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HomeMy WebLinkAbout02 RESOMULTIFAMBONDSLACY&RAITTREC~UEST FC~R H®USIIVG AUTHORITY ACTIGN MEETING DATE: JUNE 8, 2009 TITLE: RESOLUTION AUTHORIZING THE ISSUANCE OF MULTI-FAMILY HOUSING REVENUE BONDS - 703 NORTH LACY/702 SOUTH RAITT EXEC IVE DIRECTOR RECOMMENDED ACTION RECORDING SECRETARY USE ONLY: APPROVED ^ As Recommended ^ As Amended coNTio~uED To Adopt a resolution authorizing the issuance of multi-family housing revenue bonds in an amount not to exceed $4,500,000 for the acquisition and rehabilitation of 703 North Lacy and 702 South Raitt and authorize the Executive Director of the Housing Authority to execute all documents as necessary. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its Regular Meeting of June 2, 2009, by a vote of 4:0 (Bist absent), the Community Redevelopment and Housing Commission recommended that the Housing Authority adopt a resolution authorizing the issuance of multi- family housing revenue bands in an amount not to exceed $4,500,000 far the acquisition and rehabilitation of 703 North Lacy and 702 South Raitt and authorize the Executive Director of the Housing Authority to execute all documents as necessary. DISCUSSION On January 5, 2009, the City Council and Community Redevelopment Agency approved loans in the amount of $4,382,522 to Lacy and Raitt, L.P, for the acquisition and rehabilitation of the twenty-seven unit apartment building located at 703 North Lacy (Exhibit 1) and the ten unit apartment building located at 702 South Raitt (Exhibit 2). The Lacy and Raitt, L.P. is comprised of Orange Housing Development Corporation, a non-profit 501(c)(3), and C & C Development Company, LLC. The exterior rehabilitation of 703 North Lacy will incorporate design details that are consistent with the draft Santa Ana Renaissance Specific Plan, to the extent possible. Although the building will be rehabilitated, there will -~ Resolution Authorizing the Issuance of Multi-Family Housing Revenue Bonds -- 703 N. Lacy/702 S. Raitt June 8, 2009 Page 2 be no reconfiguration of units. As part of the rehabilitation of the Raitt Street property, the ten, 1-bedroom units will be reconfigured into eight units, two of which will offer two bedrooms and two of which will offer three bedrooms. The Gity and Agency loan funds were contingent on the developer receiving approval for both a tax-exempt bond allocation through the California Debt Limit Allocation Committee (CDLAC) and tax credits. The developer has now received notification that they were successful in securing the tax-exempt bond allocation and tax credits. In order for the developer tc close escrow, the Housing Authority must adopt a resolution authorizing issuance of the bonds. The bands are considered "conduit" obligations. This means that the Housing Authority will issue the bonds, but the developer is the borrower and is responsible for repayment. The bonds are repaid strictly from the developer under the project mortgage. There is no recourse to the City of Santa Ana, the Housing Authority or the Community Redevelopment Agency. The bonds will be purchased directly by the lender, Bank of America, as a private placement. The law firm of Orrick, Herrington & Sutcliffe has been retained to serve as bond counsel, and CSG Advisors has been retained as financial advisor. Final issuance of the bands is conditioned on the underwriting by the lender and approval by the Housing Authority. The acquisition and rehabilitation of these two properties will assist the City and Agency to meet its affordable housing goals as identified in the Consolidated Plan, Redevelopment Implementation Plan and Housing Element. The reconfiguration of Raitt will also increase the availability of larger affordable housing units. FISCAL IMPACT The issuance of tax-exempt bonds will result in developer payment of a one-time issuer fee, an annual fee in-lieu of property tax payments, and an annual affordable monitoring fee to the Housing Authority for the term of affordability. Funds received will be deposited into the Issuer Fee account (no. 133-01-5594}. APPROVED AS TO FUNDS AND ACCOUNTS: Shelly andry- le Hausin Manager Community Development Agency Francisco Gutierrez ry,, r Executive Director j~ Finance & Management Services Agency CJN/SLB/TG/sr y~ 703 [V©rth Lacy Strut Exhibit ~ -::y,~ .~' ~: RAYMAR STREET F w ~ ~ u~ "~ w N ~ w oc F- RICHLAND 5T. } ~ ~ O F MONTA VISTA AVENUE w ~ ~ ~ HIGHLAND ST z cis WISTERIA PL. z o ~ a cr ~o~ ~~u~h ~a~tt street Exhibit 2 z RESOLUTION N0. 