.. Los Angeles

MAJOR PROJECTS DIVISION

ulf~t)ment 1200 West 7th Street Bth rloor.Los Angeles. CA 90017

tel 213.808.89361 fax 213.808.8918

fahd.lacity.org

Antonio R. Vlllaralgosa.uayor

Douglas Guthrie, General Manager

April1 , 2011

Honorable Antonio R. Villaraigosa Mayor, City of Los Angeles City Hall 200 North Spring Street, Room 303 Los Angeles, CA 90012

Attention: Pamela Finley, Legislative Coordinator

Council File:

Council District:

Contact Persons:

Yaneli Ruiz

Manuel Bernal

Helmi Hisserich

New

2, 4, 7, 8

(213) 808-8951

(213) 808-8901

(213) 808-8662

Honorable Members of the City Council City of Los Angeles c/o City Clerk 200 North Spring Street, Room 395 Los Angeles, CA 90012

Attention: Sharon Gin, Legislative Assistant

ADDENDUM TO COUNCIL TRANSMITTAL REQUEST FOR MAYOR AND CITY COUNCIL APPROVAL OF THE TEFRA RESOLUTION AND TEFRA MINUTES FOR THE SAMOA AVENUE HOUSING PROJECT, TO INCLUDE THE OAKRIDGE FAMILY HOMES, BUCKINGHAM SENIOR APARTMENTS AND MONTECITO APARTMENTS PROJECTS.

SUMMARY

On March 7, 2011, the General Manager of the Los Angeles Housing Department (LAHD) submitted a transmittal request for Mayor and City Council approval of the TEFRA Resolution and TEFRA minutes for the Samoa Avenue Housing Project. The LAHD respectfully requests Mayor and City Council to adopt the attached Resolution and Minutes of the public hearing of March 23, 2011, pursuant to the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), for the Oakridge Family Homes Project and respectfully requests Mayor and City Council to adopt the attached Resolutions and Minutes of the public hearings of April1, 2011 , pursuant to the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), for the Buckingham Senior Apartments and Montecito Apartments Projects.

This is in compliance with regulations of the California Debt Limit Allocation Committee (CDLAC) in which all applications for a bond allocation are subject to a TEFRA public heat·ing process, which must be completed by their local jmisdictions at least 30 days before the next CD LAC al1ocation meeting date at which time the applications will be considered. For the aforementioned project, the following deadlines apply:

An Equal Opportunity I Affirmative Action Employer

TEFRA Transmittal- Acldendurr Oakridge, Buckingham and Mol. __ ..:ito Page 2

Deadlines: Oakridge Family Homes

CDLAC Application Due

Proof of TEFRA Hearing

CDLAC Allocation Meeting

March 18, 2011

April15, 2011

May 18, 2011

Deadlines: Buckingham Senior Apartments and Montecito Apartments

CDLAC Application Due

Proof ofTEFRA Hearing

CD LAC Allocation Meeting

Aprill2, 2011

April 12, 2011

April26, 2011

LAHD conducted the required public hearing administratively for the above captioned project on March 23, 2011 for the Oakridge Family Homes Project and April 1, 2011 for the Buckingham Senior Apmtments and Montecito Apattments Project. To complete the process, Mayor and City Council must approve the Minutes of the hearings and the related Resolutions.

RECOMMENDATIONS

The LAHD General Manager respectfully requests the following:

1. That your office schedule this transmittal for consideration by the appropriate Committee(s) of the City Council at the next available meeting(s), and forwards it to the City Council for review and approval immediately thereafter.

