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RESOLUTION AUTHORIZING THE DISTRIBUTION OF GRANT FUNDS BY THE COUNTY OF PASSAIC FOR THE 519 SENIOR AND VETERANS HOUSING PROJECT IN POMPTON LAKES, NEW JERSEY, PURSUANT TO N.J.S.A. 40:20-1 ET SEQ.
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WHEREAS, the County of Passaic (“County”) is a body politic and corporate pursuant to N.J.S.A. 40:18-1 and vested with all rights contained therein; and
WHEREAS, pursuant to N.J.S.A. 40:20-1, the Board of County Commissioners of the County of Passaic (“Board”) is vested with managing the property, finances, and affairs of the County; and
WHEREAS, on February 27, 2024, the Board passed Resolution No. R-24-0157 (hereafter “Subsidy Resolution”), authorizing the execution of a Capital Contribution, Subsidy and Deficiency Agreement (hereafter “Subsidy and Deficiency Agreement”), setting forth, among other things, certain payments to be made, subject to annual appropriation, by the County in support of a capital project of The Passaic County Improvement Authority (hereafter “Authority”) consisting of the acquisition by the Passaic County Affordable Housing Corporation (hereafter “Corporation”) of certain real estate in the Borough of Pompton Lakes and the construction thereon of a multifamily rental housing project for use by low and moderate income senior citizen households with a preference for veterans and Borough residents (hereafter “Housing Project”); and
WHEREAS, on February 27, 2024, the Board passed Ordinance No. O-24-0001 (hereafter “Guaranty Ordinance”), authorizing the unconditional guaranty of bonds to be issued by the Authority, in an aggregate principal amount not to exceed $20,000,000, for the purpose of financing the costs of constructing the Housing Project (hereafter “Authority Bonds”); and
WHEREAS, by correspondence dated July 26, 2024, the County was notified by the Department of Community Affairs of the State of New Jersey (hereafter “State”) that the County has been awarded an FY25 Legislative grant in the amount of five hundred thousand dollars ($500,000.00) in respect of the Housing Project (the “State Grant”); and
WHEREAS, pursuant to N.J.S.A. 40A:4-87, on August 13, 2024, the Board passed Resolution No. R-24-0678, inserting the State Grant as a special item of revenue in the County’s 2024 budget and appropriated the proceeds of the State Grant to the purpose for which the State Grant was awarded; and
WHEREAS, under the terms of the State Grant, payments are to be made by the State upon requisition following expenditure, certification of costs and satisfaction of other customary grant conditions; and
WHEREAS, in order to market the Authority Bonds and thereby finance the costs of constructing the Housing Project not being provided from bond proceeds and from the County’s up-front capital contribution under the Subsidy and Deficiency Agreement, it is necessary for the County to advance to the Authority the amount of five hundred thousand dollars ($500,000.00), representing the full amount of the State Grant (hereafter “Advance”), on or about the date of issuance of the Authority Bonds, so that such amount is on deposit with the Authority or its bond trustee and available for payment of costs of constructing the Housing Project; and
WHEREAS, as and when eligible costs allocable to the Advance are expended by the Authority, the County will submit requisitions to the State in order to receive reimbursement for such expenses, which reimbursements will be payable by the State directly to the County;
NOW, THEREFORE, LET IT BE RESOLVED, pursuant to N.J.S.A. 40:20-1 et seq., that the Board of County Commissioners of the County of Passaic authorize the advance, as described in the recitals herein, to the Passaic County Improvement Authority.
LET IT BE FURTHER RESOLVED, that this resolution shall take effect in accordance with applicable law.
LET IT BE FURTHER RESOLVED, that the Clerk of the Board, County Counsel, County Administrator, and Director of the Board are authorized to take any action necessary to carry out the purpose of this Resolution.
KJB October 22, 2024
Exhibit A
[Attach Form of Subsidy and Deficiency Agreement]