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REQUEST FOR COUNCIL/ <br />HOUSING AUTHORITY y , <br />ACTION <br />CITY COUNCIL MEETING DATE: <br />MAY 1, 2018 <br />TITLE: <br />APPROVE REQUEST FOR CONSENT BY <br />JAMBOREE HOUSING CORPORATION TO <br />ACQUIRE LIMITED PARTNER'S INTEREST <br />FOR CORNERSTONE APARTMENTS <br />(STRATEGIC PLAN NO. 4, 5) <br />012 i <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 161 Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and Executive Director of the Housing Authority to approve the <br />request for consent by Jamboree Housing Corporation and/or an affiliate to acquire the Limited <br />Partner's interest in the current project partnership for Cornerstone Apartments at 805 — 904 S. <br />Minnie Street. <br />DISCUSSION <br />In 2001 and 2003, the City of Santa Ana ("City") and the former Redevelopment Agency, which is <br />now the Housing Authority of the City of Santa Ana ("Housing Authority"), made a series of loans <br />to the Cornerstone Apartments project in support of the proposed acquisition and rehabilitation of <br />market rate units to affordable, tax credit financed units. A provision of the Loan Documents <br />allowed the City of Santa Ana and the Housing Authority consent rights over any sale or transfer <br />of partnership interests. As is customary on tax credit financed projects, at year 15 the Limited <br />Partner Investor ("Investor") is looking to exit the partnership through the sale of their interest. <br />The Purchase Option between the Investor and an affiliate of Jamboree Housing Corporation, the <br />Managing General Partner, allows Jamboree the rights to acquire the Investor's interest. <br />Following the acquisition of the partnership interest, Jamboree intends to recapitalize the asset to <br />extend the serviceable life of these 126 affordable rental units, as well as add a community <br />building to add to the resident services provided to the households. A proposed budget of over <br />$6.4 million will be used to install new windows, roofs, ADA improvements, install new kitchen <br />and bathroom cabinets / countertops, new sinks and plumbing fixtures, new flooring throughout <br />the units, install new appliances, install new hot water heaters, and reline all waste lines. <br />Jamboree is also exploring ways to address the significant parking constraints in the <br />80A-1 <br />