Rancho Las Brisas Apartments TEFRA Hearing

Rancho Las Brisas Rancho Las Brisas Apartment TEFRA Hearing2 Background / Purpose Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing October 18, 2011

Rancho Las Brisas Apartments TEFRA Hearing3 Rancho Las Brisas Los Alamos Road Los Alamos Road Built in 1989 Built in acres acres 200 Units 200 Units 100 Affordable (50% & 80%) by FFAH 100 Affordable (50% & 80%) by FFAH CSCDA 15-Year Affordability Covenant CSCDA 15-Year Affordability Covenant RHNA! RHNA! Purchase Price: $20,400,000 Purchase Price: $20,400,000 Tax Exempt Obligation Bonds Tax Exempt Obligation Bonds

October 18, 2011Rancho Las Brisas Apartments TEFRA Hearing4 TEFRA Hearing Purpose Foundation for Affordable Housing is purchasing and rehabilitating the Rancho Las Brisas Apartments Foundation for Affordable Housing is purchasing and rehabilitating the Rancho Las Brisas Apartments Issuance of tax-exempt multi-family housing revenue bonds by the California Statewide Communities Development Authority* (CSCDA) to provide a loan to finance the acquisition and rehabilitation Issuance of tax-exempt multi-family housing revenue bonds by the California Statewide Communities Development Authority* (CSCDA) to provide a loan to finance the acquisition and rehabilitation IRS requires “applicable elected representative” (City Council) to approve issuance of the bond after a public hearing IRS requires “applicable elected representative” (City Council) to approve issuance of the bond after a public hearing *Since inception, California Communities® has issued over $7 billion in Bonds for more than 842 multifamily and senior housing projects throughout California. Source: 4/1/11

October 18, 2011Rancho Las Brisas Apartments TEFRA Hearing5 City is NOT Providing Funds The City of Murrieta: Has no obligation whatsoever with respect to the bonds Has no obligation whatsoever with respect to the bonds Has no involvement or investment in the bond program, and no liability or commitment with administration of the bonds other Has no involvement or investment in the bond program, and no liability or commitment with administration of the bonds other No property of the City will, in any way, be subject to any security interest with respect to the bond program and bond holders No property of the City will, in any way, be subject to any security interest with respect to the bond program and bond holders Is only conducting the TEFRA Hearing Is only conducting the TEFRA Hearing City of Murrieta

October 18, 2011Rancho Las Brisas Apartments TEFRA Hearing6 Fiscal Impact This is no fiscal impact for holding the TEFRA Hearing. The City will be reimbursed for up to $1,550 for: Noticing Noticing Staff Time Staff Time

October 18, 2011Rancho Las Brisas Apartments TEFRA Hearing7 FFAH Staff Review Community DevelopmentCommunity Development Contact with Housing staff in cities with FFAH ProjectsContact with Housing staff in cities with FFAH Projects Police DepartmentPolice Department Onsite visits, contact with property managers and local law enforcementOnsite visits, contact with property managers and local law enforcement Researched crime rate and trends for the areaResearched crime rate and trends for the area

October 18, 2011Rancho Las Brisas Apartments TEFRA Hearing8 Staff Review Results Purchase of a foreclosed/bank owned property/Lower Income units toward RHNAPurchase of a foreclosed/bank owned property/Lower Income units toward RHNA FFAH participation in the Crime Free Multi-Housing Program/Low crime statsFFAH participation in the Crime Free Multi-Housing Program/Low crime stats New Tenants would sign Lease addendum for Crime Free ProgramNew Tenants would sign Lease addendum for Crime Free Program Overall favorable project for MurrietaOverall favorable project for Murrieta

Recommendation Adopt a City Council Resolution approving the issuance of Multifamily Housing Revenue Bonds for the propose of financing the acquisition and rehabilitation of the Rancho Las Brisas Apartments by the Foundation for Affordable Housing. October 18, 2011 Ranch Las Brisas Apartments TEFRA Hearing9