HomeMy WebLinkAboutMiscellaneous Revenue Bonds Relating to Medical Office Buidi REQUE�5T FOR CITY COUNdI/L 'ACTION j E7-84
Date December 21, 1987
Honorable Mayor and City Council Members
Submitted to:Submitted by: l
Paul E. Cook, City Administrator . e_
Douglas N. La Belle, Deputy City Administrator/Commu t veloi;
Prepared by:
INDUCEMENT RESOLUTION - U.R.O. DEVELOPMENT
Subject: ByC 6UN!CiL
Consistent with Council Policy? a9 Yes [ J New Policy or Excep io
Statement of Issue, Recommendation,Analysis, Funding&)urce,Alternative Actions, ttachments:
STATEMENT OF ISSUE:
U.R.O. Development has requested the City to sell taxable bonds to finance a new
medical office building on Beach Boulevard. Attached for the Council's consideration Is
an Inducement Resolution regarding this potential financing.
RECOMMENDATION:
Approve and authorize the Clerk to execute the attached Inducement Resolution to
provide taxable bonds for the permanent financing for U.R.O. Development for a
medical office building on Beach Boulevard in an amount not-to-exceed $7.5 million.
ANALYSIS:
U.R.O. Development has constructed a medical office building located at
17742 Beach Boulevard (adjacent to Humana Hospital) including parking and
appurtenant facilities and the developer Is seeking permanent financing for this project.
The developer has requester the City to consider the sale of taxable bonds to provide
the permanent financing for this project. While the bonds will be taxable, the Interest
rate would stir! superior to that available on the conventional market and the sale of
such bonds wou offer an inducement to the developer.
To sell such bonds will require the subsequent adoption of a procedural ordinance by the
CityCouncil. This is a requirement of the City's charter and such an ordinance will be
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presented to the City Council for its consideration at a subsequent meeting If the
attached resolution is approved.
It is also Important to note, that a: the request of the developer, the
underwriter/investment banking firm handling this project will differ from that usually
user, by the City k:he banker for this transaction will be First California Regional
Securities, Inc. of Long Beach). An Indenture of Trust and other documents necessary
to consummate this financing will be presenteO to the City Council at a subsequent
meeting for Its consideration.
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RH 87-84
December 21, 1987
Page Two
FUNDING SOURCE:
The City Incurs no financial liability for payment of the bonds which are secured by a
Letter of Credit or other Instrument from a banking Institution. Further, the City will
receive Its usual one-half of one percent Issuance fee.
ALTERNATIVE ACTION:
Do not approve the attached Inducement Resolution.
AT rACHMENT:
1. Inducement Resolution.
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RESOLUTION NO. S + -3 0 f
A RESOLUTION OF THE CITY COUNCIL OF THE. CITY OF
HUNTINGTON BEACH EXPRESSING ITS INTENT TO ISSUE
BONDS FOR THE PURPOSE OF PROVIDING FINANCING FOR
CERTAIN MEDICAL OFFICE BUILDING FACILITIES
WHEREAS, Beach Medical Associates, a California general
partnership, on behalf of itself and its successors and assigns,
has applied to the City of Huntington Beach to issue its bonds for
the purpose of providing permanent financing for the medical
office building located at 17742 Beach Boulevard in the City of
Huntington Beach, including parking and appurtenant facilities:
and
It is in the public interest and for public benefit that the
City of Huntington Beach declare its intent to issue bonds for the
aforesaid purpose.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Huntington Beach that:
1. The City of Huntington Beach hereby declares its intent
to authorize, issue and sell bonds of the city pursuant to the
City Charter, in a principal amount not to exc_ed $7,50010001 for j
the purpose of providing financing for the project. .Y
2. The City of Huntington Beach hereby declares its intent
to take all action necessary or advisable in connection with the
authorization, issuance and the sale of the bonds and the
execution of any necesary or advisable financing agreements for
the project.
3. The bonds shall be the limited obligations of the city
payable solely from the trust estate to be defined in the
indenture authorizing the bonds, and shall not constitute an
indebtedness of the city or a loan of credit thereof within the
meaning of any constitutional or statutory pro• : sions.
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4 . The authorization, issuance and sale of the bonds shall
be upon such terms and conditions as may be mutually agreed upon
by the City of Huntington Beach, Beach Medical T.ssociates, and the
purchasers of the bonds, and shall be subject to completion of
proceedings for authorization, issuance, sale and delivery of the
bonds by the city.
5. The proceeds of the bonds shall include such related and
necessary issuance costs, administrative expenses, debt service
reserves and interest payments as may be required to accomplish
the financing successfully.
6. The City of Huntington Beach shall. not be subject to any
pecuniary liability as a result of adopting this resolution.
PASSED AND ADOPTED by the City Council of the City of
Huntinaton Beach at a regular meeting thereof held on the
day of , 19
Mayor
= ATTEST: APPROVED AS TO FORM:
City Clerk /g.. .. City Attorney _�_��
REVIEWED AND APPROVED: IN TIATED AND APPROVED:
City Administrator Dire t r of Communi :.y
Deve o ment
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CITY OFHUINTiNGTO�N BEACHCA 88-2
COUNCIL • ADMINISTRATOR COMMUNICATION
\
To Honorable ;Mayor and From Paul E. Cook
City Couacll Members City Administrator
I P Nx,..4
Subject SALE O1; BONDS FOR Date January 4, 1988
PRIVATE PROJECTS
In past years the City has been active In the sale of bonds to provide the long-term
financing for a variety of private projects. Jn the past, thls Included two (2)
single-family mortgage revenue bond Issues which provided perman-tnt loans for first
time home buyers as well as a variety of tax exempt bonds used to finance private
multi-;amIly rental housing projects. Since the passage of the Tax Reform Act of 1986,
the opportunities to provide tax exempt bond financing for private projects are severely
limited. However, the City does have the discretion to issue taxable bonds to provide
financing for private projects.
In the past, the City's policy has been to accept any request from a developer for bond
financing, prepare an Inducement resolution, and forward this to the City Council for Its
consideration. Since the passage of the Tax Reform Act only one such request has come
forward for a private project (URO Development; for a medical office building on Beach
Boulevard). While this would be the first time that the City provided taxable bonds for a
private project It Is consistent with the t:xisting Policies and Procedures. However, the
action Is clearly descretionary with the Council.
It is Important to note that any bonds (taxable or tax exempt) issued by the City on
behalf of a private project, are NOT a financial obligation of the City. All the pertinent
documents necessary to culminate a bond Issue explicitly state this. Further, In all such
private transactions there Is a financial Institution which stands Letween the Issuer (the t
City) and the Developer. This Institution takes the "credit risk" In the transaction. Most
often this takes the form of the provision of a Letter of Credit offered by the financial
Institution. This Letter of Credit pays the bond holders all principle and Interest
payments due upon any default by the developer. In exchange, the Letter of Credit
provider secures a note against the real property as In any real estate loan transaction.
The provision of taxable or tax exempt bonds for a private project results I: a below
market Interest rate for a project. Taxable bonds offer the advantage that, because
federal income tax Is paid on the interest earnsd by bond holders, these bonds are
exempt from most of the provisions of the Tax Reform Act of 1986 and fall under no
state volume cap. Therefore, the provision of taxable bands is viewed as a part of the
City's on-going economic development program to provide Inducement to private
sponsors of projects of economic benefit to the community. If you have any questions,
we will be happy to respond.
Respectfully submitted,
Paul E. ook
City Administrator
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CITY OF HUNTINGTON BEACH
TAX EXEMPT FINANCING POLICIES AND PROCEDURES
DUNE, 1985
A. POLICIES
Under the authority granted by Federal and State statute, and the City's Charter, the
City and/or the Redevelopment Agency may provide tax exempt financing for:
single-family housing, multi-family housing both new or acquisition with rehabilitation,
fand to a limited extent, office, commercial and Industrial facilities.
1. Financing Team
The CIty currently has under contract a team of professionals to conduct tax
exempt financings:
Scott Sollers, VIce President
Stone do Youngberg
One California Street, -.-ilte 2800
San Francisco, California 94111
(415) 981-1314
Andy Hall, Partner (single-family housing)
Charles F. Adams (industrial/commercial facilities)
Edsel Eady (multi-family housing)
Jones, Hall, Hill do White
Four Embarcaderu Center, Suite 1951.1
San Francisco, California 94111
(415) 391-5780
Other participants r� be used to conduct a financing with approval fr)m the
City or as staff determines that due to workload or special nature of a financing
that other participants are advisable. Stone and Youngberg will be I'managWI or
"co-manager" on all Issues.
2. Location
�I
The City/Redevelopment Agency may provide tax exempt financing within
"designated target areas". These are as follows:
For non-residential projects within the:
Oakview Redevelopment Project Area
Talbert-Beach Redevelopment Project Area
Main-Pier Redevelopment Project Area
Yorktown-Lake Redevelopment Project Area;
Redevelopment Survey Areas:
Gothard industrial Corridor Survey Area
Beach Boulevard Commercial Corridor Survey Area
Other areas as may be sub!equently specified, or as may be endorsed on
a case by case basis.
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For Single-Family and Multi-Family Housing
These types of projects may be financed anywhere within the City (for
multi-family housing projects, the Redevelopment Agency may require a
first right on a portion of the units financed as replacement/relocation
housing).
3. issuance Fee
The City charges one-half of one percent of the total amount of any bond issue as
an "issuance fee" to cover the City's administrative costs In the preparation and
sate of the Issue. This fee is in addition to any loan origination or other fees or
equity requirements which may be Imposed by the lender. The City Issuance fee
may be paid from bond proceeds and Is due and payable In full on the closing date
of the Issue.
For single-family financings, developers will be required to post the one-half of
one percent commitment fee In cash or letter or credit prior to the
commencement of the transaction
B. PROCESS
1. Receipt of developer submission.
2. City Council/Agency adoption of Inducement resolution
Note: Development entity should not take title to land nor open escrow nor
execute optior, prior to the passage of this inducement resolution for any project
except single-family rousing, if the land acquisition is to be included as part of
the financing.
3. Entitlement Processing
The City/Agency prefers that all entitlement processing be complete and the
project be approved by the City (except plan check) prior to the adoption of an
Inducement resolution, If possible. If this Is not possible, developer should have
applied for all discretionary City approvals and should have received a date upon
which approval of the project will be submitted to the City Council or Planning
Commission for consideration.
4. Teleconference or meeting with underwriter, bond counsel, Agency, developer and
lender to discuss structure, costs, timing of issue, preparation of a schedule, and
the Identification of all participants' responsibilities.
..5. Structure Financing/Prepare Documents
6. Market Bonds
7. Close Escrow/Proceeds Available
(City Issuance fee due)
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0348H
CITY OF HUNT114GTON BEACH
CAPITAL FINANCE PROGRAM
Developer Participation Criteria
1. Housing Project
Priority will be given to those projects that provide one or more of the following:
a) blousing units consistent with the needs Identified In the City's adopted Housing
Element of the General Plan and the adopted Housing Assistance Plan.
b) Twenty-five percent (25%) or more of the project's units as affordable; defined as:
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1) For Sale Units: Sales prices affordable to households earning no more than
150 percent of :he County's median household Income as established by the j
Orange County Housing Development Office.
2) Rental'UnIts: Rents that do not exceed 30 percent of the monthly gross
Income of households earning no more than 80 percent of HUD's published
median Income for the Santa Ana/Anaheim/Garden Grove SMSA.
c) A relocation/replacement housing resource for displacees of the CIty's
Redevelopment Agency.
2. Multi-Family Housing (Acquisition and Rehab:) 1
a) Priority shall be given to:
Projects within or adjacent to redevelopment project areas;
Projects which are twenty years of age or older; and/or
Projects which exhibit clear signs of deterioration.
b) Financings al be conducted for other projects subject to the following
conditions: !
A minimum of 30 percent of the units are reserved for occupancy by lower
Income household_.;
A share of the units within the project be offered (upon the completion of the
rehab) on a first right of refusal basis to the Redevelopment Agency as
replacement relocation housing;
The normal issuance fee of one-half of one percent will be increased too one
ercent with the proceeds to be used to assist In financing the rehabilitation
o severly deteriorated multi-family housing at other locations within the
city.
3. Industrial/Commercial Projects
Priority will be given to those projects that provide one or more of the following:
_aT Are developed by entities with hea,lquarter offices In Huntington Beach;.
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b) Provide expansion opportunities to existing Industrial/commercial firms in
Huntington Beach;
c) Provide the: opportunity to consolidate parcels or develop large parcels to
facilitate office/industrial park environment.
d) Projects that prov' a facilitles or services not now avallabic.:Ih Huntington Beach
or that are currently flabk-off-ofth-z-t i ed or insufficient basis.
e) Commercial projects with high rate of taxable sales/square foot of development.
f) Labor Intensive Industrial or commercial projects that generate a high number of
new jobs/square :oat of development.
g) Sponsors of facilities that provide private transportation services for employees
as alternative to private automobile use to and from place of employment (car
pool, van pool).
h) Projects that will provide facilitates or services of a regional, State-wide, or
National basis (i.e., regional headquarters).
I) Projects that will attract high rate of ancillary uses (i.e., subcontractors,
suppliers, etc.).
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CITY OF HUNTING rON BEACH
CAPITAL FINANCE PROGRAM
Developer Submission Requirements
Prior to selection as a participant in a tax exempt financing, all developers must submit
the following Information:
I. Acceptable Evidence of Site Control
a) Title is shown by records of Orange County Assessor to be vested In the person or
entity that Is proposing to develop the property.
b) If title is shown In records of the Orange County Assessor as vested in another
person or entity - then an authorization letter from current owner is required.
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c) Copy of .ption to purchase.
d) Copy of executed lease for property.
2. Identification of Developing Entity
a) Identification of entity to develop projec: as limited or general partnership, joint
venture, California corporation, or other.
b) Identification of principals or corporate officers and a background resume for I
each.
3. Developer Experience
I
a) A detailed resume of previous experience of the developing entity or Its
participants Is required. This should Include, but is not limited to, a listing of
previous projects, the location, nature, size, number of units, cost and year built.
The resume should also state whether the project Is still owner and/or managed by
the developing entity or any of its participants.
b) If the r:aveloping firm is publicly held, an annual report must be provided; If the
firm Is privately owned, a profit/Jess statement for the last three years (including
dollar volume of sales) must be provided.)
4. Project Information
The following must be submitted:
al Location of site - assessor's parcel map required.
b) Number of Units, unit size, number of bedrooms, approximate rents/sale prices,
amenitles to be provided.
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c) Preliminary pro-forma for project. (Construction and operating for multi-family
projects).
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d) IdentificatIcl of entitlement-to-use requirements and status of application(s).
e) Total principal amount of tax exempt financing to be requested.
f) Development drawings of the project are requested, If available, Including site
plan, elevations. and typical unit plans of a nature suitable for submission to a
bond rating agency.
g) Construction Schedule.
5. Indemnity/Hold Harmless
Each packet as described above must also be accompanied by an executed copy of the
City's "Indemnity/Hold Harmless" Agreement. Through this document each project
sponsor Is required to submit a deposit of $2,000 Immediately following the passage of
an Inducement resolution for the project. These funds will be used to cover
out-of-pocket expenses Incurred in the preparation of the financing should the Issue
not successfully close. II the Issue is closed, the deposit is off-set against the Issuance
fee. If the financing is terminated, any unused portion of the deposit will be refunded.
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OWN
Auth/fixed fo publish Adrerlisemenis of all►ends...,ludmo public
notices by oecree of the Superior Court of Orange County,
California, Number A•6214, dated 29 Seplember. 1961. and Gt�
A•2+831,dated 11 June. 1963 Gpt3
UY GtLK 1��".
STATE OF CALIFORNIA py1,1P
County of Orange ruac H0144 Adven,"•ce.aro
i np1 uc � r0a o .itth raa CS' K
f am a Citizen of the United Slates and a resident of r--IC NOTICE
PUBLIC NOTICE
the County aforesaid: I ain over the age of eighteen - P—
NCTICX O
PUBLIC HKAFMO•.
yetarr ;nd not a party to or interested in the below PROPOSED lowaNa ..
POLICY"PORT/. ',
entitled matter. I am a principal clerk of the Orange Lawlulct>11111 .
Coast DAILY PILOT. with which is combined the "SAS;MTANet[`
"NOTICE, IB HEREBY
NEWS-PRESS, a newspaper of general circulation, GIVEN THAT the CRY Coun-1
printed and published in the City of Costa Mesa, 0 of tin or Huntington l
tl6ach trw d a ri-Ant f+uv
County of Orange, State of California, and that a Ina asAUXR)$t -oral by Section
c t67 of tCy Intena►
Native of PUBLIC HEARING mae°Yth aenus�i Mondruj�Octo-
ber ,{
I pcp OataiclQPopcy Raw to t
W trablIshod by the Chi Cl f
!i•mtington Roach cords:n•!
Ing a statement of the POU•'
aft hweling,do-.
of which copy attached hereto is a true and complete �� nopr`isril.-and favW=mC
copy, was printed and published in the Costa Mesa, I"odby�Ito q�:
Newport Beach, Huntington Beach. y t o ""DeCM b9 � �'
Fountain Valve monp,ppsacrt+dnrartineat.s.-
The City•01 Huntington
Irvine, the South Coast communities and Laguna 13uch pr*VAu*.putrlishad
a Housing.Poeeiaa napart:
Beach issues of said newspaper for -Ot7T' TiNF for n,c l yw,n+,d1n�polo.;
ber a1,1fIs.TM CIIy ct!�•;
7;XXXXtit>oNYAL10x to wit the issue(s) of w Pena receding done Y Ot
pais wrh the City
cl Corgrwa
that the City of Huntlnrton
Beach use Its Authority to
-issue quiltAed. mortga a
October 10 128 art�ttiuirs�s to the 4i
extent faal:ule to sestet
Wwsr nconts tamil"to at-
i S 76 ford home ownerahlp before
Ili &Wiling NOW ftme IV"-
Mrs.The mating wta,rr a �orM
};.�. me at 7:30 p.m.ad n will
be hold in the Courcii
C14mbers at City HID.Hunt-
Ington Such. Caltlornla:
Imersrteri Indh ousls Vdw',
1ng to express thei vwm on
th.t Polity Report will be
given the op Welty to do
so at the Hoseln^cr
_ mity,prior to the thne Date
heating,submgwrtitarteorn-
marts to sum Janes Help-
or at 2000 MW street.Hunt•
Inpton 804 h•. CAUI^rnla
declare, under penalty o+ r::rji- a 9264°intar'aAtadrtrhitl,aiamay
foregoing is true and corrc,t. obtain. copes of the
proposed Policy Report
prior to the Hstwv at the
Rsd#*opnml ofeas At tha
Executed an October l o 198 6 aboV*Msnticrt dAddrsss.
Dated:ocubw e.104'
t =3Z
if c�ci y of Hun'i�te
Pub'auud OrArgt Cant
Catty Pill Dueler 10. I9e6r401
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. REQUES r FOR CITY COUNCIL ACTION
RH 86-77
Date October IQ. 1996
Submitted to: Honorable Mayor and City Council Members 1
Submitted by: Charles W. Thompsor:, City AdmInistrator��.`
Prepared by: Douglas N. La Belle, Deputy City Administrator/Redevelopmen .
Subject: PUBLIC HEARING AND ADOPTION OF HOUSING POLICIES REPORT
SINGLE FAMILY MORTGAGE REVENUE BONDS
Consistent with Council Policy? ( Yes [ j New Policy or Exception .
J
Statement of�lssue, Recommendation,Analysis, Funding Source,Alternative A01ons,Attachments: l
STATEMENT OF ISSUE:
Pursuant to the Tax Reform Act of 1984 (Sections 611 and 103A(1)(5), as enacted by
Congres!4 the city Is required to file with the Internal Revenue Service a "Hou=ing
Policies Report" prior to the Issumice of Single Family Mortgage Revenue Fronds.
RECOMMENDATION:
After the conduct of the required public hearing, adopt the attached "Housing Policies
Report" and adopt Resolution No.m, a resolution of the City Council of the city of
Huntington Beach, California, approving and directing publication of a "Housing Policies
Report."
