Loading...
HomeMy WebLinkAbout04 - MFHSGREVBONDSNINNNIEST~ ~ ~ ~ CY•,avcation 1yt MEETING GATE: NOVEMBER 5, 2001 Tt1"Lly: RECOR©ING SECRETARY USE ONLY: APf~ROV~.€] © As Recommended ^ As Amended MULTIFAMILY HOUSING REVENUE BONDS -- MINNIE STREET APARTMENTS EXECUTNE DIRECTOR CONTINUED TO Adapt a resolution authorizing the issuance of multifamily housing revenue bonds in an amount not to exceed $3,500,000 for the Minnie Street Apartments, a California Non-Profit Corporation, and authorize the Chair, Vice Chair ar Executive C]irector of the Housing Authority or their designee to execute all documents as necessary. DISCUSSION Orange Housing Development Corporation (UHDC), a non profit housing provider, has acquired ~.1 buildings located withzn the Cornerstone Village project tYirotzgh a combinati.o~z of cc~a~ventional financing and HOME funds provided by the City. OHDC has requested teat the Santa Ana Housing Authority facilitate perlnat~et~t ~it~ar~ci7~g through ccansolidation of debt by issuing Mortgage Revenue tax-exempt bonds to re-fina~lce the properties located at 1002, 1021, 1022, 1025, 10?_6, 10x0, 1102, 1119, 1118, 1121 ar7d 1125 S. Minnie street (Exhibit 13. The project consists of 110 one-bedroom units. `The tax-exempt bonds to be issued by the Authority for t~~e project will provide permanent fixed r-ate financing at below market interest rates. Pursuant to i:ederal law, OHDC will. be required to designate 20 percent, ox' 22 units, for occupancy by very law- income persons for a mini~tum of 15 years. The issuance of `Tax Exeattpt Bor;ds wil.1 yield a permanent loan consolidating previous debt into ~=~ mortgage amount greater than the previously subsidized canventioz~al loatas. The increased tax exempt loan proceeds will allow the repayment of a portion of the HOME funds previously expended for the initial acquisit.ioFl and rehabilitation of tote 11 buildings. ']'he repayment of HOME fu~~ds will be deposited into tine City's HOME fund account and will be available to reallocate to ot~~er elig~.ble housing activities. j M :+9; ~>z ..~ Mu~.tifartril.y Housing Revenue Bonds - Minnie Street Apartments November 5, 206. Page 2 The sale and issuance of tax-exempt, faxed-rate multifamily hausirrg revenue bonds will be secured by a Fannie Mae credit enhancement. Tl~e Housing Autharity will not incur financial Liability for the issuance of these tax_exempt bonds. The bond documents appoint ~7ones Hall as bond counsel.. The Minnie .Street Apartments wzll assist the City to meet its very low- income affordable housing goals as identified ir-r the Consolidated Plan, Redevelopment 1mpLementatian Plan and Housing Element. l±ederal Band Regulations mandate t.krat. 22 ~rnits be designated as affordable and are reserved for occupancy by very .law-i.ncorne households. The l;ederal affordability zw•estrictions exceed those incorporated within the Cornerstone Vi1l.age Owner Participation Agreement (OPA), which requires that tenants be law-incame. Although all recornrner~ded actions of tyre I-tousiz~g Authority of the City of Santa Ana a~~e first reviewed and acted upon the Redevelopment and Housing Commission, in this case there is insufficient time to process this request through standard procedures. Therefore, tl~as action of the Housing Authority will be processed as az~ emergency action as required by state and federal ~~egulations. 'I'he Housing Aut~~rority declares this to be an emergency matter under Health and Safety Code Section 39292 in order for the Housing Authority to take action. FISCAL IMPACT The issuance of tax-exempt k~onds wi11 result. in developer payment of a one-time issuer fee and an annual affordable rnonitoriz~g fee to the Housing Autharity for a term of 1~ years. F~znds received will be deposited into the Issuer Fee account (account no. 133-O1-X599). Funds received frarr~ repayment of HOME funded loans wi.L1. be deposited into the HOME account (account no. 1.30-O1-5~3fJ 1.) APPROVEP AS TO FUN~]S AN17 ACCOUNTS: Jo P. Reekstin Ex cutave Director -'% ~`~i i Executave~~areCtar Fir~ar~ce & Management Services Agency ~PR:SLB:sks . ~~~ GRANT STREET WAKEHAM AVE. M f N N I E 5 1oa2 T R E E T . ~ ~ ~. 9 ~~2fi 1025 943fl .1102 ~, ~d 19 2'[ i ~2` ;< M cFADD EN STR EET 5 T A N D A R S T R E E T MINNIE STREET APARTMENTS t N ~~ 1%. ExN~B~T ~ `µ~-`