HomeMy WebLinkAbout03 - MFREVBONDS WAKEHAMGRANT4„~~>;
JULY 7,6, 2001
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MULTI-FAMILY HOUSING REVENUE
BONDS - WAKEHAM-GRANT Ak~ARTMENTS
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Adopt a resolution authorizing the issuance of multi-family housing
revenue bonds in an amount not to exceed $8,155,000 for the Wakeham-Grant
Apartments, a California Limited Partnership, and authorize the Chair and
Executive Director of the Housing Authority to execute all documents as
necessary.
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION
Recommended that the Housing Authority adapt a resolution authorizing the
issuance of multi-family housing revenue bonds in an amount not to exceed
$8,155,000 for the WakehamTGrant Apartments, a California Limited
Partnership, and authorize the Chair and Executive Director of the
Housing Authority to execute all documents as necessary.
By a vote of 6:0 (Hill absent) at its Regular Meeting of July 3, 2001.
DISCUSSION
Wakeham-Grant Apartments, LP has requested that the Housing Authority
issue tax-exempt bonds to be utilized in the acquisition and
rehabilitation of the properties located at 805, 810, 815, 816, 825, 828,
835 and 904 S. Minnie Street {Exhibit 1). The project consists of 127
ane- and two-bedroom units. Wakeham-Grant will finalize the purchase of
the properties with the proceeds from the band issue and initiate
rehabilitation in September 2001. The sale of the bonds will provide
permanent financing far the Wakeham-Grant Apartments project with a
below-market, fixed-rate loan. The owner/developer wild, be required to
3
Multi-Family Housing Rever~,ue Bonds -
Wakeham--Grant Apartments
July 1&, 2001
Page 2
reserve 20 percent, or 25 units, for occupancy by very low-income persons
for a minimum of 15 years.
Wakeham-Grant Apartments is a limited partnership comprised of Avalon
Communities, L~,C and Civic Center Barrio Housing Corporation, a non-
profit housing prov~.der. The partnership will be structured with Avalon
Communities acting as the developer/administrative general partner, and
Civic Center Barrio Housing Corporation (CCBHC} acting as the managing
general partner. Avalon Communities was founded in 1997 as a Limited
Liability Partnership specializing in the construction and rehabilitation
of affordable multi-family rental housing in California. Avalon has
acquixed and rehabilitated 225 rental units and is currently an the pre-
development process for approximately 200 additional units.
CCBHC, incorporated in 1980 as a 501(c)(3) non-profit corporation, has
provided more than 242 affordable for sale and rental una.ts. 0f those
units developed by CCBHC, 100 are located in the City of Santa Ana.
CCBHC has also provided affordable housing in the communities of Costa
Mesa, Fullerton and Chula Vista.
'phis project will assist the City to meet its very law-income affordable
housing goals. ~'hese goals have been identified in the Consolidated
Plan, Redevelopment Implementation Plan and Housing Element. Without a
tax-exempt bond issue, Wakeham-Grant Apartments, LP wouJ.d be required to
obtain market-rate permanent financing. In a market rate acquisition and
rehabilitation project, the City cannot covenant or mandate affordable
rents. Subsequent to approval of this financing agreement there will be
a requirement to reserve 25 units for very low-income households, which
is more restrictive than currently mandated by the Cornerstone Village
Owner Participation Agreement (OPA), which requires that tenants be low-
income.
The sale and issuance of tax-exempt, fixed-rate multi-family housing
revenue bonds will be secured by AAA-rated, mortgage-backed securities
issued by Washington Mutual. The Housing Authority will not be incurring
any financial liability for the issuance of these tax-exempt bonds. The
bond documents appoint Jones Hall as bond counsel.
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Multi-Family Housing Revenue Bonds
Wakeham-Grant Apartments
July 16, 2001
Page 3
FISCAL IMPACT
The issuance of tax--exempt bands 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 15 years. Funds .received will be
deposited into the account for issuer fees (account no. 133-01-5594?.
Joh P. Reekstin
Executa.ve Director
APPROv~D .
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Executiv~
Finance &
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Director
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EXHIBIT 1