2. That the City Council, subject to the approval of the Mayor:

A. Adopt the Resolution and Minutes relative to the Samoa Avenue Housing project, provided as an Attachment to the Los Angeles Housing Department transmittal dated March 7, 20 11 ( C .F. 11-0404 ), as required pursuant to the Tax Equity and Fiscal Responsibility Act of 1982;

B. Adopt the Resolution and Minutes relative to the Oakridge Family Homes project, provided as Attachment 1, as required pursuant to the Tax Equity and Fiscal Responsibility Act of 1982;

C. Adopt the Resolution and Minutes relative to the Buckingham Senior Apartments project, provided as Attachment 2, as required pursuant to the Tax Equity and Fiscal Responsibility Act of 1982;

D. Adopt the Resolution and Minutes relative to the Montecito Apartments project, provided as Attachment 3, as required pursuant to the Tax Equity and Fiscal Responsibility Act of 1982;

TEFRA Transmittal- Addendurr Oakridge, Buckingham and Mo._ .:ito Page 3

BACKGROUND

LAHD evidenced the official intent of the City of Los Angeles (the "City") to issue its tax-exempt revenue bonds ("Bonds") for the following project(s):

Oakridge Family Homes March 14, 2011 $9,375,000

Buckingham Senior Apartments March 24,2011 $15,000,000

Montecito Apartments March 31, 2011 $10,250,000

The projects were induced pursuant to the authority granted to the LAHD General Manager by the City Council of the City of Los Angeles, by resolution of the City Council approved on April 20, 2005 (CF# 04-2646). Prior to the issuance of the bonds, LAHD shall submit for Mayoral and Council approval the final financial structure ofthe bonds for this project.

2010 Maximum Income Levels for Los Angeles County (effective 5/14/10): Revised per HUD Notice, Effective: 5/14/2010

Oakridge Family Homes

The Project Sponsor is Los Angeles Housing Pmtnership (LAHP), a California non-profit corporation. A California limited partnership will occur at a later time. LAHP is the General Partner and Developer. The principals of LAHP include: Mary Silverstein, President and Executive Director, Kerry Doi, Treasurer, and Richard Tarbell, Secretary.

Sponsor and Developer Principals

Los Angeles Housing Partnership Mary Silverstein, President and Executive Director, Kerry Doi, Treasurer, and Richard Tarbell, Secretary.

The proposed development is located at 15455 Glenoaks Boulevard, Sylmar, CA 91342 in the 7th Council District. The proposed new construction project will provide affordable housing for large families. The project will include: a 16,000 square foot clubhouse, a staffed manager's office, a media room, a library, a card room, billiards, a meeting room, a conference room and assembly hall, a fully-equipped gym, therapy pools, a large swimming pool, tennis courts, and a dog park

TEFRA Transmittal- Addendurr Oakridge, Buckingham and Mm . ..:ito Page4

Units Mix· UNIT TYPE 50% AMI 60%AMI

2-Bdr. 1 8 3-Bdr 5 45 TOTAL 6 53

MGR. TOTAL

1 10

50 1 60

LAHD induced the project on March 14, 2011 in the anticipated principal amount of $9,375,000 (the "Obligations") the proceeds of which are to be used for the financing of the project. In addition to the tax-exempt bonds, the financing will be supplemented by funds from the Affordable Housing Trust Fund (AHTF), general partner equity and 4% tax credit equity.

Buckingham Senior Apartments

The Project Sponsor is Buckingham Senior Apartments, L.P., a limited partnership. The Sponsor includes Buckingham Senior Apartments, LLC (BSA), as its Administrative General Partner, and Western Community Housing Corporation, Inc. (WCHC) a non-profit corporation, as its Managing General Partner. Meta Housing Corporation (MHC) is the Developer. The Principals of BSA and MHC include: John M. Huskey, President, Kasey Burke, VP, George Russo, CFO, Rutzel Castillo, Secretary. The Principals of WCHC include: Graham Espley-Jones, President, Sandra Gibbons, VP Finance/Tax Credits, David Connelly, VP Affordable Housing, Leanne Truofreh, Secretary.

Sponsor Developer Principals

Buckingham Senior Apartments, L.P. Meta Housing Corporation John M. Huskey, President, Kasey Burke, VP, George Russo, CFO, Rutzel Castillo, Secretary.

The proposed development is located at 4020 Buckingham Road, Los Angeles, CA 90008 in the 8th Council District. The existing structure is about 90% complete, vacant and is secured by a fence and security guard. The development entails the acquisition of the project and completion of the construction work in order to provide affordable housing for senior citizens (age 62 and above). The project will include: a courtyard, community rooms, a computer room, barbeque areas, a communal kitchen, a laundry room, on-grade parking (40 spaces), and supportive services for the residents.

