Participant" means any person, partnership, corporation, whether for profit or not, trust, association, institution or health institution which, pursuant to the provisions of this division, undertakes the financing and constructing, reconstruction, improvements, furnishing, equipping, repair, rehabilitation or acquisition of a project or undertakes the refinancing of outstanding obligations as provided in and permitted by this division.

(h) "Project" means a multifamily project or a health facility.

(i) "Refinancing of outstanding obligations" means the use of the proceeds of bonds issued by the city under this division to pay or provide for the payment of (i) any indebtedness of a health institution or (ii) any indebtedness of any other participating institution if the use of bond proceeds for such purpose is approved by resolution of the city council.

(j) "Revenues" means the rents, fees, charges, interest, principal repayments, and other income received or to be received by the city from any source on account of a project, and such other legally available moneys as the city council, in its discretion, may designate as revenues.

(k) "Rules and regulations" means the rules and regulations which may be adopted by the city council pursuant to this division, as originally adopted or as amended or supplemented from time to time.

(l) "State" means the state of California.

(Ord. No. 1883 (NCS), § 1.)