AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 10/17/2018
TO: Honorable Mayor and City Council Members
FROM: Community Development Department
SUBJECT:
Title
Public Hearing for City Council consideration of Resolution No. 2018-107, approving the issuance of tax-exempt revenue bonds by the California Municipal Finance Authority in an amount not to exceed $25,000,000, for the purpose of financing the acquisition and rehabilitation of Corona Community Villas (located at 2680 S. Main Street).
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RECOMMENDED ACTION:
Recommended action
That the City Council adopt Resolution 2018-107 approving the issuance of revenue bonds by the California Municipal Finance Authority in an aggregate principal amount not to exceed $25,000,000 to finance the acquisition and rehabilitation of an affordable rental housing complex for senior citizens located at 2680 S. Main Street, Corona, California.
Body
ANALYSIS:
Corona Community Villas located at 2680 S Main Street is an existing affordable housing multiple family residential complex for senior citizens and contains 75 for-rent units. The city's General Plan Housing Element shows the 74 units (manager's unit not included) being at risk of losing its current funding under its current revenue bond. The current property owner is Corona Community Villas, Inc; however, Thomas Safran & Associates Development, Inc. is in the process of acquiring the property and is proposing to preserve the affordable housing units by requesting the California Municipal Finance Authority (CMFA) to serve as the municipal issuer of tax-exempt revenue bonds in an aggregate principal amount not to exceed $25,000,000 (Bonds). The new owner is also seeking tax credit financing in an amount not to exceed $8,000,000. The new owner will be renamed Corona Villas Housing LP (Borrower), a California limited partnership between Thomas Safran & Associates (TSA) and Housing Corporation of America (HCA). The bond and tax credit proceeds will be us...
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