HomeMy WebLinkAbout3A - MORTREVBONDINDUCECSVI '
EE'T'ITd~ I~AT'E:
FEBRUARY 20r 200].
°l"I°fLE:
MORTGAGE REVENUE BOND
INDUCEMENT - CORNERSTONE
VILLAGE
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EOC)~?~JI~(~ SECI~ETA~9Y USE OP1LY:
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AI~PROVE
As F2ecommended
® As Amended
CU1V1"INUE[~ TO
Adopt a resolution relating to the issuance of bonds for the purpose of
financing the acquisition and rehabilitation of multi-family residential
rental projects and related facilities within the Cornerstone Village
project.
REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION
Recommend that the Housing Authority adopt a resolution relating to the
issuance of bonds for the purpose of financing the acquisition and
rehabilitation of multi-family residential rental projects and related
facilities within the Cornerstone Village project.
By a vote of 7:0 at its Regular Meeting of February 6, 2001.
DISCUSSION
The Housing Authority has developed a multi-family acquisition and
rehabilitation bond-financing program to address the renovation
requirements of rental. housing while providing affordable rental units in
Santa Ana. Avalon Communities, LLC (Avalon} is requesting that the
Housing Authority adopt a resolution indicating its intent to issue bonds
to finance Avalon's acquisitiol~ and rehabilitation of eight apartment
buildings consisting of 127 units within the Cornerstone Village project
area. The adoption of this resolution is necessary for Avalon
Communities and this project to be eligible for tax-exempt mortgage
revenue bond financing and receipt of a bond allocation from the
California Debt Limit Allocation Committee (CDLAC}.
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Mortgage Revenue Bond Inducement -
Cornerstone Village
February 20, 2001
Page 2
Avalon was founded in 1997 and is a for--profit housing de~creloper. They
have experience in providing new construction affordable housing as well
as rehabilitation of existing housing. To date, they have acquired and
rehabilitated two properties consisting of 225 units and are currently in
predevelopment stages for approximately 300 additional units.
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 laws require that 20 percent o.f the units
be affordable to low-income households. The developer will be required
to provide an analysis of the financing structure, rehabilitation scope
of work, and a management plan for review and approval prier to the
Housing Authority's final action with respect to the issuance of bands.
FISCAL, IMPACT
There is no fiscal impact associated with this action.
Joh P. Reekstin
Executive Director
H:Actions12fY01HAlBond Induce Cornerstone
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