2419-003 RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA AUTHORIZING THE ISSUANCE AND DELIVERY OF MULTIFAMILY HOUSING REVENUE BANDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $4,50fl,flOt} FOR THE FINANCING OF TWO MULTIFAMILY RENTAL HOUSING PROJECTS GENERALLY KNOWN AS THE LACY APARTMENTS AND THE RAITT APARTMENTS; DETERMINING AND PRESCRIBING CERTAIN MATTERS AND APPROVING AND AUTHORIZING THE EXECUTION OF AND DELIVERY OF VARIOUS DOCUMENTS RELATED THERETO; RATIFYING ANY ACTION HERETOFORE TAKEN AND APPROVING RELATED MATTERS IN CONNECTION WITH THE BONDS BE IT RESOLVED BY THE MEMBERS OF THE HOUSING AUTHORITY OF THE CITY 41= SANTA ANA, AS FOLLOWS: Section 1. The Housing Authority of the City of Santa Ana conclusively 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 of the Health and Safety Code of the State of California (the "Act"), to (a} to issue revenue bonds fiar the purpose of financing the acquisition, constructionlrehabilitation and development of multifamily rental housing; (b} to enter into agreements far the purpose of providing revenues to pay such revenue bands upon such terms and conditions as the Authority may deem advisable; and (c} to secure the payment of such revenue bands. B. Lacy & Rait#, L.P., a California limited partnership (the "Borrower"} has requested that the Authority issue multifamily housing revenue bonds (the "Bonds"} under the Act for the purpose of financing the Borrower's acquisition and rehabilitation of a 27-unit multifamily housing rental project located at 7fl3 N. Lacy Street and a 10-unit multifamily pausing rental project, which will be re-configured to become an eight (8} unit project, located at 702 S. Raitt Street (collectively, the "Project"}, each in the City of Santa Ana, California (hereinafter referred to as the uProgram"}. C, The City Council of the City of Santa Ana, folbwing a properly noticed puhlic hearing, previously authorized issuance of the Bonds by the Au#hori#y, subject to subsequent approval by the Authority of the various documents related to the financing. D. The Borrower has requested #hat the Authority authorize by resolution (the "Resolution") the issuance and delivery of revenue bonds, in series, in an aggregate principal amount not to exceed $4,SIJ0,000 and designated as the "Housing Authority of the City of Santa Ana Multifamily Housing Revenue Bond (LacylRaitt Apartments) 2009 Series A". HA Resolution No. 2009-003 Page i of ~ E. The Borrower has requested that the Authority execute and deliver a bond issuance and pledge agreement, a loan agreement and a regulatory agreement and declaration of restrictive in connection with the issuance and delivery Qf the Bonds. F. The Authority hereby finds and declares that this Resolution is being adopted pursuant to the powers granted by the Act. G. All conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of the Bonds and the implementation of the Program as contemplated by this resolution and the documents referred to herein exist, have happened and have been performed in due time, form and manner as required by the laws of the State ofi California, including the Act. Section 2. Pursuant to the Act and the Indenture {hereinafter defined}, revenue bonds of the Authority, designated as "Housing Authority of the City of Santa Ana l~llultifamily Nvusing Revenue Bands {LacylRaitt Apartments} 2009 Series A 'i" and "Housing Authority of the City of Santa Ana Multifamily Housing Revenue Bonds {LacylRaitt Apartments} 2009 Series A-2" in an aggregate principal amount not to exceed $4,50Q,004 {collectively, the "Bonds"), are hereby authorized to be issued and delivered. The Bonds sha[1 be executed by the manual or facsimile signature of the Chairperson, Vice Chairperson, ar Executive Director of the Authority, and attested by the manual or facsimile signature of the Secretary, or any deputy thereof, in the form set forth in and otherwise in accordance with the Indenture. Section 3. The Trust Indenture {the "Indenture'°) in the farm on file with the Authority is hereby approved. The Chairperson, Vice Chairperson, and Executive Director of the Authority, or any authorized deputy ofi any of them (the uDesignated Officers) are, and each of them acting alone is, hereby authorized, for and in the name and on behalf of the Authority, to execute by manual signature and deliver the [ndenture, in substantially said form, with such changes and insertions therein as are recommended or approved by the such officers upon consultation with bond counsel to the Authority, including such changes or insertions as are necessary or advisable in accordance with Section 7 hereof, and which may be required in connection with providing security for the payment of the principal of and interest on the Bonds, {provided that no changes ar insertions shall authorize an aggregate principal amount of Bonds in excess of $4,504,000), such approval to be conclusively evidenced by the delivery thereof. The date, maturity dates, interest rate or rates, interest payment dates, denominations, form, registration provisions, manner of execution, place of payment, terms of redemption, and other terms of the Bonds shall be as provided in