ANALYSIS:
The California State Legislature has found that within the State of California there
exists a serious shortage of decent, safe, and sanitary housing which Is affordable to
many persons in the State. ThiE shortage Is exacerbated during periods of rising
Interest rates, particularly as high Interest rates have the effect of preventing
credit-worthy buyers from qualifying for private sector mortgage capital sources. In
order to remedy this adverse effect on potential buy..s on the lower end of the
purchasing spectrum, It is necessary to Implement a public program to reduce the cost
of mortgage financing for the single-family purchaser unable to compete for mortgage
financing In the conventional mortgage market. The State has declared that It Is
necessary and essential that cities be authorized to directly and indirectly make
long-term, low Interest rate loans to persons not presently eligible for financing through
private-sector lending Institutions to finance construction and acquisition of homes in
'! order to encourage Investment and upgrade local areas. Via Its participation In the
Single-Family Mortgage Revenue Bond Program, the city of Huntington [leach has
responded to the increasing demand for affordable housing.
WIth the passage of the Tax Reform Act of 1984 (enacted Into law on July I E, 1984),
local jurisdictions are now required to prepare a Statement of Policies publication prior
to the Issuance of mortgage revenue bonds. This Statement of Poli_Ies, the "housing
Policies Report," addresses housing, development; and low-income housing assistance as
required by the law. The Housing Polic?es Report must be adopted by the local
legislative body at a public Dearing preceded by reasonable public notice. After
adoption, the Housing Policies Report must be published In a newspaper of general
circulation and then forwarded to the United States Department of the Treasury.
Pro sins i
RH 86-77
October 10, 1986
Page Two
The'adoption of the Housing Policies Report by the City Council Is simply a procedural
requirement, and no commitment to issue mortgage revenue bonds on the part of the
fcity will be made until such time as the Council approves the documents for financing.
1
ALTERNATIVES:
Do not approve; the Housing Policies Report.
FUNDING SOURCE:
Costs paid from bond proceeds. City Issuance fee of one-half of one percent will be
assessed and paid at closing should this financing be consummated.
j ATTACHMENTS:
1. Housing Policies Report 1986.
2. Resolution No.
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PUBLIC NOTICE
NOTICE OR
j PUBLIC HEARING PROPOSED
HOUSING POLICY REPORT/
LOW INCOME HOUSING ASSISTANCE
i
NOTICE IS HEREBY GIVEN THAT the City Council of the City of Huntington Beach will
hold a public hearing as required by Section 103A(J)(5) of the Internal Revenue Mde, at Its
regular meeting on Monday, October 20, 1986 to consider a proposed Policy Report to be
published by the City oS Huntington Beach containing a statement of the policies
regarding housing, development, and low-income housing assistance to be followed by It In
j issuing qualified mortgage bonds and mortgage credit certificates. The City of
Huntington Beach previously ablisned a Housing Policies Report for fiscal year ending
October 31, 1985. The City complied during the one year period preceding this report
with the Intent of Congress that the City of Huntington Beach use It:: authority to Issue
quail fled mortgage bonds and mortgage credit certificates to the greatest extent feasible
to assist lower-income families to afford home ownership before assisting higher Income
families.
The meeting will commence at 7:30 p.m. and will be held Ir the Council Chamb.:rs at City
Hall, Huntington Beach, California. Interested Indl�:duals wishing to express their views
on this Policy Report will be given the opportunity to do =a at the Public Hearing or may,
prior to the time cf the hearing, submit written comments to Susan Jones Helper at
2000 Main Street, Huntington Beach, Ca!!fornIa 92648.
Interested Individuals may obtain copiea of the proposed Policy Report prior to the
t Hearing at the Redevelopment office at the abovementioned address.
I
Dated: October 6, 1986 t� —�0
Alicia M. Wentworth, City Clerk
CIty of Huntington Beach
r.�'a3r {
i
City of Iluntington Beach
95-6000723W
POLICY REPORT UNDER SECTION 103A
`I
` REQUES f FOR CITY COUNC ACT.' N
,�• RH 86-69
Date September S. 1986
Submitted to: Honorable Mayor and City Council Member
Submitted by: Charles W. Thompson, City AdmInIstra
Propered by: Douglas N. La Belle, Deputy City Administrator/Redevelopmen , A r�13
Subject: AMENDMENT TO SFMRB PROGRAM RULES AND REWLATIUNS... -" .
f
t K•lth Council Poll 7 Yes New Policy or Exception
Consistent cY Dd f j cy P
Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments:
STATEMENT OF ISSUE: i.
The Program Rules and Regulations which govern the maximum Income of buyers and
purchase price of homes In the city's Single-Family Mortgage Revenue Bond Program
were last amended In January 1986. Attached Is the appropriate resolution to update
the Incorle figure.
RECOMMENDATION:
Approve and authorize the Clerk to execute the attached resolution amending the
Program Rules and Regulations for the city's Single-Family Mortgage Revenue Bond
Program.
ANALYSIS:
The Sl~MRB Program Rules and Regulations stipulate the maximum Income. for
potential buyers In the program. While the median Income for the County of Orange Is
updated monthly the adjusted median income may not be used in the city's
Single-Family Mortgage Revenue Bond Program until the Program's Rules and
Regulations are amended. This is routinely done on a semi-annual basis; once'upon the
Issuance of anew bond Issue and once approximately six (6) months thereafter. The
program Is currently operating on the Income adopted as part of the Amended Rules and
Regulations in January 1986 since no new bonds were sold In the last eight (8) months.
The Program Rules and Regulations also stipulate the maximum purchase price of new
and existing homes participating In the program. This figure Is published once annually
by the Federal Treasury. No change in this Is necessary at this time.
ALTERNATIVES:
Do not approve the attached resolution. This will restrict the Income limits In the
city's Single-Family Mortgage Revenue Bond Program to those adopted In January 1986.
No 6/a6
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September S, 1986
Page Two
FUNDING SOURCE:
Approval results and no costs to the city.
ATTACHMENT:
Resolution No.vlo .
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Authaf'%ied to PuC4eh AdvarliMmmls of all lards including public
c notives by Decree of the superior Court of orange County,
Calllornis. Numbs A•6214, doted 29 September. 1961, and
A•24831.datild I June, 1963.
I �
STATE OF CALIFORNIA
County of Orange P„ore Ofti"Ad"M ie caww
OTWS�tN"mY WMtOar"
1 Olin to P"66%0 M/1!1
I sm a Citizen of the United States and a resident of
the County aforessld; I am over the age of eighteen
years, and not a party to or interested in the below
entitled matter. i am a principal clorl: of the Orange
Coast`DAILY.PILOT, with which is combined the
NEWS-PRESS, a newspaper of'general circulation,
printed and published in the City of Costa Mesa,
County of Cvangs. State of California, and that a
Notice of Housing Policies Report
of which copy,atlached hereto is a true and compItte
copy, was printed and published in the Costa Mesa,
Newport Beach,Huntington,Beach, Fountain Valley,
Irvine, the South Coast communities and Laguna
' Beach issues of said newspaper"for 1 time
xvx*1R aWA t~to wit the Issue(s) of
i October 24 198 5 }1+AaY. {;
,OAOR.ttaYat:Ya�
� ' NOVeIlIA'PO4la �'.fla';i
i COUNCL OF TW 0
O
198 t .� ..
aaram tt1,pan*t Y #,
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, 198 tuber• 1-1tWti,•
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Won Dead%.aft the dorM r
198 1dm-of;a &*
ales zr n dapbud Oman+.;
199 pap1�� 1teM0wdifflab i.r*:,k
itWopt�sotooer.it,•ee6 at
1f%1 dltloa'a t1%a at CAarw,
s000 Man',St
I declare, under enel of er u that theCAUL ..
P tY p 1 rY► AUMU.rRnrT1�'011rlll
foregoing is true and correct. a ciet�;,cttr'a rye.;
:tin Peach
J 'orange,Coot'a
DW pilot ogobar 24•110•�
Executed on October 28
at Costa M sza, Califor
i
Signature
r// —57
�• �• � 'ems 1` r� � '��
'�eonttid to Publish Advertisements of all kinds tnCludtrlg public
n;ices by Decree of the Sunertor Court of Orange County,
Californra, Nvmbar A•6214. dated 29 SeDtember, 1961. an7
A•21631,cat,,o 11 June, 1963.
V �
STATE OF CALIFORNIA
County of Orange ov*K Name Advonlwa Coveted
of IM 1telewt 11 so II 1 Ot>MI
Mth to 041 LW~•+din V
1 am a Citizen of the United States and a resident of `... ..
the County aforesaid; I am over the age of eighteen �N,�.�tor;,:;
ears, and not a art to or interested in the belowatraarj �ww�
y party
entitled matter. I am a principal clerk of the Orange
+:tftfufw+o A�NTtlMfCK�
Coast DAILY PILOT, with which is combined the oft COON
NEWS-PRESS, a newspaper of general circulation, rum `"'a"'t"itepky "
by eoalon;1 '"�01'.10
printed and•published in the City of Costa Mosa, buf�mAd fit+ .,
County of Orange, State of California, and that a doo, o. er"'�"ip a,:oo
Notice of Public Hearing to a Eb�yy
the sly of Hun�eneofi.
carrtektktp.e;. d
via
powe
d t�InilA:• "lad l�otwi
of which copy attached Hereto is a true and complete to tc1tott+eon0�film'
t�pitlfad.;t1►attt�ltg;t�baettte
cop,; was printed and published in the Costa Mesa, ana orl_Ypaae''oradlt
toe.7llawfrofrkerl•�
Newport Beach, Huntington Beach, Fountain Valley,
Irvine, the South Coast communities and Laguna is
1 biate ;darfrt�.lhe,orla.
Beach Issues of said newspaper for yw,,; p�t�1�ilt� �
tl01010r+tdCo+w
xtsaa6 X"49 NF to wit the Issue(s) of � �itIN
tobonft and roon-
t�aatt- +e
• October 10 5
198 ta._to attordi.tl0rrq'9�tR1•
' i'Ji,'.it10�}~rneelklYfY`;+OOH1•
• 1$e mar+a at lap .rNt�
� �tarrt and��
t !anon,•1o9irirfrrtre�
, Ise "r»#ad tr,dtwdtrrr..ttttwt►.:
S toe MNtr vM".wi
( � r�'�
19e
N:: noPrior to the t>rna a fun
r' , wt:ntt .twrttten
COMW198 at RM 1gNaADkt' IM
` I on z Meah,�Ca' nlr
it -,.•.,►A:., srr:. .y,
< mures:+rtptdlvldtrfan
oblvI�A ru;;of.ttht
I declarer under penalty of perjury, that the propiaad;2 far Aspen'foregoing Is true and correct. +l.,gat ``
:R000;.Maki•,BbrrK�Hurl-�
1en et1.a,.c•rfar�>�,..
October 1a Executed on 1198 a +e++
at Costa Mesa, California. �rbyif"or cow
Day filot oCtChM 10;im
Signature
l
A
REQUEoT FOR CITY COUNC u ACTION
• RH 85-57
Date October 4, 1985
Submitted to: Honorahle Mayor and CIty Council Members j
Submitted by: Charles W. Thompson, City Adminlitr
Pra{mred by: Douglas N. LaBelle, Deputy City Administrator/Redevelopmen
Subject: PUBLIC HEARING AND ADOPTION OF HOUSING POLICIES ORT I
SINGLE-FAMILY MORTGAGE REVENUE BONDS
Consistent with Council Policy? D4 Yes I J New policy or Exception
Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments:
STATEMENT OF ISSUE:
Pursuant to the Tax Reform Act of 1984 (Sections 611 and 103A9(j)(5), as enacted by
Congress, the city Is required to ille with the Internal Revenue Service a "Housing
Policies Report" prior to the Issuance of Single-Family Mortgage Revenue Bonds.
RECOMMENDATION:
After the conduct of the required public hearing adopt the attached "Housing Policies
Report'! and adopt Resolution No. .5.'59J, a resolution of the City Council of the city of
Huntington Beach, California, approving and directing publication of a "Housing Policies i
Report."
1
ANALYSIS:
In compliance with the Department of Treasury's requirements, staff has prepared a
Housing Policies Report pursuant to the Single-Family Housing Bond Regulatlrns to be
adopted by the City Council which must be filed no later than October 31, 1985.
The California State Legislature has found that within the State of California there
exists a serious shortage of decent, safe, and sanitary housing which Is affordable to
many persons In the state. This shortage Is exacerbat-ad during periods of rising Interest
rates, particularly as high Interest rates have the .?ffcct of diminishing the number of
otherwise credit-worth buyers from qualifying for private sector mortgage capital
sources. In order to remedy this adverse effect on potential name buyers on the lower
end of the purchasing spectrum, It_Is necessary to Implement.t public program to
reduce the cost of mortgage financing for the single-family purchaser; those persons
unable to compete for mortgage financing In the conventional mortgage market. ,The,
state has declared that it Is necessary and essential that cities be authorized to directly
and Indirectly make long-term, low-Interest rate loans to persons not presently eligible
for financing through private-sector lending Institutions to finance construction and
acquisition of homes In order to encourage Investment and upgrade local areas. Via Its
participation In the Single-Family Mortgage Revenue Bond Program, the city of
i
Huntington Beach has responded to the Increasing demand for affordable housing.
I `
t 1.
(1
PI O 4184
do
' J
RH 85-57
October 4, 1985
Page Two
With the passage of the Twc Reform Act of 1984 (enacted Into law on July 18, 1984),
local jurisdictions are.now required to prepare a publication of a Statement of Policies
prior to the Issuance of mortgage revenue bonds. This Statement of PolIcles, the
"Housing Policies Report," addresses housing, development, and low-Income housing
assistance as required by the new low. The Housing Policies Report must be adopted by
the local legislative body at a public hearing preceded by reasonable public notice.
After adoption, the Housing Policies Report must be made available for public review
and then forwarded to the United States Department of the Treasury.
The adoption of the Housing Polices Report by the City Council Is simply a procedural
requirement, and no commitment to Issue mortgage revenue bongs on the part of the
city will be made until --uch time as the Council approves the documents for financing.
ALTERNATT.`.'CS:
Do not approve the Housing Policies Report. This will pre-empt Issuance of
Single-Family Mortgage Revenue Bonds In future year
FUNDING SOURCE:
Costs paid from bond proceeds. City Issuance fee of one-half of one persent will be
assessed and paid at closing should this financing be consummated.
ATTACHMENT: {
1. dousing Policies Report 1985.
2. ResolutIon No. !
1
CWT/DL.p/SAJ:sar
1446h i
L �
• / rrw
NOTICE OF PUBL
S f) HO,U, jtjQ_PQ_LICY RBPORTJ
• LOCI INCOME HOU51PIG ASSISTANCE
Notice Is hereby given.that the City Council of the city of.Hun tington Beach will hold a
Public Hearing, as required by Section 103AO)(3) o: the Internal Revenue: Code, at Its
regular meeting on ,Monday October 21, 1983, to consider a proposed Policy Report to be
published by the city of Huntington Beach containing a statement of the policies regarding
housing,'development, and low-income housing assistance to be followed-by-it In Issuing
qualified mortgage bonds and mortgage credit certificates. The city of Huntington Beach
previously published a Housing Policies Report for fiscal year ending October 31, 1984.
The city complied during the one-year period preceding, this report with *the Intent of
Congress that the city of Huntington Beach use Its authority to Issue qualified mortgage
bonds and mortgage credit certificates to the greatest extent feasible to assist
lower-income families to afford home ownership before assisting higher-income families.
77ie meeting will commence at.7:30 p.m• and will be held In the Council Chambers at City
Hall, Huntington beach, California. Interested individuals wishing to express their views
on this Policy Report will be given the opportunity to do so at the Public Hearing or may,
prior to the time of the Hearing, submit written comments to Susan Jones at 2000 Main
Street, Huntington Beach, California 92648.
Intersted Individuals may obtain copies of the proposed Policy Report prior to the Hearing
at the Redevelopment Office at 2000 Main Street, Huntington Beach, California.
Dated: October 2, 1983
A-5Z C I A-
Alicia Wentworth
City Clerk
City of Huntington Beach
(714) 536-;227
144;'h
ii
'b
I
Aulnonsed to Publish Advoritsoments of all winds includingpublic ---1
notices by Decree of the Fupertor Court of Orange ounty.
California. Number A•621., dated 29 Seplember. 1961. and
A•24831.doled 11 Junc. 1963
STATE OF CALIFORNIA
County of Orange PVW NOW41 Ad""Iwv iovood
av tw am V4 IO a m t omnt
wm t0 pu toMmn NdM
I am a Citizen of the United States and a resident of
unty aforesaid.
am over,the age of
hteen
i t masand not a parrt I o or interested In thegbe ow
Y party
i entitled matter. I am a principal clerk of the Orange
Coast DAILY PILOT, with which is Combined the �� r ot.
NEWS-PRESS. a newspaper of general circulation, c��Y
printed and,published in the City of Costa Mesa,
County of Orange. State of California, and that a
Notice of Public Hearing
of which copy attached hereto is a true and complete
' copy. was printed and published In the Costa Mesa.
Newport Beach, Huntington Beach, Fountain Valley,
Irvine, the South Coast communities and Laguna
Beach issues of said newspaper for 1 time " ���+�'•.,,;
xtsRte9tGa?t49Wie►9fi9�to wit the Issue(s)of fl.i
NOT"00
' ,•�IC1itAlIM10.��'?
• iti��:i.;j.«M'^`fir^.i�r°
October 10 198 5 90wh k1wds 0
plan te+ltte UA.oeperartwtt
s t«�Iop�a or eba+w ao♦-'
198 #00-
lobo 81 low TM
yetr 11M�is to a>,t ptxbd�
Cyolober-•a,�19!j:l:trouClt•
1 J 8 No*@ is her����r�1 ihit�
50VA Will ON'
, 198 �,.�ty��•ne.how"
On the
ZOOM
i 198 lid Mein
�eeeceMunrs.t;
l, ono►-. M.rpto�s a'
t�aFrdi+sseifcw�r�q�Aki
I declare, under penalty of perjury, that th-i the. f''"1 d°'0'
P Y P 1 fYt ,PPZZ°a ws,Huril
iorogoing is true and correct.
Foe from II.fiO A.K to kQ
�t
EX0Cl1t@d on October 10 ! 1av S ryy� :.•. .
f ook oaooer 8.10"
at Costa Me=Callfor�n�la , INI .a em
Deny pqM At:lttb�r it�ISO
Signature
t
REQUEo T FOR CITY COUNQL ACTION, $5_58
Date October 10, 1985
Submitted to: Honorable Mayor and City Council Members
Submitted by: Charles W. Thompson, City Administrator
Prepared by: Douglas N. La Belle, Deputy City Administrator/Redevelopmen
Subject: APPROVAL OF THREE YEAR HOUSING ASSISTANCE PLAN,(HAP) GOALS
FOK O�CTOGBBER 1, 1985 THROUGH SEPTEMBER 3001988 AND APPROVE
Consistent with Council Pocy�AL FQ �C�TOBERi 1r8�SPoqcly OU �pF.t�nEMAEIt 309 1986
Statement of Issue, Recommendation,Analysts, Funding Source,Alternative Actions,Attachments:
STATEMENT OF ISSUE:
3 As part of the HCD Block Grant Program, It Is mandated by Federal regulation that
i every three years and annually the city must submit a Housing Assistance Plan (HAP)
which identifies the city's goals for such assistance for the Federal Government.
Attached Is the proposed HAP for next three years as well as the HAP for the 1983/86
Federal Government fiscal year. It I.- required that the City Council conduct a public
hearing prior to the approval of the HAP.
RECOMMENDATION:
4 After conducting the public hearing, approve and authorize staff to submit the attached
HAP for the Federal Government FIscal Years 1985-1988.
ANALYSIS:
As a participant In the CDBG Program, the city Is required every three years to submit
to HUD a HAP stipulating Its goals for the upcoming three Federal fiscal years. Every
year the city submits an annual goal as well. The HAP presented to the Council for
consideration at this time represents the three year goal and year one of this three year
period.
Data presented,in this HAP have been prepared by it-ff using figures provided by the
Los Angeles Office of HUD, the Orange County Housing Authority, and staff population
projections. The NAP goals relate not only to those projects which may Include Federal
subsidies, but all actions to be taker, by the city through the next three years which may
address recently Identified housing needs within the community.
i Also, It should be noted that the goal for the only source of Federal housing assistance
the Section 8.Housing Assistance Payments Program carried out by the Orange County
Housing Authority, may appear somewhat high In light of the resources available. This
Is done Intentionally since the city cannot accept housing assistance In excess of a
stated goal. Therefore, should some unforeseen Increase In Federal assistance for this
program occur during the term of this HAP, the city will be In a position to take
advantage of It.