In preparation to issue tax-exempt bonds to help finance the development of this project, the CRAILA previously induced and conducted a TEFRA process (CF 09-1951-Sl). However, due to on-going economic crisis in the State of California, it is unclear if the CRAILA will be able to issue the tax-exempt bonds. As a precaution and in order to minimize the development time line of the project, the LAHD has induced and is conducting the TEFRA process for the project. These preparatory steps will help enable the LAHD to replace CRAILA as the issuer of the tax-exempt bonds if it is determined that the CRA/LA cannot ultimately issue the bonds.

Units Mix: UNIT TYPE 25%AMI 30%AMI 40% AMI Mgr. TOTAL

1-Bdr 6 6 44 56 2-Bdr. 2 2 9 1 14

TOTAL 8 8 53 1 70

TEFRA Transmittal - Addendurr Oakridge, Buckingham and MoL ..;ito Page 5

LAHD induced the project on March 24, 2011, in the anticipated principal amount of $15,000,000 (the "Obligations") the proceeds of which are to be used for the financing of the project. In addition to the tax-exempt bonds, the financing will be supplemented by funds from the Community Redevelopment Agency of the City of Los Angeles (CRA/ LA), the State of California Department of Housing and Community Development's Neighborhood Stabilization Program (HCD NSP), the Affordable Housing Program (AHP) and 4% Tax Credits Equity.

The Montecito Apartments

The Project Sponsor is Montecito Apartments Housing, LP which includes Montecito Apartments, LLC, a for-profit corporation, as its Managing General Partner, and Housing Corporation of America, a non­profit corporation, as its Co-General Partner. The project developer is Thomas L. Safran and Associates. The Principals of Montecito Apartments, LLC include: Thomas L. Safran, President, Rick Siebert, Chief Finance Officer, and Anthony Y annatta, Director of Finance. The Principal of Housing Corporation of America include: Carol Cromar.

Sponsor ManagingGP Principals

The Montecito Apartments Housing, LP Thomas L. Safran and Associates Thomas L. Safran, President, Rick Siebert, Chief Finance Officer and Anthony Yannatta, Director of Finance

The subject site was a hotel retrofitted into apartments in 1986 located at 6650 Franklin Avenue, Los Angeles, CA 90028 in the 4th Council District, within the Hollywood Redevelopment Project Area of the Community Redevelopment Agency of the City of Los Angeles. The proposed development is a rehabilitation of an existing single; ten-story apartment building consisting of 115 units for seniors and 1 unit reserved for the on-site manager. The project include an entryway lobby on the ground floor, a community room, central laundry facilities, elevator, controlled access entry, and on-site surface and garage parking.

Units Mix:

UNIT TYPE 45%AMI 50% AMI 60%AMI MGR TOTAL

SRO/Studio 1 11 28 40 1-Bdr. 23 52 75 2-Bdr. 1 1 TOTAL 1 34 80 1 116

LAHD induced the Montecito Apartment project on March 31, 2011 in the anticipated principal amount of $10,250,000 (the "Obligations") the proceeds of which are to be used for the financing of the project. In addition to the tax-exempt bonds, the financing will be supplemented with funds from Permanent Private Lender, Equity Investor, and 4% tax credits equity.

TEFRA Transmittal - Addendurr Oakridge, Buckingham and Mo. ~ito PageS

PREVAILING WAGES

The labor costs are subject to the higher of the State of California Prevailing Wages, or Federal Davis Bacon Wages, where applicable, for projects for which the City of Los Angeles, through LAHD, would be the issuer of the bonds.

FISCAL IMPACT STATEMENT

There will be no impact on the City's General Fund related to the issuance of the bonds.

Prepared By:

Reviewed By:

~Jt_& ~ HELMI HISS RICH Assistant General Manager

Reviewed By:

Approved By:

0 ~ DOU~ GUTHRIE General Manager

TEFRA PUBLIC HEARING MEETING MINUTES WEDNESDAY- MARCH 23, 2011

10:00 AM LOS ANGELES HOUSING DEPARTMENT

1200 WEST 7™ STREET, ROOM 833 YANELI RUIZ, CHAIR

This meeting is to conduct the required Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) Public Hearing for the Oakridge Mobile Home Park.

