WHEREAS, the City wishes to aid in the acquisition of a 24-unit apartment complex known as Eight Trees Apartments (the "Complex") at 183 Acalanes Drive, Sunnyvale; and

WHEREAS, the City may issue not to exceed $3,000,000 principal amount of housing revenue bonds to assist the Emergency Housing Consortium ("EHC"), a California nonprofit corporation; and

WHEREAS, the City of Sunnyvale Housing Revenue Bonds (the "Bonds") will be delivered by EHC upon acquisition of the Complex by EHC to the existing owner of the Complex in the form of a single Bond and transfer of such Bond will thereafter be limited; and

WHEREAS, EHC has agreed that all occupancy of the units in the Complex will be designated for occupancy by persons of low income; and

WHEREAS, EHC has received a determination letter from the Internal Revenue Service to the effect that EHC is an organization meeting the requirements of Section 501(c)(3) of the Internal Revenue Code of 1986 (the "Code"); and

WHEREAS, the City Council is the applicable elected representative as provided in Section 147(f) of the Code, and the Code requires that the representative hold a public hearing on the issuance of the Bonds and approve the issuance; and

WHEREAS, this City Council has now held and conducted a public hearing on the issuance of the Bonds for the purpose of the financing of the acquisition of the Complex as required by the Code; and

WHEREAS, this City Council now desires to approve in concept the issuance of the Bonds in furtherance of the public purposes of the City;

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Sunnyvale that:

1. Approval of Bond Resolution and Bonds. The City Council in accordance with section 147(f) of the Internal Revenue Code hereby ratifies the holding of the public hearings and approves in concept the issuance of the Bonds pursuant to a the Bond Resolution to be subsequently enacted.

2. Approval of Form of Notice. The City Council hereby approves the form of notice attached hereto as Exhibit 1.

3. Effective Date. This Resolution shall take effect immediately.

Adopted by the City Council at a regular meeting held on __________________, 2002, by the following vote:

(SEAL)