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HomeMy WebLinkAbout06 MORTREVBONDINDUCROSSDURANTMEETING DATE: DECEMBER 5, 2005 TITLE: MORTGAGE REVENUE BOND INDUCEMENT -ROSS AND DURANT RECOMMENDED ACTION kdUc tti0 Igo RECORDING SECRETARY USE ONLY: APPROVED ❑ As Recommended ❑ As Amended CONTINUED TO Adopt a resolution relating to the issuance of bonds for the purpose of financing the acquisition and rehabilitation of two multi - family and one single- family properties in the Willard Neighborhood. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION Recommended that the Housing Authority adopt a resolution relating to the issuance of bonds for the purpose of financing the acquisition and rehabilitation of two multi - family and one single - family properties in the Willard Neighborhood. By a vote of 4:0 at its Regular Meeting of November 15, 2005. DISCUSSION The Housing Authority has developed a multifamily acquisition and rehabilitation bond - -financing program to address the renovation requirements of affordable rental housing. Ross & Durant, LP, a partnership of Orange Housing Development Corporation (OHDC) and C & C R &D, LLC, and the Limited Tax Credit Equity Partner, is requesting that a resolution be adopted by the Housing Authority indicating its intent to issue bonds to finance the acquisition and rehabilitation of two multifamily properties located at 1501 North Ross and 1411 North Durant and 1401 North Durant, which is a single family residence located in the Willard Neighborhood (Exhibit 1). Currently the multifamily properties are composed exclusively of studio units. Ross & Durant, LP, is Y J Amendment to Agreement with NCR December 5, 2005 Page 2 proposing to utilize the single - family residence as a community center for the project and open space. The proposed rehabilitation of the multi - family buildings is to convert them into one, two and three bedrooms. The adoption of this resolution is necessary for Ross & Durant, LP and this project to be eligible for tax - exempt mortgage revenue bond financing and receipt of a bond allocation from the California Debt Limitation Allocation Committee. OHDC has partnered with the City to successfully acquire and rehabilitate several projects in the City including Santiago Villas (89 senior units), Cornerstone Village (160 units), and Garden Court Apartments (84 units) . OHDC and C &C R &D, LLC were also partners in the acquisition and rehabilitation of Santiago Villas. The resolution of intention is non - binding but is necessary to permit further evaluation of this project by the developer and the Housing Authority. If the Housing Authority proceeds with the issuance of the tax - exempt bonds, federal and state law will require that twenty percent of the units be affordable to low- income households. The developer will be required to provide an analysis of the financing structure, rehabilitation scope of work, relocation report, and a management plan for review and approval prior to the Housing Authority taking final action with respect to the issuance of bonds. FISCA1 IMPACT There is no fiscal impact associated with the action. PCW /JM /mlr H: \ACTIONS \2005 AMAmendAgreeNCR 12- 5- 06.doc 02% 1501 North Ross Street rl 1411 North Durant Street 1401 North Durant Street Exhibit 1 16TH STREET . .. . ...... . ................... Uj w Ir cocn . . ..... . . . ................ . ............ 15TH STREET ----------- ........ .. .. .. .. ...... .. ..... . ... ... ........................................... VNII, .. . . . . . . . . . .. . . . . . . L........ .. 0 0 cr- .. .. ... ... .. .. .. .. ..... ..... .. .. ... .. .. 02% 1501 North Ross Street rl 1411 North Durant Street 1401 North Durant Street Exhibit 1