This meeting is called to order on Wednesday, March 23, 2011 at 10:00 a.m. in Room 83 3 of the Los Angeles Housing Department.

A notice of this hearing was published in the Los Angeles Times on March 9, 201 L The purpose of this meeting is to hear public comments regarding the subject Multifamily Revenue Bonds.

The City of Los Angeles Housing Department representatives present are Yaneli Ruiz and Apolinar Abrajan.

The time is now 10:20 a.m. and seeing no representatives from the public are present, this meeting is now adjourned.

I declare under penalty of perjury that this is a true and exact copy of the TEFRA hearing held for the above referenced project on March 23, 2011 at Los Angeles, California.

CITY OF LOS ANGELES Los Angeles Housing Department DOUGLAS GUTHRIE, General Manager

TEFRA PUBLIC HEARING MEETING MINUTES FRIDAY -APRIL 1, 2011

!O:OOAM LOS ANGELES HOUSING DEPARTMENT

1200 WEST 7TH STREET, ROOM 833 ROCHELLE COX, CHAIR

This meeting is to conduct the required Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) Public Hearing for the Buckingham Senior Apartments and Montecito Apartments.

This meeting is called to order on Friday, April 1, 2011 at 10:00 a.m. in Room 833 of the Los Angeles Housing Department.

A notice of this hearing was published in the Los Angeles Times on March 18 2011. The purpose of this meeting is to hear public comments regarding the subject Multifamily Revenue Bonds.

The City of Los Angeles Housing Department representatives present are Rochelle Cox and Bruce Ortiz.

The time is now 10:30 a.m. and seeing no representatives from the public are present; this meeting is now adjourned.

I declare under penalty of perjury that this is a true and exact copy of the TEFRA hearing held for the above referenced projects on April 1, 2011 at Los Angeles, California.

CITY OF LOS ANGELES Los Angeles Housing Department DOUGLAS GUTHRIE, General Manager

,/·; ...... )~LJ 1 ~-/ Yjf.7 ' •

C~~ ' _j_V;L£::~ ~ Rochelle Cox Financial Development Officer, Bond Program

RESOLUTION

CITY OF LOS ANGELES

A RESOLUTION APPROVING FOR PURPOSES OF SECTION 147(f) OF THE INTERNAL REVENUE CODE OF 1986 THE ISSUANCE OF BONDS BY THE CITY OF LOS ANGELES TO FINANCE THE ACQUISITION, REHABILITATION, CONSTRUCTION OR EQUIPPING OF A MUL TIF AMIL Y RESIDENTIAL RENTAL PROJECT LOCATED WITHIN THE CITY OF LOS ANGELES.

WHEREAS, the City of Los Angeles (the "City'') is authorized, pursuant to Section 248, as amended, of the City Charter of the City and Article 6.3 of Chapter 1 of Division 11 of the Los Angeles Administrative Code, as amended (collectively, the "Law"), and in accordance with Chapter 7 of Part 5 of Division 31 (commencing with Section 52075) of the Health and Safety Code of the State of California (the "Act''), to issue its revenue bonds for the purpose of providing financing for the acquisition, construction, rehabilitation and equipping of multifamily rental housing for persons and families of low or moderate income; and

WHEREAS, the City intends to issue for federal income tax purposes certain bonds (the "Bonds"), the proceeds of vvhich will be used to finance the acquisition, constmction, rehabilitation and equipping of a multifa...'llily rental housing project described in paragraph 6 hereof (the "Project"); and

\VHEREAS, the Project is and each site \Vithin the Pr-:::ject is located ~wholly within the City; and

WHEREAS, it is in the public interest m:1d for the public benefit that the City authorize the financing of the Project, and it is within the powers of the City to provide for such financing !md the issuance ofthe Bonds; and

WHEREAS, the interest on the Bonds may qualify for a federal tax exemption under Section 142(a)(7) of the Internal Revenue Code ·Of 1986 (the "Code"), only if the Bonds are approved in accordance with Section 147(f) ofthe Code; and

