TITLE
Recommendation to receive supporting documentation into the record regarding the Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing;
Adopt resolution approving the reissuance of Multifamily Mortgage Revenue Bonds for Jamboree West Gateway Apartments in an amount not to exceed $13,000,000; and
Authorize City Manager to execute all documents necessary to complete this transaction as indicated in the resolution. (District 1)
DISCUSSION
On November 16, 2004, the City Council authorized the issuance of Multifamily Housing Revenue Bonds (Bonds) in the amount of $11,000,000 to finance the acquisition and construction of the Jamboree West Gateway Apartments (now called Puerto Del Sol Apartments), located at 3rd Street and Golden Avenue (Attachment A). Subsequent to the City Council action, Series 2004B bonds totaling $11,000,000 were issued on December 13, 2004.
On July 12, 2005, the City Council authorized the issuance of additional Multifamily Housing Revenue Bonds in an amount not to exceed $2,500,000 to provide additional financing for the acquisition and construction of the Jamboree West Gateway Apartments (Attachment B). Subsequent to the City Council action, Series 2005A bonds totaling $2,000,000 were issued on November 22,2005.
At the time the bonds were issued, construction was expected to be completed by January 2007. Construction was completed about a year later, primarily due to significant changes to the design, including plumbing and HVAC changes that occurred after construction began to mitigate escalating construction costs. Despite these challenges, construction was substantially complete in January 2008 and the Temporary Certificate of Occupancy was issued. Tenant move-in was scheduled for February 2008. However, mold was discovered in 15 of 64 units as a result of water intrusion, and those 15 units remained vacant while remediation was completed. The loan funded with the proceeds of the Bonds matured on May 1, 2008. On April...
Click here for full text