P10 4/84
RH 85-58
October 10, 1985
Page Two
FUNDING SOURCE:
U. S. Department of Housing and Urban Development; Housing and Community
Development Block Grant fun.:s.
ALTERNATIVE ACTIONS:
The HAP Is a mandatory part of the city's participation In the CDBG Program and must
be submitted to HUD no later than October 319 1985.
ATTACHMENTS:
i HAP Three Year and Annual Goals and attached narrative.
CWT/DLB/SAO:sar
1476h
Farm Appioved
- OMB No.2506.0031
U.S.DEPARTMENT OF HOU5INO AND URBAN DEVELOPMENT 1.NAME OF COMMUNITY
COMMUNITY DEVELOPMENT BLOCK GRANTPROGHAH City of Huntington Beach
ENTITLEMENT PROGRAM - —'2:(33 RANT NUMUER'
HOUSING ASSISTANCE PLAN B -rF81 5 ICI 1 C — 0 6 — 0 5 1 0 6
�• IOF XFPSAEA611.1 ti HUD APPROVAL
FROM: October 1 , 1985 TO: September 30, 1988
2.RATE OIF IIUBMIq
SION Ia. i
®Orl j(nal ❑Ravision OAmcndmont ISignstwu of AuthoNdd OffiCiel) (Cate)
PART 1 - HOUSING ASSISTANCE NEEDS
TABLE 1 - I10USING STOCK CONDITIONS
STANDARD UNITS SUBSTANDARD UNITS SUBSTANDARD UNITS SU17AOLE FOR REHAB
TENURE OCCUPIED UNITS
TYPE OCCUPIED VACANT OCCUPIED VACANT _,,, VACANT
UNITS UNITS UNITS UNITS Total Lowar Income UNITS
A� •0. C p E_ F tl
` B Owner 37068 700 .__�T4.__..-_"52$" g4" -•._... _..... 1
Renter t 27,315 1 175 1819 21 1 401 164. 16
TABLE 11 - HEN TAL SUBSIDY NEEDS OF LOWER INCOME HOUSEHOLDS
ELDERLY SMALL FAMILY LARGF.FAMILY TOTAL
resr� H 1 .. J. 'ti K
B Very Low Income 1244 4817 568 6629
st "Percent 19 % 7 % f> % 100%
to` .,Other Lower Income 317 347 4382
11 ETR 486 TM5-� 193 2514
12 To be Dis laced 5- _7 54 '
13 Tatal ]U _] {
u Percent % % 96 100% �
PART 11-THREE YEAR GOAL.
TABLE I - UNIT5 TO BE ASSISTED _
REHABILITATION NEW CONVERSION 10 HOME
�AN�D UNITS CONSTRUCTION STANDARD UNITS IMPROVEMENTS
L M N O
1ti Owner 136 0 0
1S Renter _
IUNITS EXPECTED TO ASSIST LOWER INCOME HOUSEHOLDS)
F1 7 Owner 109 0 0 0
1B Renter 1 136 1 290 0
TABLE 11 -LOWER INCOME HOUSEHOLDS TO RECEIVE RENTAL SUBSIDIES
ELDERLY SMALL FAMILY LARGE FAMILY TOTAL
19 Households to be Assisted - 83
20 Percent 13—' % 67 % - l0 % 106%
TABLE III - GOALS FOR HUD RESOURCES: SUBJECT TO LOCAL REVIEW AND COMI.IENT
ELDERLY SMALL FAMILY LARGE FAMILY TOTAL
T U V w
211 Households to ba Assisted 83 447
HOUSING TYPE PREFERENCE)Maximum Number of Units that will be Accepted)
22 NEW ..._�._.__.�.--REHAB -._. ......___._....EXISTING
561 C 462_ 661
23 UCheck this box if the applicant wishes!o review State Housing Agency proposals tvithin its jurisdiction.
PART III - GENERAL LOCATIONS
24 Attach map identifying the general locations of proposed assisted housing. —
HUD•7091.1 (IOa21
(24 CFR 570.2061
Form Approved *_
OM0 No.25064M 4
U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 1.NAME OF COMMUNITY
COMMUNITY DEVELOPMENn BLOCK GRANT PROGRAM �
ENTITLEAIENTPROGRAM City of Huntington Beach .; +
4 GRANT B '
HOUSING ASSISTANCE PLAN
_ — 8 5 — 1 M I C — 0 1 6 — 0 57016
3.PEHIOD OF APPLICABILITY I
. 5.INCREMENTAL YEAR OF 6. HUDAPPROVAL ^
SUBMISSION
FROM: 10/01/85 TO: 9/30/86 �0dainal ❑Revision ❑Amendment 4M t 02 03 `
(Sig-rumofAuthoriredOffieial) fJar:l t
7.INCORPORATION OF HAP.PARTS 1—111.BY REFERENCE. Parts I,it and 111 of the HAP apFraved
are incorporated by reference and are not contained in this(seennd);third)year submission. ;Latest amendment date of tha HAP,Parts I—III,if any.
PART IV-ANNUAL HOUSING ASSISTANCE GOALS
PROGRAM OR PROJECT UNITS TO BE ASSISTED LOWER INCOME HOUSEHOLDS TO BE ASSISTED
5
List HUD Assisted Rental Housing Proprams first.th+n other Renter HUD NUMBER OF HOUSING ELDERLY SMALL LARGE TOTAL
Programsard0►rrurProyramsSwarstr . UN TYP FAMILY FAMILY _}
A B C D E F G ►t
1. Section 8 Existing tar Voucher) X 220 Existing 29 147 44 220
2. Project Self Sufficiency X 25 Existing 25 25
3. Neighborhood Enhancement (Rehab Loans):
Owner 45 Rehab 8 32 5 45
Renter 11 Rehab 11 11 '
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1
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n 4 ,
IS F E"A.��, .. �.''19
•, r �
Attachment I
HAP Narrative for three year goal
The actions regarding the stated three year goal are as follows:
1.) The city expedites processing for any project with an affordable component and
which requires entitlement to use approvals by the city's Planning Commission or
City Council. These actions are evident In processing the approvals necessary for
zone changes, density bonuses, plan check and building permit procedures for
previously completed affordable housing projects as well as for planned projects.
2.) The city Intends to continue Its current contract with the Orange County Housing
Authority for the administration of the Section 8 Existing and Section 8 Moderate
Rehabilitation Programs. It Is anticipated that the Orange County Housing Authority
will also handle the administration of any subsequent housing assistance program
offered through HUD.
3.) The,city Is working with property owners of four-plexes located In the Oakvlew
neighborhood In the rehabilitation of the units. Through the Rental Rehabilitation
Program 22 units will be upgraded to city and HQS Codes and will house Section 8
tenants. Sixteen additional rental units are being constructed through the Koledo
Lane Demonstration Program.
4.) The city maintains an ongoing program to provide tax exempt mortgage financing for
new multi-faintly housing. The city sells securities and bonds to provide financing for
new multi-family housing. Purchasers of these bonds receive an Interest rate that Is
below the current mortgage market; however, the Income from the bonds is
tax-exempt which Increases the effective net yield to the bond holder.
5.) The city estimates allocating approximately $600,000 over the next three years for
Neighborhood Preservation/RehabilI tat ion Loans to low-income property owners.
Approximately 40-45 loans are processed each year.
6.) The city has adopted a senior residential suffix to establish standards for residential
developments designed to house seniors. By adopting these standards, the city
recognizes that housing needs for senior citizens differ In some respects from the
needs of non-seniors. When the suffix Is applied to a property, certain development
standards will be reduced; specifically, those related to minimum floor area, site
coverage, building separation, building bulk, parking and open space. These reduced
standards will enable senior citizen projects to be built and so!d/rented on a more
affordable cost.
7.) The city has amended Its ordinance code by adding a new section pertaining to second
units In single-family residences. A second unit may be added to an existing
single-family residence subject to standards within the ordinance. This ordinance can
provide'a cost effective means of serving additional development through the use of
existing Infrastructure and should provide relatively affordable housing for low and
moderate Income small households within existing under-utilized structures. Second
units will have the additional benefit of allowing many older persons to remain In
their homes providing additional Income and security.
8.) The city has been selected as a participant In the U. S. Department of HUD Project
Self-Suffici-.ncy Program. The city will be working with 25 unemployed single
parents with children In securing productive employment, affordable housing, child
care, transportation, job training, and education. The city Is cooperating with the '
Orange County Housing Authority In the administration of this program.
1477h
�am,+ dw, T . i.if7 .fib Y'A,
1 Tea
Attachment 2
HAP Narrative
The needs of minority households In substandard housing by tenure type are as follows:
Owner Renter
Black 4 5
Hispanic 102 391
Indian 5 4
Asian 112 138 y
Other 9 7
Source: SCAG RHAM-839 LAAO EMAD, and city projections of population Increase.
It Is expected that these households will be eligible for and receive assistance In a share
consistent with each minority's representation In the community at large.
The estimates of the low-income minority households requiring rental subsidies by
household type by minority household category are as follows:
Small Large
Elderly Family Family Total
Hispanic 405 1384 158 1947
black 91 27 3 121
Indian/Asian 61 205 23 289
557 1616 184 2357
•
' I
I
. '✓� +s ` 6.�iGf� 1YS'. i'A �+•' rtYJ i st I l� �" K r d
Attachment 3
HAP Narrative
Standard residential units to be demolished by tenure type are estimated to be as follows:
Owner: 2
Renter: Sd
Source: City curvey of SRO and apartment projects to be displaced due to
redevelopment activity In three subareas of the Main-Pier Redevelopment
Project Area.
,
i
iI
I
I
I
I
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P
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Attachment 4
HAP Narrative
Special needs of single parents with dependent children.
The estimates of households with single parents within the city of Huntington Beach are
as follows:
Estimate
Female household heads with dependent
children less than 18 years old. 4609
Male household heads with dependent
children less than 18 years old. 982
It Is expected that these households In this group that require. housing assistance will
receive such assistance In a share proportionate to the representation In the community at
large. In addition, the city has been approved for 25 Housing Certificates as a participant
In U. S. Department of HUD's Project Self-Sufficiency Program to assist unemployed
single parents In becoming self-sufficient.
i
I
I
i
1
'�`(P��'`'S �- *''�1?�i�',��'"�t�'i�'�S„�'�`d��`•+�YSfFS���xr�f;if:i!'1+`3S.L*r�FraSa�er�n, 'y,wr,fyw,: .ra�i.r �,x:�P.�:t�Yr�e:►77SSSY�"J.i►s1�.S�,;,fr1t'i6Y�L,
Attachment S
HAP Narrative
Expected to Reside.
The E.T.R. figures on line 11 of Part 1, Table 1, are derived from EMAD proportions as
follows:
Elderly Small Family Large Family
19.3% 72.9% 7.6%
I
I
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i
1
1
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}
i
1�
C
i
ii
i
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•
Attachment 6
HAP Narrative
Conversion of Rental H)using.
The city of Huntington Beach has adopted a stringent Condo Conversion Ordinance that
requires. converted units to conform to the requirements of the city's Planned Unit
Development (PUD) ordinance. Since most multi-family housing units have been
'developed to standards that generally require substantially less open space and parking
than does the PUD ordinance, I: Is not expected that the conversion of rental units will
have a significant Impact.
i
I
a
Attachment 7
HAP Narrative
Substandard definition:
The city of Huntington Bearh uses the definition of substandard as established In the
Uniform Building Code and as periodically amended. This Is generally Interpreted to mean
that the disfunction or failure of any one major building system (e.g. roof, plumbing,
electrical, or heating, etc.) will result In the structure being classified as substandard.
Those units housing Section 8 tenants must comply with the Housing Qualterly Standards
as defined by HUD.
Suitable for Rehabilitation:
Those units Identified as substandard are considered suitable for rehabilitation If cost of
repairs or replacement of disfunctionate or failure building systems does not exceed the
economic value of the structure after rehabilitation and if the rehabilitation will
substantially prolong the economic life of the structure to provide decent, safe and
sanitary shelter.
i
Attachment 8
HAP Narrative
Special Needs of the Handicapped.
The estimates for households with handicapped members within Huntington Beach are as
follows:
Very low Income
Non-Elderly, 1 person 295
Other, Non-Elderly
1 person 196
491 subtotal '
Small families with !
handicapped members 611 j
Large families with
handicapped members 150
subtotal
1
f
•
NEIGHBORHOOD
ENHANCEMENT
AREAS
I J
jA
I WASHINGTON
C KVIEW 1
*-LIBERTY
OMMODORE
17
SOUTH SHORES
OLDTOWN
TOWNLOT
AL
CITY of
HUNTINGTON BEACH.
ORANGE COUNTY CALIFORNIA \
#i
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}
muA uswazq
F ONAL DISTRICT MAP a 10-6-11CITY GFTINGTON BE�.CH NEIGHBORHOOD
GE COUNTY, CALIFORNIA ENHANCEMElff AREA.
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SECTIONAL DISTRICT MAP 6-6- 10
CITY OF
HUNTINGTON BEACH NEIGHBORHOOD
ORA:1GE COUNTY, CALIFORNIA ENHANCEMENT AREA
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AvAwe NOTICE. tl
HOUSING ASSISTANCE PLAN
The 6ty of Huntington Beach Intends to submit Its annual Housing Assistance Plan to the
U.S. Department of Housing and Urban Development oii or about October 31, 1985. This
three-year HAP is for the period of October 1, 1985 through September 1938.
Notice Is herr`q given that the City Council of the city of Huntington Beach will conduct
a public hearing on the HAP goals at Its regular meeting of Monday, October 21, 1985 at
7:30 P.M., City Council Chambers located at 2000 Main Street, Huntington Beech,
California.
Anyone wishing to express an opinion regarding the proposed Housing Assistance Plan may
do so at the hearing. Copies of the HAP are available at Huntington Beach City Clerk's
office from 5:00 A.M. to 5:00 P.M., Monday thru Friday.
Alica M. Wentworth, City Clerk
(714) 536-5227
Dated: October 8, 1985
s
c)�
gs nVacev"FNr
' tj d CITY OF HUNTINGTON BEACH CA 85-38
DCOUNCIL - ADMINISTRATOR COMMUNICATION OI
{ Ill!4i1�GiQY MACH
To Honorable Mnyor and From Charles W. Tho ps Qf r� fAr"T
City Council Members City Administrator 0
Subject ADDITIONAL INFORMATION ate May 17, 1985 �
Su I t INDUCEMENT RESOLUTION - D y -rION ��a.t'$ s
CASA DEL SOIL APARTMENTS Po
'to S S?J'j�j
The following Information Is being provided as additional background for your , �
1985 consideration of this matter:
1. PROJECT HISTORY: Casa del Sol was originally constructed in 1969 and is
still owned by the original owner.
2. AFFECT ON STATE WIDE VOLUME CAP: This financing would be subject to
the state wide cap. This volume cap was previously at $900 million which
has, at this time, been exceeded. However, legislation Is sitting on the
Governor's desk awaiting signature which will increase this volume cap to
$1.5 billion.
3. POST REHAB RENTS: The average projected post rehabilitation rents for
the project are: one-bedroom units$665 per month, two-bedroom units$815
per month. This represents an Increase per unit of $115 per month.
4 AMOUNT TO BE FINANCED: The $38 million cited in the inducement
resolo'-ition is, as always, a not to exceed amount. As such, it Is not unusual
for phis figure to be inflated. The project sponsor anticipates the'purchase
prli.e of the project to be approximately $25 million. In addition, $4 million
will be spent on the rehabilitation of the project (see Rehab Budget
attached). In any case, the tax code would require that not less than fifteen
percent of the dollar amount of securities sold be devoted to rehabilitation of
the project.
5. CONDOMINIUM CONVERSION PROHIBITION: Provision of tax exempt
f financing for the project will require that the units remain available as rental
units for a minimum of ten years. In any case, any subsequent proposal to
convert the units to condominiums would have to comply with the city's
current Condominium Conversion Ordinance and would be the subject of all
j the required entitlement to use discretionary approvals of the Planning
Commission or City Council at that time.
6. ADDITIONAL PARKING: It should be noted that the project sponsor's plan
will provide approximately fifteet: to twenty additional parking spates. The
additional information regarding the principles of the development entity and
the project In general is also attached for your review.
I hope this Information will be of assistance to you. I will be happy to answer any
questions you may have and to provide additional information.
CiVT/DLB/SVK:sar
Attachments
0865h
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DEVELOPER
A. DEVELOPER IDENTITY
Casa Del Sol will be rehabilitated and
operated by the' Brookhurst Street Partners , a
newly formed California limited partnership.
Richard K.. Hoagland and. Alan R. Fenstermacher
will act as general partners of the partnership.
These gentlement bring with them a wealth of
experience in multi-family ownership and manage-
ment as well as the financial contacts - and
technical expertise required to make Casa Del
Sol a successful project.
R. K. Hoagland is age 47 and has been a
real estate investor, consultant, property
manager and marketing specialist for over 18
years . Mr. Hoagland founded the nationally
renowned "Singles Only" apartments in Los
Angeles and wcs responsible for the inital
marketing , and, rental of singles apartments by
R & B Development Company, a. leading builder
and manager of singl es, apartments: . In 1970,
he sold his interest in singles apartments and
became Director of Property Management for
American Standard' s Multi-Family, Division. In
that position , Mr. Hoagland managed over 4,000
units in four western states. When American
Standard sold its multi-family holdings in, 1975,
Mr. Hoagland briefly served. as. Cannon Management
Corporation' s. Direcor of Property Management.
He left Cannon to co-found Monarch Properties ,
Inc. , a California corporation then special-
izing in the fee management of apartments.
The company grew rapidly and, in 1978, Monarch
I Securities , the syndication arm of the Monarch
group was founded so that the property manage-
merit expertise of Monarch' s people could be
applied to investment management. Monarch Real
Estate Co. , Inc. , the third of the Monarch
companies , assists the principals of Monarch
! in all aspects of the acquisition and disposition
of apartment properties . Mr. Hoagland is
currently a co-owner of Monarch Properties , Inc. ,
Monarch Real Estate Co. , Inc. , and Monarch Secur-
ities . Mr. Hoagland was born in Kansas , and has
1 resided in Southern California since childhood.
He holds a Bachelor of Science Degree i;i Business
_- Administration from Kansas University.
2
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Al Fenstermacher, age 37 , began his career
by specializing in real estate with an accounting
firm in 1973. After four .years as a, public
accountant, Mr. Fenstermacher joined. Fleetwood
Enterprises , Inc. , a Riverside housinq
manufacturer, as Bivisional- Controller. He then
Joined Monarch Properties, 'Inc. in 1980 as its
Chief Financial Officer, and in 1931 became
Monarch' s President, the position he now holds .
Mr. Fenstermacher is a co-owner of Monarch
Properties , Inc. , Monarch Real Estate Co.', Inc. ,
and Monarch Securities. Born in Philadelphia,
Mr. Fenstermacher -resides in Mission Viejo,
California. He is a Certified Public Accountant
and a licensed real estate broker in the State of
California, and he holds a Bachelor of Arts
Degree in Business from the California State
University at Fullerton.
B. DEVELOPER EXPERIENCE
Followinq is a list of previous experience
of Mr. Hoagland and Mr. Fenstermacher:
Project: Devonshire Villaqe Type: Apartments '
Location: Wichita,- KS No. of Units : 217
Year Purchased: 1980 ..
Participation: R. K. Hoagland - General Partner
Monarch Properties-Property Mgmt. .
Project: Fox Valley Type: Apartments
Location: Lawton, OK No. of Units: 120
Year Purchased: 1981
Participation: R. K. Hoagland - General Partner
Monarch Properties-Property Mgmt.
Project: The Oasis Type: Apartments
Location: Shawnee, KS No. of Units : 87
Year Put-chased: 1982
Participation: R: K. Hoagland - General Partner
Monarch Properties-Property Mgmt.
Project: Fox Run Type: Apartments
Location: Lawton, OK No. of Units : 63
Year Purchased: 1982
Participation: R. K. Hoagland - General Partner
Monarch Properties-Property Mgmt.
