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HomeMy WebLinkAbout04 - MORTREVBNDINDUCETNGARDENSREC~UEST 1=oR HouslNo AUTHORITY ACTION MEETING; DATE: January 6, 2003 TITLE: MORTGAGE REVENUE BOND INDUCEMENT - FOUNTAIN GARDENS ^ ~' gducaiioir lsf EXECUTIVE DIRECTOR RECOMMENDED ACTION RECORDING SECRETARY USE ONLY: APPROVED ^ As Recommended ^ As Amended CONTINUED TO Adopt a resolution relating to the issuance of bands for the purpose of financing the acquisition and rehabilitation of a hotel into a senior residential rental project. DISCUSSION The Housing Authority has developed a multifamily acquisition and rehabilitation boxad-financing program to address the renovation. requirements of affordable rental housing. I~'ountainhead Partners, L.P., a partnership of Orange Housing Development Corporation (OHDC) and Fountainhead Management L.L.C. is requesting that a resolution be adopted by the Housing Authority indicating its intent to issue bonds to finance their acquisition and rehabilitation of a hotel located at 939 E. Seventeenth Street (Exhibit 1?. They plan to rehabilitate the 155-unit hotel into an 83-unit senior residential rental project and they anticipate converting the hotel into 3 bachelor, 73 one-bedroom anal 7 two-bedroom units. The adoption of this resolution is necessary for Fountainhead partners, L.p. and this project to be eligible far tax- exempt mortgage revenue bond financing and receipt of a bond allocation from the California Debt Limit Allocation Committee (CDLAC). OHDC has partnered with the city to successfully acquire and rehabilitate 160 units in the Cornerstone Village project area and Garden Court Apartments, which is an 84 unit building located on Santa Ana Boulevard. The resolution of intention is non-binding but is necessary to permit further evaluation of this project by the developer and the Housing Authority. If the Housing Authority proceeds with the issuance of tax- exempt bonds, federal and state law require that 20 percent of the units '~e affordable to low-income households. The developer will be required ,~'., ~. ~' Mortgage Revenue Bond Inducement - Fountain Gardens January 6, 2003 Page 2 to provide an analysis of the financing structure, rehabilitation scope of work, and a management plan far review and approval prior to the Housing Authority's final action with respect to the issuance of bonds. Although all recommended actions of the Housing Authority are first reviewed and acted upon by the Redevelopment and Housing Commission, in this case there is insufficient time to process this request through standard procedures and meet the CDLAC application deadline. Therefore, this action of the Housing Authority will be processed as an emergency action as required by state and federal regulations. The Housing Authority declares this an emergency matter under Health and Safety Code Section 34292 in order for the Housing Authority to take action. k'ISCAL IMPACT There is no fiscal impact associated with this action. .Tohn Reekstin Executi~cre Director JPR/SLB/sr i M:1SharelSAN©RAISTFRPT11=ountain Gardens Bond Inducements-Ofi-03,doc <l ~.~~.~ s NINETEENTH ST. N O C~ a Z a ~ n N 939 East Seventeenth Street EXHIBIT 1 Z J 0 U Z ~n" SEVENTEENTH ST.