HomeMy WebLinkAbout75A - TAX-EXEMPT BONDS
REQUEST FOR
COUNCIL ACTION
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CITY COUNCIL MEETING DATE:
CLERK OF COUNCIL USE ONLY:
DECEMBER 19, 2005
TITLE:
APPROVED
o As Recommended
o As Amended
o Ordinance on 151 Reading
o Ordinance on 2nd Reading
o Implementing Resolution
o Set Public Hearing For
PUBLIC HEARING - ISSUANCE OF
TAX-EXEMPT BONDS FOR ROSS
AND DURANT PROPERTIES
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CITY MANAGER
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
Adopt a resolution approving the issuance of tax-exempt, multi-family
housing revenue bonds by the Housing Authority of the City of Santa Ana
for the purpose of financing the acquisition and rehabilitation of the
properties located at 1501 N. Ross Street and 1411 and 1401 N. Durant
Street.
DISCUSSION
In 1982, the Tax Equity and Fiscal Responsibility Act imposed new
requirements for tax exempt bonds to ensure that bonds issued after
December 31, 1982, became subject to public hearing requirements. Before
bonds can be sold, the legislative body within the jurisdiction where the
project is located must hold a public hearing at which time the public may
discuss the proj ect and the issuance of the bonds. Any future bonds
issued by the Authority shall not be an obligation of the Authority or the
City. On December 4, 2005, notification of the public hearing was
published in the Orange County Register.
Ross & Durant, LP, a partnership of Orange Housing Development Corporation
and C & C R&D, LLC, and the Limited Tax Equity Partner, is requesting that
the City Council hold a public hearing to consider the issuance of multi-
family housing revenue bonds by the Housing Authority of the City of Santa
Ana, and that subsequent to the public hearing the City Council adopt a
resolution approving the financing of their proposed project by the
Housing Authority. If approved, the bond proceeds will provide for the
acquisition and rehabilitation of two apartment complexes located at 1501
N. Ross Street and 1411 N. Durant Street, and a single family residence
located at 1401 N. Durant Street (Exhibit 1). They anticipate
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Public Hearing - Issuance of Tax-Exempt
Bonds for Ross and Durant Properties
December 19, 2005
Page 2
reconfiguring the sixty-six studio and one bedroom units in the two
apartment complexes into one, two and three bedroom units. The single-
family residence is a historic property. It will be rehabilitated in a
manner that will protect and enhance its historic character and be used to
provide learning and recreational opportunities for neighborhood youth.
The acquisition and rehabilitation of these properties will assist the
City in meeting its overall affordable housing goals.
FISCAL IMPACT
There are no fiscal or economic liabilities or obligations assumed or
imposed upon the City of Santa Ana as a result of the public hearing or
the adoption of the resolution.
Patricia C. Whitaker
Executive Director
Community Development Agency
PCT/SL-B/mlr
H:\ACTIONS\2005 CC\PH - IssuanceTaxExemptBondsRoss-Durantprops 12-19-05.doc
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11/21/05LES
RESOLUTION NO. 2005-120
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA APPROVING THE ISSUANCE
OF MULTIFAMILY HOUSING REVENUE BONDS BY
THE HOUSING AUTHORITY OF THE CITY OF SANTA
ANA FOR THE PURPOSE OF FINANCING THE
ACQUISITION AND REHABILITATION OF MULTIFAMILY
RENTAL HOUSING FACILITIES
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. The Housing Authority of the City of Santa Ana (the
"Authority") is authorized by Chapter 1 of Part 2 of Division 24
(commencing with Section 34200) of the Health and Safety
Code of the State of California (the "Law"), to issue and sell
its revenue bonds for the purpose of financing the acquisition,
construction, rehabilitation or development of multifamily rental
housing for families and individuals of low and very low
income.
B. Ross & Durant, L.P., a California limited partnership, or a
limited partnership or a limited liability company to be formed
by Orange Housing Development Corporation, a California
nonprofit public benefit corporation (the "Developer"), has
requested the Authority to issue and sell revenue bonds in a
principal amount not to exceed ten million dollars
($10,000,000) (the "Bonds") pursuant to the procedures
specified in the Law for the purpose of financing the
acquisition and rehabilitation by the Developer of certain land
and facilities consisting of a 30-unit multifamily rental housing
development located at 1501 N. Ross Street, Santa Ana,
California, a 35-unit multifamily rental housing development
located at 1411 N. Durant Street, Santa Ana, California and a
single family structure located at 1401 N. Durant Street, Santa
Ana, California (collectively, the "Project").
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C. The Bonds will be considered to be "qualified exempt facility
bonds" under Section 142 (a) of the Internal Revenue Code of
1986, as amended (the "Code"), and Section 147(f) of the
Code requires that the "applicable elected representatives"
with respect to the Authority hold a public hearing with respect
to the issuance of the Bonds.
D. The Authority has determined that the City Council of the City
of Santa Ana is the "applicable elected representatives" to
hold said public hearing.
E. Notice of said public hearing has been duly given as required
by the Code, and this City Council has heretofore held such
public hearing at which all interested persons were given an
opportunity to be heard on all matters relative to the financing
and operation of the Project and the Authority's issuance of
the Bonds therefore.
F. The City Council of the City of Santa Ana, as the "applicable
elected representatives" of the Authority, approves of the
issuance of the Bonds as in the public interests of the
Authority.
G. The appropriate officers or staff of the Authority are hereby
authorized, for and in the name of and on behalf of the
Authority, to make an application to the California Debt Limit
Allocation Committee for an allocation of private activity bonds
for the financing of the Project.
Section 2. The City Council hereby approves the financing of the acquisition and
rehabilitation of the Project by the Authority under the Law.
Section 3. The issuance of the Bonds shall be subject to approval by the
Authority of all financing documents relating thereto to which the Authority is a party and
subject to the sale of the Bonds by the Authority to the underwriter thereof.
Section 4. This resolution shall take effect immediately.
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ADOPTED this
day of
,2005.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Joseph W. Fletcher, City Attorney
By:
Lisa E. Storck
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the
attached Resolution No. 2005-120 to be the original resolution adopted by the City
Council of the City of Santa Ana on
Date:
Clerk of the Council
City of Santa Ana
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