Rancho Las Brisas Apartments TEFRA Hearing

Rancho Las Brisas

Rancho Las Brisas Apartment TEFRA Hearing 2

Background / PurposeBackground / PurposeTax Equity and Fiscal Responsibility Act Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing(TEFRA) Hearing

October 18, 2011

October 18, 2011 Rancho Las Brisas Apartments TEFRA Hearing 3

Rancho Las BrisasRancho Las Brisas• 40125 Los Alamos Road40125 Los Alamos Road

• Built in 1989Built in 1989

• 10.49 acres 10.49 acres

• 200 Units 200 Units

• 100 Affordable (50% & 80%) by 100 Affordable (50% & 80%) by FFAHFFAH

• CSCDA 15-Year Affordability CSCDA 15-Year Affordability Covenant Covenant

• RHNA!RHNA!

• Purchase Price: $20,400,000Purchase Price: $20,400,000

• Tax Exempt Obligation BondsTax Exempt Obligation Bonds

October 18, 2011 Rancho Las Brisas Apartments TEFRA Hearing 4

TEFRA Hearing PurposeTEFRA Hearing Purpose• Foundation for Affordable Housing is purchasing and Foundation for Affordable Housing is purchasing and

rehabilitating the Rancho Las Brisas Apartmentsrehabilitating the Rancho Las Brisas Apartments

• Issuance of tax-exempt multi-family housing revenue bonds Issuance of tax-exempt multi-family housing revenue bonds by the by the CCalifornia alifornia SStatewide tatewide CCommunities ommunities DDevelopment evelopment AAuthority* (CSCDA) to provide a loan to finance the uthority* (CSCDA) to provide a loan to finance the acquisition and rehabilitationacquisition and rehabilitation

• IRS requires “applicable elected representative” (City IRS requires “applicable elected representative” (City Council) to approve issuance of the bond after a public Council) to approve issuance of the bond after a public hearinghearing*Since inception, California Communities® has issued over $7 billion in Bonds for more than 842 multifamily and senior housing projects throughout California. Source: www.cammunities.org, 4/1/11

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City is NOT Providing FundsCity is NOT Providing Funds

The City of Murrieta:The City of Murrieta:• Has no obligation whatsoever with respect to the bondsHas no obligation whatsoever with respect to the bonds

• Has no involvement or investment in the bond program, Has no involvement or investment in the bond program, and no liability or commitment with administration of the and no liability or commitment with administration of the bonds otherbonds other

• No property of the City will, No property of the City will, in any way, be subject to any in any way, be subject to any security interest with respect to the bond program and security interest with respect to the bond program and bond holdersbond holders

• Is only conducting the TEFRA Hearing Is only conducting the TEFRA Hearing City of Murrieta

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Fiscal ImpactFiscal Impact

This is no fiscal impact for holding the TEFRA This is no fiscal impact for holding the TEFRA Hearing. Hearing.

The City will be reimbursed for up to $1,550 for:The City will be reimbursed for up to $1,550 for:

• Noticing Noticing

• Staff TimeStaff Time

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FFAH Staff ReviewFFAH Staff Review

• Community DevelopmentCommunity Development

• Contact with Housing staff in cities with Contact with Housing staff in cities with FFAH Projects FFAH Projects

• Police DepartmentPolice Department

• Onsite visits, contact with property Onsite visits, contact with property managers and local law enforcementmanagers and local law enforcement

• Researched crime rate and trends for the Researched crime rate and trends for the areaarea

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Staff Review ResultsStaff Review Results

• Purchase of a foreclosed/bank owned Purchase of a foreclosed/bank owned property/Lower Income units toward property/Lower Income units toward RHNA RHNA

• FFAH participation in the Crime Free FFAH participation in the Crime Free Multi-Housing Program/Low crime statsMulti-Housing Program/Low crime stats

• New Tenants would sign Lease New Tenants would sign Lease addendum for Crime Free Programaddendum for Crime Free Program

• Overall favorable project for MurrietaOverall favorable project for Murrieta

RecommendationRecommendation

Adopt a City Council Resolution approving Adopt a City Council Resolution approving the issuance of Multifamily Housing Revenue the issuance of Multifamily Housing Revenue Bonds for the propose of financing the Bonds for the propose of financing the acquisition and rehabilitation of the Rancho acquisition and rehabilitation of the Rancho Las Brisas Apartments by the Foundation for Las Brisas Apartments by the Foundation for Affordable Housing.Affordable Housing.

October 18, 2011 Ranch Las Brisas Apartments TEFRA Hearing 9