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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: DECEMBER 17, 2019 TITLE: PUBLIC HEARING ON ISSUANCE OF TAX- EXEMPT BONDS FOR THE BENEFIT OF LEGACY SQUARE APARTMENTS AND RESOLUTION APPROVING THE ISSUANCE OF BONDS ($40,000,000) {STRATEGIC PLAN NO. 5,3) CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO /s/Kristine Ridge FILE NUMBER CITY MANAGER APPLICANT REQUESTED ACTION 1. Conduct a Tax Equity and Fiscal Responsibility Act Hearing in consideration of the issuance of tax exempt bond financing by the California Statewide Communities Development Authority on behalf of Legacy Square, L.P. (the 'Borrower"), for the benefit of Legacy Square Apartments (the "Project') to finance the acquisition, construction, and improvement of the Project, a 93-unit multifamily rental housing project located at 609 N. Spurgeon Street., Santa Ana, California. 2. Adopt a resolution approving the issuance of revenue bonds by the California Statewide Communities Development Authority in an amount not to exceed $40,000,000 for the purpose of financing the acquisition, construction, improvement and equipping of Legacy Square Apartments, a 93-unit multifamily rental housing project. DISCUSSION In order for an affordable housing project to secure 4-percent low-income housing tax credits, the California Debt Limit Allocation Committee requires that the project hold a Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing prior to the issuance of the bonds. On January 15, 2019, the City Council approved a pre -loan commitment of $3.1 million in affordable housing funds and eight (8) project -based vouchers to develop a 93-unit affordable housing project called Legacy Square. Since that time, the developer has been working to secure their financing to develop the project. Toward that end, the developer is now requesting that the City hold a TEFRA Hearing, which will allow the developer to secure 4-percent tax credits for their project that they applied for on November 17, 2019. Specifically, the Legacy Square project includes the acquisition, construction, improvement, and equipping of a 93-unit 100-percent affordable transit -oriented multigenerational apartment home community. The Project will be located at 609 N Spurgeon Street, currently home to the Santa Ana United Methodist Church. National CORE (the "Developer") has executed a development 75B-1