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<br />CITY COUNCil MEETING DATE: <br /> <br /> <br />REQUEST FOR <br />COUNCIL ACTION <br /> <br />CLERK OF COUNCIL USE ONLY: <br /> <br />OCTOBER 16, 2006 <br />TITLE: <br /> <br />PUBLIC HEARING - ISSUANCE <br />OF TAX EXEMPT BONDS FOR <br />CITY GARDENS APARTMENTS <br /> <br />APPROVED <br /> <br />o As Recommended <br />o As Amended <br />o Ordinance on 1" Reading <br />o Ordinance on 2nd Reading <br />o Implementing Resolution <br />o Set Pubiic Hearing For <br /> <br />aJ~ <br /> <br />CONTINUED TO <br /> <br />FILE NUMBER <br /> <br />RECOMMENDED ACTION <br /> <br />Adopt a resolution approving the issuance of tax-exempt, multi-family <br />housing revenue bonds in an amount not to exceed $8,400,000 by the <br />Housing Authority of the City of Santa Ana for the purpose of refunding <br />Housing Authority bonds issued December 19, 1996, for City Gardens <br />Apartments. <br /> <br />DISCUSSION <br /> <br />City Gardens Apartments is located at 2901 N, Bristol (Exhibit 1), It is <br />a 27 4-uni t complex composed of one and two bedroom units, On December <br />19, 1996, the Housing Authority of the City of Santa Ana issued tax <br />exempt mortgage revenue bonds to finance acquisition and rehabilitation <br />of the proj ect by its current owner, LINC - Bristol Associates 1, LP <br />(owner) . The existing bonds are subject to a mandatory redemption on <br />December 1, 2006, and the owner has requested that the Housing Authority <br />issue bonds for the purpose of refunding the existing bonds in the amount <br />not to exceed $8,400,000 and to refinance subordinate debt. The <br />refinancing of the subordinate debt will lower the interest rate on the <br />debt and will increase the cash flow to the project, <br /> <br />The bonds are considered "conduit" obligations. This means that the <br />Housing Authority will issue the bonds, although the developer is the <br />borrower and is responsible for repayment. The bonds are repaid strictly <br />from the development under the project mortgage. There is no recourse to <br />the City of Santa Ana, the Housing Authority or the Community <br />Redevelopment Agency. <br /> <br />The owner was required <br />occupancy at affordable <br />forty percent of the <br /> <br />to reserve twenty <br />rents by households <br />Orange County area <br /> <br />percent, or 55 <br />whose incomes do <br />median income. <br /> <br />units, for <br />not exceed <br />With the <br /> <br />75E-1 <br />