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League-Sponsored Bond Agency Issues $48.6 Million in Tax-Exempt Bonds for Multi-Family Affordable Housing in Irvine and Community Hospital in Monterey

June 17, 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 a total of issued $48,640,095 in tax-exempt bonds for the Espaira Apartments, multi-family affordable housing in Irvine, and a Community Hospital in Monterey.
 
About Espaira Apartments
 
The vision for Espaira began in 1995 with the vision of the ETHIC Housing Trust. The project is an 84-unit affordable housing community for low-income families located on 5.35 acres at Great Park Neighborhoods located in Irvine by Related California and Orange County Community Housing Corporation (OCCHC). It comprises consists of 41 two-bedroom units, 42 three-bedroom units and one manager’s unit.
 
The benefits of the Espaira for the city of Irvine and Orange County include the following:
  • 100 percent of the affordable rental housing units will be rent restricted for low-income tenants;
  • The building will bring new economic vibrancy to the project site;
  • A positive impact to restaurants and retail in the area. 
CSCDA, Related, and OCCHC partnered with MUFG Union Bank, N.A. to provide $16.09 million in tax-exempt multi-family affordable housing bonds for the project. Although the financing for the project requires the affordability of units for low-income tenants to be maintained for 55 years, the Regulatory Agreement with the city of Irvine requires the project to maintain the affordability of units in perpetuity.
 
About Community Hospital of the Monterey Peninsula (CHOMP)

CHOMP, a California nonprofit public benefit corporation, owns and operates a 258 licensed-bed acute care hospital located in the Carmel Hill area of the Monterey Peninsula in Northern California. CHOMP also owns and operates Westland House, a 28-bed skilled nursing and hospice facility, and an outpatient hospice facility located in Monterey and provides outpatient healthcare services at various outpatient facilities throughout Monterey County. CHOMP is the market leader for acute care services in its Primary Service Area, identified as the Monterey Peninsula, which includes the communities of Seaside, Monterey, Carmel Valley, Pacific Grove, Marina, Pebble Beach, Sand City, Del Rey Oaks, Big Sur, and unincorporated areas of Monterey County located on the peninsula.

CSCDA partnered with Piper Jaffray to place the $32,550,000 in tax-exempt bonds for CHOMP. The bonds will be used to refinance CSCDA’s previously issued Series 2011A Bonds, allowing CHOMP to significantly reduce its bond debt service and interest cost.
 
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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