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<br />M"~t~G DAB". <br />AUGUST ~, 201 <br />`~~~L~n <br />REAUTHORIZATION OF MULTI-FAMILY <br />HOUSING REVENUE BONDS FOR <br />WAKEHAM-GRANT APARTMENTS <br />EX~~U~°iV C386~~`TC~Fi <br />~~ A~`Tl <br />RG(~RD3NG S~Cfi~TA~Y tJS~ OPIf~Y: <br />APF'ROV~D <br />i:~ As Rec4mn7ended <br />~,1 As Amended <br />CONT'IPJUEC3 'fO <br />Adopt a resolution reauthorizing the issuance of multi-family housing <br />revenue bonds in an aggregate amount not to exceed $8,155,000 for the <br />Wakeham-Grant Apartments, a California Limited Partnership, and authorize <br />the Chair, Vice Chair or Executive Director of the Housing Authority to <br />execute ail documents as necessary. <br />DISCUSSION <br />On March 5, 2001 the City Council held a public hearing and authorized <br />the Housing Authority to issue tax-exempt bonds for the Wakeham-Grant <br />Apartments. On July 16, 2001 the Housing Authority authorized the <br />issuance of the tax-exempt bonds in an aggregate principal amount not to <br />exceed $8,155,000. The bond proceeds are to be utilized for the <br />acquisition and rehabilitation of 805, 810, 815, 816, 825, 828, 835, and <br />904 S. Minnie Street (Exhibit 1). This project consists of 127 one- and <br />two-bedroom units. <br />Since the Housing Authority approval on July 16, 2001 the primary lender, <br />Washington--Mutual, has issued their assumption of value and underwriting <br />for the project that is more conservative than originally estimated by <br />the developer in the project performa. As a result, the difference in <br />underwriting assumptions has reduced the amount of funds available far <br />the project and the planned issuance of bonds cannot be completed as <br />originally structured. In order to utilize the allocation of bonds, the <br />developer must finalize their issuance by August 16, 2001. It is not <br />feasible for the developer to obtain loan approval from another lender <br />within this timeframe. A new lender would need time to perform due <br />diligence, underwrite the loan and obtain appraisals. <br />1 <br />t~~ . <br />'4k~c~~is~,:, f,;1~ <br />-1V/ ~! <br />~~ <br />.~~, <br />~~ <br />:~ <br />