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League-Sponsored Bond Agency Issues $171.2 Million in Tax-Exempt Bonds, Loan for Affordable Housing in Orange, Rehabilitation Center in San Francisco, Retirement Community in Los Angeles and Nonprofit in Oakland

December 2, 2016
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 recently issued $171,721,000 in tax-exempt bonds for the multi-family affordable housing Triangle Terrace Apartments in Orange, the Jewish Home of San Francisco (JHSF) and Hollenbeck Palms Continuing Care Retirement Community in Los Angeles, as well as a tax-exempt loan for the benefit of Lighthouse Community Charter School in Oakland.
 
About Triangle Terrace Apartments
 
Triangle Terrace Apartments is an acquisition and rehabilitation of 75 multi-family affordable housing apartments by Triangle Terrace Affordable, LP. Reiner Communities is the project sponsor, which will continue to be 100 percent affordable and provide apartments to low-income residents in Orange.
 
CSCDA and Reiner Communities partnered with Citibank to provide tax-exempt multi-family affordable housing bonds for Triangle Terrace. The project will undergo an extensive interior and exterior renovation ensuring that residents have an updated, safe, and affordable community to call home for years to come. The financing of Triangle Terrace will maintain the affordability of units for low-income tenants for 55 years.
 
About JHSF
 
JHSF serves approximately 1,800 patients and residents each year on its nine-acre campus. Non-residential care is offered through JHSF’s short-term and rehabilitation services unit for patients who require geriatrically-specialized, interdisciplinary rehabilitation to recover from surgery or an acute illness, and through its acute geriatric psychiatry hospital.
 
CSCDA partnered with Cain Brothers, the underwriter, on the $135,920,000 AA- rated insured tax-exempt bonds. The bonds will be issued to finance construction of the new 265,000 square foot facilities, with new and expanded services at JHSF’s existing campus. In addition, the project will include the demolition of several existing buildings. The new facilities will feature approximately 190 licensed residential care elderly units, 113 of which will be used for assisted living and 77 being used for memory support care, with the additional facilities being used to house medical care, wellness and fitness programs, dining, and other senior living services, as well as the construction of a new subterranean parking lot. The project will also include improvements to the existing campus facilities, including seismic upgrades. The new facilities will be operated in conjunction with the existing 378 licensed bed distinct-part nursing facility and the 12 licensed bed acute gero-psychiatric hospital.
 
About Lighthouse
 
Lighthouse, a 501c3 nonprofit organization, was founded in 2002 by a small group of committed teachers and parents in downtown Oakland. The school serves over 740 students in grades K-12, supported and taught by over 100 faculty and staff. Dedicated to serving a student population that has been historically underserved by the traditional school system, Lighthouse provides a much-needed option for students and their families in Oakland.
 
The borrower under the tax-exempt loan for Lighthouse is the Rogers Family Foundation. Founded in 2003, the foundation is a private family foundation established by T. Gary and Kathleen Rogers to primarily focus on Oakland’s public schools. The foundation envisions a future in which all Oakland students have the opportunity to attend a high-quality school where inspired and effective teachers personalize learning for every student.
 
About Hollenbeck Palms
 
Located on an 8 acre, park-like campus with panoramic views of downtown Los Angeles, Hollenbeck Palms, a 501c3 nonprofit organization, was the former home of John and Elizabeth Hollenbeck who gifted their estate in 1890. Since then, Hollenbeck Palms has been transformed into one of Los Angeles’ premiere Continuing Care Retirement Communities. Offering a wide array of residential and assisted living accommodations, award-winning activities and wellness programs, along with 24-hour care that can be accessed as needed, its residents have less worry and more time to pursue their interests and lifestyle choices.
 
CSCDA partnered with Cain Brothers, the placement agent, on the $20,435,000 in tax-exempt refunding bonds. The bonds refunded prior bonds originally issued by CSCDA for the construction and equipping of facilities on the Hollenbeck Palms campus. The refinancing is expected to produce net present value savings of $1.2 million, with average annual debt service savings of approximately $200,000.
 
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 CSCDA’s website for additional information on the ways in which CSCDA can help your city.


 
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