2002 AGN DEC 17 I01 - Laserfiche WebLink

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Item #1 CITY OF COLTON AGENDA REPORT FOR THE CITY COUNCIL MEETING OF DECEMBER 17, 2002 TO: Honorable Mayor and Members of the City Council FROM: Daryl Parrish, City Manager SUBJECT: Approving the issuance of Multifamily Housing Revenue Bonds by the California Statewide Communities Development Authority for the purchase and rehabilitation of the Colton Garden Apartments located at 2170-2190 North Rancho Avenue. Resolution No. R-143-02 DATE: December 11, 2002 BACKGROUND Oracle Communities Corporation has submitted to the California Statewide Communities Development Authority (the "Authority") an application for the financing of the multifamily housing facility known as the Colton Gardens Apartments located at 2170 - 2190 North Rancho Avenue. The bond proceeds will be for the finance of purchase and improvements to the Colton Gardens Apartments, using tax-exempt obligations to be issued by the Authority. The Authority is authorized to use tax-exempt financing to assist non-profit public benefit organizations in the financing and refinancing of facilities. Oracle Communities Corporation was established in August 2000 with the sole and exclusive purpose of acquiring, financing, rehabilitating, managing and operating quality multifamily housing. The Directors and advisors of Oracle have substantial and long standing experience in the affordable and market based multi- family housing arena. Cumulatively, Oracle has developed, constructed, acquired, managed, operated, rehabilitated and disposed of over 275,000 apartment units nationwide. The City previously entered into a joint exercise of powers agreement with the Authority, pursuant to the Joint Powers Act (Gov. Code sec. 6500 et seq.). Under this agreement, the City is a "Program Participant" of the Authority. In addition, the City is the governmental unit having jurisdiction over the area in which the facility to be financed is located, pursuant to Section 147 (f) of the Internal Revenue Code of 1986. DISCUSSION/ ANALYSIS This public hearing and resolution of the City Council is required by the Tax Equity and Fiscal Responsibility Act (TEFRA) in order for the Authority to issue Multifamily Housing Revenue Obligations not to exceed $9,000,000 for the financing of the purchase and rehabilitation of this 129 unit apartment complex. In addition, the terms of the City's agreement with the Authority and Section 147 (f) of the Internal Revenue Code of 1986 require that the governing body of the Program Participant in whose jurisdiction the project is located must approve the project and its financing. This action must be taken in order for the Authority to accomplish the proposed financing.