Loading...
HomeMy WebLinkAbout04 - RESOAUTHOREVBDSSANTIAGOVLLSREQUEST FOR HC)uSING AUTHORITY ACTION MEETING DATE: ~ ucetiori 1af RECORDING SECRETARY USE ONLY: NOVEMBER ~.7. 2003 TITLE: RESOLUTION AUTHORIZING THE ISSUANCE OF MULTI-FAMILY HOUSING REVENUE BONDS - SANTIAGO VILLAS APPROVED ^ As F3ecommer~ded ^ As Amended CONTINUED TO ~ EXECUTIVE DIRECTOR RECOMMENDED ACT10N Adopt Resolution No. HA 2003-04 authorizing the issuance of multi-family housing revenue bonds in an, amount not to exceed $5,100,000 for the Santiago Villas project, arzd authorize the Chairman, Vice-Chairman or Executive Director of the Hauling Authority or their designee to execute all documents as necessary. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION Recommended that the Housing Authority of the City of Santa Ana adapt a resolution authorizing the issuance of multi-family housing revenue bonds in an amount not to exceed $5,100,000 for the Santiago Villas project, and authorize the Chairman, Vice-Chairman or Executive Director of the Housing Authority or their designee to execute all documents as necessary. By a vote of 7:0 at its Regular Meeting of November 4, 2003. DISCUSSION Orange Housing Development Corporation (OHDC) and Mosaic Housing Group, LLC have formed a partnership, Fountainhead Partners, L.P., to purchase a 155-unit hotel, which will be converted to an 89-unit senior residential rental project to be named Santiago Villas Senior Apartments. The project is located at 939 E. Seventeenth Street tExhibit 1). Fountainhead Partners anticipates converting the hotel into 89 units comprised of 12 efficiencies, 71 one-bedroom, and six two-bedroom units. 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 Rents `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 bands are considered "conduit" obligations. This meaxa.s that the Housing Authority will issue the bands, 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 bands 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. Resolution Authorizing the Issuance of Multi-Family Housing Revenue Bands _ Santiago Villas November 17, 2003 Page 3 FISCAL IMPACT The issuance of tax-exempt bonds will result in developer payment of a one-time issuer fee and an annual affordable monitoring fee to the Housing Authority for a term of 55 years. Funds received will be deposited into the Issuer Fee account (account no. 133-01-5594). APPROVED AS TO FUNDS AND ACCOUNTS: t7o~Y~, P. Reekstin E ecutive Director Executi e Director Finance & Management Services Agency JPR/SLB/kla I-l:Actions12E103HA1ResoAuEl~lssMulli-FamE-lsgltevE3nds-5aulVil-1 ]-17-03 NINETEENTH ST. H N O CS a ~- Z Q N ~~n~~ 939 East Seventeenth Street H Z 0 U Z ExHrBIT ~ /~ SEVENTEENTH ST.