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HomeMy WebLinkAboutR10-Redevelopment Agency RQ.;VELOPMENT AGENCY.Q:QUEST FOR~/COUNCIL A~ION Of From: Glenda Saul Qept: Redevelopment Agency Subject: Cooperative Authority Agreement with Housin, Date: May 13, 1985 Synopsis of Previous Commission/Council ection: None Recommended motion: (FOR MAYOR AND COMMON COUNCIL) c Author1ze etaff to prepare an agreement with the County Houeing Authority for the pUrpose of 1esuing Multifamily Mortgage Revenue Bonds with1n the City of San Bernardino. Contect person: ,~ du/ Signature Glenda Saul YES Phone: 383.5081 N/A Supporting date attached: Ward: N/A FUNDING REQUIREMENTS: Amount: $ M/A Project: May 13, 1985 No edvers8 Impact on City: Date: Oneil Notes: Agenda Item No. I</t) . REOVELOPMENT AGENCY-OuEST FOR OMMISSION/COUNCIL AGoN o STAFF REPORT The State cap of $900,000,000 for the issuance of Mult1fami1y Mortgage Revenue Bonds was reached the last week in April, 1985. There currently is legislation pending to increase the cap, but a final decision is yet to be reached. Under Health and Safety Code Statutes, a Redevelopment Agency may .sti11 issue these bonds in Redevelopment Project Areas, without being subject to this cap limitation. However, for hous1ng projects not located in Redevelopment Areas, the State cap would apply. Staff suggests the Agency enter into an agreement with the County Housing Authority, granting the authority to act as the issuer of Multifamily Mortgage Revenue Bonds for projects within the City not located in Redevelopment Project Areas as Housing Authorities are also exempt from the State cap limitations. We currently have two bond issues which are not 1n a Redevelopment Area and are very close to final closing. (Fredericks and Meyers Ranch) C> Staff met with officials from the Housing Authority on May 8, 1985. The Housing Authority has already agreed to act as issuer for the County of San Bernardino, and is willing to do the same for the City. In return, the Housing Authority has requested a fee. Two alternatives are presented for your co~ation. ~ Pay the Housing Authority 12.5% of the City's 1% IDB fee with no restriction on how that fee 1s used. b) Pay the Housing Authority 25% of the 1% IDB fee to be targeted for use in bui1d1ng senior housing in the City of San Bernardino. Staff is requesting the authorization to prepare this agreement and for the Commiss10n to determine the fee sharing. (Either "a" or "b" above.) Two other pieces of information: a) A new State cap w111 take effect in 1986. When this new State cap is available, we will again process our own Bond issues. b) The Housing Authority may collect an annual monitoring fee estimated to be 1/8 of 1% of the Bond issue. Currently, the trustee is paid to do the required monitoring of the 20% set aside for low to moderate income housing This monitoring fee is negotiated between the applicant and the Housing Authority. The Agency would not be involved. c 5/13/85 848L