WHEREAS, pursuant to the Code, Bonds are required to be approved, following a public hearing, by an elected representative of the issuer of the Bonds (or of the gove1nmental unit on behalf of which the Bonds are issued) and an elected representative of the governmental unit having jurisdiction over the area in which the Project is located; and

WHEREAS, this City Council is the elected legislative body of the City and is the applicable elected representative required to approve the issuance of the Bonds within the meaning of Section 147(f) of the Code; and

4833-4542-2600. [

WHEREAS, pursuant to Section 147(f) of the Code, the City caused a notice to appear in the Los Angeles Times, which is a newspaper of general circulation in the City, on March 9, 2011, to the effect that a public hearing would be held with respect to the Project on March 23, 20 11 regarding the issuance of the Bonds; and

WHEREAS, the Los Angeles Housing Department held said public hearing on such date, at which time an opportunity was provided to present arguments both for and against the issuance of the Bonds; and

WHEREAS, the minutes of said hearing have been presented to this City Council;

NOW, THEREFORE,_ BE IT RESOLVED by the City CoUJ:lcil ofthe City of Los Angeles, as follows:

1. The recitals hereinabove set forth are tme and correct, and this City Council so finds. This Resolution is being adopted pursuant to the Law and the Act

2. Pursuant to and solely for purposes of Section 147(f) ofthe Code, the City Council hereby approves the issuance of the Bonds by the City in one or more series to finance the Project It is intended that this Resolution constitute approval of the Bonds: (a) by the applicable elected representative of the issuer of the Bonds; and (b) by the applicabie elected representative of the governmental unit having jurisdiction over the "''e" ;,_., "'1--,;,.,h +h" o~,_;",--.t '" lo,--.,+"d ;n a""ordan''"' \' 11th "al'rl S<>ct1'on 1 t-!7(-F\ ~ Ul.l~VV.lJ.lVlt. Y...tiVJVVt..l..::J~ VL..i.-Lo......, '.J. .,_._ J.. _._:.,......,.. "l-.11. '-' ~ "-" '-" ..II..Li..• '\...._./~

3. Pursuant to the Law and in accordance with the Act, the City hereby authorizes the Los Angeles Housing Department to proceed with a mortgage revenue bond program designed to provide housing within the City of Los A._j_1geles for low- a..'1d moderate-income persons tlrrough the issuance of the Bonds for the Project, in one or more series and in amounts not to exceed those specified in paragraph 6 hereof.

4. Notwithstanding anything to the contrary hereof, the City shall be under no obligation to issue any portion of the Bonds described in paragraph 6 hereof to be issued by the City for the Project prior to review and approval by the City and the City Attorney of the documents, terms and conditions relating to such Bonds.

5. [Reserved].

6. The "Project" referred to. hereof is as follows:

PROJECT UNITS SPONSOR EST. AMOUNT ADDRESS Oakridge 60 Los Angeles Housing Partnership $9,375,000 15455 Glenoaks Boulevard, Mobile Sylmar, CA 91342 Home Park

7. This Resolution shall take effect immediately upon its passage and adoption.

PASSED AND ADOPTED this_ day of ____ , 2011 at Los Angeles, California.

2

I certify that the foregoing Resolution was adopted by the Council of the City of Los Angeles at its meeting on , 2011.

By __________________________ __

Title---------------

4833-4542-2600.1 3

RESOLUTION

CITY OF LOS ANGELES

A RESOLUTION APPROVING FOR PURPOSES OF SECTION 147(f) OF THE INTERNAL REVENUE CODE OF 1986 THE ISSUANCE OF BONDS BY THE CITY OF LOS ANGELES TO FINANCE THE ACQUISITION, REHABILITATION, CONSTRUCTION AND EQUIPPING OF MUL TIF AMIL Y RESIDENTIAL RENTAL PROJECTS LOCATED WITHIN THE CITY OF LOS ANGELES.

