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League-Sponsored Bond Agency Issues $964.3 Million in Tax-Exempt Bonds for Multifamily Affordable Housing in Irvine and Loma Linda University Medical Center

May 12, 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 $964,343,451 in tax-exempt bonds for multi-family affordable housing for the Luminaira Apartments in Irvine and the Loma Linda University Medical Center throughout Loma Linda, Redlands and Murrieta.

About Luminaira
 
The vision for Luminaira began in 1996 with the closure of the Marine Corps Air Station El Toro. The project is an 82-unit affordable housing community for low-income families located on 5.35 acres at Great Park Neighborhoods located in the city of Irvine by Related California (Related) and Riverside Charitable Corporation (RCC). Luminaira provides 100 percent affordable rental housing units that will be rent restricted for low-income tenants; new economic vibrancy to the project site; a positive impact to restaurants and retail in the area; and consists of 56 two-bedroom units, 25 three-bedroom units and one manager’s unit.
 
CSCDA, Related, and RCC partnered with MUFG Union Bank, N.A. to provide $16.72 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 requires the project to maintain the affordability of units in perpetuity.
 
About Loma Linda University Medical Center
 
Loma Linda University Medical Center (LLUMC), a 501c3 nonprofit organization, provides nearly 900 beds for patient care throughout its campuses in Loma Linda, Redlands and Murrieta. LLUMC operates some of the largest clinical programs in the United States in areas such as neonatal care and outpatient surgery and is recognized as the international leader in infant heart transplantation and proton treatments for cancer. Each year, LLUMC admits more than 33,000 inpatients and serves roughly half a million outpatients. LLUMC is the only level one regional trauma center and Children’s Hospital for Inyo, Mono, Riverside, and San Bernardino counties.
 
CSCDA partnered with Bank of America Merrill Lynch to underwrite the nearly $1 billion in tax-exempt bonds for LLUMC. The bonds will be used to finance LLUMC’s Campus Transformation Project, which includes the construction of a new health complex on the University Hospital and Children’s Hospital campus. The bonds will also be used to refinance certain existing indebtedness on LLUMC’s existing facilities.
 
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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