75A - PH TAX EXEMPT BONDS AQUA APTS

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Aqua Apartments — TEFRA Hearing December 4, 2018 Page 2 amount not to exceed $30,000,000 (the "Bonds") for the acquisition, rehabilitation, improvement and equipping of a 57 -unit multifamily rental housing project located at 317 East 17th Street, Santa Ana, California, generally known as Aqua Apartments. However, in order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Santa Ana must conduct a public hearing (the "TEFRA Hearing") providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Following the close of the TEFRA Hearing, an "applicable elected representative" of the governmental unit hosting the Project, in this case the City, must provide its approval of the issuance of the Bonds by the Authority for the refinancing of the Project. The bonds to be issued by the Authority are the sole responsibility of the borrower. The City has no financial or legal liability for the project or repayment of the bonds and does not constitute any type of indebtedness for the City. In addition, this TEFRA Hearing and the adoption of the Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. In general, this action by the City of Santa Ana will not obligate the City or any department thereof to undertake any discretionary action related to the development of the project. California Statewide Communities Development Authority CSCDA is a joint powers authority sponsored by the League of California Cities ("League") and the California State Association of Counties ("CSAC"). CSCDA was created by the League and CSAC in 1988 to enable local government and eligible private entities access to low-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth and improve the overall quality of life in local communities throughout California. CSCDA is comprised of more than 530 members, including the City of Santa Ana. CSCDA has issued more than $60 billion through 1,400 plus financings since 1988 and consistently ranks in the top 10 of more than 3,000 nationwide public issuers of tax-exempt debt, as measured by annual issuance amount. Both the League and CSAC continue to sponsor CSCDA. Issuance fees are shared with both the League and CSAC which have kept member dues unchanged and provide other benefits to all city and county members. Backoround on the Proiect The Aqua Apartments project includes the acquisition and demolition of an underutilized, blighted motel site to construct 57 units of permanent supportive housing targeting chronically homeless individuals and small families. The project is located at 317 E. 17th Street. The approximately 34,000 square foot development will provide 12 studio and 45 one -bedroom apartment homes (including one manager's unit) with open space, a community room, offices for property management and Mercy House Living Centers staff who will provide on-site case management and services coordination for each resident. Rent levels at the property will be restricted for 55 years to households earning at or below 60% of the Area Median Income. Additionally, the property will have a Project -Based Voucher Housing Assistance Payments Contract in place further restricting eligibility to chronically homeless individuals. 75A-2