HomeMy WebLinkAbout01 DUE DILIGENCE REVIEW OF HOUSING FUNDAgenda Item I
AGENDA REPORT
Oversight Board of the Successor Agency to the
Tustin Community Redevelopment Agency
SUBJECT/ACTION: RECEIVE DUE DILIGENCE REVIEW OF LOW AND MODERATE
INCOME HOUSING FUND AND CONVENE PUBLIC COMMENT
SESSION
In accordance with California Health and Safety Code (HSC) Section 34179.6, it is
recommended the Oversight Board of the Successor Agency to the Tustin Community
Redevelopment Agency take the following actions:
1. Receive the Due Diligence Review of the Low and Moderate Income Housing Fund
from White Nielson Diehl Evans LLP, the Successor Agency's certified accountant;
and
2. Convene a public comment session and consider public comments pertaining to the
Due Diligence Review of the Low and Moderate Income Housing Funds.
As a result of Assembly Bill 1484, Sections 34179.5 and 34179.6 were added to the
Dissolution Act, requiring a licensed accountant conduct two (2) Due Diligence Reviews
to determine the unobligated balances available for transfer to taxing entities. The first
review for the Low and Moderate Income Housing Fund was to be completed by
October 1, 2012. Upon receipt of the review, the Oversight Board must convene a
public comment session at least five business days before the Oversight Board holds
the approval vote. The final results of the review are to be transmitted to the
Department of Finance ("DoF") and County Auditor -Controller ("CAC") by October 15,
2012. In order to accommodate these requirements, a special Oversight Board meeting
was scheduled for today, Monday, October 1, 2012, at 5 pm. At the regularly scheduled
meeting on Tuesday, October 9, 2012, the Oversight Board will review, approve and
transmit the determination of the amount of cash and cash equivalents that are
available for disbursement to taxing entities as determined by the Due Diligence
Review.
On August 28, 2012, the Oversight Board approved the Successor Agency to enter into
an agreement with White Nielson Diehl Evans LLP ("WNDE") to conduct the Due
Diligence Review. Attached is the Due Diligence Review of the Low and Moderate
Income Housing Fund. The minimum five day public comment session, as required by
HSC Section 34179.6(b), begins today, October 1, 2012 and concludes at the time the
Agenda Report
October 1, 2012
Page 2
Oversight Board takes action on October 9, 2012. In order to allow a minimum of five
business days for public comments, the Oversight Board will not accept or approve the
report at today's meeting.
WNDE conducted the Due Diligence Review in accordance with the Agreed -Upon
Procedures published by the DoF on August 27, 2012. WNDE was not engaged to and
did not conduct an audit, the objective of which would be the expression of an opinion
on whether the Successor Agency met the statutory requirements of HSC Section
34179.5 related to the Low and Moderate Income Housing Fund. In following the
Procedures, WNDE issued a finding under 8D. that the projected spending
requirements exceed the resources available, which indicates that the unrestricted cash
balance of $7,858,315 can be retained by the Successor Agency. The Low and
Moderate Income Housing Fund is completely obligated and there is not an unobligated
balance available for disbursement to taxing entities.
The second Due Diligence Review of all other fund and account balances is to be
completed by December 15, 2012. As required with the first review, the Oversight
Board will convene a public comment session at least five business days before the
Oversight Board holds the approval vote. The final results of the review are to be
transmitted to the DoF and CAC by January 15, 2013.
Successor Agency and Finance Department staff are available to answer any questions
the Oversight Board may have.
