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Anaheim, CA 92805
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HOUSING AUTHORITY AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: OCTOBER 4, 2022
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: RESOLUTIONS OF THE ANAHEIM HOUSING AUTHORITY
REGARDING ITS INTENTION TO ISSUE MULTIFAMILY
HOUSING REVENUE BONDS AND AUTHORIZING THE
ISSUANCE OF ITS MULTIFAMILY HOUSING REVENUE
BONDS FOR THE BUENA ESPERANZA APARTMENTS
ATTACHMENT (Y/N): YES ITEM # 01
RECOMMENDATION:
That the Governing Board of the Anaheim Housing Authority, by Motion:
1) Adopt a Resolution of the Anaheim Housing Authority regarding its intention to issue tax-exempt obligations for Buena Esperanza Apartments. 2) Adopt a Resolution of the Anaheim Housing Authority authorizing the issuance of its Multifamily Housing Revenue Bonds in one or more series, in a cumulative and aggregate principal amount not to exceed $1,360,000, for the purpose of providing additional financing for the acquisition and rehabilitation of the Buena Esperanza Apartments (formerly known as Jamboree Anaheim PSH Apartments) Multifamily Rental Housing Project; approving and authorizing the execution and delivery of any and all documents necessary to issue the bonds, substantially in the form attached hereto, complete the transaction and implement this Resolution, and ratifying and approving any action heretofore taken in connection with the Bonds.
DISCUSSION:
Jamboree Housing Corporation (Developer) previously requested that the Anaheim Housing Authority issue tax-exempt bonds in an amount not to exceed $12,200,000 to finance the Developer’s acquisition, rehabilitation, and conversion of the 70-unit Econo Lodge motel located at 2691 W. La Palma Avenue to a Permanent Supportive Housing apartment community. Bond financing has been used periodically to assist in the acquisition/rehabilitation and conversion of apartments for the creation of long term affordable housing and new construction affordable housing projects. To that end, the Anaheim Housing Authority (Authority) adopted a resolution regarding its intention to Buena Esperanza PSH Apartments Inducement Resolution and Bond Issuance Resolution October 4, 2022
issue such bonds on July 30, 2019 and subsequently approved the Bond issuance on March 24, 2022.
The Buena Esperanza PSH Apartments (Project) was completed in July 2021 and is now fully leased and operational providing 69 studio units for individuals who are exiting a chronically homeless condition. In February 2022, the Developer reached out to the City requesting an amendment of the bonds to issue an additional $1,360,000 for the Project due to significant cost overruns experienced by the Project during construction. City staff and the City’s financial consultant reviewed and confirmed the cost overruns experienced by the Project which were caused by labor shortages and material cost increases during the COVID-19 pandemic.
The item before you will authorize the Authority to proceed and issue up to $1,360,000 in tax exempt Multifamily Housing Revenue Bonds (Bonds) and loan the proceeds of the Bonds to assist with the Project cost overruns caused by the COVID-19 pandemic. The Bonds will be “privately-placed,” with a commitment from California Community Reinvestment Corporation (CCRC) and U.S. Bank National Association to purchase the Bonds. The Bonds are to be repaid solely from Project revenues; accordingly, there is no default risk to the Authority should the Developer fail to meet its repayment obligations.
IMPACT ON BUDGET:
There is no budgetary impact. The Housing Authority is not incurring any obligation for payment of the bonds issued under this action. The bond payment obligation is borne by the Developer of the project and will be paid from project revenue.
Respectfully submitted,
Grace Ruiz-Stepter
Executive Director of Anaheim Housing Authority
Attachments:
1. Inducement Resolution
2. Bond Issuance Resolution
3. First Amendment to Regulatory Agreement
4. First Supplemental Loan Agreement
5. First Supplemental Indenture Agreement