Laserfiche WebLink
VILLA COURT SENIOR APARTMENTS <br />DESCRIPTION OF FINANCING <br />Villa Court Senior Apartments will be financed utilizing 4% Low -Income Federal Housing <br />Tax Credits awarded by the California Tax Credit Allocation Committee and tax-exempt <br />bonds awarded by the California Debt Limit Allocation Committee. The project will use a <br />private -placement structure with no permanent credit enhancement or rating attached to <br />the tax-exempt bonds. <br />The $120,000,000 ($85,000,000 Series A and $35,000,000 Series B) bond issuance will <br />only consist of tax-exempt debt. Proceeds will be funded on a draw -down basis as and <br />when project costs are incurred. The primary security for the bonds will be the proposed <br />project. <br />Other sources of construction financing include low-income housing tax credit equity in <br />the amount of $10,731,162. Additionally, the developer will be deferring the entire <br />$13,500,000 developer fee, and the project partnership will defer $2,219,232 in costs <br />(including the operating reserve). <br />Upon lease -up of the entire project, the remainder of the low-income housing tax credit <br />equity in the total amount of $53,600,394 will be available to 1) pay down the <br />$85,000,000 Series A tax-exempt bonds to $45,000,000; 2) pay down the deferred <br />developer fee to $7,850,000; and 3) fund deferred costs in the amount of $2,219,232. <br />Concurrent with the stabilization of the project, the remaining $45,000,000 in Series A <br />bonds will convert to a long-term permanent source with an interest rate of 5.250%, a 35 - <br />year amortization and a 30 -year term. Similarly, the $35,000,000 in Series B Bonds will <br />convert to permanent phase with an interest rate of 5% and a 45 -year term, with <br />payments based on a 75% share of proiect cash flow. The,Citvo6 SantaYAna(wililsprovide,an; <br />The bonds will be issued around June 13, 2018 pending satisfaction of the closing <br />conditions identified in the commitment letter from Citibank, N.A. The tax credit equity <br />provider will have standard closing conditions, as well as mandate specific guaranties <br />related to tax credit delivery, adjustments and recapture. <br />Exhibit'y- <br />60E-37 <br />