The URL can be used to link to this page

Home My WebLink About75D - PH MORTGAGE REVENUE BOND ROSSWOOD VILLA APPTSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 7, 2008 TITLE: PUBLIC HEARING - MORTGAGE REVENUE BOND TEFRA HEARING ON ISSUANCE OF TAX-EXEMPT BONDS FOR ROSSWOOD VILLA APARTMENTS /'~ l• CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1St Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER 1. Hold a TEFRA (Tax Equity and Fiscal Responsibility Act) Hearing in consideration of the issuance of 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 Rosswood Villa Apartments located at 100 N. Ross Street in Santa Ana. 2. Adopt a resolution 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. DISCUSSION On August 1, 1977, the Community Redevelopment Agency of the City of Santa Ana granted the property located at 100 N. Ross Street (Exhibit 1) to the original owners, Santa Ana Intown Apartments, LP for the purpose of constructing a multifamily rental project of not less than 199 units. All of the units are one bedroom. Under the terms of the Agency's Declaration of Restrictions all units were to be rented to low and moderate income households at affordable rent. This restriction expires on August 1, 2012. In addition, there is an existing contract with the Department of Housing and Urban Development (HUD) which provides project based rental assistance. This contract is due to expire in November 2009. The developer is currently in negotiations with HUD to extend the contract. The property was acquired in July 2007 by two parties, NU-156 Apartments, LLC and H&K Estancia, LLC (the owners), each with fifty percent tenant in common interests. The owners have requested that the Housing Authority issue tax exempt mortgage revenue bonds to refinance their acquisition 75D-1 P. H. - Mortgage Revenue Bond TEFRA Hearing on Issuance of Tax-Exempt Bonds for Rosewood Villa Apartments July 7, 2008 Page 2 costs and to pay for needed rehabilitation. Should the bonds be issued, rent and occupancy restrictions consistent with federal tax exempt bond regulations will be imposed with not less than ten percent of the units restricted to fifty percent AMI and forty percent of the units restricted to sixty percent AMI, for a period of not less than fifty years. The remaining units will be governed by the Redevelopment Agency's Declaration of Restrictions until August 1, 2012. Prior to the bonds being sold, the City Council must hold a public hearing as required by the Tax Equity and Fiscal Responsibility Act (TEFRA). The public hearing is to solicit comments on the project and the issuance of the bonds. Holding the TEFRA hearing is also a precondition to applying for the bond allocation. On June 22, 2008, notification of the public hearing was published in the Orange County Register. Allocation of tax-exempt bonds is a competitive process. Applications are due on July 25, 2008, with final selection to be announced on September 24, 2008. The bonds are considered "conduit" obligations. This means that although the Housing Authority will issue the bonds, the owner is actually the borrower and has sole responsibility for repayment. The bonds will be repaid strictly out of the project's cash flow. There is no recourse to the Housing Authority, the City of Santa Ana, or the Community Redevelopment Agency. Because the existing rent and income restrictions will expire in less than six years, issuance of the bonds will assist the City and Agency to preserve this affordable housing option and will assist in meeting the affordable housing goals as identified in the Consolidated Plan, Redevelopment Implementation Plan and Housing Element. FISCAL IMPACT There are no fiscal or economic imposed upon the City of Santa An the adoption of the resolution. liabilities or obligations assumed or a as a result of the public hearing or Nancy T Edwards Acting ecutive Director Community Development Agency NTE/TG/mlr 070708 P.H. TEFRA Rosewood Villa Apts 75D-2 L j f ~ /y r Vl W .._._ ...a _ yy~~ y iii Z ~ ` ` r ~ rt Q THIRl3 STREET Subject Site 0 FIRST STREET ~s~ 10Q North RQSS Street ~xhibi~ 1 75D-3 6/20/08 les RESOLUTION NO. 2008- 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 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 revenue bonds for the purpose of financing the acquisition, construction, rehabilitation and development of multifamily rental housing for families and individuals of low and very low income. B. Northwood Associates, L.P., a California limited partnership, or such other limited partnership or a limited liability company to be formed by WNC and Associates, has requested the Authority to issue and sell revenue bonds in an expected principal amount of $23,000,000 (the "Bonds") pursuant to the procedures specified in the Law for the purpose of providing financing for the acquisition and rehabilitation of 200 units of multifamily rental housing commonly known as the Rosswood Villa Apartments located at 100 North Ross Street in the City of Santa Ana, California (the "Project"), located within the area of operation of the Authority. 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 75D-4 to the financing and operation of the Project and the Authority's issuance of the Bonds therefore. F. The Project is located wholly within the geographic jurisdiction of the City. G. The City Council of the City of Santa Ana, as the "applicable elected representative" of the Authority, approves of the issuance of the Bonds as in the public interests of the Authority. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 2. The City Council hereby finds and determines that the foregoing recitals are true and correct. Section 3. Pursuant to the Code, the City Council hereby approves the issuance of the Bonds by the Authority to finance the Project. It is the purpose and intent of this City Council that this resolution constitute approval of the issuance of the Bonds by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with the Code. Section 4. 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 5. This resolution shall take effect immediately. 75D-5 ADOPTED this day of , 2008. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Lisa E. Storck Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers: Councilmembers: Councilmembers: Councilmembers: CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Resolution No. 2008-~ the City of Santa Ana on Date: Clerk of Council, do hereby attest to and certify the attached to be the original resolution adopted by the City Council of Clerk of Council City of Santa Ana 75D-6