the Indenture as finally executed. Section 4. The Loan Agreement in the form on file with the Authority is hereby approved. Any Designated Officer, acting alone, is authorized to execute by manual signature and deliver the Loan Agreement, in substantially said form, with such changes and insertions therein as are recommended or approved by such officers upon consultation with bond HA Resolution No. 2449-043 Page 2 of 4 counsel to the Authority, including such changes or insertions as are necessary or advisable in accordance wi#h Section 7 hereof, such approval to be conclusively evidenced by the delivery thereof. Section 5. The Regulatory Agreement and l0eclaration of Restrictive Covenants with respect to each location of the Project (collectively, the "Regulatory Agreement") in the farm on file with the Authority is hereby approved. Any Designated Officer, acting alone, is authorized to execute by manual signature and deliver the Regulatory Agreement wi#h respect to each location of the Project, in substantially said form, smith such changes and insertions therein as are recommended or approved by such officers upon cansulta#ion with bond counsel to the Authority, including such changes or insertions as are necessary or advisable in accordance with Section 7 hereof, such approval to be conclusively evidenced by the delivery thereof. Section 6. The Bonds shall be delivered, when duly executed and authenticated, if required, to or at the direction of the purchaser thereof, in accordance with written instructions executed and delivered on behalf of the Authority by any Designated Officer, acting alone, and any Designated Officer, acting alone, is hereby authorized and directed fa execute and deliver such instructions. Such instructions shalt provide for the delivery of the Bonds to or at the direction of the purchaser thereof upon payment of the purchase price thereof. Section 7. All actions heretofore taken by the officers and agents of the Authority with respect to the financing of the Project and the sale and issuance of the Bonds are hereby approved, ratified and confirmed, and any Designated Officer, acting alone, is hereby authorized and directed, for and in the name ant! on behalf of the Authority, to do any and ail things and take any and all actions and execute and deliver any and all certificates, agreements and other documents, including but net limited to a tax certificate, a subordination or intercreditor agreement, any endorsement and/or assignment of the deed of trust and such other documents as described in the indenture and the other documents herein approved, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds and to effectuate the purposes thereof and of the documents herein approved in accordance with this resolution and resolutions heretofore adopted by the Authority and otherwise in order to carry out the financing of the Project. Section 8. All consents, approvals, notices, orders, requests and other actions permitted ar required by any of the documents authorized by this Resolution, whether before or after the issuance of the Bonds, including without limitation any of the foregoing that may be necessary or desirable in connection with any defaul# under or amendment of such documents, any transfer or ether disposition of the Project, any addition or substitution of security far the Bands or any redemption of the Bands, may be given or taken by any Designated Officer, as appropriate, without further authorization by the Authority, and each such officer is hereby authorized and directed to give any such consent, approval, notice, order ar request and to take any such action that such officer may deem necessary or HA Resolution No. 2809-003 Page 3 of 4 desirable to furkher the purposes of this Resaiutinn and the financing of the Project; provided such action shall not create any obligation ar liability of the Authority other than as provided in the Indenture and other documents approved herein. Section 9. This Resolution shall take effect immediately upon its adoption by the Authority Board, and the Recording Secretary for the Authority shall attest to and certify the vote adopting this Resolution. ADOPTED this 8~' day of June X009. APPROVED AS TO 1=£~RM: Joseph W. Fletcher, General Counsel By: ~ Lisa E, Stc~re~c Assistant Counsel AYES: Boardmembers: Alvarez, Bustamante Martinez Sarmiento, Puiidn Tina'ero 6 NOES: Boardmembers: ABSTAIN: Boardmembers: None ~ Benavides ~'tl _ _ --- -. NOT PRESENT: Boardmembers: None 0 CERTIFICATION flF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Secretary to the Housing Authority, do hereby attest to and certify the attached Resolution No. 2f309-003 to be the original resolution adopted by the Housing Authority of the City of Santa Ana on June 8. 200J. Date: V I!` ~ ~" 0 ~ Recording Secret HA Resolution No. 2009-003 Page ~ of 4