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Multi-Family Housing Rever~,ue Bonds - <br />Wakeham--Grant Apartments <br />July 1&, 2001 <br />Page 2 <br />reserve 20 percent, or 25 units, for occupancy by very low-income persons <br />for a minimum of 15 years. <br />Wakeham-Grant Apartments is a limited partnership comprised of Avalon <br />Communities, L~,C and Civic Center Barrio Housing Corporation, a non- <br />profit housing prov~.der. The partnership will be structured with Avalon <br />Communities acting as the developer/administrative general partner, and <br />Civic Center Barrio Housing Corporation (CCBHC} acting as the managing <br />general partner. Avalon Communities was founded in 1997 as a Limited <br />Liability Partnership specializing in the construction and rehabilitation <br />of affordable multi-family rental housing in California. Avalon has <br />acquixed and rehabilitated 225 rental units and is currently an the pre- <br />development process for approximately 200 additional units. <br />CCBHC, incorporated in 1980 as a 501(c)(3) non-profit corporation, has <br />provided more than 242 affordable for sale and rental una.ts. 0f those <br />units developed by CCBHC, 100 are located in the City of Santa Ana. <br />CCBHC has also provided affordable housing in the communities of Costa <br />Mesa, Fullerton and Chula Vista. <br />'phis project will assist the City to meet its very law-income affordable <br />housing goals. ~'hese goals have been identified in the Consolidated <br />Plan, Redevelopment Implementation Plan and Housing Element. Without a <br />tax-exempt bond issue, Wakeham-Grant Apartments, LP wouJ.d be required to <br />obtain market-rate permanent financing. In a market rate acquisition and <br />rehabilitation project, the City cannot covenant or mandate affordable <br />rents. Subsequent to approval of this financing agreement there will be <br />a requirement to reserve 25 units for very low-income households, which <br />is more restrictive than currently mandated by the Cornerstone Village <br />Owner Participation Agreement (OPA), which requires that tenants be low- <br />income. <br />The sale and issuance of tax-exempt, fixed-rate multi-family housing <br />revenue bonds will be secured by AAA-rated, mortgage-backed securities <br />issued by Washington Mutual. The Housing Authority will not be incurring <br />any financial liability for the issuance of these tax-exempt bonds. The <br />bond documents appoint Jones Hall as bond counsel. <br />3 <br />