Project: Timberwood Type: Apartments
Location: Oklahoma City, OK No. of Units: 12a
Year Purchased: 1983
Participation: R. K. Hoagland - General Partner
Monarch Properties-Property Mgmt. '
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Project: Normandy Square Type: Apartments
Location: Wichita, KS No. of Units : 276
Year Purchased : 1983
Participation: R. K. Hoagland - General Partner
Al Fenstermacher - General Partner
Monarch Properties-Property Mgmt.
Project: Summer Hill Type: Apartments
Location: Oceanside, CA No. of Units: 136
Year Purchased: 1984
Participation: R. K. Hoagland - General : Partner
Al Fenstermacher - General Partner
Monarch Properties-Property Mgmt.
Project: Soiithgreen Type: Apartments
Location: Bakersfield, CA No. of Units : 80
Year Purchased: 1985 '.
Participation.: R. K. Hoagland '- rieneral Partner i
Al Fenstermacher - General Partner
Monarch Properties-Property Mgmt.
Project: Apple Place Type: Apartments
Location: Oklahoma City, OK No. of , Units : 184
Year Purchased: 1979 Year Sold: 1982
Participation: R. K. Hoagland - General Partner
Monarch Properties-Property Mamt.
-^� Project: Shadow Lake Type: Apartments j
Location: Wichita; KS No. of Units : 289
Year Purchased: 1980 Year Sold: 1983
Participation: R. K. Hoagland - General Partner
Monarch Properties-Property Mgmt. !
Project: Arrowhead I , II , iII Type: Apartments
Location: Kansas City, KS No. of Units: 435
Year Purchased: 1980 Year Sold : 1985
Participation: R. K. Hoagland - General Partner
Monarch Properties-Property Mgmt.
Project: Lake Stella Type: Apartments
Location: Oklahoma City, OK No. of Units: 77
Year Purchased: 1980 Year Sold: 1982 ! I
Participation: R. K. Hoagland - General Partner
Monarch Properties-Property Mgmt.
Project: Woodlake Type: Apartments
Location: Escondido,, CA No. of Units : 176
Year Purchased: 1981 Year Sold: 1984
Participation: R. K. Hoagland - General Partner
Monarch Properties-Property Mgmt.
Project: Oak Park Type: Apartments
Location: Kansas City, KS No. of Units: 510
�.� Year Purchased: 1983 Year Sold: 1984
Participation: R. K. Hoagland General Partner
Al Fenstermacher - General Partner
Monarch Properties-Property Mgmt. '
!
4
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Project: Brockland Type: Apartments
Location: Lawton, OK No. of Units: 72
Participation: Monarch Properties-Property Mgmt.
Project: Cedar Glen Type: Apartments
Location: E1 Cajon, CA No. of Units: 105
Participation: Monarch Properties-Property Mgmt.
Project: Country Woods Type: Apartments
Location: Brea, CA No. of Units : 200
Participation: Monarch Properties-Property Mgmt.
Project: Highland Creek Type: Apartments
Location: Fullerton, CA No. of Units : 56
Participation: Monarch Properties-Property Mgmt.
Project: Meadow Wood Type: Apartments
Location: Santa Ana, CA No. of Units: 192
Participed on: Monarch Properties-Property Mgmt.
.t .
Project: Mount Vernon Type: Apartments
Location: Oklahoma City, OK No. of Units: 92
Participation: Monarch Properties-Property Mgmt.
Project: The Oaks Type: Apartments
Location: Oklahoma City, OK No. of Units : 159
Participation: Monarch Properties-Property Mgmt.
Project: Pacific Woods Type: Apartments
Location: Santa Ana , CA No. of Units : 232
Participation: Monarch Properties-Property Mgmt.
Project: Riverbend Type: Apartments
Location: Wichita, KS No. of Units : 216
Participation: Monarch Properties-Property Mgmt.
Project: Springtree Type: Apartments
Location: Chino, CA No. of Units : 150
Participation: Monarch Properties-Property Mgmt.
` Project: The Villas Type: Apartments
Location: Anaheim, CA No. of Units : 95
Participations Monarch Properties-Property Mgmt.
Project: Villa Woods Type: Apartments
f Location: Buena Park, CA No. of Units : 40
Participation: Monarch Properties-Property Mgmt.
Project: hest Park Type: Apartments
Location: ►!est Covina, CA No. of Units : 118
Participation: Monarch Properties-Property Mgmt.
Project: Woodcreek Type: Apartments
Location: Downey, CA No. of Units : 198 `
Participation: Monarch Properties-Property Mgmt.
5
April 24, 1985
Huntington Beach City Council
2000 Main Street
Huntington Beach, CA 92648
Dear Council Members :
This is to confirm our understanding and consent
to the Brookhurat Street Partners ,. a California
limited partnership, filing an inducement
resolution with the City of Huntinqton Beach
for the tax free bond financing for the
I acquisition and rehabilitation of the Casa Del
I Sol apartment project located at 21661 Brookhurst
Street, Huntington Beach, California.
Casa Del Sol Apartment Fund, Ltd. is the present
owner of the project and I am its sole general
partner.
Sincerely,
Casa Del Sol Apartment Fund , Ltd.
By: U
uc C a.yton , eraPartner
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B. REHABILITATION PROGRAM
Casa Del Sol is approximately 16 years
old,, and although it has been adequately
maintained, there has, never been a major up-
grading of the interior and exterior of the
project. Puny newer properties in the area
have upgraded facilities and a competetive
edge over Casa del Sol .
Approximately four million dollars
(#49000,000) will be spent to rehabilitate
Casa Del Sol to put it in a condition that
the project and location warrants. These
monies will be spent in the following areas :
Exterior
1 . Building repair and paint. $ 1259000
! 2. New front circular driveway and
property entrance rehabilitation
to improve ingress-egress and
improve hazardous traffic condition. 2009n00
3. Security gates at both entrances L--�
including intercom. 15090n4
4. (2) tennis courts complete. 1n09000
S. Added carports. 125,000
6. Enclose garages . 200,n00
7 . (2) enclosed racquetball courts . 11n,00A
8. Clubhouse/recreation building
rehabilitation. 8509000
9. Landscaping. 14090nO
15
10. Miscellaneous exterior
refurbishment. $ 1009000
11 . Purchase laundry equipment and
improve laundry facilities . 150,000
Sub Total : $2,250,000
Interior 1
The project's unit interiors will be rehabilitated
to modernize appliances , carpet, and drapes ,
cabinetry and other needed upgrading.
!I 1 . Replacement of carpet and
drapes. $ 4500000
2. Rehabilitate appliances (most of j
the units. are equipped with the
original appliances , which will
be refurbished or replaced in
the majority of units. 600,000
3. Interior security system connects
to qates plus fire, police, and
hospital emergency. 200,000
�--' 4. Kitchen and bathroom cabinetry. 2501000
5. Rehabilitate hot water system. 1500000
5. Miscellaneous interior rehab-
ilitation. 1002000
Interior Sub-Total $1 ,750,000
Exterior Sub Total t2,250,060
Total Rehabilitation ProgramS4,000,000
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C. PROJECT PROFORMA INCOME STATEMENTS
CASA DEL SOL:
PRELIMINARY PROFORMA
INCOME STATEMENT
OCTOBER 1 , 1985 THROUGH DECEMBER 319 1988
Oct-Dec
1985 1986 1987, 1988
Income
Rental Income $7479500 $3,1509000 $3,6509000 $491879600
Other Income 26. 0
5 000 100 000 100,000 100.000
Total IncomeT7'2; Zf 3 O'1;607f
I
Expo
j Maintenance $ 66250 $ 285,000 $ 300,040 $ 31590do
f Mangement Fees 30:900 162 500 1879500 214,300
Other 274,500 110,000 115000 120 800
Salaries/Wages 47,500 2000000 210,000 220:500
Taxes & Licenses 20,000 2500*000 2800000 2949000
Utilities 37,500650 1 �� $M9 6 6'��.
: Total Operating Expenses 1 �0 , , , ,
Income before Debt Service $542,850 $2,077,500 $2,477,500 $229251000
Assumptions
1 ) Rehabilitation of the apartments and facilities would take
approximately 24 months to complete and are not included in
this analysis.
2) Expenses will increase by 7 • 10% each year for maintenance,
salaries, rages and utilities. Property taxes would increase
in excess of 300% over the existing tax bill .
3) Rental income will not increase significantly until the
rehabilitation of the rental units is complete.
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D. CONSTRUCTION SCHEDULE
Exterior - Rehabilitation will begin as soon
as the property is purchased and funds are
available and will be complete within a 24
month period.
It Interior - Rehabilitation will begin as soon
ash property is purchased and funds are
available, and will be scheduled so as not
to unduly inconvenience the existing residents.
This rehabilitation will also be accomplished .
f within 24 months.
E. ENTITLEMENT_REQUIREMENTS
A site plan amendment will be required
for parts of the rehabilitation program.
Application will be submitted upon completion
of construction plans.
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18
REQUEL ' FOR CITY COUNGr. ACTION R;I 05_Z1
Date May 8, 1985
Submitted to: Honorable Mayor and City Council Members/Honorable Chainnan
r and Redevelopment Agency Members
Submitted by: Charles W. Thompson, City Administrator/Chief Executive Office
Prepared by: Douglas N. La Belle, Deputy City Administrator/Redevelo
Subject: INDUCE14ENT RESOLUTION - CASA DEL SOL APARTMENTS
Consistent with Council Policy? KX] Yes ( ] New Policy or Exception
Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments:
STATEMENT OF ISSUE:
The city is impowered by federal and state law to provide tax exempt financing not only
for the new construction of apartments, but also for the acquisition and rehabilitation of
existing apartment complexes. Attached herewith for the City Council 's consideration:
i is an inducement resolution for the acquisition and rehabilitation of the Casa del Sol
apartments.
RECOhMENDATION:
j Approve and authorize the Clerk to execute the attached resolution.and Indemnity Agreement.
ANALYSIS:
' The Casa del Sol apartments is a 448 unit complex located on a site of approximately
f 18 acres at the southwest corner of Hamilton Street and Brookhurst. The physical
description of the project- is described in more detail on Attachment No. 3.
While the primary objective of the provision of tax exempt financing for multi-family
rental housing is to increase the supply of such housing, it is an additional
objective to preserve and maintain the existing housing stock and to do so at
affordable rent levels. Provision of tax exempt financing for the Casa del Sol j
acquisition and rehabilitation project will hold the following advantages:
1. It will promote significant reinvestment by the private sector in a sizable
multi-family rental project without a capital outlay.contribution by -the city.
In other-parts of the city, such as Koledo Lane or Commodore Circle, the
city has or is contemplating significant capital contribution to achieve the
same objective of preserving rental housing stock. Provision of tax exempt
financing for this project helps achieve this objective without such capital
contribution.
2. Twenty percent of the units (approximately 88 units) must be actually
occupied by households that earn 80 percent or less of HUD's median income
for the community. Currently, there are no affordability restrictions on
this project.
3. The sponsor has expressed a willingness to offer a "first right of refusal"
to the Redevelopment Agency so that households which may be displaced by
P101IMS
' INDUCEMENT RESOLUTION - CASA DEL SOL APARTMENTS
May 8, 1985
Page 2
the Redevelopment Agency at some future time may be referred to this project
preferentially as vacancy's occur. This may offer a significant relocation
resource for the Agency since identifying comparable housing for displacees
in proximity to the beach will be difficult.
4. Property tax revenues from the project will increase from the approximately
$65,000 per year now paid to approximately $350,000 per year upon completion
of the rehabilitation (this is an increase of approximately $285,000 per year
or over 400 percent).
5. In addition, the city's usual issuance fee of one-half of one percent will
be assessed. Based on the likely $35 million size of this financing the
issuance fee would equal $175,000 paid to the city at closing.
While the city of. Huntington Beach has not previously participated in the provision
of tax exempt financing for the acquisition. and rehabilitation of existing apartment
units, _it. is empowered by law to do so. Further, financing for.Casa del Sol project
is consistent with the city's general housing objective of maintaining and preserving
its rental housing stock in general and helping to assure affordability of rental .
units, in particular. This financing also represents an opportunity to further the
city's economic development objectives by increasing tax revenues and its redevelopment
objectives through the creation of a relocation housing resource.
FUNDING SOURCE:
Costs paid from bond proceeds. Indemnity Agreement attached. Issuance fee
will be assessed.
ALTERNATIVES:
Do not approve the attached resolution and indemnity agreement. This will pre-empt
the provision of tax exempt financing and the achievement of the objectives outlined
above.
ATTACHMENTS:
1. Resolution No.
2. Indemnity Agreement
3. Project Information
CWT:DLB/SVK:sar
I�
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AGREEMENT BEZW EEN THE CITY OF HUNTINGTON BEACH AND I
BROOKHURST STREET PARTNERS FOR ADVANCE OF AND INDEMNIFICATION
AGAINST COSTS ASSOCIATED WITH REVIEW OF FINANCING
THIS AGREEMENT is made and entered into on this day
of 19____,, by and between the CITY OF HUNTINGTON
BEACH, a municipal corporation of the State of California,
hereinafter referred to as "City" and "BROOKHURST STREET
PARTNERS, " a California Limited Partnership, hereinafter referred
to as "DEVELOPER" enter into this Agreement on the terms and
provisions set forth below.
I
THE CITY AND THE DEVELOPER HEREBY AGREE AS FOLLOWS:
I. Section 100) Project Planning. �I
A. (Section 101) Developer Planning.
The Developer is considering proceeding with the
development of certain real property situated within the City of
Huntington Beach. Such real property (the "Property") is shown ('
generally on the map attached hereto as Attachment No. 1. The
Developer desires that the City consider the use of public
I
financing; provided that the Developer acknowledges that (i) the
City of Huntington Beach (the "City") shall not incur any cost or
liability as a result of such financing; (ii) if bonds or
certificate-' are issued pursuant to this Agreement, the City may
charge a reasonable issuer' s fee; and (iii) the approval and
i
execution of this Agreemant shall in no event bind the City to
issue bonds or certificates of participation concerning or with
respect to the Property or the Developer.
B. (Section 103) Deposit.
Developer herewith submits to the City as a deposit
the sum of Two Thousand Dollars ($2,000.00) (the "Deposit") , in
the form of a certified or cashier' s check. The City shall have
no obligation to earn interest on the Deposit.
i
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The parties recognize that the city may, in connection
with this Agreement, incur expenses for the following items, among
others:
1. Preliminary research by Bond Counsel;
2. Expenses (travel and other) incurred by City staff
reviewing the availability of or attempting to
facilitate th provisions of tax exempt financing for
the undertakings of the Developer; and
3. Staff time in connection with items 1 and 2 of this
Section 103.
All expenses of the City incurred in good faith in
connection with this Section 103 are hereby referred to as
"Issuance Costs." The City may, without approval by the
Developer, expend from the Deposit funds up to the limit of the
Deposit for any one or all of items 1 to 3, inclusive, of this
Section 103. The Developer shall not be obligated by this
Agreement to advance additional funds to the city. The City shall
not be obligated to expend any funds in excess of the Deposit for
the purposes described in this Agreement. In the event that
expenditures pursuant to this Section 103 are to exceed the amount
of the Deposit, the Developer shall defend, indemnify, and hold
harmless the City from and against all such claims, suits, or
demands provided that the City has first notified the Developer
that costs incurred will exceed the amount of the Deposit, and the
Developer elects that the City continue to pursue financing.
D. (Section 104) Disposition of the Deposit.
In the event that as of August 1, 1985 no public
financing has been approved for the undertakings of• the Developer
with respect to the Property, unless this Agreement is extended by
mutual agreement of the parties, (i) the City shall refund to the
Developer any portion of the Deposit not expended and not
committed for expenditures all as pursuant to Section 103 of this
Agreement; or (ii) if expenses exceed the amount of the Deposit,
the Developer shall promptly pay to the City funds equal to all
expenses and costs (including staff time) incurred by the City
pursuant to Section 103 of the Agreement; thereupon, this
Agreement shall terminate.
-2-
II. Miscellaneous
A. (Section 201) Limitation of City Duties.
The Developer agrees and acknowledges that the execution
of this Agreement by the City does not obliga,he the City to
approve any proposed use of the Property or provide public
financing, and that no endorsement of the activities of the
Developer are expressed or implied herein.
DEVELOPER: CITY OF HUNTINGTON BEACH
A municipal Corporation
�/Njft/Title Mayor
Name Title
ATTEST: APPROVED AS TO FORM:
i
City Clerk ty At r ey
INITIATED AND APPROVED:
t.
Depu Director of Redevelopment
APPROVED:
opz d. N"Uia'ty Administrator
0335H
PLANNING ZONING DM 20
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SECTIONAL DISTRICT MAP 19-5-11 Fig
CITY OF
HUNTINGTON BEACH
ORANGE COUNTY, CALIFORNIA
USE OF PROPERTY MAP
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PROJECT INFORMATION
A. L O C AT I O N/,D E S C R I P T I O N
:. Casa Del Sol is a 448 unit apartment
complex.,situated on an • 18 acre site at 21661
8rookhurst Street, just` south: of Hamilton.
The complex contains eight; .front buildings,
which are three story buildings containing
'16 units. per floor for a total of. 48 units
per buildinq, .and two rear buildings, which i
are two story buildings containing 16 units. 1
per floor for a total of 32 units per buildinq.
The buildings are frame and stucco construction
on concrete slab foundations. Building roofs
tre flat, built-up. composition, trimmed with
Spanish tile. There .is one elevator in each
of the three story buildings.
The .apartment mix and square footage is as
follows:
APARTMENTS . Sq. Ft._
168 - 1 bedroom, 1 bath @ 762 sq. ft. 128,016
168 - 1 bedroom, 1 bath @ 755 sq. . ft. 126,840
112 - 2 bedroom, 2 bath @ 1112 sq. ft.
448 with fireplace. 124,544
i.
TOTAL LIVING AREA 379,400
The- one bedroom units" rent for. approximately
$550. per month and the two bedroom units rent
for approximately $700. per month. .
The units are all equipped with forced air
heating and individual room thermostats , vinyl
floor covering in kitchens and baths, and wall-
to-wall carpeting elsewhere. They are also
equipped with a built-in range, oven, dishwasher,
garbage' disposal , and double-wall party wall
construction.
Midway through the project and basically
dividing it in half, is a greenbelt area which
contains project amenities . These include a
recreation building which has a gym, card room,
pool room, kitchen, and men's and women 's sauna
bath with bathrooms. Other amenities include
two swimming pools , a putting green, barbecues ,
and a rock garden with fish pond and bridge.
12
i
Parkinq for the prcJuct includes a total of
733 spaces. (1 .6 per unit) of which 594, are
covered carports and. 229 are open . spaces'. �.
Laic iry rooms with storage rooms containing
storage .bins for each apartment are located
on each floor 16 the apartment buildings.
The following page contains the assessor's
parcel map. for the project. The Assessor's
Parcel Humber is 149 - 221 - 03.
i
13
f
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i
. REQUES', FOR CITY COUNCIL . XTIO "''.-"t°
RH85-4
Data Eebtimiry 1, 1 USV
Y �
Submitted to: Honorable Mayor and City Council Members i�yyQAV���Y Gt� 9 tCL.14—
Submitted by: Charles W. Thompson, City Administrates'
Prepared by: Douglas N. La Belle, Deputy Director of Redevelop a
Subject: AMENDMENT TO PROGRAM RULES AND REGULA SFMI:B
Consistent with Council Policy? ( yj Yes New Policy or Exception
`T
Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments:Q
STATEMENT OF ISSUE:
Each year when the City Issues its_Single-Family Mortgage Revenue Bonds it is
required that the Program Rules and Regulations be amended to reflect current
Income and purchase price limitations. In 1985 it is not anticipated that the City will
receive an allocation from the State for the Issuance of the Bands, therefore, it is
recommended that the Program Rules and Regulations ba amended as an independent
action.
RECOMMENDATION:
Approve and authorize the City Clerk to execute the attached Resolution
No. , A Resolution of the City Council of the City of Huntington Beach
Amending Rules and Regulations Relating to its Home Mortgage Finencing Program.
1
i ANALYSIS:
a
As a routine process with the'approval.of.'documents and the Issuance of the City's
annual Single-Family Mortgage Revenue.Bonds,-the Council is requested to amend the
Program Rules-and Regulations Ias required by federal and State law AsA part of
this process the income.limitations for pbtential purchasers and the purchase price
limitation of homes acg6ired'through the-program are increased to'refleet current
levels. In calendar year 1985 it is unlikely that the City will receive an allocation
from the State of California Mortgage Bond Allocation Committee to Issue
Single-Family Mortgage Revenue Bonds. While all the necessary applications have
been made to the State for such an allocation, the City's position on the Committee's
list is not sufficiently high to permit us to anticipate an allocation until early 1986.
