HomeMy WebLinkAboutC- 5 Staff Report Multifamily Housing Program
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Honorable Chairperson and Board of Directors
Annual Report of the City of Azusa Redevelopment Agency
January 22, 2002
CONSENT CALENDAR
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JOSE AMADOR, ASSISTANT ECONOMIC DEVELOPMENT/REDEVELOPMENT DIRECTOR
ROSEANNA J. JARA, SR. ACCOUNTANT-REDEVELOPMENT
VIA: RICK COLE, CITY MANAGER
DATE: APRIL 7, 2003
SUBJECT: FINANCIAL STATEMENT FOR YEAR ENDED JUNE 30, 2002, FOR THE CITY OF AZUSA MULTIFAMILY
HOUSING PROGRAM
RECOMMENDATION
It is recommended that the City Council receive and file the Financial Statement for Year Ended June 30, 2002, for the
Multifamily Housing Program, $19,515,000 Multifamily Housing Revenue Refunding Bonds, Series 1994.
BACKGROUND
In 1985, the City issued multifamily housing revenue bonds totaling $20,450,000 (Prior Bonds), which were loaned to
Pacific Glen LLP for the land acquisition and construction of the Pacific Glen Apartments. In return, Pacific Glen
guaranteed 20% of the 320 units would be set aside for low-to-moderate income households. In 1994, the $19,515,000
Multifamily Housing Revenue Refunding Bonds, Series 1994 were issued to refund the remainder of the Prior Bonds,
and were guaranteed by FNMA.
Annually, the City’s independent auditors audit this bond issue in accordance with generally accepted auditing
standards and for compliance with the 20% set-aside low-to-moderate income housing requirements. The issue was
found to be in conformance with financial auditing standards. However, there were some minor non-compliance
issues pertaining to the set-aside requirements. These are explained in the attached letter to Council dated March 1,
2003, and have also been discussed with the apartment administrators. Staff is aware of these minor program
discrepancies, and will continue to monitor for compliance.
FISCAL IMPACT
Although the City arranged the Multifamily Housing Program and issued the bonds, this issue is a special obligation
and does not constitute a debt, nor a pledge of faith and credit of the City. The bondholders may look only to the
assets of the bond issue for payment. As a result, there is no fiscal impact to the City.
Prepared by: Roseanna J. Jara, Sr. Accountant-Redevelopment
JA:RJJ/cs
Attachment-Financial Statement and Letter