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HomeMy WebLinkAbout04-RESOISSUMFBNDSMINNIESTAPTSIII ~G 6167L9 FJP~~~: JUNE ~7, zoos °T6~°L~w RESOLUTION AUTHORIZING THE ISSUANCE OF MULTI-FAMILY HOUSING REVENUE BONDS - MINNTE STREET APARTMENTS II 4tC 1~~c F~tiv^ fy t. ~`~I T ~~~0[~~"IV~ [71F~OT°O~ ~ME~® AEI ~C®HDING S~CF~E7'AI~Y IJS~ ONLY: Af~PI~OV~n ® As Recommended © As Amended CC?NTIfVU~10 TO Adopt Resolution No. 2002-02 authorizing the issuance of multi-family housing revenue bonds in an amount not to exceed X2,000,000 for the Minnie Street Apartments TT, and authorize the Chairman, Vice--Chairman or Executive Director of the Housing Authority or their designee to execute all documents as necessary. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION Recommended that the Housing Authority adopt a resolution authorizing the issuance of multi-family housing revenue bonds in an amount not to exceed X2,000,000 for the Minnie Street Apartments TT, and authorize the Chairman, vice-Chairman. or Executive Director of the Housing Authority or their designee to execute all documents as necessary. By a vote of 4:0 (Betancourt, Hill, Sarmiento absent) at its Regular Meeting of June 4, 2002. DISCUSSION Orange Housing Development Corporation (OHDC), a non-profit housing provider, is in the process of acquiring five buildings located within the Cornerstone Village project through a combination of conventional financing and HOME funds provided by the City. OHDC has requested that the Santa Ana Housing Authority issue mortgage revenue tax-exempt bonds for the purpose of financing the acquisition, development and rehabilitation of the properties located at 935, 1006, 1010, 101.9 and 1018 S. Minnie Street (Exhibit ~). 7'he project currently consists of five buildings containing ten, one-bedroom units in each. The tax-exempt '~5 Resolution. Authorizing the Issuance of Multi-family Housing Re~renue Bands - Minnie Street Apartments TT June 17, 20D2 Page 2 bonds to be issued by the Authority for the project will provide permanent fixed-rate financing at below-market interest rates. The sale and issuance of tax-exempt, fixed-rate multi-family housing revenue bonds wi11 be secured by Washington Mutual. OI-iDC will be responsible for the debt service payments on the bonds; the Housing Authority wiZ1 not incur any financial liability. The bond documents appoint Tones Hall as bond counsel. Minnie ,Street Apartments TT will assist the City to meet its very 1ow- income affordable housing goals as identified in the Consolidated Plan, Redevelopment Implementation Plan and Housing Element. The rehabilitation will consist of reconfiguring ten, one-bedroom units into four, one-bedroom; two, two-bedroom; and two, three-bedroom units. I?ursuant to Federal Bond Regulations, OHDC will be required to designate 20 percent, or eight units, for occupancy by very law-income persons far a minimum of 15 years. Tho Federal affordability restrictions exceed those incorporated within the Cornerstone Village Owner Participation Agreement (OPA), which requires that tenants be low-income. 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 a term of 15 years. Funds received wi11 be deposited into the Issuer Fee account account na. 133-01-5594). APPROVED AS TO FUNDS AND ACCOUNTS: Jo P. Reekstin Ex cutive Director - L-,~ Rod R. Coloma Executive Director Finance & Management Services Agency'" ~7PR/RDD/k1p C-3:~lctions120021~1t~IMultil~a~nl~CsgRcvl3m~dsMinnicStAptsll-G-17-02 ~; ~~~.: -...J ~1 r...... _...... ~,.. GRANT ~TREET i I I I WAKE}U~1 AVE. `l l l { 1 ~ ~t,.w: ~:tv ~:3~~~:. ~~~~x~"n ~;. ~r~1111'„~',..r ~~•~<~~• ~~:~~:~~ 1,~<•-<:~::::: ~~ i w C] 0. A Z Q F- Mc~ADD~N AVE~fl1E G!ORNERSTONE VILLAGE M1NN1E STREET PROJECT ~~ Minnie Street Project ~~~~ Cornerstone Village h Ltl Ll1 (x h N W_ Z Z N EXH1BtT 1 ~ ~,~