,I Therefore, unless the Program Rules and Regulations and the income limit is
amended by separate action It will have remained at the 1984 level for a period of
nearly two years. 'Ibis would further constrain the pool of potential beneficiaries of
l the prod-:tm since it is necessary for households that participate In the program to
{ earn sufficient income to qualify for the real estate loan while not earning an.income
beyond the established program limit. While the increase in the income limitation
1 proposed in the attached Resolution is modest (approximately $29000 increase in
annual income permissible) it will help to increase the pool of potential beneficiaries
of the program. For these reasons the attached Resolution is recommended for
approval from the City Council at this time.
r
P10 4104
RCA RH85-4
AMENDMENT TO PROGRAM RULES AND REGULATIONS SFMRH
February I, 1985
Page 2
FUNDING SOURCE:
No Fiscal Impact.
ALTERNATIVES:
Do not approve the attached Resolution. This will limit the allowable income of
participants to that which was adopted In early 1984 and the pool of potential
beneficiaries In the program.
ATTACHMENT'S:
Resolution No.
CWT/SVK:ajh
U688h
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it
�,, „0 CITY OF HUN TINGTON BEACH
' 2000 h4AIN STREET CALIFORNIA 92648
HOUSING AND CO3IIAIUNITY DEVELOP�IIENT
March 7, 1985
Steve Rivera, Trust Of-ricer
Corporate Trust Department
First .Interstate Bank
707 Wilshire Boulevard
Los Angeles, California 90017
Subject: First Supplemental Trust Indenture SFMRB 1984
Dear Steve:
Enclosed please Ifinda'n origiiial' and one copy of a City Council Resolution No. 5498
a'dopting the First Supplemental. Trust Indenture of the subject financing You will
note that an officer`of First Interstate Bank (as Trustee) must execute this Supple-
mental Trust Indenture. May I ask that you execute the original and return :it :to
this office and retain the additional enclosed copy for your own recorrA:::. Lastly,
upon completion, would you also forward a photocopy to Andy Hall at Jones Hall Hill
and White?
As always,-. I appreciate your cooperation and assistance in this regard. If you
should have any questions or require additional information, please do not hesitate i
to contact m at the number below.
Very truly yours,
,.. .
o r
Sr. Communi evelopment Specialist
SVK:sar
Enclosures
xc: Connie Brockway, City Clerk
Telephone (-1.)) 536-55•1:.' 1
1
r-.
n 43 0" CITY OF HUNTINGTC1N BEACH
V-1—IJ9 2000 MAIN STREET CALIFORNIA 92648
EIOCSING AND COMMUNITY DEVELOPMENT
March 7, 1985
L-1444
Steve Rivera, Trust Officer
Corporate Trust Department
First Interstate Bank
707 Wilshire Boulevard
Los Angeles, California 90017
Subject: First Supplemental Trust Indenture SFMRB 1984
Dear Steve:
Enclosed please find an"original..and one copy of a City Council Resolution No. 5498
adopting. the First Supplemental"_Truif Indenture of the subject financing:. You will
note-`that an officer..;of First Interstate Bank (as Trustee), must execute this Supple-
mental,J;T ust Indentura.. May I ask that you execute the original and rettiirn it to
this office and retain the additional enclosed copy for your own records. Lastly,
upon completion, would you also forward a photocopy to Andy Hall at Jones Hall Hill
and White?
As always, .I appreciate your cooperation and assistance in this regard. If you
should have any questions or require additional information, please do not hesitate
to contact. at the number below.
Very truly ours,
. �.
I S o r
Sr. Cnmmuni evelopment Specialist
SYK:sar
Enclosures
xc: f:C`�re.Oro CItY,Clerk' , Q� t�1
Flp MEN
1 1 V `oµM�Ntt'i
Telephone (7,14) 536.5542
Eli
First Interstate Bank
• of California
• •' First Box
Trust Department
Box 3667 Terminal Annex
Interstate Los Ange!es,CA 90051
Bank
May 16, 1985
'r
Mr.. Stephen Kohler
Senior Community Development Specialist
City. of Huntington Beach
Housing and Community Development Department
2000 Main Street
Huntington Beach, California 92648
Re: City of Huntington Beach, California
Home Mortgage Revenue Bonds, 1984 Series A
Dear Stephen:
Enclosed. pleiitae find the originals of the City Council
Resolution No. 5490 and the First Supplemental Trust
Indenture which has now been fully executed. I have
retained copies of both of these documents for my records..
In addition, I have also forwar ad copies of these documents
to Andy Hall.
We apologize for the delay; in returning these items to you.
Should you require anything else in connection with this
matter, as well as anything also related to this or other
financings in which are working together, please do not
hesitate to contact us.
Sincerely,
Stephen Rivero
Trust Officer
K is D�G4 p�Eti4
GGtJ�M�N�S't
6
Authorized to Publish Advertisements of all kinds Including public
nr,llcss by Decree of Ine Superior court of Orange County,
California, Number A-6214, dated 29 Seplembar, 1961, and
A-24631.dated 11 June, 1463.
STATE OF CALIFORNIA -
County of Orange vuoac Nouc.Adv~q r•o.rn
07'.lt0 ift smum i, M+in r pant
m wild,,.ni PK•eoM ,wi
1 am a Citizen of the United States and a resident of
the County aforesaid; I am over the ago of eighteen
years, and not a party to or interested In the below
entitled matter. I am a principal clerk of the Orange
Coast DAILY PILOT, with which Is combined the
NEWS-PRESS, a newspaper of general circulation,
printed and published In the City of Costa Mesa,
County of Orange, State of California, and that a
Notice of City Of Huntington
Beach
of which copy attached hereto is a true and complete
copy, was printed and published in the Costa Mesa, ;1144MI X Mph
Newport Beach, Huntington Beach, Fountain Valley, f�l{ttALNOT"
the South �•PAM1lY'.,MORT;
Irvine, h Coast communities and Laguna OAOtf�p91I1lNUir OoHD
Houma,HQ4. ms! i R14
Beach issues of said newspaper for time- PM.AD(W=sy.cm►
COUNCIL OF TNT am of
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k.� NOf1Ge D girin Mil.nhr.�ear�anw
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I declare, under penalty of perjury, that the
foregoing In true and correct.
Executed on February 22 5
at Cost Mesa, C liforniay
Signature
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PROOF OF PUBLICATION
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CaIIIerr,,&, .mtbr A-6214 1a10: 7h SeD1emt or. 1961. and
A.614871 dated 11 June IRA CUU C,7L
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STATE~ OF CALIFORNIA L�I3Y G�K 1`f •
�YRpV �
County of Orange n,.c.,,c h01-C4 Ad~,&r g to•«w
raft 10 CKS cOh.w,n w.ai„
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I am a Citiren of the United States and a resident ofCfE
the County afcresaid. 1 am over the age of eighteen
E /:077CE t)f .
years, and nC. a party to or interested in the below PW�ICM[x%m
.is1lbPOtittp •
entttted matter. I am a principal clerk of the Orange
Coat DAILY PILOT. with which is combined the
AtiilfTAflCi ,
nEWS-PRESS, a news aver of general circulation, Notl�sla;»rsIy�t,,arnthat
p g the City Coteua of tfi.city of
printed ano published in the City of Costa Mesa, ublic lont3sahwut s t
Public *en nVp.�as r irt*ad
f»1 Section 103A U) 3)of ula
County of Orange. State of California, and that a Intorrw flaranur Uwe, at
Notice Ot Public Hearing tsnqutvmeetupcntmo- `
daean'stdar i�P 1 PP d10
ypaporl y
90 city of li�w�l 6aacfl
cantasr>Inp n ataenaat of
of which cony attached hereto is a true and complete N.:dwoopm nt.4id kr*.
hcwe housing ""on"
ccoy. was printed and published In the Costa Mesa, to betoDo,kad by ItIn sastft
quaUftd.(WICIGOW,bOnda
Newport Bea0. Huntington Beach, Fountain Valley, and porta[a a redit
e0160rat�rhe "Oct Hurt-
Irvine , the South Coast communities and Laguna Inplon�yte�rs�tohlss Vnct
1 time oth aY Dui
Beach .,sues of said newspaper for ootd {
City
c7sac=%1=AexA0=x to wit the Issu s)of W&IM Perim, r
ruts rspart wii,r tM Intent o1
as that if city af;
tt t3..ct,•use nossctt>asity to•lssus pw>iltxi'
et>Artpaga bae+ds and trnori•: I
February 7 5 tt�pri test pith w;
town-Mid.tsmU-:
to to.attord'hams own-
Trw 196 a--tnrams from** Will corn-
mum ia 7=PAL at"
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to CIO
so„the Rr-qn the�Msarm or
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$ Ongton
ring. submit srrtltsn i
«ds to Sasaar ion", j
AttTl`i7 Main Str"t.HUM-,
Bead, California,
s'nflaD.
i declare, under penalty of perjury, that tha ob alinstcoopied ei �the,
for wegoing i- tree and correct. p to d 1}► Pat aaaolei nor«W a H at tine�
Wevviopmt m Office Rif
20ti0 Main Strut,-Hunt t
trtg�on Such.Canon ia. 1
Executed on February 7 . 198 t AMM�«VfXMVDM.
�; - Ciff clart CWf of thns-
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Publistvd by Ilia pprrya
coati Darr Pilot Ftbrurry`f.
Signature 1985
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REQUE�. ., FOR CITY COUNCI. ACTIONRH 85-5
February 8, 1985
Date
Honorable Mayor and City Council Members y pka
Charles IV. Thompson, City Admi
Submitted to: nistra o
Submitted by: rY`�•`
Douglas N. La Belle, Deputy Director of Redevelopmen
Prepared by:
PUBLIC HEARING AND ADOPTION OF HOUSING P Cl Tit
R
1 Subject: SINGLE-FAMILY MORTGAGE REVENUE BONDS �f
7'J c
i
Consistent with Council Policy? [X) Yes f ) New policy or Exception
Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments:
STATEMENT OF ISSUE:
Pursuant to the Tax Reform Act of 1984 (Sections 611 and 103A9Q)(5)), as enacted by
Congress, the city is required to file with the Internal Revenue Service a "Housing
( Policies Report" prior to the issuance of single-family mortgage revenue bonds.
RECOMMENDATION.-
After the conduct of the required public hearing, adopt the attached "Housing Policies
Report" and adopt Resolution No. _S , a resolution of the City Council of the
city of Huntington Beach, California, approving and directing publication of a "Housing
and Policies Report."
ANALYSIS:
At the public hearing of December 3, 1984, the City Council adopted the Single-Family
Mortgage Revenue Bond Housing Policies Report. Since that time, the U.S.
3 Department of Treasury published the Single-Family Housing Bond Regulations which
necessitated revisions to the original Housing Policies Report. In compliance with the
Treasury Department's requirements, staff has prepared a revised Housing Policies
Report to be adopted by the City Council which must be filed no later than March 11,
1985.
The California State Legislature has found that within the State of California there
exists a serious shortgage of decent, safe, and sanitary housing which is affordable to
many persons in the State. This shortage is exacerbated during periods of rising
interest rates, particulary as high interest rates have the effect of den�;..nishing the
number of otherwise credit-worthy buyers from qualifying from private sector
mortgage capital sour es. In order to remedy this adverse •':zct on potential .came
buyers on the lower end of the purchasing spectrum, it is r,_cessary to Implement a
public program to reduce the cost of mortgage financing for the single--family
purchaser; those persons unable to compete for mortgage financing in the conventional
mortgage market. The State t as declared that it is necessary and essential that cities
be authorized to directly and indirectly ;hake long-term, low--interest rate loans to
persons not presently eligible for financing through private sector lending Institutions
to finance coo;struction and acquisition of horses in order to encourage
P10 4104
M
• RH 85-5
January 8, 1985
Page Two
Investment and upgrade local areas. Via its participation in the Single-Family
Mortgage Revenue Bond Program, the city of Huntington Beach has responded to the
Increasing demand for affordable housing.
With the passage cf the Tax Reform Act of 1984 (enacted Into law on July I8,1984),
local jurisdictions are now required to prepare a publication of a Statement of Policies
prior to the Issuance of mortgage revenue bonds. This statement of policies, the
"Housing Policies Report;" addresses housing, development, and low-income housing
assistance as required by the new law. The Housing Policies Report must be adopted
by the local Legislative body at a public hearing preceded by reasonable public notice.
After adoption, the Housing Pc"-..1es Report must be published In a newspaper of
general circulation and then forwarded to the United States Department of the
Treasury.
The adoption of the Housing Pol'_--Ies Report Uy the City Council is simply a procedural
requirement, and n(-, ^eimmitment to 15sue mortgage revenue bonds on the part of the
city will be made until such time as the Council approves the documents for financing.
ALTERNATIVES:
Do not approve the Housing Policies Report. This will pre-empt Issuance of
Single-Family Mortgage Revenue Bonds in future years.
FUNDING SOURCE:
Costs paid from bond proceeds. Cite issuance fee of one-half of one percent will be
assessed and will be paid at closing should this financing be consummated.
ATTACHMENT:
Housing Policies Report 1985
Resolution
CWT/DLB/SAJ:lp
~,( H
REQUES• . FOR CITY ChOUNCII. R �N
� 85-3
Date January 25, 1985
� 4•
3' Honorable 51avor and City Council Member; C'
Subm'led to:
Submitted by: Charles W. Thompson, City Administrator lam'
LA
��red by. Douglas N. La Belle, Deputy Director of Redevelopm
Gi
Subject: FIRST SUPPLEMENTAL TRUST INDENTURE SFMRB 1
Consistant with Council Policy? [ ] Yes ( ] Now Policy ur Exception
Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments: `
STATEMENT OF ISSUE:
It has been brought to our attention by Bond Counsel that a "technical amendment" to
the Trust Indenture approved by the City Council as part of the Single Family
Mortgage Revenue Bond issue of 1984 would now be appropriate. The First
Supplemental Trust Indenture and a Resolution approving same are attached for the
City Council's consideration.
RECOMMENDATION:
Approve and authorize City Clerk to execute Resolution No. 5498, A Resolution of
the City Council of the City of Huntington Bea^h Authorizing and Directing the
Execution of a First Supplemental T►-ust Indenture and Providing Other Matters
Properly Relating Thereto $20,000,000 Home Mortgage Revenue Bonds, 1984 Series A.
ANALYSIS:
The 'must Indenture for the City's Single Family Mortgage Revenue Bond issue of
1984 Included language establishing conditions under which the developer who
participated in the Issue might subsequently transfer Its mortgage commitment to
another developer. The Tax Code requires that not more than 10% of the total dollar
amount of the issue may be transferred. However, the Trust Indenture as approved
contains language which can be Interpreted to mean that no one developer may
transfer more than 10% of its allocation. This was never the intention in the
approval of the Trust Indenture and this First Supplemental 71rust Indenture will
rectify this language and make it clear that th!: 7rust Indenture is intended to be j
consistent with the Tax Code.
Article X of the Indenture permits the City to adopt Supplemental Indentures without
the approval of the bond holders, but with consent of the Trustee (First Interstate
Bank of California). First Interstate Bank has indicated that it will approve this First
Supplemental Trust Indenture subsequent to City Council action. Before any
developer may transfer its mortgage commitment, it Is necessary to receive:
�t
Plo C84 �,�
n
RH 85-3
. �anuary 28, 1985
{ Page Two
1. The approval of the City;
2. The approval of the Original Purchaser (Underwriter:
Stone and Youngberg);
3. Approval of the Rating Agency (Moody's Investor
Service).
The William Lyon Company, a participant In this bond issue, has indicated its Interest
In transferring the allocation reserved for use at Windward Cove. Windward Cove has
been sold out without use of the mortgage commitment reserved for it and the
William Lyon Company has no other project In the City upon which the mortgage
commitment might be applied. Any transfer of the allocation will not affect the
requirements that buyers under the program be: 1) first time buyers; 2) meet the
Income limits; 3)that the unit sale price not exceed the purchase price limitation.
It is consistent with the Policies and Procedures of the city's Tax Exempt Financing
Program (as adopted in October 1983), and the Rules and Regulations of the SFMRB
Progrm to encourage the expeditious availability of mortgage loans funded with bond
proceeds to ;potential beneficiaries. Since the mortgage commitment reserved for
Windward Cove cannot be used, such commitment is not available to homy, buyers
until the recommended action is approved. With the approval of the attached
Resolution and the First Supplemental Trust Indenture the defeat in language of the
original Indenture will be corrected, and for this reason this action is recommended
to City Council at this time.
FUNDING SOURCE:
No cost to the City.
ALTERNATIVES:
Do not approve the Resolution. This will pre-empt participants In the SFMRB 1984
from transferring mortgage commitments which they have reserved.
ATTACHMENTS:
Resolution No. 5498
First Supplemental Trust Indenture
CWT/SVK:lp
0669h
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1CITV OF HUNTINGTON BEACH CA 85-4
COUNCIL • ADMINISTRATOR COMMUNICATION
m�vnNcrav WACH
Honorable Mayor and Charles W. Thompson
To City Council Members From City Administrator
UPDATE OF INDUCEMENT January 21, 1995
Subj ect RESOLUTIONS Date
In response to the City Council's request, attached please find an updated roster of
Inducement resolutions adopted by the CIty Council or Redevelopment Agency for pending
tax exempt financing. This roster Includes multi-family, commercial and industrial
projects, as well as the single family mortgage revenue bond program and indicates issues
sold and closing dates.
I hope this information will be of assistance to the Council members. If you should have
any questions or require additional Information, please do not hesitate to contact me.
I
Respect lly submitted,
Chexles W. Thompson
City Administrator
CWT/BVK:lp
Attachment
1
• I.1EMINUM BEACH REDEVELOFMEbTrY • '
PENDING FINANCINGS
JANUP-RY •85 v
II�T7[ILFiti�NT .
RESOLU-rICN SALE DATE/
L-R r=?L'.!S ir-INSCi? DA'I r DOLLAR AtNUM STATUS CLOSING BATE MEREST RATE
Mjlti-Frr-; 1-v ;lc.ver floater)
t. sickels-5tn pley 45317 $10.0 milllt--
14:, units senior housing Oct. 17, 1983
Vnin;Flor id}t
'. ci�In.t ('Grp. 45318 $ 5.5 million
"'i eini ', :.�ninr hetisim: Nov. 7, 1983
Fie^.da t
:�. l'G•'i i CF:•'t' 4�L'...t`ntiSe f:n
rzrtn �r�hia� 95460 $12.0 million
1.50 units, 'Wirner tit No•i. 19, 1984
tli•. 491 rr ,c::n. $27.5 million Active
(To be done as one Sale in March, 1985
issue)
( f i xod rate)
l . 'iota D,2veloprr_nt Cora. 45444 $30.0 million Active Sale in February, 1985
144 units - Senbridge Oct. 1, 198'.
2. '.oln C4>welaprent Corp. #5i36 $10.0 million Pending Sale date unknmvn
105 units - 12th & 13th - Sept. 17, 198.1
�! PCi 1 .
3. L:17 V tn�erv.tmri 985 $10.0 million Pending Sale date unknown
At tttntall titre 45408 $25.0 million
units sn. hsg. June 29, 1984
c
H[).YI'INUM BEAM REDMIM 44•NI'
PENDING FMCINl3S
JANUARY 185
IND(�;Q4'tFNt'
R SOLUT 1CN SAM IATEi. .
