75G - PH - TEFRA VILLA COURT SR - Laserfiche WebLink

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Villa Court Senior Apartments — TEFRA Hearing December 19, 2017 Page 2 DISCUSSION At the City Council meeting on November 7, 2017, this item was tabled by City Council. However, on December 5, 2017, Councilmember Sarmiento requested to place this item back on the City Council agenda for December 19, 2017. Santa Ana Senior Associates, a California Limited Partnership or a partnership created by Pacific West Communities, Inc. (the "Developer"), consisting at least of the Developer or a related person to the Developer and one or more limited partners, has requested that the California Municipal Finance Authority (the "CMFA") adopt a plan of financing providing for the issuance of one or more series of revenue bonds issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, in an aggregate principal amount not to exceed $120,000,000 (the "Bonds") for the acquisition, construction, improvement and equipping of a 418 -unit senior multifamily rental housing project located at 2222 E. 1st Street, Santa Ana, California, generally known as Villa Court Senior Apartments (the "Project") and operated by Barker Management, Inc. However, in order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Santa Ana must conduct a public hearing (the "TEFRA Hearing") providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Following the close of the TEFRA Hearing, an "applicable elected representative' of the governmental unit hosting the Project, in this case the City, must provide its approval of the issuance of the Bonds by the Authority for the refinancing of the Project. On September 28, 2017, AMG and Associates submitted a request for a project subsidy equal to 70% of the City's annual affordable housing in -lieu fees collected from developers under the Housing Opportunity Ordinance, up to a maximum of $1.75 million per year for 40 years. AMG proposes to use the requested annual payment for debt service on their affordable housing projects located at 2110, 2114 and 2222 E. 15t Street. The City has made no decisions on whether it will provide financial support for the projects. The bonds to be issued by the CMFA are the sole responsibility of the borrower. The City has no financial or legal liability for the project or repayment of the bonds and does not constitute any type of indebtedness for the City. In addition, this TEFRA Hearing and the adoption of the Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. In general, this action by the City of Santa Ana will not obligate the City or any department thereof to undertake any discretionary action related to the development of the project. 75G-2