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~ ~ <br />~ ~ <br />CY•,avcation 1yt <br />MEETING GATE: <br />NOVEMBER 5, 2001 <br />Tt1"Lly: <br />RECOR©ING SECRETARY USE ONLY: <br />APf~ROV~.€] <br />© As Recommended <br />^ As Amended <br />MULTIFAMILY HOUSING REVENUE <br />BONDS -- MINNIE STREET APARTMENTS <br />EXECUTNE DIRECTOR <br />CONTINUED TO <br /> <br />Adapt a resolution authorizing the issuance of multifamily housing <br />revenue bonds in an amount not to exceed $3,500,000 for the Minnie Street <br />Apartments, a California Non-Profit Corporation, and authorize the Chair, <br />Vice Chair ar Executive C]irector of the Housing Authority or their <br />designee to execute all documents as necessary. <br />DISCUSSION <br />Orange Housing Development Corporation (UHDC), a non profit housing <br />provider, has acquired ~.1 buildings located withzn the Cornerstone <br />Village project tYirotzgh a combinati.o~z of cc~a~ventional financing and HOME <br />funds provided by the City. OHDC has requested teat the Santa Ana <br />Housing Authority facilitate perlnat~et~t ~it~ar~ci7~g through ccansolidation of <br />debt by issuing Mortgage Revenue tax-exempt bonds to re-fina~lce the <br />properties located at 1002, 1021, 1022, 1025, 10?_6, 10x0, 1102, 1119, <br />1118, 1121 ar7d 1125 S. Minnie street (Exhibit 13. The project consists <br />of 110 one-bedroom units. `The tax-exempt bonds to be issued by the <br />Authority for t~~e project will provide permanent fixed r-ate financing at <br />below market interest rates. Pursuant to i:ederal law, OHDC will. be <br />required to designate 20 percent, ox' 22 units, for occupancy by very law- <br />income persons for a mini~tum of 15 years. <br />The issuance of `Tax Exeattpt Bor;ds wil.1 yield a permanent loan <br />consolidating previous debt into ~=~ mortgage amount greater than the <br />previously subsidized canventioz~al loatas. The increased tax exempt loan <br />proceeds will allow the repayment of a portion of the HOME funds <br />previously expended for the initial acquisit.ioFl and rehabilitation of tote <br />11 buildings. ']'he repayment of HOME fu~~ds will be deposited into tine <br />City's HOME fund account and will be available to reallocate to ot~~er <br />elig~.ble housing activities. <br />j M <br />:+9; ~>z <br />..~ <br />