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Resolution Authorizing the Issuance <br />of Multi-Family Housing Revenue Bonds -- <br />703 N. Lacy/702 S. Raitt <br />June 8, 2009 <br />Page 2 <br />be no reconfiguration of units. As part of the rehabilitation of the <br />Raitt Street property, the ten, 1-bedroom units will be reconfigured into <br />eight units, two of which will offer two bedrooms and two of which will <br />offer three bedrooms. <br />The Gity and Agency loan funds were contingent on the developer receiving <br />approval for both a tax-exempt bond allocation through the California <br />Debt Limit Allocation Committee (CDLAC) and tax credits. The developer <br />has now received notification that they were successful in securing the <br />tax-exempt bond allocation and tax credits. In order for the developer <br />tc close escrow, the Housing Authority must adopt a resolution <br />authorizing issuance of the bonds. <br />The bands are considered "conduit" obligations. This means that the <br />Housing Authority will issue the bonds, but the developer is the borrower <br />and is responsible for repayment. The bonds are repaid strictly from the <br />developer under the project mortgage. There is no recourse to the City <br />of Santa Ana, the Housing Authority or the Community Redevelopment <br />Agency. The bonds will be purchased directly by the lender, Bank of <br />America, as a private placement. The law firm of Orrick, Herrington & <br />Sutcliffe has been retained to serve as bond counsel, and CSG Advisors <br />has been retained as financial advisor. Final issuance of the bands is <br />conditioned on the underwriting by the lender and approval by the Housing <br />Authority. <br />The acquisition and rehabilitation of these two properties will assist <br />the City and Agency to meet its affordable housing goals as identified in <br />the Consolidated Plan, Redevelopment Implementation Plan and Housing <br />Element. The reconfiguration of Raitt will also increase the <br />availability of larger affordable housing units. <br />FISCAL IMPACT <br />The issuance of tax-exempt bonds will result in developer payment of a <br />one-time issuer fee, an annual fee in-lieu of property tax payments, and <br />an annual affordable monitoring fee to the Housing Authority for the term <br />of affordability. Funds received will be deposited into the Issuer Fee <br />account (no. 133-01-5594}. <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />Shelly andry- le <br />Hausin Manager <br />Community Development Agency <br />Francisco Gutierrez ry,, r <br />Executive Director j~ <br />Finance & Management Services Agency <br />CJN/SLB/TG/sr y~ <br />