The Borrower has requested that the GSFA serve as the municipal issuer to  adopt a plan of financing providing for the issuance of one or more series of revenue bonds issued in an aggregate principal amount not to exceed $11,000,000 (the “Bonds”) for the acquisition, construction, improvement and equipping of a senior multifamily rental housing project of up to 82-units located at 12811 Garden Grove Boulevard, Garden Grove, California, generally known as Sungrove Senior Apartments (the “Project”) and operated by Western National Property Management.

In order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Garden Grove must conduct a public hearing (the “TEFRA Hearing”) providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community.  Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.

The GSFA is authorized, pursuant to the provisions of California Government Code Section 6500 et seq. and the terms of the Amended and Restated Joint Exercise of Powers Agreement, originally dated as of July 1, 1993, and as thereafter from time to time amended and restated, among certain local agencies throughout the State of California (the “Agreement”), including the City, to issue its revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of California Health and Safety Code for the purpose of providing financing for the acquisition, rehabilitation and equipping of multifamily rental housing for persons and families of low or moderate income.

The Bonds to be issued by the GSFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California, but are to be paid for solely from funds provided by the Borrower.

The City’s membership in the Authority bears with it no cost or other financing obligation, but serves as a public acknowledgement by the host jurisdiction of the project financing.

It is recommended that the City Council:

• Conduct a Public Hearing, accept and consider comments and any oral and written testimony regarding the adoption of the Resolution approving the issuance of the bonds by GSFA; and

• Adopt the attached Resolution to approve the issuance of the Bonds by the GSFA.

By:  Nate Robbins, Sr. Program Specialist