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League-Sponsored Bond Agency Finances Affordable Housing Projects in Moreno Valley and Montebello

December 11, 2015
Some of the most significant benefits of League membership for cities since 1988 have flowed from the League’s co-sponsorship of the California Statewide Communities Development Authority (CSCDA).
 
This program provides a variety of public agencies and developers access to low-cost, tax-exempt financing and economic development tools. CSCDA issued $49.6 million in tax-exempt multifamily bonds that helped finance affordable housing projects in several California cities. 
 
Moreno Valley: Cottonwood Place Apartments
 
Cottonwood Place Apartments is an acquisition and rehabilitation of 108 multifamily affordable housing apartments by Moreno Valley Cottonwood 1R Partners LP. The project sponsor is Palm Communities. Cottonwood Place will continue to be 100 percent affordable and provide 54 three-bedroom and 54 four-bedroom apartments to low-income families in Moreno Valley.
 
CSCDA and Palm Communities partnered with Citibank to provide $9.9 million in tax-exempt and taxable multifamily affordable housing bonds for Cottonwood Place. The rehabilitation will include new kitchen appliances and cabinets, bathroom and lighting fixtures, ADA accessible unit conversions, exterior paint, upgraded HVAC systems, playground improvements, and a renovated community room. The financing of Cottonwood Place will maintain the affordability of units for low-income tenants for 55 years.
 
Montebello: Beverly Hospital
 
Beverly Hospital is a not-for-profit, leading and independent 224-bed acute care facility that is proud of the medical services and comfort provided to patients. From emergency room and hospitalization to outpatient procedures, Beverly offers a full range of services with the latest technology on diagnostic and treatment options. A medical staff of over 350 physicians, representing a wide spectrum of specialties, is supported by experienced and dedicated employees and volunteers, who strive to deliver high-tech, high-touch services, preventive education and patient care.
 
CSCDA partnered with Wells Fargo Securities to underwrite the $39.7 million in tax-exempt bonds for Beverly. The proceeds of the investment grade rated bonds will be used to refinance two taxable bank loans, make seismic related renovations, expand the hospital’s emergency department, and make various equipment purchases to maintain and enhance the services offered by Beverly.
 
Background
 
CSCDA is a joint powers authority created in 1988 and is sponsored by the League of California Cities® and the California State Association of Counties. It was created by cities and counties for cities and counties. More than 500 cities, counties and special districts are program participants in CSCDA, which serves as their conduit issuer and provides access to efficiently finance locally-approved projects. CSCDA has issued more than $50 billion in tax exempt bonds for projects that provide a public benefit by creating jobs, affordable housing, healthcare, infrastructure, schools and other fundamental services. Visit http://cscda.org for additional information on the ways in which CSCDA can help your city.


 
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