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Resolution Authorizing the Issuance of Multi - Family Housing Revenue Bonds - Santiago Villas November 17, 2003 Page 2 All 89 units will be affordable to low and very low - income seniors through recorded covenants for a term of not less than 55 years. The breakdown of affordability is as follow: # of ."'Units Income Level Gross Resits Max: Mo.' Income 9 40% $529 - 680 $1,763 - 2,267 9 50% $661 - 850 $2,204 - 2,833 36 60% $794 - 1,020 $2,646 - 3,400 35 80% $988 - 1,271 $3,550 - 4,237 The acquisition and rehabilitation of this property will assist the City in meeting its overall affordable housing goals. OHDC has successfully partnered with the City of Santa Ana and the Community Redevelopment Agency to acquire and rehabilitate 230 units in the City, of which 144 are located in the Cornerstone Village project area. OHDC currently owns and operates 2,200 affordable rental units in Orange, San Diego and San Bernardino Counties. The Housing Authority, on behalf of Fountainhead Partners, L.P., has applied for $5,100,000 in tax - exempt bond financing through the California Debt Limit Allocation Committee (CDLAC). On September 24, 2003, the Housing Authority received a bond allocation in that amount from CDLAC. The bonds are considered "conduit" obligations. This means that the Housing Authority will issue the bonds, but the developer is the borrower and is responsible for repayment. The bonds are repaid strictly from the developer under the project mortgage. There is no recourse to the City of Santa Ana, the Housing Authority or the Community Redevelopment Agency. The bonds will be purchased directly by the lender, Washington Mutual, as a private placement. The law firm of Jones Hall, has been retained to serve as bond counsel, and CSG Advisors has been retained as financial advisor. Final issuance of the bonds is conditioned on the underwriting by the .lender and approval by the Housing Authority.