55A - AGMT LEGACY APARTMENTS - Laserfiche WebLink

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Loan Agreement with Legacy Square LP December 15, 2020 Page 4 If the loan agreement is not approved by City Council, the Developer will have to decline their award of AHSC Program funds and the Project will not move forward. Project Description The Project will be 100% affordable to households earning less than 60% of the Area Median Income (AMI). At least 44 of the units will be affordable to family households earning no more than 30% of the AMI and of those units 33 will be reserved as permanent supportive housing; 31 of the units will be affordable to family households earning no more than 50% of the AMI; 17 of the units will be affordable to family households earning no more than 60% of the AMI; and there will be one manager's unit. There will be a local preference for residents of Santa Ana who live and/or work in the City. The unit mix and rent restrictions are as follows: PSH - 30% AMI 30% AMI 50% AMI 60% AMI Total 1-bedroom 30 30 2-bedroom 3 6 18 11 38 3-bedroom 5 13 6 24 2-bedroom Manager I I I I 1 Total 1 33 1 11 1 31 1 17 93 TEFRA Resolution On December 17, 2019, the City Council conducted a Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing in consideration of the issuance of tax exempt bond financing by the California Statewide Communities Development Authority on behalf of Legacy Square, LP, for the benefit of the Project to finance the acquisition, construction, and improvement of the Project (Exhibit 7). Following the TEFRA hearing, City Council adopted a resolution approving the issuance of revenue bonds by the California Statewide Communities Development Authority in an amount not to exceed $40,000,000. However, the previous approval is set to expire after one year on December 16, 2020. On December4, 2020, staff held a public hearing, telephonically, as permitted by the Internal Revenue Service to satisfy the public hearing requirement in light of the COVID-19 pandemic, at which time an opportunity was provided to interested parties to present arguments both for and against the issuance of the revenue bonds. The public hearing was held by staff because the Internal Revenue Service requires the use of a toll -free number and it was an administrative burden for the City to create a toll -free number specifically for this TEFRA resolution. Therefore, as an alternative a staff -level public hearing was held. No public comments were received during the staff -level public hearing and staff are recommending approval of a new resolution for the issuance of the revenue bonds (Exhibit 8). FISCAL IMPACT Funds for the conditional grant agreement in the amount of $2,853,492.30 (90% of the total) are available in the Inclusionary Housing Fund, Loans and Grants account (No. 41718820-69152) for expenditure in the current fiscal year. The remaining $317,054.70 (10%) will be budgeted and included in the FY 2021-22 annual budget. 55A-4