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REQUEST FOR HOUSING ,~ <br />AUTHORITY ACTION ~dur.atioh ,9~ <br />IVIEETINQ DATE: <br />RECQRDING SECRETARY USE ONLY: <br />NOVEMBER 5, 2001 <br />TITLE: <br />REAUTHORIZATION OF MULTIFAMILY <br />HOUSING REVENUE BONDS FOR <br />CORNERSTONE VILLAGE APARTMENTS <br />APPROVED <br />© As Recommended <br />© As Amended <br />EXECUTIVE DIRI~CTOI~ <br />RECOMMENDED ACTION <br />CONTENDED TO <br />Adapt a resolution authorizing the remarketing of multifamily housing <br />revenue bonds in an aggregate amount not to exceed $7,500,000 for the <br />Cornerstone Village Apartments, and authorize the Chair, Vice Chair or <br />Executive Director of the Housing Authority or their designee to execute <br />all 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 Cornerstone <br />Village Apartments. On July 16, 2001 the Housing Authority authorized <br />the issuance of the tax-exempt bonds in an aggregate principal amount not <br />to exceed $8,155,000. The bond proceeds are to be utilized for the <br />acquisition and rehabilitation of 127 one- and two-bedroom units located <br />at 805, 810, 815, 81G, 825, 828, 835, and 904 S. Minnie Street (Exhibit <br />1}. On August G, 2001 the Housing Authority reauthorized the issuance <br />because the primary lender, Washington-Mutual, had issued on assumption <br />of value and underwriting for the project that was more conservative than <br />originally estimated by the developer in the project performa; therefore, <br />the developer needed to secure another lender. <br />When the bonds were issued in August, the developer elected to utilize <br />only $7,500,000 of bonding authority rather than the maximum authorized <br />amount of $8,155,000. The developer has secured construction financing <br />from Bank of America and permanent financing Pram ARCS Commercial <br />Mortgage Company, which allows for credit enhancement on the bonds from <br />Fannie Mae. Staff is recommending that the Authority approve the <br />remarketing of bonds so that the developer may proceed in closing escrow <br />and begin the rehabilitation of the eight buildings. <br />~~ <br />~~ <br />