HomeMy WebLinkAbout1993-07-13 - AGENDA REPORTS - FIN AFFORDABLE HOUSING (2)AGENDA REPORT
CONSENT CALENDAR
DATE: July 13, 1993
City Manager Approval
Item to be presented b
Steve Stark
SUBJECT: Policy Guidelines for Use of Conduit Financing for Affordable.Housing
DEPARTMENT: Finance
BACKGROUND
At the June 30, 1993, Study Session, the City Council was introduced to a draft Policy
Guidelines for Use of Conduit Financing. The Policy presented to the City Council for
adoption is the final draft of such Policy.
The purpose of the Policy is to establish certain guidelines for determining the worthiness
and, viability of projects that seek City assistance through bond issues for affordable
housing. There are three types of bond issues covered under the Conduit Financing
Policy. They are:
• Single Family Mortgage Revenue Bonds
• Multi Family Mortgage Revenue Bonds
• Industrial Development Revenue Bonds
The City may act as the "Conduit" for a bond issue to assist a development in obtaining
below market interest rates and other financing features which are not available through
the conventional mortgage market. In return, the development must set aside a certain
minimum number of units for affordable housing throughout the life of the bonds.
This Policy facilitates the City's established goal to provide additional low and moderate
income housing and is consistent with the City's adopted Affordable Housing Policy,
General Plan, and the Comprehensive Housing Affordability Strategy (CHAS).
RECOMMENDATION
Approve the Policy Guidelines for Use of Conduit Financing as part of the City's
Administrative Policies and Procedures Manual.
ATTACHMENT
City of Santa Clarita Policy Guidelines for Use of Conduit Financing.
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