PamelaAre�ids-King
Finance Director
Attachment: Due Diligence Review
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
Independent Accountants' Report on Applying Agreed -Upon Procedures
On the Tustin Redevelopment Agency's
And
The Successor Agency to the Tustin Redevelopment Agency's
Low and Moderate Income Housing Fund
Pursuant to California Health and Safety Code Section 34179.5
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME HOUSING FUND
Table of Contents
Page
Independent Accountants' Report on Applying Agreed -Upon Procedures
Related to the Low and Moderate Income Housing Fund
Attachment A - Agreed -Upon Procedures and Findings Related to the
Low and Moderate Income Housing Fund 2
SUPPORTING SCHEDULES AND EXHIBITS:
Schedule 1 - Listing of Assets Transferred to Successor Agency
as of February 1, 2012
Schedule 2 - Transfers to the City of Tustin
Schedule 3 - Transfers to the Housing Successor (Tustin Housing Authority)
Schedule 4 - Listing of Assets as of June 30, 2012
Schedule 5 - Unspent Bond Proceeds
Schedule 6 - Summary of Available Resources and Estimated
Spending Requirements
Schedule 7 - Summary of Balance Available for Allocation to Affected
Taxing Agencies
Exhibit 1 - Reimbursement Agreement with the City of Tustin
Exhibit 2 - Bond Documents
Exhibit 3 - Projected Revenues and Spending Requirements on
Annual Basis - 2012 to 2067 and Assumptions Made
Exhibit 4 - Reimbursement Agreement with the City of Tustin
Repayment Schedule
Independent Accountants' Report on Applying Agreed -Upon Procedures
Related to the Low and Moderate Income Housing Fund
Oversight Board of the Successor Agency
to the Tustin Redevelopment Agency
Tustin, California
We have performed the minimum required agreed-upon procedures (AUP) enumerated in
Attachment A, which were agreed to by the California Department of Finance, the California State
Controller's Office, the Orange County Auditor -Controller, and the Successor Agency to the Tustin
Redevelopment Agency (Successor Agency), (collectively, the Specified Parties), solely to assist you
in meeting the statutory requirements of Health and Safety Code Section 34179.5 related to the Low
and Moderate Income Housing Fund of the former Tustin Redevelopment Agency and Successor
Agency. Management of the Successor Agency is responsible for meeting the statutory requirements
of Health and Safety Code Section 34179.5 related to the Low and Moderate Income Housing Fund.
This agreed-upon procedures engagement was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. The sufficiency of these
procedures is solely the responsibility of those parties specified in the report. Consequently, we make
no representation regarding the sufficiency of the procedures described below, either for the purpose
for which this report has been requested or for any other purpose.
The scope of this engagement was limited to performing the agreed-upon procedures as set forth in
Attachment A. Attachment A also identifies the findings noted as a result of the procedures
performed.
We were not engaged to and did not conduct an audit, the objective of which would be the expression
of an opinion on whether the Successor Agency has met the statutory requirements of Health and
Safety Code Section 34179.5 related to the Low and Moderate Income Housing Fund. Accordingly, we
do not express such an opinion. Had we performed additional procedures, other matters might have
come to our attention that would have been reported to you.
This report is intended solely for the information and use of the Oversight Board and management of
the Successor Agency to the Tustin Redevelopment Agency, the California Department of Finance, the
California State Controller's Office, and the Orange County Auditor -Controller, and is not intended to
be, and should not be, used by anyone other than these specified parties.
Irvine California
September 27, 2012
1
2875 Michelle Drive, Suite 300, Irvine, CA 92606 • Tel: 714.978.1300 • Fax: 714.978.7893
Offices located in Orange and San Diego Counties
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
1. Procedure:
Obtain from the Successor Agency a listing of all assets that were transferred from the former
redevelopment agency's Low and Moderate Income Housing Fund to the Successor Agency on
February 1, 2012. Agree the amounts on this listing to account balances established in the
accounting records of the Successor Agency. Identify in the Agreed -Upon Procedures (AUP)
report the amount of the assets transferred to the Successor Agency as of that date.
Finding:
We agreed the amounts listed on Schedule 1 to the Successor Agency's accounting records
without exception. The former redevelopment agency transferred $9,840,418 in assets to the
Successor Agency as detailed in Schedule 1.