1: 1'I3CCF3;I5PGC DATE ML AR A`ULM STA'IM CWBIN3 BATE INTEREST RATE
t. 'Ilre ttii 1 t ir.^i Lyon Ccsrpany 95247 $ 6.0 mi I I Ion cancelled
Fhiern td C-ov.,, S?ach! tiler. 21, 1983 '
Talbert
45248 $ . .0 million cancelled `
MAir. 21 , 1983 )
r.• P- nzett D velcnrvnt Co. 45249 $ 5.0 million euncelled
,hr. 21 , 198u
7. F.ec'.evelocnent Agency 45250 $ 4.6 million 'Carn_t_eted Sold June, 1984 9.25
Exercald Cove Mar. 21 , 1983 Closed June 19, 1984
1 atr� Cam:eto nt Cora. 952°'il $ 9.25 mill ion cancelled
c-ahri(i::C Apts. 1K1r. 21, 1993
'?. t?snt im:ton Rrgckers 45179 $16.0 million *CbmPleted Sold March, 1983 7.Tti%
V-mch u Atlanta Nov. 15, 1982 Closed 'olarch 10, 1933
(senior) L'-»ct} .c A-srlrs
I
PENDING FIM4CI W":
JANUARY '85
r
INLX.MI1 r
RESOLtTMCK SALE.DATE/ •
L•EVELLPIIi/SPCtzm DATE DOLLAR e4t1+VW STA7VS CIA6IlG'DATE INTERM RATE`
Indus-trial Developwnt Bonds
1. Car Iton Brcwne do C`xcpany 994 $10.0 million Active Sale in March, 1985
-e Camrc:ial/Ineustrial Nov. 5, 1984
Warner 41 Gothard
"v l-t D-welopurnt Corp. -52 $10.0 million cancelled
hsirner!Heach Camxercial Nov. 15, 198'2 '
Zi,akis 45.1 $ 2.0 million cancelled
Cypress/Beach Nov. 15, 1982
Rirkside Alssocintes 955 $ 6.5 million cancelled
Githerd & Talbert Nov. 15, 1982
!.rrt�tc c Itevenue Bonds
I . Sin-zle-Frinily .'J83 95155
Series A $20.0 million *Ccrrpleted Sold Nia:reh, 1983 9.95)6
Closed March 29, 198:1
I. Single-Fmni ly 1981 #S''F,G
Series A $20.0 million *Carrpleted Sold July, 1984 11.525%
Closed August 7, 1984
3. Sinyle-Family 1985 115458
Series A Nov. F, 198.1 $20.0 million Pending Estimated sale date
August, 1985
IN7TIti
Superior Court
or r1lg
STATE OF CALIFORNIA
In and for the County of Orange
-PRUOEQF AUBTACAT1411.
CITY OF HUNTINGTON BEACHt
CITY CLERK
State of California 3 .
County of Orange REVENUE HOND
JAN MOORE
That I am and at all times herein m n!loned was a cititen of
the United States,over the age of twenty-one years,and ttat I
am not a party to,not interested In the ab.ve entitled matter,
that I am the principal clerk of the p:;nter of the
HUNTINGTON BEACH IND. REVIEW
a newspaper of genera)eirculat3on,published in the Cit7 of
HUNTINGTON BEACH
County of Orange and which newspaper is published for the r
disemination of local news and intelitence of a general charac•
ter,and vejeb newspaper at all times herein mentioned had
and still has a bona fide subscription iist of paying subsaibers,
and which newspaper has been established,printed and pub•
)tshed at regular intervals In the said County of Orange for a , • •i
period exceeding one year. that the notice, of which the
annexed Is a printed copy,has been published in the regular
and entire issue of said newspaper,and not in any supplement
thereof,on the following dates,to wit-
IiECEMBER 131 1984
1 certify(or declare)under perWty of perjury that the forego
Ing is true and correct.
GARDKN GROPE t
Dsted at................ ...............................
California,this..14tbdsy of...DEC...19BB4I....
Signature
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REQUEs r FOR CITY COUNCIL ACTION
RH 84-43
Date November 21, 1984
Submittedi to: HGnorable Mayor and City Council
Submitted by: Charles W. Thompson, Chief Executive Officer
Prepared by: Douglas N. LaBelle, Deputy Director of Redevelopme 41
Subject: PUBLIC HEARING AND ADOPTION OF HOUSING POLICIES REPORT SINGLE-FAMILY
MORTGAGE REVENUE BONDS
Re z ti- i;-v:2/
Statement of Issuo, Recommendation,Analysis, Funding Source, Alternative Actions, Attachments:
STATEMENT OF ISSUE:
As a requirement of the Deficit Reduction Act of 1984 as enacted by Congress,
local jurisdictions wishing to issue single-family mortgage revenue bonds
must adopt a Housing Policies Report during the preceding calendar year.
Attached is the first such required report for the City of Huntington Beach.
RECOMMEWATION:
After the conduct of the required public hearing, adopt the attached Housing j
Policies Report and adopt Resolution No. 5 q 71 , A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF HUNTINGTON BEACH,CTLTFFGRNIA, APPROVING AND DIRECTING
PUBLICATION OF A HOUSING POLICIES REPORT.
ANALYSIS:
As one of the many provisions of the Deficit Reduction Act of 1984 as enacted
by Congress, local jurisdictions wishing to issue single-family mortgage '
revenue bonds must now prepare a "Housing Policies Report." Further, the
tax act requires that this report be the subject of a public hearing prior
to adoption by the local legislative body. Once approved, the Housing
Policies Report must be published in its entirety in a newspaper of general
circulation and forwarded to the U.S. Treasury.
a
The Housing Policies Report for the City of Huntington Beach as attached is
a summary of the pertinent provisions contained in the previously adopted
Housing Element of the City's General Plan. Since this document must be
published in its entirety, it is necessarily a summary of those provisions
of the Housing Element which relate to the issuance of single-family mortgage
revenue bonds and the anticipated beneficiaries of this ongoing program. To
demonstrate that the City has a comprehensive housing program, however,
certain other Housing Element provisions, such as equal opportunity in
housing, are also included.
The Housing Policies Report must be adopted by the City Council prior to the
close of the calendar year to maintain the prerogative of the City to issue
single-family mortgage revenue bonds in'1485. This is simply a procedural
requirement, and no commitment to Issue mortgage revenue bonds on the part
of the City will be made until such time as the Council approves the
documents for the financing. "
1
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,I
nH 84-43
November 21, 1984
Page 2
ALTERNATIVE:
Do not approve the Housing Policies Report. This will pre-empt issuance
of single-family mortgage revenue bonds in calendar year 1985.
FUNDING SOURCE:
Costs paid from bond proceeds. City issuance fee of one-half of one
percent will be assessed and which will be paid at closing should this
financing be consummated in 1985.
ATTACHMENT:
Housing Policies Report 1984
Resolution ho. N I
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Autttiotlied It`PUblish AtJverhsements"`{l kinds Including public �'1
notices by Decree of the Superior rt of grange County,
California, Number A•6214, dated 29 Soolember. 1961, and
A•24831,dated I I June, 1963
SPATE OF CALIFORNIA
County of Orange PUP&C 401"•aventsop tosted
b, I%$ 11f W&"t itUK N
.nn 10 iKo tON/m.wtn Gt ��
I am a Citizen of the United States and a resident of
the County aforesaid, I am over the age of eighteen
yeas, and not a party to or Interested In the below "�'01,1�V4• s
entitled matter. I am a principal clerk of the orange
Coast DAILY PILOT, with which Is combined the '
NEWS-PRESS, a newspaper of general circulation,
printed and published in the City of Costa Mesa,
County of t Nan i, Gale of California, and that a ��
Notice of Pub is Hearing- MO"alPUKW-"Km.�
IND.'aNllattll-iwAattt
111087GAGA 11RrtMV
coo �Hou
of which copy attached hereto is a true and complete tt>+ait► City
115 "
Slnyle.;'!mlly Mortgage
copy, was printed and published in the Costa Mesa, nar rive -Bonds._Hauslnp
F000 a on or WXvI
Newport Beach. Huntington Beach, Fountain ,alley, woame.r f,,tW raw»-
port K W ttw o1 f?p;
Irvine, the mouth Coast communities and Laguna ttt lleotobli.
ysrnow 41W 1ti�a., . ._�s�r
Beach issues of said newspaper for 1 time 1n.aetrt x��clya
nVX."8letttt•5>67Vl9b W to wit the Issue(s) of
fate�ateaaeMrtt fat:
aokm �end ar 'mom'r I
01 9=1 4)ae a these por- i
des at no rw=;
November 16 198 A mwtn�p
t1bwia-atMtra<+xnitre mil i
et Y6o0.1►Sstn"91t�et:Hunt-
. 198 4=1wul+arlacMr '«.id
ppr��u on opNraq►ea+►01V
�c+rt�eA' p+iv= b 'd
, f 9i3 ad io-ai tlwshwrl,try��t�`� � I
ttf it�rnport aw�biy q j
l-'WkV,C� arem'�J%
'A.M.to RfJaO P.trfy`arlonday ;
AVa iw�wrt�ierlfl,:Cs
i 98 S�Aut��+p. a�oae!
i declare, under penalty of perjury, that the ~
foregoing is true and correct. I
Executed on November 16 iyB 9
at Costa Me a, California,
Signature
PROOF OF PUUBLICAVON
I
l
�.• A./Ivjot
' REQUEST FOR CITY COUNCIL ACTION
RH 84-44
Date --nine+ntiar_?Q. 19Ad- _.
Submitted to: Honorable Mayor and City Councilco
Submitted b —�°•'y v�y y
Y� Charles W. Thompson, City Administrator A,yi,}t4 CI*r
Prepared by: Douglas N. La Belle, Deputy Director of Rode elo m
r
Subject: AMENDED INDUCEMENT RESOLUTION SANPORT (SICKEL -STAM_ 7 uJTy pL RK
DEVELOPMENT a�
f �l / 91 �t
Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachmenu: t/
STATEMENT OF ISSUE:
An inducement resolution to provide tax-exempt financing for this senior
citizen rental housing project was approved by City Council on October 18,
1983. Since that time the project sponsor has processed certain changes to
physical characteristics of this project and has changed the name under which
the project will he developed. To accommodate these changes, an amended
inducement resolution is necessary.
RECO& ,.:VDATION:
Approve, and authorize the City Clerk to execute Resolution No.$7/7# _.-, A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AUTH RIZING
THE ISSUANCE OF REVENUE BONDS FOR THE PURPOSE OF PROVIDING FINANCING FOR
MULTI-FAMILY RENTAL HOUSING DEVELOPMENT (SANPORT DEVELOPMENT) .
ANALYSIS:
The developer of this project, to be located in the vicinity of Main street
and Florida Street, is processing with the Department of Development Services
certain physical changes to the project. While these changes will enhance
the nature of the project, it will cause. the sponsor to incur additional
costs. Therefore, it is necessary to increase the not to exceed amount
included in the previously approved resolution of October 18, 1983, from $7.5
million to $10 million.
In addition, the project sponsor has determined that this project will be
developed under the name of Sanport Development (formerly Sickels-Stampley &
Associates) . This change as well as the increased not to exceed amount are
accommodated in the attached inducement resolution as prepared by bond
counsel and approved by the City Attorney's office. As always, the passage
of this resolution does not constitute a commitment to issue tax -exempt
securities to finance this project.
FUNDING SOURCE:
I Costs paid from bond proceeds. One-half of one percent City issuance fee
f will be assessed.
P10 4181 V
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Rif 84-44
November 29, 1984
Page 2
ALTERNATIVE ACTION:
Do not approve the attached resolution.
ATTACHMENT:
Resolution No.w "'
CWT:BVK:aa
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Of
• REQUEST FOR CITY COUNCIL ACTION Rif 84•- 40
Date November 8, 1984
Submitted to: Honorable Mayor and City Council Members
'Ltt�
.3
Submitted by: Charles W. Thompson, City Administrator �1'YNUY1'i)
Prepared by: Douglas N. LaBelle, Deputy Director of Redev� opmanlb
Subject: INDUCEMENT RESULU'rIONS HOELSCHER/GUGGENHEIM MU Tl rr�$.k1—I-I-,'Y`R�t L�ril �-
1;;e
Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments:
STATEMENT OF ISSUE:
Staff has been cooperating with Hoelscher/Gugganhiem in planning a rental hou-:ing
project to be located on a site at Magnolia Avenue and 405 Freeway. The City's
participation in this project may include the provision of tax-exempt financing;
and before ;his effort may commence, it is necessary to adopt inducement
resolutions for this project. Attached is the necessary resolut?on for City
Council consideration.
RECOMMENDATIONt
Approve and authorize the City Clerk to execute:
City Council Action: Resolution No. `/�'
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
AUTHORIZING THE ISSUANCE OF REVENUE BONDS FOR THE PURPOSE OF
PROVIDING FINANCING FOR THE MULTI-FAMILY RENTAL HOUSING
DEVELOPMENT BY HOELSCHER/GUGGENHEIM PARTNERSHIP
ANALYSIS:
The Hoelscher/Guggenhiem partnership has control of the site currently occupied
by greenhouse/nursery uses located west of Magnolia Avenue, north of Warner
Avenue and south of the 405 Freeway. The project planned for this site would `r
include multi-family rental housing and a rental storage facility. In connection
with the multi-family component of this project, staff has been in discussions
with the developer regarding the provision of tax exempt financing.
Provision of such financing for the project would require that at least 20% of
those rental housing units produced remain affordable to low income households
for a period of ten years or half of the term of the bonds, whichever is longer.
The project as now planned would include 152 rental units and therefore, produce
approximately 30 affordable units at a minimum.
Passage of this resolution does not constitute an irrevocable commitment on the
part of the City to issue tax exempt bonds for financing this project. It
simply state the Council's intention to move forward with the exploration of
such a financing. It is important to note that the principle amount of this
financing, as prescribed in the attached resolution, is a "not to exceed" amount. I 0
r
PIO 081
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RH 84-40
November 81 1984
Page Two
The actual size of the issue will be more specifically determined
following further analysis by the developer and architect, bond
counsel and City staff. It is also important to note that the City's
standard issuance fee would be assessed in connection with this
financing. For these reasons, approval of the attached inducement
resolution is recommended at this time. The GPA and zone change
required for thin project were approved by the City Council on
November r-, 1984.
FUNDING SOURCE:
City expenses are reimbursable from the financing. Additional revenue
generated by City issuance fee of one-half. of one percent of the
total aggregate dollar amount of the financing. (If $12 million sold]
fee equals $60,000) .
ALTERNATIVE ACTION:
Do not approve the resolution. This r:ould pre-empt the provision of
tax exempt financing for this project.
ATTACHMENTS:
Resolution No.
CWT/5VK:lp
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i Authorized to Publish Adverbs tonents of ell kinds Including public
• nollcall by Decree of Ilse Superlor Court of Orange County.
Celllornla, Number A•6214, dared 29 September. 1961. and
.1.24831.dated 11 June. 1963 h 1
STATE OF CALIFORNIA
County of Orange Ad.rowq ce.rw
n, 0"♦Rbspl 4 sel .A r~I
■+11i 10 PCs Lck~wdlll
I am a Citizen of the United States arid a resident of
the County aforesaid; I am over the age of eighteen
years, and not a party to or Interested In the below
entitled matter. I am a principal clerk of the Orange
Coast DAILY PILOT, with which Is combined the
NEWS-PRESS, a newspaper of general circulation,
printed and published In the City of Costa Mesa,
County of Orange. State of California, and that a
Notice of Public Hearing Housing
Aaaistnnc,A Plan ._..
of which copy attached hereto is a true and complete
copy, was printed and published In the Costa Mesa,
Newport Beach, Huntington Beach, Fountain Valley,
Irvine, the South Coast communities and Laguna
Beach Issues of said newspaper for 1 time
7t`ip]OftttlGlOkVeiiAK*1[to wit the issuod(s) of ,: •i .•i'. t1t:4l�lMl'ah1'MrrAtdme �fl The'0.111y October 9 198 4 J ,'t ray AeeM�trwa;
...-� / 19a yalloelo 1Mt"��o1`rw��� i
llnrllnr���f� >be t7We1
wil tstln-•
198 a eAtt�'
HA .ttow�s�i<ya
;CI���no11�:�mMfe
198 i HunthlptanlDtlMCh;;.O
pi�elaAa�pfN.: (oreli•
use �opaerd�M�,
I declare, under penalty of perjury, that the ;ea,�,0e fhrn M
foregoing IS true and correct. ��►he•tw+o we�r�°er.1�.
I f�1+ a WurM
+if�eeeh.01ty,ti1a�A
October 9 4
Executed nn . 198 .� Frtdar:stl. 1•.,.j',; t.�. .;
at Costa Mesa, California ins
=0brat
'`-'; art
Signature `�" v" / t •;, .' ''+.. z :t1t
PROOF OF Pl18LlCATlQN
REQUEST FOR CITY COUNCIL. ACTION RH 94-34
Date OOctobec 5, 1984
Wbmittedto: Honorable Mayor and City Council Members
Submitted by: Charles W. Th mpson, City Administrator
} Prepared by: Charles P. ncer, Special Projects Coordinator
Subject; APPROVAL ANNUAL HOUSING ASSISTANCE PLAN (HAP) GOALS FOR
OCTOBEP 1, 1984 THROUGH SEPTEMBER 30, 1985, CDBG PROGRAM
Statement of Issue,Recommendation,Analysis, Funding Source,Aiternatiwe Actions,Attachments:
STATEMENT OF ISSUE:
As part of the HCD Block Grant Program, it is mandated by Federal regulation that
each year the City must submit a Housing Assistance Plan (HAP) which identifier
the City's goals for such assistance for the Federal Government Fiscal Year.
Attached is the proposed HAP for the 1984/85 Federal Government Fiscal Year, and
it is also required that the City Council conduct a public hearing prior to the
approval of the HAP.
RECOMMENDATION:
After conducting the public hearing, approve and authorize staff to submit the
attached HAP for the Fiscal Government Fiscal Year October 1, 1984 through
September 30, 1985.
ANALYSIS:
As a participant in the CDBG Program, the City's required each year to submit to
HUT) a HAP stipulating its goals for the upcoming Federal Fiscal Year. Every
three years the City submits not only an annual goal but a three year goal as well.
The Council will recall that the three year HAP and annual goal fcr the current
Federal Government Fiscal Year (October 1, 1982 - September 30, 1983) was subject
to a previous City Council 'nearing and was submitted to and approved by HUD.
The HAP presented to the Council for consideration at this time represents year
three of the three year purio4 for the previous multi-year HAP.
Since there have been no significant shifts in the characteristics of the City's
population or housing stock within the last year, and since no data is available
upon which to base new goals, this HAP represents simply the extension of the
City's currently adopted HAP goals for an additional one year period. The HAP
goals relate not only to those pr ojects which may include Federal subsidies,
but all actions to be taken by the City through the next year which may address
previously identified housing needs within the community. For this reason, the
specific goals in this HAP identify the Terry Park Senior Housing Project and
the Koledo Lane Demonstration Project, which includes rehabilitation of existing
rental units.
—CJ
1 No area
1r.—...a.L v.. a....• J. .. .. .. .. ». .. _. a .. ..t._ ..• .+ .._.i .«.w.•.
RH 84-34
October 5, 1984
Page Two
Also, it should be noted that the goal for the only source of Federal
housing assistance, the Section 8 Housing Assistance Payments Program
carried out by the orange County Housing Authority, may appear somewhat
high in light of the resources available. This is done intentionally
since th•i City cannot accept housing assistance in excess of a stated
goal. Therefore, should some unforeseen increase in Federal assistance
for this program occur during the term this HAP is in effect, the City
would not be in a position to take advantage of it. Therefore, the
goal of 50 units of assistance is stipulated.
FUNDING SOURCE:
U.S. Department of Housing and Urban Development: Housing and Community
Development Block Grant Funds.
ALTERNATIVE ACTIONS:
I _
The HAP is a mandatory part of the City's participation in the CDBG
Program and must be subLAtted to HUD no later than October 31, 1984.
ATTACHMENTS:
HAP Annual Goals and attached narrative.
CWT/CPS:lp
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H.A.P. NARRATIVE ANNUAL GOAL:
To achieve the City's annual goal, the City will take the following acrions:
1) Section 8 Existing (or voucher) Program: The City will continue its
contract with the Orange County Housing Authority to implement the
Section 8 Existing Housing assistance Program or a Voucher Program
which may later be implemented by HUD. The City also maintains
representation on the Orange County Housing Authority's Technical
Advisory Committee and, through this body, provides local input to
the ongoing operation of the Housing Authority's programs. The
City's fortunate to have representation on the Housing Commission
of OCHA through the services of Councilwoman Bailey, who also
maintains representation on the Authority's Technical Advisory I
Committee. Through Councilwoman Bailey's continuing diligent
efforts, the City is able to help shape the policy of the Authority
and implement the Section 8, and other, programs.
