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IUlortgage Revenue Bond Inducement e~tember ADO Page ~ financed through the issuance of tax exempt rnor~gage revenue bands by the Housing Authority, v~rith atherfunds being provided byth~ pity and the Agency. In 2g0~ the Agency selected the team to develop Agency-aned properties located at 2~ 7-2~ g auth Birch, 4~-4l youth Birchf ~g4-~g8 North Bush, and ~g~5-2~ ~ ~ North Spurgeon. [n Juno of ~g1 D the team utilized Neighborhood Stabilization Program funds to acquire the vacant, foreclosed-upon property located at ~O~~ ~ East vUahington Exhibit ~ They anticipate developing approximately ~ affordable rental homes on these sites. They are currently in the process of developing plans and exploring financing options. one potential source of financing is approxirr~atly million in tax exempt mortgage revenue bonds issued bythe Authority. The Learn is currently in negotiations for the acquisition of rental units located at ~22~, 2~~ and ~ X39 Brook Street Exhibit ~ If successful, they anticipate rna~Cin all units available to income eligible households at affordable rents, For this project they are also in the pracess of developing plans and explaring financing options, one of v~hich is tax exempt r~vrtgage revenue bands issued by the Authority. The approximate amount they anticipate requiring far the Brook Street praject is ~ million, In order far them to continue their consideration of band financing for these two projects, they have requested that the Authority adopt inducement resolutions relating to the potential issuance of such bands. The proposed resolutions express the intent of the Authority to issue bands to finance lard acquisition and affordable housing construction. Their adoption is necessary far these two projects to be eligible for tax exempt mortgage revenue bond financing and receipt of bond allocations franc the California Debt Limit Allocation ornrr~ittee. These resolutions of intention are t non-binding but are necessary to permit further evaluation of these projects by the developer ar~d the Housing Authority. If the Housing Authority proceeds Frith the issuance of the tax exempt bands, federal and state lair gill require that a rr~inir~un~ of tv~enty percent of the units be { affordable to lour-income households. The pity intends to require the develaperto maintain all the units a affordable. Far each project the developer gill be required to provide an analysis of the financing structure} scope of ~vor~c and a rnanager~ent plan for revie~r and approval prior to the Housing Authority taking final action v~ith respect to the issuance of the bands. Should the bond issuances move forward, the Authority v~ill require the services of bond counsel and financial consultant. The firm of C~uint Thir~mig, I~LP gill serve ~ bond counsel and CMG Advisors gill serve as financial advisor. Both firms have extensive experience covering all types of - municipal finance. ~~AL I[~PAT There is no fiscal impact associated Frith this action.