SR 05:079 - Laserfiche WebLink

Bond Counsel Services In anticipation of the tax-exempt financing for this project, staff reviewed proposals from three bond counsel firms and selected the firm of Quint & Thimmig LLP. The fu'm is recommended based on its extensive experience with multifamily mortgage housing bonds and their competitive pricing. In addition, the firm was also retained for the Busch Property/Ponderosa senior apartment project and their services were satisfactory. While a final tax-exempt financing decision has not yet been made, it is beneficial to move forward with retaining bond counsel at this time so that the City has the opportunity to have preliminary documentation reviewed during the early stages of the financing plan. The bond counsel fee, which will be paid with proceeds of the tax-exempt financing from the cost of issuance fund, is based on the final size of the tax-exempt financing for an estimated amount of $65,000. The proposed Agreement for bond counsel services is included as Attachment B. Application for HELP Grant The California Housing Finance Agency (CalHFA) recently issued a Notice of Funding Availability soliciting applications for its HELP (Housing Enabled by Local Partnerships) program. Please refer to the attached letter and related program description included with Attachment A. The HELP program offers funding to local jurisdictions (Bridge is not eligible to apply directly.) in the form of a 10-year loan at 3% annual interest that can be used for a wide range of locally determined affordable housing activities. The City received an allocation from the program several years ago and used the funding to establish a down payment assistance program for low and moderate-income buyers. As indicated, the current financing plan calls for the City to apply for the maximum loan amount of $2 million. While the program is competitive, staff has had conversation with HELP staff and determined the Bridge project meets all the criteria required for the program. As a result, the City has at least a fighting chance for loan approval. The current schedule requires the application and a resolution from the City Council authorizing submittal of the application to be submitted no later that April 1, 2005. A decision on funding would be made in late May. As with the bonding portion of project funding, the City would develop documents requiring the project to assume the debt for this loan. However, staff has not yet had the opportunity to develop loan documentation which will be generated after a decision has been made regarding grant approval. In addition, staff has not yet finalized the grant submittal. However, all representations will be consistent with the current project development and financing plan. Upon approval by the City Council of the attached resolution, Attachment A, staff will submit an application to the CalHFA HELP program. The application will request funding in the SR:05:085 Page 4