WHEREAS, the City of Los Angeles (the "City") is authorized, pursuant to Section 248, as amended, of the City Charter of the City and Article 6.3 of Chapter 1 of Division 11 of the Los Angeles Administrative Code, as amended (collectively, the "Law"), and in accordance with Chapter 7 of Part 5 of Division 31 (commencing with Section 52075) of the Health and Safety Code of the State of California (the "Act"), to issue its revenue bonds for the purpose of providing fmancing for the acquisition, construction, rehabilitation and equipping of multifamily rental housing for persons and families of low or moderate income; and

WHEREAS, the City intends to issue for federal income tax purposes certain bonds (the "Bonds"), the proceeds of which will be used to fmance the acquisition, construction, rehabilitation and equipping of the multifamily rental housing projects described in paragraph 6 hereof (each a 11Project" and collectively the "Projects"); and

WHEREAS, the Projects are and each site within the Projects are located wholly within the City; and

WHEREAS, it is in the public interest and for the public benefit that the City authorize the fmancing of the Projects, and it is withln the powers of the City to provide for such financing and the issuance of the Bonds; and

WHEREAS, the interest on the Bonds may qualify for a federal tax exemption under Section 142(a)(7) of the Internal Revenue Code of 1986 (the "Code"), only if the Bonds are approved in accordance with Section 147(f) ofthe Code; and

WHEREAS, pursuant to the Code, Bonds are required to be approved, following a public hearing, by an elected representative of the issuer of the Bonds (or of the governmental unit on behalf of which the Bonds are issued) and an elected representative of the governmental unit having jurisdiction over the area in which the relevant Project is located; and

WHEREAS, this City Council is the elected legislative body of the City and is the applicable elected representative required to approve the issuance of the Bonds within the meaning of Section 147(f) of the Code; and

WHEREAS, pursuant to Section 147(1) of the Code, the City caused a notice to appear in the Los Angeles Times, which is a newspaper of general circulation in the City, on March 18, 2011, to the effect that a public hearing would be held with respect to the Projects on April 1, 2011 regarding the issuance of the Bonds; and

WHEREAS, the Los Angeles Housing Department held said public hearing on such date, at which time an opportunity was provided to present arguments both for and against the issuance of the Bonds; and

WHEREAS, the minutes of said hearing have been presented to this City Council;

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Los Angeles, as follows:

1. The recitals hereinabove set forth are true and correct, and this City Council so finds. This Resolution is being adopted pursuant to the Law and the Act

2. Pursuant to and solely for purposes of Section 147(f) of the Code, the City Council hereby approves the issuance of the Bonds by the City in one or more series to finance the Projects. It is intended that this Resolution constitute approval of the Bonds: (a) by the applicable elected representative of the issuer of the Bonds; and (b) by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Projects are located, in accordance with said Section 147(1).

3. Pursuant to the Law and in accordance with the Act, the City hereby authorizes the Los Angeles Housing Department to proceed with a mortgage revenue bond program designed to provide housing within the City of Los Angeles for low- and moderate-income persons through the issuance of the Bonds for each Project, in one or more series and in amounts not to exceed those specified in paragraph 6 hereof.

4. Notwithstanding anything to the contrary hereof, the City shall be under no obligation to issue any portion of the Bonds described in paragraph 6 hereof to be issued by the City for any Project prior to review and approval by the City and the City Attorney of the documents, terms and conditions relating to such Bonds.

5. [Reserved].

6. The "Projects" referred to hereof is as follows:

PROJECT UNITS SPONSORS EST. AMOUNT ADDRESS Montecito 116 Thomas Safran & Associates $10,250,000 6650 Franklin A venue, Los Apartments Angeles, CA 90028 Buckingham 70 Meta Housing Corporation $15,000,000 4020 Buckingham Road, Senior Los Angeles, CA 90008 Apartments

7, This Resolution shall take effect immediately upon its passage and adoption.

4820-9454-9513.1 2

PAS SED AND ADOPTED this~ day of ____ , 2011 at Los Angeles, California.

I certify that the foregoing Resolution was adopted by the Council of the City of Los Angeles at its meeting on , 2011.

By ____________________ __

Title---------------

4820-9454-9513.1 3