Laserfiche WebLink
REC~UEST 1=oR HouslNo <br />AUTHORITY ACTION <br />MEETING; DATE: <br />January 6, 2003 <br />TITLE: <br />MORTGAGE REVENUE BOND <br />INDUCEMENT - FOUNTAIN GARDENS <br />^ ~' <br />gducaiioir lsf <br />EXECUTIVE DIRECTOR <br />RECOMMENDED ACTION <br />RECORDING SECRETARY USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />CONTINUED TO <br />Adopt a resolution relating to the issuance of bands for the purpose of <br />financing the acquisition and rehabilitation of a hotel into a senior <br />residential rental project. <br />DISCUSSION <br />The Housing Authority has developed a multifamily acquisition and <br />rehabilitation boxad-financing program to address the renovation. <br />requirements of affordable rental housing. I~'ountainhead Partners, L.P., <br />a partnership of Orange Housing Development Corporation (OHDC) and <br />Fountainhead Management L.L.C. is requesting that a resolution be adopted <br />by the Housing Authority indicating its intent to issue bonds to finance <br />their acquisition and rehabilitation of a hotel located at 939 E. <br />Seventeenth Street (Exhibit 1?. They plan to rehabilitate the 155-unit <br />hotel into an 83-unit senior residential rental project and they <br />anticipate converting the hotel into 3 bachelor, 73 one-bedroom anal 7 <br />two-bedroom units. The adoption of this resolution is necessary for <br />Fountainhead partners, L.p. and this project to be eligible far tax- <br />exempt mortgage revenue bond financing and receipt of a bond allocation <br />from the California Debt Limit Allocation Committee (CDLAC). OHDC has <br />partnered with the city to successfully acquire and rehabilitate 160 <br />units in the Cornerstone Village project area and Garden Court <br />Apartments, which is an 84 unit building located on Santa Ana Boulevard. <br />The resolution of intention is non-binding but is necessary to permit <br />further evaluation of this project by the developer and the Housing <br />Authority. If the Housing Authority proceeds with the issuance of tax- <br />exempt bonds, federal and state law require that 20 percent of the units <br />'~e affordable to low-income households. The developer will be required <br />,~'., ~. <br />~' <br />