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MARCH 6, 2000
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MORTGAGE REVENUE BOND
INDUCEMENT - CORNERSTONE
VILLAGE
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~~GOF~DiEVG SC~i~`1'AF~Y USA {)AIt.,Y:
AP~'RC~VED
E~ As Recommended
L~ As Amended
C:ON~'lNUEf~ TO
Adopt a resolution relating to the issuance of bands for the purpose of
financing the acquisition anal rehabilitation of multifamily residential
rental projects and related facilities within the Cornerstone Village
Project .
DISCUSSION
The Housing Authority has developed a multifamily acquisition and
rehabilitation bond-financing program to address the renovation
requirements of affordable rental. housing. Orange Housing Development
Corporation has recently acquired forty units within the Cornerstone
Village Project and is currently negotiating for additional units.
Orange Housing Development Corporation (OHDC) is requesting that a
resolution be adopted by the Housing Authority indicating its intent to
issue bonds to finance their acquisition and rehabilitation of properties
within the Cornerstone Village Project area. The adoption of this
resolution is necessary for OHDC and this project to be eligible for tax-
exempt mortgage revenue bond financing and receipt of a bond allocation
from the California Debt Limit Allocation Committee (CDLAC).
The resolution of intention is nonbinding 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 tax-
exempt bonds, federal and state law require that 20 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, and a management plan far review and approval prior to the
Housing Authority's final action with respect to the issuance of bands.
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Mortgage Revenue Bond Inducement -
Cornerstone Village
March 6, 2000
Page 2
Although all recommended actions of the Housing Authority of the City of
Santa Ana are first reviewed and acted upon the Redevelopment and Housing
Commission, in this case there is insufficient time to process this
request through standard procedures and meet the CD~,AC application
deadline. 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 for the
Housing Authority to take action..
FISCAL IMPACT
There is no fiscal impact associated with this action.
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Cynthia J. Ne son
Executive Director
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