HomeMy WebLinkAbout04 MortRevBondInduceRosswoodVillasREQUEST FOR HOUSING
AUTHORITY ACTION
~~c~~~~~ ~~~~r~~~r~~ ~~~~~
T~1~L~:
~RTGI~,E RE'~TN~ BAND INDU~NT
~N I I~NO~ ~~' TAB-E~iPT BOND
F~~ RO~OOD `ILLA
APPR~II~D
[] As Reeommendeal
^ As Amended
~lT1NU~D TO
/r
XECUTIVE RECTOR
RECOMMENDED ACTION
Adopt ~ resolution relating to the issuance of bonds for the purpose of
financing the acquisition and rehabilitation of Ross~ood ~Tillas located
at 1~~ ~Qrth Ross Street in Santa Ana.
C~NIl~U~I TY 1D~VELQFN~ENT AND HODS INO CO~+~+lI IAN A,OT I O1~
At its Regular N~eeting of April , 2~0~, the Community ~ede~e~.opment and
Housing Cor~miss~.on recommended that the Hous~.ng Authorit~r adopt a
resolution relating to the issuance of bonds for the purpose of financing
the acquisition and rehabilitation of Rosswood ~lillas located at 1~~
Forth doss street in Santa Ana ~~ a Grote of ~:0 ~~Tasquez absent} .
DIHOUIOI~
Federal tai law author~.~es dousing Authorities to issue federally tax
exempt bonds for certain types of affordable housing projects. The bonds
ha~re a lo~rer interest rate than con~rentional financing. The lo~rer
interest rate reduces the debt serv~.ce, Which can be essential to the
financial feasibility of affordable housing projects. Housing
authorities assu~.e no risk by issuing these bonds because they are
"conduit" obligations. This r~eans that although a Housing Authority
issues the bonds, the developer of the affordable housi.g project ~. the
borroer and has sole responsibility for making payments to the bond-
holder.
In order to apply to the California Debt Limitation Allocation committee
cDLA}for authority to issue such bonds, the Authority must first adopt
~~
~~~~:~~
Mortgage Revenue Band Inducement
on Isuanoe of Tai-exempt Bonds
April 1, 2a~7
Page ~
an inducement resolution. The resolution confirms the intent of the
Hauling Authority to issue bonds, and identifies the time at which casts
expended on the project qualify far financing w~.th the tai-exept bands.
Adoption of this resolution is not sufficient for the Authority to issue
the bonds. This action only preserves the right of the owner to request
~.suanoe of the bonds at ~ later date, and to inolude expenses incurred
after the date of the resolution in the bonds. If the developer does
decide to pursue the bands, the City and the Author~.ty gill need to take
additional actions.
Ross rood ~Tillas is ~ 1-unapt rental project located at 1~~ North Ross
Street ~Bxhibit 1}. Redevelopment Agency rent and income restrictions
are retarded against the property and. gill expire on ~.ugust 1, 2~1.
Additionally, the pro~~ot has a contract with the U.S. Department of
Housing and Urban Development, which provides households with praject-
based Section S. That contract is due to expire in 2~a~. hou~.d the
protect be sold with no additional affordability restrictions, it might
pease to offer guaranteed affordability to its tenants within five gears.
This proj cot is identified ~. the City' s Consolids.ted Fire Year Plan as
an affordable project at-~ris~ of being converted to mar~et rate housing.
The Plan also identifies the preservation of such projects as a priority.
1~~-15~ Apartments, LLC of Upland, ali.fornia, H& Estonia, LLC of
Newport Coast, California, and Lanca Exchange, Inc. of Tustin, California
developer} are purchasing the property from. the current o~rner, Santa Ana
Intawn Apartments, LP. They ha~re requested that the Housing Authority
adapt an inducement resolution far the issuance of up to ~~ million in
tax-exempt mortgage revenue bonds to help facilitate that transaction.
The developer does not foresee any o~ the current tenants being
permanently relocated.
Should the bonds be issued, rent and occupancy restrictions consistent
with federal tax-exempt band requirements will be imposed on not less
than twenty percent of the units for a period of not less than fifty-
five gears. The remaining units will continue to be governed by the
Redevelopment Agency's rent and income restrictions. A with a~.l such
bonds, these will be a conduit obligation. They will be repaid strictly
out of the project's cash flaw. There gill be no recourse to the Housing
Authority, the City of Santa Anar ar the Community Redevelopment .Agency
of the City of Santa Ana.
11~~..a--ch~bfchda~a~~C'II~I~5~2~Q7 ~A~Ma~tRe~rBondlndu~em~n~ R~sswood~T~llas ~-~~-o~.~oc
:~
r~
,~:;.
N~artg~ge ~e~renue Boyd Inducement
o ~~su~ne of Tai-~~ompt Bands
April 1 ~~~7
Palo
FTAL IMFI~T
There ~r~ no fiscal or eeonami libi~.itie ar abligatian assumed or
imposed upon the City of S~nt~ ~n~ as a result o the adoption of the
roolutian.
