7.64.030 Permissible uses of bond proceeds.
A. The City may incur indebtedness pursuant to this chapter for any municipal improvement.
B. The City Council may submit a single bond proposition covering a group of municipal improvements if they are related to each other.
C. The City may also incur indebtedness pursuant to this chapter for seismic strengthening of unreinforced buildings and other buildings. Proceeds of bonds authorized pursuant to this section may be used to make loans to public entities or owners of private buildings. Loans shall satisfy all of the following requirements:
1. Any loan used to finance seismic strengthening of a residential structure containing units rented by households specified in Section 50079.5 of the Health and Safety Code before strengthening shall be subject to a regulatory agreement which will ensure that the number of those units in the structure will not be reduced and will remain available at affordable rents pursuant to Section 50053 of the Health and Safety Code as long as any portion of the loan is unpaid.
2. All seismic strengthening financed with any loan funded pursuant to this section shall be in accordance with a plan developed for the structure by a registered civil engineer or a licensed architect, or approved by a City or City and county building official, one of whom shall certify that the work funded is necessary for seismic safety reasons, or is otherwise legally required for completion of the work or occupancy of the building. In no event shall any loan funded pursuant to this section finance the destruction of any existing building or the construction of any new building.
3. Any amount received in payment of interest on or to repay principal on any loan made pursuant to this section shall be used to pay debt service on bonds authorized pursuant to this section, or shall be used to fund additional loans for seismic strengthening, except that the provisions of this paragraph shall not apply after the bonds, including any bonds issued to refund the bonds, are fully repaid.
4. Loans made pursuant to this section shall constitute liens in favor of the City or City and county when recorded by the county recorder of the county in which the real property is located. The lien shall contain the legal description of the real property, the assessor’s parcel number, and the name of the owner of record as shown on the latest equalized assessment roll.
5. The City Council may specify the interest rate, term, and other provisions of any loan made pursuant to this section.
6. The City Council shall establish criteria, terms, and conditions to identify eligible buildings.
7. The City Council may authorize the expenditure of the proceeds of bonds authorized by this section to make loans pursuant to this section if it declares in the bond proposition that loans made from bond proceeds pursuant to this section to owners of private buildings for seismic strengthening of unreinforced buildings or other buildings constitute a public purpose resulting in a public benefit. Loans made pursuant to this section shall not be construed to be gifts of public funds in violation of Section 6 of Article XVI of the California Constitution.
8. Work on qualified historical buildings or structures shall be done in accordance with the State Historical Building Code (Part 2.7 (commencing with Section 18950) of Division 13 of the Health and Safety Code).
D. The City may also incur indebtedness pursuant to this chapter for the purpose of funding affordable local housing. 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 the acquisition, rehabilitation, preservation or construction of 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.
Grants or loans made pursuant to this section shall not be construed to be gifts of public funds in violation of Section 6 of Article XVI of the California Constitution and shall satisfy all of the following requirements:
1. Any amount received in payment of interest on or to repay principal on any loan made pursuant to this section shall be used to pay debt service on bonds authorized pursuant to this section, or shall be used to fund additional loans for affordable housing, except that the provisions of this paragraph shall not apply after the bonds authorized under this chapter, including any bonds issued to refund the bonds, are fully repaid.
2. Loans made pursuant to this section may constitute liens in favor of the City. The lien shall contain the legal description of the real property, the assessor’s parcel number, and the name of the owner of record as shown on the latest equalized assessment roll.
3. The City Council may specify the interest rate, term, and other provisions of any loan made pursuant to this section.
4. The City Council shall establish criteria, terms, and conditions to identify eligible buildings.
5. Any loan used to finance affordable housing projects pursuant to this chapter shall be subject to a regulatory agreement which will govern the operation of such project as long as any portion of the loan is unpaid. (Ord. 7616-NS § 2, 2018; Ord. 7115-NS § 1 (part), 2009)