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Home My WebLink About75A - PH - TAX EXEMPT BONDSREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: MARCH 7, 2011 TITLE: PUBLIC HEARING - ISSUANCE OF TAX- EXEMPT BONDS FOR MULTI-FAMILY HOUSING PROJECTS CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Ordinance on 1" Reading ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For_ CONTINUED TO FILE NUMBER Hold a public hearing regarding 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 construction of 51 rental housing units on properties located at 217-219 South Birch, 435- 437 South Birch, 2034-2038 North Bush, and 605-611 East Washington. 2. Adopt a resolution approving the issuance of the bonds by the Housing Authority. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION At its regular meeting on February 15, 2011, by a vote of 5:0 (Bist absent), the Community Redevelopment and Housing Commission approved the recommended actions. DISCUSSION The Internal Revenue Code requires that, before tax-exempt bonds can be issued to finance a multi-family housing facility, the legislative body for the public agency in whose jurisdiction the project is located must hold a public hearing at which time the public may discuss the project and the issuance of the bonds. This bond issuance by the Housing Authority will not be a general obligation of the Housing Authority or the City; however, it will be a limited obligation of the Housing Authority payable from revenues derived from the rental facilities to be financed. Santa Ana WBBB, LP, a partnership between Orange Housing Development Corporation (OHDC) and C & C Development, and a Limited Tax Equity Partner, is requesting that the City Council hold a public hearing to consider the issuance of tax-exempt 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 issuance of the bonds by the Housing Authority. If approved, the bond proceeds will provide for the construction of a total of 51 new multi-family rental units on properties located at 217-219 South Birch, 435-437 South Birch, 2034-2038 North Bush, and 605-611 East Washington. The attached map identifies the location of the sites (Exhibit 1). 75A-1 Public Hearing - Issuance of Tax-Exempt Bonds for Multi-Family Housing Projects March 7, 2011 Page 2 605-611 EAST WASHINGTON On March 1, 2010, OHDC, a non-profit 501(c)(3) corporation, and C&C Development, a for-profit developer, were awarded the contract to implement the multi-family rental program funded by the Federal National Stabilization Program (NSP). They have formed a Limited Partnership named Santa Ana WBBB, LP (Developer) for financing purposes. In June 2010, the Developer acquired foreclosed vacant lots at 605-611 East Washington using NSP funds. The entitlement process is being completed and the project is proceeding with funding in order to commence construction. The Developer proposes to construct 36 multi-family rental units of which 10% or 4 units will be rented to extremely low income families (at or below 30% of the Area Median Income (AMI)) and 31 units will be rented to very low income families (at or below 50% of AMI). The one remaining unit will be designated as a manager unit. The project will have 8 two-bedrooms, 27 three-bedrooms and 1 five-bedroom. BIRCH, BIRCH AND BUSH SITES On September 7, 2010, a Disposition and Development Agreement (DDA) was approved with the Developer, for the development of three Agency-owned infill sites at 217-219 South Birch, 435- 437 South Birch and 2034-2038 North Bush. Under the proposed DDA, the Agency will convey three sites and the Developer will construct the units on the sites. The units will all be affordable to very low-income households (50% Area Median Income). The beginning rents will be $989 for two-bedrooms and $1,125 for three bedrooms. Each site will be improved with 5 units. They will each have two 2-bedroom units and three 3-bedroom units. Construction of these units will assist the City and Agency in meeting the Regional Housing Needs Assessment (RHNA) goals identified in the Housing Element, Consolidated Plan and the Implementation Plan. 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. 6un e-14 Nancy T. E ards Interim Executive Director Community Development Agency NTE/SLB/JP-H/mlr Exhibits: 1. Map 2. Resolution 75A-2 LA VETA AV. GARDEN GROVE BL. o AV. FAfRHAVEN • ?2 V TRASK AV. m SANTACLARA AV. r 17TH ST. WASHINGTON AV 4 IVIC CE TER DR. 5TH ST . 5T T H S . SANT A ANA BL. 4TH ST 1ST ST. . MCFAD DEN AV MCFADDEN AV. 7 4 EDINGER AV. o _ ? a o v a t- ?' z w ST. ANDRE W PL w w z > a (W ARNER AV. pa" 55 SEGERSTROM ' DYER RD ALTON AV N ALTON AV g ¦ . ¦ MACARTHUR BL. SUNFLOWER AV. r r? 4 405 ?1 Q y 1? Address Address 1 217 S. Birch Street 3 2034 N. Bush Street 219 S. Birch Street 2038 N. Bush Street 2 435 S. Birch Street 437 S. Birch Street 4 605 - 611 E. Washington Exhibit 1 75A-3 75A-4 RESOLUTION NO. 2011- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE OF BONDS BY THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA TO FINANCE MULTIFAMILY RESIDENTIAL RENTAL FACILITIES FOR SANTA ANA WBBB, LP 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. Santa Ana WBBB, LP (the "Borrower"), a California limited partnership formed by the Orange Housing Development Corporation and C&C Development, has requested that the Housing Authority of the City of Santa Ana (the "Authority") issue one or more series of revenue bonds in an aggregate principal amount not to exceed $12,500,000 (the "Bonds"), and lend the proceeds of the Bonds to the Borrower for the purpose of financing the costs of the construction by the Borrower of 51 units of multifamily residential rental housing at the following locations in the City of Santa Ana (the "City"): 217-219 South Birch (5 units), 435-437 South Birch (5 units), 2034-2038 North Bush (5 units), and 605-611 East Washington (36 units) (collectively, the "Project"). B. Section 147(f) of the Internal Revenue Code of 1986 (the "Code") requires that an "applicable elected representative" with respect to the Project approve the issuance of the Bonds by the Authority after a public hearing has been held concerning the issuance of the Bonds and the financing of the Project. C. The City Council of the City of Santa Ana (the "City Council") is the elected legislative body of the City and is an applicable elected representative with respect to the Project under section 147(f) of the Code, because the Project is located in the City. D. The Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of section 147(f) of the Code; and Resolution No. 2011- Page 1 of 3 75A-5 E. Pursuant to section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds at which all those interested in speaking with respect to the issuance of the Bonds and the financing of the Project were heard, and now desires to approve the issuance of the Bonds by the Authority. Section 2. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this Resolution constitute approval of the issuance of the Bonds by the Authority for the purposes of section 147(f) of the Code, by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project will be located. Section 3. The issuance of the Bonds shall be subject to approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to repayment or administration of the Bonds. Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to (a) provide any financing to construct the Project; or (b) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the construction or operation of the Project. Section 5. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this Resolution and the financing transaction approved hereby. Section 6. This Resolution shall take effect from and after the date of its passage and adoption. Resolution No. 2011- Page 2 of 3 75A-6 ADOPTED this 7th day of March, 2011. APPROVED AS TO FORM: Joseph Straka Interim City Attorney Miguel Pulido Mayor Lisa E. Storck Assistant City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2011- to be the original resolution adopted by the City Council of the City of Santa Ana on March 7, 2011. Date: Clerk of the Council City of Santa Ana Resolution No. 2011- Page 3 of 3 75A-7 75A-8