~PPR~~T~D ~ ~a FUNDS AND ~~~~UNT;
Shelly L ndry-Bay e
Housing Tanager v
Community Development Agency
Fr~nisco Gutierrez
~~eeuti~re Dir~otar
Fin~no ~ Management Services ~ganay
.~
LB/T~mr
H:~~IC'~I~~~~~~~7 HA~Mor~R~~and~r~ducer~en~ Rosswoad~Izlla.s 4-15-07.dac
11Cd~~-ahl~fcY~datalAC'~I~~S12~~7 HA1~ar~Re~rBondInd~~em~~~ Ross~r~~d~'i~.las 4-16-~7,do~
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X00 North Ross Street
Exhibit t
RE~LI~TI~~ l~+l~', ~f~ ~~~~-~~~
~ ~EI,~TI~N F THE ~~~lH ~UTH~lTY ~F THE
lTY ~~ ~~~'~ ~ DEI~lf~ !T I~TEI~Tl~N T
I~EtM~I~E EPEN~IT~R~ ~~ THE ~~~~
~F T~~EEl~II~T ~~LI~TI~~ ~hl~ ~1RETIN
ERT~1N TIH
Blr lT ~~~~'~~~ B THE I~~~lBl;l~ ~F THE M~~ ~HTH~1T~ ~F
THE !T'~ ~>~iT~ N~, ~ FLL~I:
ectie~ ~ ~ Tf~e ~l~usin~ ~uth~rlt ~f the i ~f Santa Ana ee~l~sie!}~ finds,
deterrn~nes and dealat ~ fe~~~~:
t ~`he Heus~n~ ~uthorit~ of the its of a~t~ Ana ~th~ "Auth~~t~„} inter~d~ t~
issue tai-~~~ ~~I~at~es {the "~l~li~atiens"} fir the ~urese, a~men~
ether thin~~, o~ ~~l~i~ lean t~ Nert~v~~~d ss~~iats, L,P., ~ aliferr~ia
li~it~ ~~~ners~~x or such etf~er lir~itd ~art~~rhip er ~ l~rnited lial~ili
~~~a~ t~ be fer~ned ~~ N aid Ass~~ites the '~D~~re~e~er"~, the
~ra~eeds of v~hih sha~~ b~ used ~~ the l~e~r~le~er t~ finar~~e the
aui~tien~ r~ha~ilitatien end de~~la~mer~t ~ ~~O~~anits of ~ultifamil~
rental heuin~ ar~rnanly kn~rr the l~~ss~aed 1~i1la ~~~n~~nt
I~aated at 'I ~~ ~rth Ross tr~et ~~ t>~ its of Santa n~, alife~~ia the
t~l~r~je~t"~.
~, l~nited states lne~r~~ Tax ~egulatian eetien ~ ,1 ~~~ ~ ~~~vides
~e~erali~ that ~ra~ee~ e~ tai exempt deft a~~ r~~t deemed to ~
ex~~nded Shen such ~ra~eed~ are ~s~d fer reirnhursernent of
ex~er~ditures ~e drier to the date of isua~ of such debt unless
rertai~ ~roeedures are folleed, ameng hieh is a r~~uirer~ent that kith
certain exe~ti~r~~, prier ~~ the ~ayrn~nt of and rah ~~enditure, the
issuer rnustdeelre an ir~tentien t~ rein~hurse such expenditure.
~. It is in the ~u~lie interest and fer the p~~li~ her~e~t that the ~utharit~
~eelare its ef~i~ie! ir~t~nt to reirnbure the e~pendltures refere~eed herein;
eatien The ,~utherit~ intend t~ issue the bli~atien fay the purpose of
paint the Bests of financing the ae~ui~tien, r~habilitatien ar~d developr~er~t ~f fhe
~r~je~t.
e~ti~r~ The utherit hereby deala~es that it rea~r~a~l~ ex~eats that a
pertion of the preeeed of the ~bligatiens gill be used fer rei~hurserr~ent of
expenditures fQr the auisitien, reha~ilitativ~ aid de~el~~ent of the Prejeat that are
p~i~ ~efere the date ~f initial exeeutien and delivery of the ~hli~atiens.
5eatien ~. ~'he rnaxirnur~ ar~eur~t of preeeeds ~f the ~iigtio~s t~ he used
fir r~eir~~ursernent ~f expenditure for the ae~uisiti~n, rehabilitation ar~d de~ele~r~ent f
the Project that are paid hefer the date of initial exe~utien and deliver ~f the
~l~~l~~ti~~ ! nit t~ ~~~~ ~,~~~,~~~~
~~o~uti~~ N~. I ~~~~-~0~
fag ~ ~f ~
eat~ar~ ~• The fare~a~n de~[er~t~ar~ is consistent nth the ~udget~r~ ~n~
fin~r~ai[ ~irc~n~t~naes of the thority ire that there are ~a fur~~s bother then ~ro~ee~s
of the ~~li~~tian~ that ire re~sanah~~ e~~ected to ~~ ~i~ rese~r~~, ~ii~ [[a~~ted ~~ ~i~i~
other~rise set aside, an ~ ian~terr~ basis, b ar ~n hehlf ~f the ~r~tharit~, ~~ ~n~ ~ub[i
entry ~~ntralled b~ the atharit~~ fir tine e~~endit~r~s for the ~o~~isit[an and
rhbilit~tian of the ~ra~eat that ire e~cpected to b~ reimbursed fr~rn the ~ra~eeds ~f the
~~I~~~tiar~.
