Laserfiche WebLink
P. H. - Mortgage Revenue Bond <br />TEFRA Hearing on Issuance of Tax-Exempt <br />Bonds for Rosewood Villa Apartments <br />July 7, 2008 <br />Page 2 <br />costs and to pay for needed rehabilitation. Should the bonds be issued, <br />rent and occupancy restrictions consistent with federal tax exempt bond <br />regulations will be imposed with not less than ten percent of the units <br />restricted to fifty percent AMI and forty percent of the units restricted <br />to sixty percent AMI, for a period of not less than fifty years. The <br />remaining units will be governed by the Redevelopment Agency's <br />Declaration of Restrictions until August 1, 2012. <br />Prior to the bonds being sold, the City Council must hold a public <br />hearing as required by the Tax Equity and Fiscal Responsibility Act <br />(TEFRA). The public hearing is to solicit comments on the project and <br />the issuance of the bonds. Holding the TEFRA hearing is also a <br />precondition to applying for the bond allocation. On June 22, 2008, <br />notification of the public hearing was published in the Orange County <br />Register. Allocation of tax-exempt bonds is a competitive process. <br />Applications are due on July 25, 2008, with final selection to be <br />announced on September 24, 2008. <br />The bonds are considered "conduit" obligations. This means that although <br />the Housing Authority will issue the bonds, the owner is actually the <br />borrower and has sole responsibility for repayment. The bonds will be <br />repaid strictly out of the project's cash flow. There is no recourse to <br />the Housing Authority, the City of Santa Ana, or the Community <br />Redevelopment Agency. Because the existing rent and income restrictions <br />will expire in less than six years, issuance of the bonds will assist the <br />City and Agency to preserve this affordable housing option and will <br />assist in meeting the affordable housing goals as identified in the <br />Consolidated Plan, Redevelopment Implementation Plan and Housing Element. <br />FISCAL IMPACT <br />There are no fiscal or economic <br />imposed upon the City of Santa An <br />the adoption of the resolution. <br />liabilities or obligations assumed or <br />a as a result of the public hearing or <br />Nancy T Edwards <br />Acting ecutive Director <br />Community Development Agency <br />NTE/TG/mlr <br />070708 P.H. TEFRA Rosewood Villa Apts <br />75D-2 <br />