2) Talbert-Beach senior Housing: The City has sold a parcel for this
project to the Redevelopment Agency. The Agency has made available
this,parcel for the construction of approximately 164 units of senior
citizen housing. The City, on behalf of the Agency, used previously
budgeted CDBG funds to construct street and other infrastructure
improvements necessary to make this site developable. Construction
of these improvements commenced in November, 1983, with construction ,
of the housing units commencing in May, 1984. The City has issued I
tax exempt mortgage revenue bonds to finance the construction of
these units and the units are being made available at extremely I
low rents to low/moderate senior citizens without the use of Federal
or State subsidies.
3) Neighborhood Enhancement (Rehabilitation Loans) : While the City will
continue to operate its CDBG funded Neighborhood Enhancement Program
through the term of this annual HAP, the extent of funds available I
for citywide rehabilitation will be limited. The City and Redevelop-
ment Agency are continuing with the implementation of the Koledo Lane
Demonstration Project (within the Oakview Redevelopment Project Area)
and have provided 6 percent, 15 year, fully amortized rehabilitation
loans to property owners within this demonstration project area.
This. e:ffort to rehabilitate the 16 existing 4-plex buildings in this
demonstration project has consumed a large share of the financial
resources available for this program. However, this effort is con-
sistent with addressing the City's major housing need - that of
rental housing for families. Public improvements and construction
of the new fifth unit at Each 4-plex is soon to be implemented, and
efforts are likewise soon to commence on adjacent streets (Jacquelyn 4
and Queens) .
4) Rental Rehabilitation Program: The City has recently been notified
that it will be a participant in the Department of Housing and Urban
Development's Rental Rehabilitation Program. Since the goal of the
program is to improve the rental housing stock affordable to lower
income families, the City has targeted the Oakview neighborhood for
these improvements. The City will be working with the Orange 'County
Housing Authority who will administer approximately twenty-two,
section 8 certificates.
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w w. l.a.a.s—,aV.tn♦a.f . rw a.w..... •,. e. ...... .... .. _........ ... .._ ...... ..
Form Approved
• OMB No.25OG-OQta"i r.*
U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT" s.NAME OF COMMUNITY
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM CITY OF'.HUTITLNGT4DI BEACH
'+ ENTITLEMJ NrPROGRAM
2.WIA I NUUMEA
HOUSING ASSISTANCE PLAN
B g 141— IMIC1=61
— 0 5 0 6
].PERIOD OF APPLICABILITY a 5.INCREMENTAL YEAR Of 16. HUD APPROVAL
SUBMISSION
FROM: I0/1/84 TO: 9/30/85 ®Originat ❑Revision OArnendment 01 02 ®3
f &run of Awhar and Official! Warr)
r•INCORPORATION OF HAP,PARTS 1-111.BY REFERENCE. Parts 1,11 and ill of the HAP approved
are incorporated by reference and are no:cc-tained in this(second)(third)year submission. !Latest amendment date of the HAP,Parts f-1H,if �
PART 1V-ANNUAL HOUSING ASSISTANCE GOALS
PROGr,.A.M OR PAO?ECT UNITS TO BE ASSISTED LOWER INCOME HOUSEHOLDS TO B£ASSISTED
List HUD Auistra Rental Housing Programs rant then oM&r Renter .-,_ HUD NUMBER OF 140UMNO SMALL. LARGE
Pro ar+tt&ndawnerPragatmsSrp&valet ELDERLY:Rut TYP FAMILY FAMILY TOTAL
A B C D E
1) Section 8 Existing (including Rental Rehab Program) X 50 existing 10 15 25 50
2) Talbert-Belch Senior Housing 164 new 164 -- --- 164
3) Keighburhood Enhancement (Rehab Loans)
Owner X 20 rehab 10 j 3 ; 3 16
Renter X 64 rehab -•- 64 -- 4 64
' 2 c
TOTALS: 298 184 $' f 28 294
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REQUEST FOR CITY COUNCIL ACTION
• RH 84-35
Date October 10, 1984
Submitted to: Honorable Mayor and City Council
Submitted by: Charles W. Thompson, City Administrator
Prepared by: Charles P. Spencer, Special Projects Cuor inatoo t
Subject:
RESOLUTION OF INTENT SINGLE FAMILY MORTGAG REVENUE Y C�
Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments:
STATEMENT OF ISSUE;
To continue the City's ongoing program to provide mortgage revenue bond
financing for first-time home purchasers, it is necessary to adopt the
attached resolution of intent for the SFMRB 1985 Issue.
RECOMMENDATION:
Approve and authorize the clerk to execute the attached Resolution No.54 ST
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH STATING
ITS INTENTION TO ISSUE MORTGAGE REVENUE BONDS.
ANAL-SIS:
In order to continue the City's ongoing program to provide below market
interest ratte loans for first-time home buyers in the city in calendar
year 1985, it is necessary to adopt the attached Resolution No.5.4 ST-.
When adopted, this resolution and formal application may be forwarded to
the State of California Mortgage Bond Allocation Committee (MBAC).
Council will recall that it is necessary to receive in allocation from the
MBAC annudlly before the City is empowered to issue Single Family Mortgage
Revenue Bonds. While adoption of this resolution does not constitute a
commitment on the part of the City to issue Single Family Mortgage Revenue
Bonds in calendar year 1985, it is necessary to reserve the option to do
so and to secure a position on the MBAC's priority list.
FUNDING SOURCE:
Cost of issuance paid from bond proceeds plu~ City issuance fee of
one-half of one percent is assessed (on $20,0d0,000 issue fee equals
$100,000).
ALTERNATIVE•
The MBAC's current list of jurisdictions seeking an allocation in calendar
year 1985 is already quite long. Failure to adopt Resolution No. _vLff
at this time will probably pre-empt the City's ability to issue such bonds I
in 1985.
ATTACHMENT:
Resolution No. i
CWT:SVK:aa
P10 4/81
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19CITY OF HUNTINGTON MACH
INTER-DEPARTMENT COMMUNICATION -
HUNT1W.70N fix"
To Charles W. Thompson From pat Sp er
City Administrator Special Projects Coordinator
Subject STATUS REPORT: HOUSING REHAD Date October 9, 1984
AND RELOCATION ACTIVITIES
'V
PISCAL YEAR 1983/84:
During Fiscal Year 1983/84, the major emphasis of the Housing Rehabili-
tation Program centered upon the initiril rehabilitation of four-plex units
in the Oahview Redevelopment Project Area - Koledo Lane Demonstration
Project, upon the formation of the Koledo Lane Property Owners Associ-
ation, rehabilitation of the existing four-plexes couaaenced. The work
accomplished included new roof s, exterior paint, new wood trim, window, and
screen replacement, plumbing repairs, electtical repairs, interior
painting, floor coverings, ceiling repairs, and various other
{ improvements. Soon to be accomplished is the demolition of carports,
five-car gcrgage/laundry room construction, optional fifth, two-bedroom
unit, and public offsite improvements.
The Program ,continued the ongoing single-family housing , rehabilitation
efforts; however, lesu funds. were available for said operation due to the
emphasis on Koledo Lane. The majority of such loans were, to low and
low-moderate income households, primarily in the Townlots/Old Town and
i South Shores target arras. Typical improvements included roof, exterior
and interior paint, p.lumbing and elc•.ctrical repairs, room additions to
eliminate conditions of overcrowding, and provision of offstreet parking.
The Handicap Modification Grant Program was put into operation during the
Fiscal Year 1903/84. Grants of up to $1500 -sere available to owners of
rental units to provide ramping, grab bars, door widening, accePPihle
electrical and plumbing fixtures, and other handicap-oriented impro7emt:nts
for handicapped tenants.
1
The Program was also called on to provide relocation assistance to five
g p
households displaced by the Terry Park/Emerald cove senior housing
development. Four tenant-occupied households and one owner-occupied
household were counseled by staff and provided with financial assistance
to procure replacement housing.
The. following chart summarizes housing rehabilitation and relocation
activities for Fiscal Year 1983/84:
i
.5..
1 �
Status Report-Rehab. & Relocation
October 9, 1984
Paye Two
HOUSING REHABILITATION S RELOCATION ACTIVITY
FISCAL YEAR 1983/84
HOUSING ACTIVITY TOTAL FUNDS EXPENDED f OF HOUSEHOLDS
PROCESSED
Multi-Pamily Rehab $ 158,615 60
Single-Family Rehab $ 172,900 20
Handicap Modification Grants $ 4,500 3
Relocation from Talbert-Beach $ 19,450 5
(Emerald Covu)
$ 359,465 88
FISCAL YEAR 1984/85:
Program emphasis again centers on the Oakview Neighborhood Enhancement i
efforts. Rehabilitation of Koledo Lane four-plexes is in the final
stages, with the demolition of existing carports, the construction of new
garage/laundry room.. and fifth unit construction soon to commence. The
second phase of the Oakview Neighborhood Enhancement Program, which
includes expanding the rehabilitation efforts to Jacquelyn and Queens }
Streets, will commence this fiscal year.
Two new housing rehabilitation programs are currently being incorporated
into the Program, including rental rehabilitation . and mobile home
relocation. The rental rehabilitation program is a cooperative joint
effort of the City, Orange County Housing Authority, and U.S. Department
of Housing and .Urban Development. Recently, the City received allocation
approval of $109,500 for rental rehab, which entails a public-private
subsidy approach to rental rehabilitation and provision of 22 rental
subsidy vouchers for low-income tenants. The major concentration of
rental rehab will be the Oakview area and other lower-income, target areas
of the City. Mobile home rehabilitation applicants are now being
processed in accordance with exising program guidelines for the deferred
payment loan, which is limited strictly to very low income households.
The following chart summarizes housing rehabilitation and relocation
activities to date for Fiscal Year 1984/85:
I
4
}
a
Status Report-Rehab, 6 Relocation
October 9, 1984
Page Three
HOUSING ACTIVITY 'TOTAL FUNDS EXPENDED # OF HOUSEHOLDS
PROCESSED
Multi-Family Rehab $ 10,000 8
Single-Family Rehab $ 30,000 2
Handicap Modification Grants -0- -0-
Relocation -0- -0-
nental Rehabilitation* -0- -0-
Mobile Home Rehabilitation $ 51334 1
$ 45,334 11
*Program implementation pending final execution of Grant Agreement and
establishment of disbursement account.
if you should have any additional questions, please contact me.
CPS/PND:lp
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NOTICE OF PUBLIC HEAttING
HOUSING ASSISTANCE PLAN
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The City of Huntington Beach intends to submit its annual Housing
Assistance Plan to the U.S. Department of Housing and Urban'
Development or or about October 31, 1984. This annual HAP is
for the period of October 1, 198 through September 30, 1985,
Notice is hereby given that the City Council of the City of Huntington
Beach will conduct a public hearing on the HAP goals at its regular
ladjew eting of Monday, October 15, 1984, at 7:30 P.M. in the
City Council Chambers located at 2000 Main Street, Huntington Beach,
Calixornia.
Anyone wishing to express an opinion regarding the proposed Housing
Assistance Plan may do no at the hearing. Copies of the W are
available at Huntington Beach City Clerk's Office, from 8100 A.M.
to 5s00 P.M. , Monday through Friday.
Alicia M. Wentworth ;
City clerk
(714) 536•-5227 j
-ZA+-tb: 10.r-R11 t
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Ow L
REQUEST FOR CITY COUNCIL 1ACTI
• Q� �f/�� �} aU�f- F�1 !�!.- � '1/1,AH 84-29
Date August 24,-'1984
Submitted to: Honorable Mayor and City Council Members
/tod�W-V 70 Ccw'f
City Administra 91�r
Submitted by: Charles W. Thomps t:4 -twil-ra r,-e oeff-
pso
Prepared by: Charles P. Spe, c Special Projects Coordinator 'Rol-lopj +0 6-00)9r
r.+ettoaTre Vote, i
Subi". INDUCEMENT RES'*0LUION MOLA DEVELOPMENT CORPORATION MULTIFAMILY HOUSING
AT 12TH STREET AND PACIFIC COAST HIGHWAY q117
Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachmenti �
U
STATEMENT OF ISSUE:
Mola Development Corporation is considering the construction of a 105-unit
multifamily rental housing development to be located between 12th and 13th
Streets at Pacific Coast Highway. The developer is seeking tax-exempt
financing for this project and has requested adoption of an inducement
resolution.
RECOMMENDATION:
Approve and authorize the City Clerk to approve the.attached Resolution No.
A RESOLUTION'OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AUTHUkIZING
THE ISSUANCE OF REVENUE BONDS FOR THE PURPOSE OF PROVIDING FINANCING FOR 105-
UNIT MULTIFAMILY RENTALAOUSING DEVELOPMENT BY MOLA DEVELOPMENT CORPORATION.
ANALYSIS:
Mola Development Corporation controls the parcel located between 12th and 13th
Streets at Pacific Coast Highway and is pursuing investigation of the use:'nf
this site as a multifamily housing development. As a portion of this a6ily' sis,
the developer has requested an investigation of the feasibility of providing
tax-exempt financing for this project. As with other tax-exempt financings,
the firpt procedural step is consideration of an inducement resolution such as
the one attached. While adoption of this inducement resolution provides no
guarantee that the City will provide tax-exempt financing for the project, it
does mark the point in time after which costs incurred by the developer may be
financed from bond proceed. Therefore, it is recommended that the inducement
resolution be adopted while the analysis of the feasibility of this project
and the subject financing continues.
FUNDING SOURCE:
Bond proceeds. City revenue generated by one-half of one percent of proceeds
City issuance fee.
ALTERNATIVE ACTION:
Do not approve the resolution. This will preempt provision of tax-exempt financing
at this time.
ATTACHMENT:
P10 4/01 Resolution No. 5745(19
CV!T:SVK-.aa
Fv�-
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CITV OF HUNTINGIrON BEACH
r-, COUNCIL - ADMINISTRATOR COMMUNICATION
1 fIVYINGTON r[Acll 4.&y
To Honorable K%yor and From Charles W. Thompson
City Council Members City Administrator
Subject TAX-EXEMPT FINANCING/INDUCEMENT Date September 13, 1904
RESOLUTION$
Pursuant to the City Council's request for additional information on the
( subject matter, I would like to provide the following information:
{ Background
4
Since about 1901, the City has explored the use of tax-exempt financing
to encourage new development. Federal and state law permits local juris-
dictions to sell tax-exempt securities to assist with the construction
and long-term financing for single-family, multi--family, and commercial/
office/industrial facilities with certain restrictions. The U.S.
Congress recently extended the legislation which enables local juris-
dictions to provide such financing as part of the "Deficit Recovery Act
of 1984" while placing additional restrictions on such financing
(principally on private purpose securities for
commercial/office/industrial facilities) .
The intent of extending this enabling legislation is to provide local
jurisdictions with the mechanism of support and assistance to new
development. While the new tax act includes additional restrictions as
referenced above, the procedures for financing now single-family and
multi-foraily projects were extended with few changes. In this way the
federal government is attempting to encourage the production of these
types of housing.
Of course, there are certain affordability requirements which must be met
in projects benefiting from such financing as. established by federal and
state law. In light of the continuing reduction of direct funding of
housing programs by both the federal and state governments, the incentive
of tax-exempt financing now represents one of the only ;Weans through
which the City may provide -incentives for increasing the supply of
I ? affordable housing.
' Previous City Actions
The City's participation in tax-exempt financing for new developments
was formalized in the preparation and adoption of the Community and
Neightorhood Enhancement Program. This was included as an integral
compo--tnt in the implementation strategy to meet the redevelopment
and eco.iomic development goals established by this program.
The City's involvement in such financing was further defined by approval
of the "Tax-Exempt Policies an-i Procedures" as approved by the City
Council in October, 1983. This document stipulated the project types,
locations, and circumstances under which the City would pursue tax-exempt
financing for new development (copy attached) . This document also
formalized the City's issuance gee which is assessed on each such
financing.
'`� � Y' � r.. 7 ,afL:1��i�' *r'�i�i'�i�l�i�'�-%1Li67,3"rlSY.Sie+'✓.fip��t'�f9:fj - s�'J�cFSaS�35iYlrL+as.2ir rN
'v "i.
Honorable Mayor and
City Council Members
September 13, 1984
Page 2
The most recent action in support of this ongoing program of finance was
adoption of the Housing Element Revision by the City Council on July 2,
1984. In this document policies were established to continue to provide
tax-exempt financing for single-family and multi-family housing develop-
ments (Housing Element, City of Huntington Beach, July, 1984, Goals,
Policies, Programs, Section 8.2, Adequate Provision) .
The Role of Inducement Resolutions
As a requirement of federal law, it is necessary for the Ci:.y to take an
"official action" stating its intention to explore tax-exempt financing
for a specific project. The law provides that the mechanism through
which this statement is made is adoption of an inducement resolution.
' It should be emphasized that passage of such a resolution represents
absolutely no commitment by the City to actually provide such financing.
However, adoption of such inducement resolutions marks the point in time
after which costs incurred by the sponsor are eligible to become a part
of any subsequent financing. obviously, this is important to a project
sponsor that may be regularly incurring costs for architects, engineers,
and other costs necessary to bring a project to the commencement of
construction.
Therefore, from time to time, staff may forward inducement resolutions to
the City Council as one of the initial steps in exploring the feasibility
and desirability of the City's involvement in tax-exempt financing for a
specific project. Prior to preparation of a resolution, staff always
requires information and documentation from the project sponsor regarding
the costs and timing of the project, project's entitlement to-use. status,
status of land ownership, and the nature of and participants in the
entity which is sponsoring the project and the financial status of this
entity. For projects proposed within redevelopment project areas, staff
also assesses the compatibility of the proposed project with the adopted
redevelopment plan.
I
li I hope this information will help address questions raised by the City
Council and help to clarify the role of inducement resolutions in the
City's ongoing and comprehensive program to provide tax-exempt financing
for new development. This program is a key component of the City's
efforts to achieve the redevelopment and economic development goals it
has established. We will be happy to provide any additional information
which the Council will require.
Respec lly submitted,
i
arles W. Th• p on
f City Administrator
CWr:SVK:aa
Attachment
770
�Ri���!'��f�i��/ �?�+��'.��'�!�1hi' '�i 1i"����`�' ,i�r► i'pi?'�+s'!''{'�`1'� `l��`i��.�.v ':Z�$�''!;�'�ltd.ai, �'�s3' a +� t ,s nt�ua
�
REQUES. FOR CITY COUNCL `ACTION
RH 84-'V6
Date August 23, 1984
Submitted to: Honorable Mayor and City Council Members 011
Submitted by: Charles W. Thompson, City Administrator
�\Q
Prepared by: Charles Oencer, Special Projects Coordinator
T
INDUCEMENT RESOLUTION MOLA DEVELOPMENT CORPORATION
Subject: D�a w
SEABRIDGE VILLAS
4
Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments: ,
O
STATEMENT OF ISSUE: (sc5►��p"�,05 J,,L1
Mola Development Corporation may wish to operate its Seabridge Villas
project as a rental housing project and seeks tax-exempt financing for
this project. Attached is an inducement resolution, the adoption of which
is necessaryto further explore this alternative financing for this
project.
n g
RECOMMENDATION:
Approve. and authorize., the City Clerk to . execute the attached Resolution
No. � - A .RESOLUTION OF THE CITY. COUNCIL OF. THE. CITY OF HUNTINGTON
BEACH AUTHORIZING THE ISSUANCE OF REVENUE BONDS FOR THE PURPOSE OF
PROVIDING FINANCING FOR 344-UNIT MULTIFAMILY RENTAL HOUSING DEVELOPMENT BY
BEACH PARTNERSHIP, LTD.
ANALYSIS:
While the , product type being. developed as part of the Mola Development
Corporations Seabridge project at Adams and Beach is designed as a
condominium project, the firm may wish to sell this project for operation
as.a Iultifamily rental project. The firm is exploring, along with staff,
the feasibility of providing tax-exempt financing for this project as
multifamily rentals. To further explore the feasibility of this
financing, it is necessary for the City Council to consider the attached
inducement resolution.
Should tax-exempt financing be provided for this project, the owner would
be required to provide a minimum of 20 percent of the units as affordable
for a term of ten years or one-half the term of the financing, whichever
Is longer. Because of this requirement, provision of tax-exempt. financing
for this project, should it prove feasible, will assure that a share of
these units become part of the City's ongoing program to provide
affordable rental units.
FUNDING SOURCE:
Costs paid from tax-exempt proceeds should financing be provided. Revenue
would be generated by one-half of one percent of bond proceeds as City
issuance fee.
PIO 4181
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F '� MENU, t� ,y
RH 84-26
August 23, 1984
Page 2
ALTERNATIVE ACTION:
Do not approve the attached inducement resolution. This. will preempt the
provision of tax-exempt financing for this proposed multifamily rental
project.
