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HomeMy WebLinkAbout75A - TAX-EXEMPT BONDS REQUEST FOR COUNCIL ACTION I...il~\ ~~~. (~<1u"altOIl is,"', ~~ CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: DECEMBER 19, 2005 TITLE: APPROVED o As Recommended o As Amended o Ordinance on 151 Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For PUBLIC HEARING - ISSUANCE OF TAX-EXEMPT BONDS FOR ROSS AND DURANT PROPERTIES ,~ , )~;' ~4~-~12 CITY MANAGER CONTINUED TO FILE NUMBER RECOMMENDED ACTION Adopt a resolution approving the issuance of tax-exempt, multi-family housing revenue bonds by the Housing Authority of the City of Santa Ana for the purpose of financing the acquisition and rehabilitation of the properties located at 1501 N. Ross Street and 1411 and 1401 N. Durant Street. DISCUSSION In 1982, the Tax Equity and Fiscal Responsibility Act imposed new requirements for tax exempt bonds to ensure that bonds issued after December 31, 1982, became subject to public hearing requirements. Before bonds can be sold, the legislative body within the jurisdiction where the project is located must hold a public hearing at which time the public may discuss the proj ect and the issuance of the bonds. Any future bonds issued by the Authority shall not be an obligation of the Authority or the City. On December 4, 2005, notification of the public hearing was published in the Orange County Register. Ross & Durant, LP, a partnership of Orange Housing Development Corporation and C & C R&D, LLC, and the Limited Tax Equity Partner, is requesting that the City Council hold a public hearing to consider the issuance of multi- family housing revenue bonds by the Housing Authority of the City of Santa Ana, and that subsequent to the public hearing the City Council adopt a resolution approving the financing of their proposed project by the Housing Authority. If approved, the bond proceeds will provide for the acquisition and rehabilitation of two apartment complexes located at 1501 N. Ross Street and 1411 N. Durant Street, and a single family residence located at 1401 N. Durant Street (Exhibit 1). They anticipate 75A-1 Public Hearing - Issuance of Tax-Exempt Bonds for Ross and Durant Properties December 19, 2005 Page 2 reconfiguring the sixty-six studio and one bedroom units in the two apartment complexes into one, two and three bedroom units. The single- family residence is a historic property. It will be rehabilitated in a manner that will protect and enhance its historic character and be used to provide learning and recreational opportunities for neighborhood youth. The acquisition and rehabilitation of these properties will assist the City in meeting its overall affordable housing goals. FISCAL IMPACT There are no fiscal or economic liabilities or obligations assumed or imposed upon the City of Santa Ana as a result of the public hearing or the adoption of the resolution. Patricia C. Whitaker Executive Director Community Development Agency PCT/SL-B/mlr H:\ACTIONS\2005 CC\PH - IssuanceTaxExemptBondsRoss-Durantprops 12-19-05.doc 75A-2 11/21/05LES RESOLUTION NO. 2005-120 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS BY THE HOUSING AUTHORITY OF THE CITY OF SANTA ANA FOR THE PURPOSE OF FINANCING THE ACQUISITION AND REHABILITATION OF MULTIFAMILY RENTAL HOUSING FACILITIES BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The Housing Authority of the City of Santa Ana (the "Authority") is authorized by Chapter 1 of Part 2 of Division 24 (commencing with Section 34200) of the Health and Safety Code of the State of California (the "Law"), to issue and sell its revenue bonds for the purpose of financing the acquisition, construction, rehabilitation or development of multifamily rental housing for families and individuals of low and very low income. B. Ross & Durant, L.P., a California limited partnership, or a limited partnership or a limited liability company to be formed by Orange Housing Development Corporation, a California nonprofit public benefit corporation (the "Developer"), has requested the Authority to issue and sell revenue bonds in a principal amount not to exceed ten million dollars ($10,000,000) (the "Bonds") pursuant to the procedures specified in the Law for the purpose of financing the acquisition and rehabilitation by the Developer of certain land and facilities consisting of a 30-unit multifamily rental housing development located at 1501 N. Ross Street, Santa Ana, California, a 35-unit multifamily rental housing development located at 1411 N. Durant Street, Santa Ana, California and a single family structure located at 1401 N. Durant Street, Santa Ana, California (collectively, the "Project"). 75A-3 C. The Bonds will be considered to be "qualified exempt facility bonds" under Section 142 (a) of the Internal Revenue Code of 1986, as amended (the "Code"), and Section 147(f) of the Code requires that the "applicable elected representatives" with respect to the Authority hold a public hearing with respect to the issuance of the Bonds. D. The Authority has determined that the City Council of the City of Santa Ana is the "applicable elected representatives" to hold said public hearing. E. Notice of said public hearing has been duly given as required by the Code, and this City Council has heretofore held such public hearing at which all interested persons were given an opportunity to be heard on all matters relative to the financing and operation of the Project and the Authority's issuance of the Bonds therefore. F. The City Council of the City of Santa Ana, as the "applicable elected representatives" of the Authority, approves of the issuance of the Bonds as in the public interests of the Authority. G. The appropriate officers or staff of the Authority are hereby authorized, for and in the name of and on behalf of the Authority, to make an application to the California Debt Limit Allocation Committee for an allocation of private activity bonds for the financing of the Project. Section 2. The City Council hereby approves the financing of the acquisition and rehabilitation of the Project by the Authority under the Law. Section 3. The issuance of the Bonds shall be subject to approval by the Authority of all financing documents relating thereto to which the Authority is a party and subject to the sale of the Bonds by the Authority to the underwriter thereof. Section 4. This resolution shall take effect immediately. 75A-4 ADOPTED this day of ,2005. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Lisa E. Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2005-120 to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana 75A-5 75A-6