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HomeMy WebLinkAbout03 - REAUTHMFHSGREVBONDSCSVREQUEST FOR HOUSING ,~ AUTHORITY ACTION ~dur.atioh ,9~ IVIEETINQ DATE: RECQRDING SECRETARY USE ONLY: NOVEMBER 5, 2001 TITLE: REAUTHORIZATION OF MULTIFAMILY HOUSING REVENUE BONDS FOR CORNERSTONE VILLAGE APARTMENTS APPROVED © As Recommended © As Amended EXECUTIVE DIRI~CTOI~ RECOMMENDED ACTION CONTENDED TO Adapt a resolution authorizing the remarketing of multifamily housing revenue bonds in an aggregate amount not to exceed $7,500,000 for the Cornerstone Village Apartments, and authorize the Chair, Vice Chair or Executive Director of the Housing Authority or their designee to execute all documents as necessary. DISCUSSION On March 5, 2001 the City Council held a public hearing and authorized the Housing Authority to issue tax-exempt bonds for the Cornerstone Village Apartments. On July 16, 2001 the Housing Authority authorized the issuance of the tax-exempt bonds in an aggregate principal amount not to exceed $8,155,000. The bond proceeds are to be utilized for the acquisition and rehabilitation of 127 one- and two-bedroom units located at 805, 810, 815, 81G, 825, 828, 835, and 904 S. Minnie Street (Exhibit 1}. On August G, 2001 the Housing Authority reauthorized the issuance because the primary lender, Washington-Mutual, had issued on assumption of value and underwriting for the project that was more conservative than originally estimated by the developer in the project performa; therefore, the developer needed to secure another lender. When the bonds were issued in August, the developer elected to utilize only $7,500,000 of bonding authority rather than the maximum authorized amount of $8,155,000. The developer has secured construction financing from Bank of America and permanent financing Pram ARCS Commercial Mortgage Company, which allows for credit enhancement on the bonds from Fannie Mae. Staff is recommending that the Authority approve the remarketing of bonds so that the developer may proceed in closing escrow and begin the rehabilitation of the eight buildings. ~~ ~~ Reauthorization of Multifamily Revenue Bonds Por Cornerstone Village Apartments November 5, 2001 Page 2 Tn order to utilize federal tax credits, for the profit developer of Cornerstone Village Apartments, Wakeham-Grant LP, must have a non-profit partner. The developer, Avalon Communities, has finalized the selection of a non-profit partner. Jamboree Housing Corporation (JHC) is a non- profit 510 (C){3) corporation and will be acting as the managing general partner for this project. JHC currently serves as managing general partner far seven low- and very low-income rental projects with a total of 1,125 units. They have also served as developer or co-developer for an additional six rental projects with a total of G05 units. Although all recommended actions of the Housing Authority of the City of Santa Ana are first reviewed and acted upon by the Redevelopment and Housing Commission, in this case there is insufficient time to process this request through standard procedures. Therefore, this action of the Housing Authority will be processed as an emergency action as required by state and federal regulations. The Housing Authority declares this to be an emergency matter under Health and Safety Code Section 34292 in order far the Housing Authority to take action. FISCAL IMPACT There is no fiscal impact associated with this action. Jahn Reekstin Exec ive Director JPR:SLB:sks ~.~ ~~ w Z Q Q Z Q F-- CORNERSTONE VILLAGE APARTMENTS N McEA00E1~ AVENUE EXI-~BTT I ~.~. ~,