HomeMy WebLinkAbout04- DELETEll.. I 1� vi Jim
Resolution Authorizing the
Issuance of Multi - Family Housing
Revenue Bonds - Santiago Villas
November 17, 2003
Page 2
All 89 units will be affordable to low and very low - income seniors
through recorded covenants for a term of not less than 55 years. The
breakdown of affordability is as follow:
# of ."'Units
Income Level
Gross
Resits
Max: Mo.'
Income
9
40%
$529 -
680
$1,763 -
2,267
9
50%
$661 -
850
$2,204 -
2,833
36
60%
$794 -
1,020
$2,646 -
3,400
35
80%
$988 -
1,271
$3,550 -
4,237
The acquisition and rehabilitation of this property will assist the City
in meeting its overall affordable housing goals.
OHDC has successfully partnered with the City of Santa Ana and the
Community Redevelopment Agency to acquire and rehabilitate 230 units in
the City, of which 144 are located in the Cornerstone Village project
area. OHDC currently owns and operates 2,200 affordable rental units in
Orange, San Diego and San Bernardino Counties.
The Housing Authority, on behalf of Fountainhead Partners, L.P., has
applied for $5,100,000 in tax - exempt bond financing through the
California Debt Limit Allocation Committee (CDLAC). On September 24,
2003, the Housing Authority received a bond allocation in that amount
from CDLAC.
The bonds 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, Washington
Mutual, as a private placement. The law firm of Jones Hall, has been
retained to serve as bond counsel, and CSG Advisors has been retained as
financial advisor. Final issuance of the bonds is conditioned on the
underwriting by the .lender and approval by the Housing Authority.
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