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~~~y figdty F ti oei rat; MARCH 6, 2000 ~"ITL~o MORTGAGE REVENUE BOND INDUCEMENT - CORNERSTONE VILLAGE ~X~CI~TiV L7IF~GTUR ~~GOF~DiEVG SC~i~`1'AF~Y USA {)AIt.,Y: AP~'RC~VED E~ As Recommended L~ As Amended C:ON~'lNUEf~ TO Adopt a resolution relating to the issuance of bands for the purpose of financing the acquisition anal rehabilitation of multifamily residential rental projects and related facilities within the Cornerstone Village Project . DISCUSSION The Housing Authority has developed a multifamily acquisition and rehabilitation bond-financing program to address the renovation requirements of affordable rental. housing. Orange Housing Development Corporation has recently acquired forty units within the Cornerstone Village Project and is currently negotiating for additional units. Orange Housing Development Corporation (OHDC) is requesting that a resolution be adopted by the Housing Authority indicating its intent to issue bonds to finance their acquisition and rehabilitation of properties within the Cornerstone Village Project area. The adoption of this resolution is necessary for OHDC and this project to be eligible for tax- exempt mortgage revenue bond financing and receipt of a bond allocation from the California Debt Limit Allocation Committee (CDLAC). The resolution of intention is nonbinding but is necessary to permit further evaluation of this project by the developer and the Housing Authority. If the Housing Authority proceeds with the issuance of tax- exempt bonds, federal and state law require that 20 percent of the units be affordable to low-income households. The developer will be required to provide an analysis of the financing structure, rehabilitation scope of work, and a management plan far review and approval prior to the Housing Authority's final action with respect to the issuance of bands. ,,v