ectian r The ~e~eloper hail ~~ rs~onsr~l~ far the ~~yent of ali ~reent
~n~ future assts in anr~e~tian ~-ith t[~e is~~n~e of tie ~~li~~ti~n, inf~din, but r~~t
li~ited ta, end fees end ~per~s~s ina~rred b~ the ~utharit~ ire ant~aip~tian of the
iuen~e of the ~b[i~ation, the past of printing ~~y affi~ia[ teter~e~t, rating ~enay
casts, band aunel ~ ar~d e~enses, ur~der~ritin di~aunt and aotr tr~st~~ fees
~t~d pause, and the arts of printir~~ the ~[i~tion. Tl~e payment of the prir~aipai,
redemption prerni~arn, if ~n~, end ~urhase prise ~f ~~~ interest an the bli~atiana Thal[
~~ sale[y the re~pansibility of the ~e~eloper. Thy ~hli~atia~s shall fiat ~~~titute ~ debt
ar o~[ition of the ~utharity.
section ~'~ The lair firms ~ Janes We11, ~ i~r~fessian~i L~ arp~r~tion, is
[~erehy named bind ~ou~~[ t~ the ~-~th~r~ty i~ ar~neotian v~ith the issuance ~f the
~~[i~tiens. the fees ~r~d ~xpene of I~on~ ur~el ~n~ ~~ finar~~i~l d~iar
er~pla~ed by the ~utharit~ ire ~o~rteatiar3 +~ith the iss~an~e of the ~bli~atians ire to e
paid sa[ely from the praeds of tl~e ~[i~eti~ns ar ~ireotly by the ~e~ela~per.
ecti~n ~. The p~ra~riete offioer ~r staff of the ,~uthorit~ ire hereby
~~thori~ed, for and in the Herne of and en heh~lf of the ~~tharia to make are
~pali~~#ien to the slifaria debt Limit [[ocetian arnrnittee for an [[aa~tian of pri~~te
a~tiity bands far the financing of the ~rojeat. }
section ~. The adaptiar~ ~f this ~eaelutian sha[[ not a~[i~~ate {i} the ~~thority to
pr~vi~e fin~n~in~ to the De~el~per far the ac~uiitian, rel~ahilitatior~ end de~e[aprr~ent of
the Pra~ect ar to i~cre the ~bli~tier~ far purp~s~s of such fi~~r~ei~g~ ~r iii the
uthcrit~, of or and department or a~en~~ of the ~uthar~ ar the ~it~r ~~ Santa ~n~ to
~ppra~e ~r~~ ~ppli~~tio~ ar re~~eat far, ar take ~n other aatior~ ire aanr~eotien pith, any
en~ir~~r~~r~t~l, general flan, ~~nin~ ar any ether permit ~r ether actiar~ neaes~r~r fir
the aaq~aisitian, rehahiEit~iti~~, de~[epr~ent ~r ep~ratian of the Project,
ect~cr~ ~ ~. T>~is Resa[~tian shall take effect irnr~edi~te[~ ~pcn its a~optior~ by
the uthorir Bard, ~~d the Rerdin~ secretary far the ~utharity hil het tc r~~
certify the gate ~dcpti~~ this ~esalutian.
~~~PT~~ this ~ ~~ da}~ of ~~ ~~~'.
~~sa1u~~~n i~~. HA ~~~~-~~~
P~~~ ~ ~f ~
AP~R~1~E~ ~ T F~1~~1:
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Ru~id~, arr~i~n~~ Ti~i~r~a ~~ .,~
f~~E: A~th~~~t~ mb~~: N~r~~ ~
~~T~[N: ~u~~r~~ flllemb~r, N~~n~ ~~~ ..,~.r..^
lT PfEE~lT: ~~~~ri~~ N~~mb~~s; None ~
CEI~TIEI~T~~~ ~F~TTET~TI~N ~~~ R1INALIT~
I ~~T~l~~ E. F~E~LI~, ~~re~~~ to ~h~ Hauin~ ~u~~~r~~, ~~ h~r~~ a~t~t ~~ and ~~rt~ the
at~~~~e~ R~~l~t~~~ N~, ~~~~~~0 ~~ b~ the ~ri~ir~~l r~~~uti~n ~~~~ed ~~ the H~usin~
~u~h~r~t~ ~t ti~~ qty ~ ~nta -~~~ ~n , ~ ~ ~~~~. ~
Date: ~
~~~~~i~~ ~~r~tar~
~~[~in ~~~~~~i
~~l~t~~r~ ~a. H~ ~0~~*4~~
Ra~~ ~ ~f