ATTACHMENT
Resolution No.
CWT:SVK:aa
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. aJ� CCTV OF HQ.BNTINGTON BEACH CA 84--34
{ COUNCIL. - ADMINISTRATOR COMMUNICATION
! "WWWON/1401
To Honorable Mayor and From Charles W. Thanpson
City Council Members City Administrator
Subject SINGM M43LY MORICAGE FEVENLE Date July 16, 1984
DOW ISSUE 1984 SERIFS A
It has been brought to my attention that it will be necessary for the City
Council to adjourn from its regular meeting of Monday, July 16, 1984 to a
+ newly scheduled regular adjourned meeting on Thursday, July 19, 1984 at
6:30 P.M. The purpose of this meeting would be to approve the financial
1 documents for the City's Single Family Mortgage Revenue Bond Issue 1984
Series A of $20,000,000.
The purpose of the July 19th meeting is as follows:
�f 1) It is anticipated that Moody's Investment Service will provide a
1 rating for this bond issue on Monday, July 16, 1984.
2) If this rating is received, Stone and Youngberg, Underwriter for the
issue, will price, market and sell the $20,000,000 issue on the 17th
and 18th.
3) Through the process,of selling the issue, the Underwriter will receive
offers to purchase from institutions and individuals. These offers to
purchase are generally held open for only a forty-eight (48) hour
period and can be confirmed only upon execution of the purchase
agreement by the City Administrator.
4) Sinae. it is necessary for the City Council to approve the financing
documents and authorize the City Administrator to execute the .purchase
contract, and since this must be done within forty-eight (48) hours of
the receipt of the First offer to purchase these bontis, it is
necessary to schedule a City Council meeting as close as. possible to
the anticipated completed sale of the issue. Therefore, on the advise
of the Underwriter, the City Council meeting of the 19th has been
scheduled and it is respectfully requested the City Council adjourn
the regular meeting on Monday, July 16th to this specific time and
place.
If Council Members should have any questions, please do not hesitate to
contact me.
Respect y subn4tted,,
rles W. Rhompson
City Administrator
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CWT/SVK:lp
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0 CITY OF HUNTIN GTON BEACH CA 84-36
• COUNCIL - ADMINISTRATOR COMMUNICATION
HUNtINCTM 11A01
To Honorable Mayor and From Charles W. Thompson
City Council Members City Adminstrator
Subject SUPPLEMENTAL INFORMATION REGARDING Date July 16, 1984
SINGLE FAMILY MORTGAGE REVENUE BOND
ISSUE 1984 SERIES A
As the banking and underwriting firm of Stone and Youngberg has continued to
assess the calculations.necessary prior to the sale of the City's Single Family
Mortgage Revenue Bond Issue 1984 Series A. the following circumstances have
come to light:
1) Under current federal law the "arbitrage" (the difference between the
interest rate on the securities and any investment income) may not
exceed 1 1/8%.
2) The developers involved in this transaction expect to draw the .proceeds
and fund mortgages for newly constructed homes immediately after the
sale of the issue. Therefore, there is an extremely short period of
time within which the proceeds may be invested and earn interest.
3) The combination of these ;'two factors reveal that the City's intention
to charge a h of 1% issuance fee, will not be possible. The only way
this issuance fee could be accommodated .is through charging additional
upfront costs to the developers. This would severely lessen the
inducement to be offered through this financing.
Further analysis by Stone and Youngberg indicates that while the full � of 1%
issuance fee ,cannot be charged, a somewhat reduced fee is possible. ..The
� of 1% would have provided the City $100,000 and the cash flow calculations
for this transaction indicate that it will still be possible to receive the
fee of $60,000.
It is; therefore, recommended that the issuance fee be reduced to this $60,000
amount to permit this financing to be concluded.
It is necessary to ascertain the Council's opinion of this recommendation at its
regular adJourned meeting of Monday, July 16, 1984, prior to the initiation of
the sale of the issue by Stone and Youngberg.
Respect y submitted,
harles W. Thompson
City Adminstrator
CW"/SVK:1p
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REQUES 6 FOR CITY COUNCIL ACTION
HH 84-24
Date ...S 14r ?Is 12R4
Submitted to: Honorable Mayor and City Council Members tSt'1C'iL
� C,O
Submitted by: Charles W. Thompson, City Administrato p�� Gt� / O 1�
$pad
Prepared by: Charles P. Spencaar, Special Projects Coordinato
Subject: RESOLUrIC N w. A RESOLUrIC N OF THE CI HUNrINGTC I r. -.
BEACH AMENDING Myl
AND RAGULATIONS RELATING TO�. TS• ,iKJ[►�
MOMSWE FINANCING PROGRAM •. �
Statement of Issue, Racommendation,Analysis, Funding Source,Alternative Actions,Attachments:
STATEMEN2 OF ISSUE:
At its regular adjourned meeting of Monday, July 16, 1984, the City
Council approved the Single Family Mortgage Revenue Bond 1984 . financing.
While the Council's action at that time tras appropriate and sufficient to
allow this financing to be sold, on the advice of Bond Counsel, offered
herewith is a resolution amending the rules and regulations under which
the single family program is conducted (such rules and regulations were
adopted last year by the City Council and are still in effect) .
R�]ATIIXJ:
Approve and authorize the Clerk to execute resolution No. , A
RESCEMICN OF TO CITY OF HUNrlMrC N BEACH AMENDING RULES AMID RE7GULATICNS
FZMING TO ITS HOME MORTGAGE FINANCING PROGRAM.
A?QWSIS:
We are pleased to report that the Council's action of July 16 permitted
the sale of the City's .SEMRB Issue 1984 aeries A to be sold within
forty-eight hours following the Council's action. This makes Huntington
Bpach one of the first cities in the state of California to issue such
bonds ,this year.
While the adoption of City Council Resolution No. 5416 provided all
sufficient authority necessary for these actions, Bond Counsel has advised
staff that to assure a flawless bond record, it is recommended that the
City Council adopt; the attached resolution amending the rules and M
regulations previously adopted by the City Council under which the program
is conducted. This "amendment" of the rules and regulations sirrply i
extends their applicability to this year's program and makes no
substantive changes.
FINDING SOURCE:
SFM B 1984 Series A proceeds
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July 23, 1984
Page 2
AMEWSM hMCN.-
Do not approve the attached resolution. This will not provide a clean
bond record for this financing.
ATI'A�3MEN'I' '
Resolution No. �
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REQUES r FOR CITY COUNCIL ACTION
! Date October 10, 1983
Submittadto: Honorable Mayor and City Council Members rRovnn uY CITY
COUNCIL
Submitted by: Charles W. Thompson, City AdministratotyC!}
Prepared by: ��lOffice of Business & Industrial Enterprise W ,...^
--^^'.. ._`�.... CITY CL,
Subject: ADOPTION OF INDUCEMENT RESOLUTION FOR DE CORP.
Fe's /C]
Statement of luue, Recommendation,Analysis, Funding Source,Alternative Actions,Attachments:
STATEMENT OF ISSUE:
Delma Construction Corporation plans for the constructive of an
approximately 98--unit senior housing project at the easy side of
Florida street. This developer has now requested the City's assis-
tance in the provision of a tax exempt financing for the construction
and permanent financing for the project. To commence this process,
it is necessary for the City Council to consider the adoption of the
attached inducement resolution.
RECOMMENDATION:
Approve and authorize the City Clerk to execute the attached inducement
Resolution No.S3i� with a not to exceed amount for the financing of
$5.5 million.
ANALYSIS:
State and Federal statute permit the City to sell tax exempt bonds
to provide construction and permanent financing for multi-family rental
projects. A provision of such financing is an integral part of the
ongoing community and Neighborhood Enhancement Frogram, and represents �
a significant resource which the City may use to encourage development
of affordable housing.
Delma Construction Corporation has developed 'in recent years, sub-
stantial office and hospital construction within the` Pacifica Community �
Plan Area. The current project proposal that would be the subject of '
this financing is to be a senior citizen rental housing project:, to be
located on the east side of Florida, and would be composed of approxi-
mately 98 one-bedroom units. In addition, the developer has submitted
documentation to staff that shows an escrow has been opened for the
acquisition of this parcel.
This inducement resolution is brought to the Council for consideration
at this time because, by Law, such a resolution must be approved prior
to the close of escrow if the purchase price of the land is to be in-
cluded as a part of the tax exempt financing. At this time, Delma
Construction Corporation anticipates closing escrow and taking title
to the subject parcel on, or about, January 1, 1984. Therefore, if
tax exempt financing is to be provided for this project, as consistent
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with the objectives of the Community and Neighborhood Enhancement
Program, it is necessary for the inducement resolution to be `
passed prior to this time.
This project contributes to the achievement of the objectives of
the Community and Neighborhood Enhancement Program by virtue of
its location near the Beach Boulevard Commercial Corridor and
potential redevelopment project area at Five Points, and by virtue
of the fact that it will address the need for senior citizen rental
housing in the community. State and Federal laws which enable such
tax exempt financings to be provided also provide that a minimum
of 20 percent of the units in such a project be designated as
"affordable" and that these units actually be occupied by low and
moderate income households. In addition to these benefits, the
Citywill also receive from bond proceeds s
p (should this financing I
actually be consummated) the "issuance fee" to cover the City's
administrative costs connected with the financing.
It should be pointed out that adoption of this inducement resolution
At this time, is an initial procedural step and is in no way binding
on either the City or the developer to consummate this financing
should it prove financially infeasible. In this event, no cost is
curred by the City and there is no obligation, either explicit or
implied.
FUNDING SOURCE: i
Costs are paid from bond proceeds and, in addition to this, revenue
is generated to the City through the assessment of an "issuance
fee" payable from bond proceeds and due upon the close of the issue.
ALTERNATIVE ACTION:
1. Do not approve the attached inducement resolution. This will
preempt provision of a tax exempt mortgage for this project,
2. Continue the consideration of this inducement resolution to the
next regular adjourned City Council meeting.
ATTACHMENTS:
1. Inducement Resolution
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REQUES . FOR CITY COUNCL ACTION
Date October 6 1983 ref
Submitted to: Honorable Mayor and City Council n""'4""D by CITY COUNOII.
Submitted by: Charles W. Thompson, City Administrator
19.�.
Prepared by: Office of Business and Industrial Enterprise
Subject: ADOPTION OF INDUCEMENT RESOLUTION FOR SICKLES, vw >t
SENIOR HOUSING PROJECT: MAIN AND FLORIDA :TREETS
`Statement of Issue, Rwommondation,Analysis, Funding Source,Alternative Actions,Attachments:
STATEMENT OF ISSUE:
Sickles, Stampley and Associates recently received approval from the Planning
Commission for the construction of an approximately 162-unit senior housing
project at the southeast corner of Main and Florida Streets. This developer
has now requested the City's assistance in the provision of a tax exempt financing
for the construction and permanent financing for the project. To conmence this
process, it is necessary for the City Council to consider the adoption of the
attached inducement resolution.
RECOMMENDATION:
Approve and authorize the City Clerk to execute the attached inducement resolution
no. S 317 with a not to exceed amount fir the financing of $7.5 million.
ANALYSIS•
State and .Federal statute permit the City to sell tax exempt bonds to provide
construction and permanent financing for multi-family rental projects. A pro-
vision of such financing is an integral part of the ongoing Community and Neigh-
borhood Enhancement Program, and represents a significant resource which the
City may use to encourage development of affordable housing.
Sickles, Stampley and Associates and its affiliated firms have developed in
recent years. over..$350 million worth of residential , office and hospital con-
struction. The current project proposal that would be the subject of this
financing is to be a senior citizen rental dousing project to be located at
the southeast corner of Main and Florida, and would be composed of approxi-
matelor 158 one-bedroom units and 4 two-bedroom units. The Conditional Use
Permi `. No. 83-23, Neqative Declaration No. 83-27 and Conditional Exception
No. V1.04 for this. proposed'projdct were approved by the Planning Commission
on September 7, 1983.. In addition, the developer has submitted documentation
P P
to staff that shows an escrow has been opened for the acquisition of this par-
cel and which anticipates the participation of Home Federal Savings and Loan
of San Diego as the lender in this transaction.
This inducement resolution is brought to the Council for consideration at this
time because, by Law, such a resolution must be approved prior to the close
of escrow if the purchase price of the land is to be included as a part of the
Plo 4131
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tax exempt financing. At this time Sickles, Stampley and Associates antici-
pate closing escrow and taking title to the subject parcel on October 24,
1983. Therefore, if tax exempt financing is to be provided for this project,
as consistent with the objectives of the Community and Neighborhood Enhancement
Program, it is necessary for the induce^;3nt resolution to be passed at the
Council 's regular adjourned meeting of October 17, 1983.
This project contributes to the achievement of the objectives of the Community
and Neighborhood Enhancement Program by virtue of its location near the Beach
Boulevard Commercial Corridor and potential redevelopment project area at Five
Points, and by virtue of the fact that it will address the need for senior
citizen rental housing in the community. State and Federal laws which enable
such tax exempt financings to be provided also provide that a minimum of 20
percent of the units in such, a project be designated as "affordable" and that
these units actually be occupied by low and moderate income households. In
addition to these benefits, the City will also receive from bond proceeds
(should this financing actually be consurrated) the "issuance fee" to cover
the City's administrative costs connected with the financing.
It should be.'poihted out that adoption of this inducement resolution at this
time is an initial procedural step and is in no way binding on either the City
or the developer to consummate this financing should it prove financially in-
feasible or. should Nome Federal Savings and Loan, or some other lender, choose
not to participate. In this event no cost is incurred by the City and there
is no obligation, either explicit or implied.
FUNDING SOURCE:
Costs are paid from bond proceeds and, in addition to this, revenue is generated
to the City through the assessment of' an "issuance fee" payable from bond pro-
ceeds and due upon the close of the issue.
ALTERNATIVE ACTION:
Do not approve the attached inducement resolution. This will preempt provision
of a tax exempt mortgage for this project.
ATTACHMENTS:
1. Inducement Resolution
2. Planning Commission Notice of Action
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Huntington Beach Planning Commission
P.O. BOX ISO CALIFORNIA 92648
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Date: September 12, 1983
i
NOTICE OF ACTION
Applicant: Sickels, Stampley Associates
Subject: CONDITIONAL USE PLItMIT NO. 83-23 (ND 83--27) �
(CE 83-04)
Your application was acted upon by the Huntington Beach Planning Commis-
sion on September 7, 1983 and your request was:
i .
Withdrawn
Approved
Approved with Conditions XX (See attached) V
i
•Disapproved
Continued until !'
Under the provisions of the Huntington Beach. Ordinance Code, the.action
taken by the Planning Commission is final unless an appeal is filed to
the; City Council by you or an interested party. Said appeal must be in
. writing;•and must set forth in detail, the action and grounds by and upon
which the applicant or interested party deems himself aggrieved. Said
appeal must be accompanied by a filing fee of one hundred sixty--five
($1.65) dollars and be submitted to the City Clerk's office within ten
WO) days of the date of the Commission's action.
In your case, the iast day for filing an appeal and paying the filing
fee is September 19, 1983 .
Provisions of the Huntington Beach Ordinance Code are such that any appli-
cation becomes null and void one (1) year after fins. approval, unless
actual construction has started.
Ve y truly yours,
J es W. valin
Secretary
EXHIBIT'B
4/81
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R�C�I�E� . FOIE CITY C�OUNCI�.. CTION 83-18 p,v
Date May 5, 1983
Submitted tc: Honorable Mayor and City Council LAPPIOVED .By c Submitted ay: Charles W. Thompson, City AdministratorCOUINICI ,
Prepared by: Tom Tincher, Director of Business and IndustEnterpr'
Subject: RESOLUTION OF INTENT TO ISSUE SINGLE-FAMILY ctry cr. . x
REVENUE BONDS, 1983 SERIES I1
Statement of Issue, Recommendation,Analysis, Funding x:lirce,Alternative Actions, Attachments: 0 /
U_.
STATEMENT OF ISSUE:
It's recently become evident that the City may have the opportunity to issue single-
family mortgage revenue bonds again in calendar year 1983. Cefore this opportunity
may be pursued, it is necessary for the City Council to adopt the attached resolu-
tion of intent regarding this second issue of 1983. In addition, he adoption of
this resolution at this time will help assure the City's position on the State's
Mortgage Bond Allocation Committee's (MBAC) priority -list should it be possible
to issue single-family mortgage revenue '.ends in 1984.
RECOMMENDATION:
Approve and authorize the City Clerk to execute the attached resolution of intent
authorizing the issuance of $20 million in single-familleju mortgage revenue bonds,
i authorize staff to forward this resolution. and an application form to the State of
California MBAC, and authorize the City Administrator to certify that the required
amount of one-half of one percent ($100,000) necessary for the MBAC to accept this
application has been secured.
ANALYSIS:
I� s the Council is aware, the Cit 's single-family mortgage revenue bond issue of
A c Y 9 y
1983, Series A, is now closed and the entire issue was sold within an extremely
short period of time. These actions have resulted in the availability of $20
million in mortgage funds for moderate income first time buyers at an interest
i rate of 9.95 percent. Because this issue was sold rapidly and based upon continu-
ing developer interest, the City may wish to consider the sale of a second issue
in calendar year 1983.
It's also recently become known that the State of California 14BAC may make availa-
ble later this calendar year additional allocations to local Jurisdictions for the
issuance of single-family mortgage revenue bonds. As the Colinril will recall ,
approval of an allocation by the MBAC is necessary before any ic;,al s:, isdiction
may move forward with a single-family mortgage revenue bond issue.
One advantage of the adoption of the attached resolution at this time, beyond the
I opportunity to issue a second series of single-family mortgage revenue bonds in
i 1983, is the fact that transmittal of this resolution and an application to the
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MBAC will establish the City's position on the MBAC's priority list for an alloca-
tion in 1984 should the U.S. Congress approve issuance of such bonds in the next
calendar year.
Lastly, one requirement of the MBAC which must be met before a local Jurisdiction
may apply for a position on the priority list is the certification by the Chief
Executive Officer of the Jurisdiction that an amount,,equal to one-half of one
percent of the desired amount of allocation is available in cash or a letter of
credit. To this end, staff has approached Security Pacific National Bank to pro-
vide, at no cost to the City, a letter of credit equal to this required $100,000
program deposit. This letter of credit will be drawn upon only if the City re- `
ceives an allocation from the MBAC and subsequently fails to issue bands. However,
even if this should occur, State law merely requires that the City us;e the program
deposit for activities that benefit low and moderate income housing. It is not
anticipated that this letter of credit would ever be drawn upon since, if prior to
the receipt of an allocation from the MBAC, it appears that there is insufficient
developer interest in th` s program, the City may withdraw its application from the
MBAC without ever activa,:ing the letter of credit.
It should also be noted that, subsequent to the submission of this application
to the MBAC, staff will solicit interest from local developers in this bond issue
and, .as developers commit to participation, they will execute a program deposit
agreement and post funds equal to one-half of one percent of the amount of funds
which they desire to reserve. As these developers deposits are received, the dollar
amount of the City's letter of credit from Security Pacific National Bank will
be commensurately reduced. Therefore, it is entirely possible that, by the 'time
the City receives an allocation from the MBAC, the bond issue would be fully
subscribed and the City's letter of credit replaced by developer deposits.
Therefore, since adoption of the attached resolution at this time will not only
offer the City the potential opportunity to issue single-family mortgage revenue
bonds again in 1983, but also secure a position on the MBAC's priority list for
1984; and since there appears at this time to be sufficient developer interest in
such a program and market demand for tax exempt bonds of this nature, it is recom-
mended that the Council approve the attached resolution, authorize the City
Administrator to apply to the MBAC and to certify that Security Pacific National
Bank's letter of credit is available for the required program deposit.
FUNDING SOURCE:
The standard City assurance fee of one-quarter of one percent would be included
as a cost of issuance for these bonds and would total $50,000, which 'funds would ti
available at the dose of the bond issue and would be additional revenue for the
newly established community development account.
ALTERNATIVE ACTIONS:
i
1. Do not approve the attached resolution and forego the opportunity to issue a ?
second single-family mortgage revenue bond issue in 1983 or 1984.
2. Approve the attached resolution of intent and direct staff to solicit developer
interest and program deposit funds prior to the submission of an application j
to the MBAC.
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