75B - PH TAX EXEMPT BONDS - Laserfiche WebLink

Home Browse Search

REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: FEBRUARY 5, 2019 TITLE: PUBLIC HEARING ON ISSUANCE OF TAX EXEMPT BONDS FOR THE BENEFIT OF CORNERSTONE HOUSING PARTNERS L.P. AND NEW RESOLUTION APPROVING THE ISSUANCE OF BONDS (STRATEGIC PLAN NOS. 4, 1; 5,3) -5�a- V�- L" CITY MANAGER APPLICANT REQUESTED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Conduct a Tax Equity and Financial Responsibility Act ,(TEFRA) Hearing in consideration of the issuance of tax exempt bond financing by the California Municipal Finance Authority on behalf of Cornerstone Housing Partners LP (the 'Borrower"), for the benefit of Cornerstone Apartments (the 'Project') for the acquisition, rehabilitation, improvement and equipping of a 126 -unit multifamily rental housing project located at 805-904 S. Minnie Street, Santa Ana, California. 2. Adopt a resolution approving the issuance of revenue bonds by the Authority in an amount not to exceed $23,000,000 for the acquisition, rehabilitation, improvement and equipping of a 126 - unit multifamily rental housing project located at 805-904 S. Minnie Street, Santa Ana, California. DISCUSSION On November 20, 2018, City Council authorized the City Manager and Executive Director of the Housing Authority to execute a commitment letter to resubordinate the current affordable housing loans for the Cornerstone Apartments at 805 - 904 South Minnie Street, Santa Ana, California to tax-exempt multifamily bonds (Bonds) in an amount not to exceed $8,700,000. The Bond funds will be used to substantially rehabilitate the Project. However, for this rehabilitation to occur a new TEFRA hearing will need to be held for the project because the current TEFRA expired in December 2018. As such, a new TEFRA Hearing is being recommended for this project. Specifically, Cornerstone Housing Partners, a California Limited Partnership; a partnership created by Jamboree Housing Corporation (the "Developer"), consisting at least of the Developer or a related person to the Developer and one or more limited partners, has requested that the California Municipal Finance Authority (the "CMFA") adopt a plan of financing providing for the issuance of one or more series of revenue bonds issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, in an aggregate principal amount not to exceed $23,000,000 (the 'Bonds") for the acquisition, rehabilitation, improvement and equipping of a 126 -unit multifamily rent -71 � iy project located at 805-904 S. Minnie Street,