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Mortgage Revenue Band Inducement <br />on Isuanoe of Tai-exempt Bonds <br />April 1, 2a~7 <br />Page ~ <br />an inducement resolution. The resolution confirms the intent of the <br />Hauling Authority to issue bonds, and identifies the time at which casts <br />expended on the project qualify far financing w~.th the tai-exept bands. <br />Adoption of this resolution is not sufficient for the Authority to issue <br />the bonds. This action only preserves the right of the owner to request <br />~.suanoe of the bonds at ~ later date, and to inolude expenses incurred <br />after the date of the resolution in the bonds. If the developer does <br />decide to pursue the bands, the City and the Author~.ty gill need to take <br />additional actions. <br />Ross rood ~Tillas is ~ 1-unapt rental project located at 1~~ North Ross <br />Street ~Bxhibit 1}. Redevelopment Agency rent and income restrictions <br />are retarded against the property and. gill expire on ~.ugust 1, 2~1. <br />Additionally, the pro~~ot has a contract with the U.S. Department of <br />Housing and Urban Development, which provides households with praject- <br />based Section S. That contract is due to expire in 2~a~. hou~.d the <br />protect be sold with no additional affordability restrictions, it might <br />pease to offer guaranteed affordability to its tenants within five gears. <br />This proj cot is identified ~. the City' s Consolids.ted Fire Year Plan as <br />an affordable project at-~ris~ of being converted to mar~et rate housing. <br />The Plan also identifies the preservation of such projects as a priority. <br />1~~-15~ Apartments, LLC of Upland, ali.fornia, H& Estonia, LLC of <br />Newport Coast, California, and Lanca Exchange, Inc. of Tustin, California <br />developer} are purchasing the property from. the current o~rner, Santa Ana <br />Intawn Apartments, LP. They ha~re requested that the Housing Authority <br />adapt an inducement resolution far the issuance of up to ~~ million in <br />tax-exempt mortgage revenue bonds to help facilitate that transaction. <br />The developer does not foresee any o~ the current tenants being <br />permanently relocated. <br />Should the bonds be issued, rent and occupancy restrictions consistent <br />with federal tax-exempt band requirements will be imposed on not less <br />than twenty percent of the units for a period of not less than fifty- <br />five gears. The remaining units will continue to be governed by the <br />Redevelopment Agency's rent and income restrictions. A with a~.l such <br />bonds, these will be a conduit obligation. They will be repaid strictly <br />out of the project's cash flaw. There gill be no recourse to the Housing <br />Authority, the City of Santa Anar ar the Community Redevelopment .Agency <br />of the City of Santa Ana. <br />11~~..a--ch~bfchda~a~~C'II~I~5~2~Q7 ~A~Ma~tRe~rBondlndu~em~n~ R~sswood~T~llas ~-~~-o~.~oc <br />:~ <br />r~ <br />,~:;. <br />