HomeMy WebLinkAbout05 - ResoIssuRevBndsRossDurantREQUEST FOR HOUSING
AUTHORITY ACTION
MEETING DATE:
MAY 1, 2006
TITLE:
RECOMMENDED ACTION
Adopt a resolution authorizing
revenue bonds in an amount not to
Villas project, and authorize
Executive Director of the Housing
all documents as necessary.
RECORDING SECRETARY USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
CONTINUED TO
the issuance of multi -family housing
exceed $7,344,000 for the Ross -Durant
the Chairperson, Vice -Chairperson or
Authority or their designee to execute
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION
Recommended that the Housing Authority of the City of Santa Ana adopt a
resolution authorizing the issuance of multi -family housing revenue bonds
in an amount not to exceed $7,344,000 for the Ross -Durant Villas project,
and authorize the Chairperson, Vice -Chairperson or Executive Director of
the Housing Authority or their designee to execute all documents as
necessary.
By a vote of 7:0 at its Regular Meeting of April 4, 2006.
DISCUSSION
Orange Housing Development Corporation (OHDC) and C&C R&D I, LLC, have
formed a partnership, Ross & Durant, L.P. to acquire and rehabilitate two
multi -family properties located at 1501 N. Ross Street and 1411 N. Durant
Street (Exhibit 1) which have 30 and 35 studio apartments, respectively.
The Ross Street property will be converted into 24 one and two bedroom
units. The Durant Street property will be converted into 25 one, two
and three bedroom units. All but one unit designated as a manager unit
at the Durant Street property will have recorded affordability covenants,
which restrict allowable rents and incomes to very low- and low-income
Monthly Report for Housing Division
Projects and Activities - March 2006
May 1, 2006
Page 2
households in perpetuity (Exhibit 2). In addition to affordability
bedroom units, four persons for two bedroom units, and six persons for
three bedroom units. The acquisition and rehabilitation of these
properties will assist the City in meeting its overall affordable housing
goals. On January 3, 2006, the City Council and Community Redevelopment
Agency approved loan agreements for this project.
The Housing Authority, on behalf of Ross & Durant, L.P., has applied for
$7,344,000 in tax --exempt bond financing through the California Debt Limit
Allocation Committee (CDLAC). On March 15, 2006, the Housing Authority
received a bond allocation in that amount from CDLAC. Approval of a
resolution authorizing issuance of the bonds is the final approval needed
to complete the financing of these projects.
The bonds are considered "conduit" obligations. This means that the
Housing Authority will issue the bonds, although the developer is the
borrower and is responsible for repayment. The bonds are repaid strictly
from the developer under the project mortgage. There is no recourse to
the City of Santa Ana, the Housing Authority or the Community
Redevelopment Agency. The bonds will be purchased directly by the
lender, Washington Mutual, as a private placement. The law firm of Jones
Hall has been retained to serve as bond counsel, and CSG Advisors has
been retained as financial advisor. Final issuance of the bonds is
conditioned on the underwriting by the lender and approval by the Housing
Authority.
FISCAL IMPACT
The issuance of tax-exempt bonds will result in developer payment of a
one-time issuer fee and an annual affordable monitoring fee to the
Housing Authority for the term of affordability. Funds received will be
deposited into the Issuer Fee account (account no. 133--01--5594).
Patricia C. Whitaker
Executive Director
APPROVED AS TO FUNDS AND ACCOUNTS:
4
Francisco Gutierrez
Executive Director
Finance and Management Services Agency,
PCW/SLB/mlr
H:\ACTIONS\2006 HA\ResoAuthorizinglssuMulti-famHsgRevSonds Ross -Durant 5-1-06.doc
16TH STREET
............. ..
115
u
t
LU
Ir
to---- - ---------------------------
---------- - - --------------------- -
15TH STREET
. ....... ......... .. ...
. . . .. ................ .
......
. ................. . .................- ------
...................
- ----------
0
0
cc
IF//" III
'Alls.16TI wavroli-plzo
I
Exhibit 1
E
5
LEVELS OF AFFORDABILITY AND UNIT MIX
1501 N. Ross
Affordability
Level
Bedrooms
Number of Units
Allowable Rent
40%
(Very Low)
1
2
$576
2
1
$691
50%
(Very Low)
1
11
$720
2
4
$863
60%
(Low)
2
6
$1,036
1411 N. Durant
Affordability
Level
Bedrooms
Number of Units
Allowable Rent
40%
(Very Low)
1
1
$576
2
1
$691
3
2
$768
50%
(Very Low)
2
3
$863
3
3
$960
60%
(Low)
1
4
$864
2
5
$1,036
3
5
$1,152
EXHIBIT 2