HomeMy WebLinkAbout03 - RESSOISSUMFREVBONDREQUEST FOR HOUSING
AUTHORITY ACTION
MEETING DATE:
RECORDING SECRETARY USE ONLY:
OCTOBER 3, 2011
TITLE
APPROVED
^ As Recomrr-ended
^ As Amended
RESOLUTION AUTHORIZING THE ISSUANCE
OF MULTIFAMILY HOUSING REVENUE
BONDS
CDNTENUED TO
IN ERIM CUTIVE DIRECTOR
RECOMMENDED ACTION
Adopt a resolution authorizing the issuance of multifamily housing revenue bonds in an amount
not to exceed $10,615,700 for the purpose of financing the construction of 51 affordable rental
units on properties located at 217-219 South Birch Street, 435-437 South Birch S#reet, 2034-203$
North Bush Street and 605-611 East Washington Avenue, and authorize the Executive Director of
the Housing Authority or their designee to execute all documents as necessary.
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION
At its Regular Meeting of September 20, 2011, by a vote of 7:0, the Community Redevelopment
and Housing Commission recommended that the Housing Authority adopt a Resolution
Authorizing the Issuance of Multifamily Housing Revenue Bonds.
DISCUSSION
The City, Community Redevelopment Agency (Agency) and Housing Authority, have previously
approved loans and a Disposition and Development Agreement (DDA) with Santa Ana WBBB, LP,
which is comprised of Orange Housing Development Corporation, anon-profit 501(c)(3), and C &
C Development Company, LLC. The City and Agency loan funds were contingent on the
developer receiving approval for both atax-exempt bond allocation through the California Debt
Limit Allocation Committee (CDLAC} and tax credits. The developer has now received notification
that they were successful in securing the allocation of tax credits and tax-exempt bonds. In order
for the developer to close escrow, the Housing Authority must adopt a resolution authorizing
issuance of the bonds.
Although the tax credits and bonds were applied far under one application, the funds will be
expended on four separate housing projects (Exhibit 1}. In June 20'10, the Devebper acquired the
Resolution Authorizing the Issuance of Multifamily Hauling Revenue Bonds
October 3, 2011
Page 2
foreclosed vacant lots at 605-611 East Washington using Neighborhood Stabilization Program 1
Funds. Later in March 2011, the City and Agency approved development loans with the
Developer. The project will consist of 36 multifamily rental units (Exhibit 2} which will be rented to
extremely low income families (at or below 30% of the Area Median Income (AMl}} and very low
income families (at or below 50% of AMI}. The one remaining unit will be designated as a
manager uni#. The project will have 8 twabedrooms, 27 three-bedrooms and 1five-bedroom.
The table below breaks down the level of affordability.
fi05-611 E. Washington Avenue
No. Of Bedrooms 30% AMl 50%AMI
# of Units # of Units
2 0 8
3 4 22
5 0 1
The other three sites, 217-219 South Birch Street, 435437 South Birch Street, and 2034-2038
North Bush Street (Exhibit 3) were Agency-owned properties that were part of the Infill Request for
Proposal (RFP). On September 7, 2010, a DDA was approved with Santa Ana WBBB, LP, for the
development of the three Agency-owned infill sites. Under the proposed DDA, the Agency will
convey three si#es which will all be developed into rental units affordable to very low-income
households {50%AMI).
2034-2038 N. Bush, 217-219 S. Birch and 435-437 S. Birch
All 50%AMI
No. Of Bedrooms
2034-2038 N. Bush
2'17-219 S. Birch
435-437 S. Birch
# of Units # of Units # of Units
z 2 2 2
3 3 3 3
The developer will begin construction in October and November. They anticipate that construction
on both Birch parcels and Bush will take 10 months. Washington's construction schedule is 13
months. All projects should be completed in December 2012.
Construction of these units will assist the City and Agency in meeting the Regional Housing Needs
Assessment (RHNA} goals identified in the Housing Element, Consolidated Plan and the
Implementation Plan. In addition, the five-bedroom unit in the Washington Project will fulfill the
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Resolution Authorizing the Issuance of Multifamily Housing Revenue Bonds
October 3, 2011
Page 3
only outstanding replacement housing obligation far the Agency. All the units will have 55 year
affordability restrictions.
The bonds are considered "conduit" obligations. This means that the Housing Authority will issue
the bonds, but the developer is the borrower and is responsible for repayment. The bonds are
repaid strictly from the developer's revenues generated by rents. 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, Bank of America, as a private placement. The law firm of Quint
& Thimmig, LLP 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, an
annual fee in-lieu of property tax payments, 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 (13318002-57893}.
~~~ ~~~~
~ Shelly Landry~Bayle
"~5~-Housing Manager
Community Development Agency
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez
Executive Director
Finance & Management Services Agency ~i
NTEISLBIJPHIsr
Exhibit: 1. Map
2. Washington Site Plan
3. Birch, Birch, Bush Site Plan
4. Resolution
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