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Monthly Report for Housing Division <br />Projects and Activities - March 2006 <br />May 1, 2006 <br />Page 2 <br />households in perpetuity (Exhibit 2). In addition to affordability <br />bedroom units, four persons for two bedroom units, and six persons for <br />three bedroom units. The acquisition and rehabilitation of these <br />properties will assist the City in meeting its overall affordable housing <br />goals. On January 3, 2006, the City Council and Community Redevelopment <br />Agency approved loan agreements for this project. <br />The Housing Authority, on behalf of Ross & Durant, L.P., has applied for <br />$7,344,000 in tax --exempt bond financing through the California Debt Limit <br />Allocation Committee (CDLAC). On March 15, 2006, the Housing Authority <br />received a bond allocation in that amount from CDLAC. Approval of a <br />resolution authorizing issuance of the bonds is the final approval needed <br />to complete the financing of these projects. <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 developer under the project mortgage. There is no recourse to <br />the City of Santa Ana, the Housing Authority or the Community <br />Redevelopment Agency. The bonds will be purchased directly by the <br />lender, Washington Mutual, as a private placement. The law firm of Jones <br />Hall has been retained to serve as bond counsel, and CSG Advisors has <br />been retained as financial advisor. Final issuance of the bonds is <br />conditioned on the underwriting by the lender and approval by the Housing <br />Authority. <br />FISCAL IMPACT <br />The issuance of tax-exempt bonds will result in developer payment of a <br />one-time issuer fee and an annual affordable monitoring fee to the <br />Housing Authority for the term of affordability. Funds received will be <br />deposited into the Issuer Fee account (account no. 133--01--5594). <br />Patricia C. Whitaker <br />Executive Director <br />APPROVED AS TO FUNDS AND ACCOUNTS: <br />4 <br />Francisco Gutierrez <br />Executive Director <br />Finance and Management Services Agency, <br />PCW/SLB/mlr <br />H:\ACTIONS\2006 HA\ResoAuthorizinglssuMulti-famHsgRevSonds Ross -Durant 5-1-06.doc <br />