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League-Sponsored Bond Agency Issues $24.85 Million in Tax-Exempt Bonds for Affordable Housing in Irvine

September 7, 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 $24,854,128 in tax-exempt multi-family affordable housing bonds for Luxaira in Irvine.
 
About Luxaira
 
The vision for Luxaira began in 1996 with the closure of the Marine Corps Air Station El Toro. The project is a 157-unit affordable housing community for low-income seniors located on 4.88 acres at Great Park Neighborhoods located in the city of Irvine by Related California (Related) and Riverside Charitable Corporation (RCC). The benefits of the project 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 senior tenants;
  • The building will bring new economic vibrancy to the project site;
  • A positive impact to restaurants and retail in the area; and
  • The project consists of 12 studios, 124 one-bedroom units, 20 two-bedroom units and 1 manager’s unit. 
CSCDA, Related, and RCC partnered with MUFG Union Bank, N.A. to provide $24.85 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 seniors 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.  
 
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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