2A. Procedure:
Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods
and services) from the Low and Moderate Income Housing Fund of the former redevelopment
agency to the city that formed the redevelopment agency for the period from January 1, 2011
through January 31, 2012. For each transfer, the Successor Agency should describe the purpose
of the transfer and describe in what sense the transfer was required by one of the Agency's
enforceable obligations or other legal requirements. Provide this listing as an attachment to the
AUP report.
Finding:
The former redevelopment agency transferred $6,459,484 to the City of Tustin during the period
from January 31, 2011 through January 31, 2012 as detailed in Schedule 2. The transfers were
made to reimburse the City for assisting the former redevelopment agency in meeting its
affordable housing obligation.
2B. Procedure:
Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods
and services) from the Low and Moderate Income Housing Fund of the Successor Agency to the
city that formed the redevelopment agency for the period from February 1, 2012 through
June 30, 2012. For each transfer, the Successor Agency should describe the purpose of the
transfer and describe in what sense the transfer was required by one of the Agency's enforceable
obligations or other legal requirements. Provide this listing as an attachment to the AUP report.
Finding:
This procedure is not applicable as the Successor Agency did not make any transfers from the
Low and Moderate Income Housing Fund other than payments for goods and services to the City
of Tustin during the period from February 1, 2012 through June 30, 2012.
2
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
2C. Procedure:
For each transfer, obtain the legal document that formed the basis for the enforceable obligation
that required the transfer. Note in the AUP report the absence of any such legal document or the
absence of language in the document that required the transfer.
Finding:
The basis of the transfers is based on the reimbursement agreement between the City of Tustin
and Tustin Community Redevelopment Agency for the Agency to reimburse the housing subsidy
provided by the City. Attached to this AUP report are the Original Agreement between the
Tustin Redevelopment agency dated June 5, 2007 and the first amendment dated June 5, 2010
(Exhibit 1).
3A. Procedure:
Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods
and services) from the Low and Moderate Income Housing Fund of the former redevelopment
agency to any other public agency or to private parties for the period from January 1, 2011
through January 31, 2012. For each transfer, the Successor Agency should describe the purpose
of the transfer and describe in what sense the transfer was required by one of the Agency's
enforceable obligations or other legal requirements. Provide this listing as an attachment to the
AUP report.
Finding:
This procedure is not applicable as the former redevelopment agency did not make any transfers
from the Low and Moderate Income Housing Fund other than payments for goods and services to
other public agencies or private parties during the period from January 1, 2011 through
January 31, 2012.
3B. Procedure:
Obtain a listing prepared by the Successor Agency of transfers (excluding payments for goods
and services) from the Low and Moderate Income Housing Fund of the Successor Agency to any
other public agency or to private parties for the period from February 1, 2012 through
June 30, 2012. For each transfer, the Successor Agency should describe the purpose of the
transfer and described in what sense the transfer was required by one of the Agency's enforceable
obligations or other legal requirements. Provide this listing as an attachment to the AUP report.
3
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
3B. Finding:
The former redevelopment agency transferred assets as shown in Schedule 3 to the Housing
Successor (Tustin Housing Authority) authorized under Health and Safety Code
Section 34176(a)(2) pursuant to AB 1484. The transfer of these assets was reported on the
Housing Asset List form filed July 31, 2012 with the California Department of Finance. In a
letter dated September 13, 2012 the California Department of Finance has approved the Housing
Asset List.
3C. Procedure:
For each transfer, obtain the legal document that formed the basis for the enforceable obligation
that required the transfer. Note in the AUP report the absence of any such legal document or the
absence of language in the document that required the transfer.
Finding:
Schedule 3 in the report shows the details for the enforceable obligation or other legal
requirement supporting the transfers.
4. Procedure:
Obtain from the Successor Agency a summary of the financial transactions of the Redevelopment
Agency and the Successor Agency for the fiscal periods ended June 30, 2010, June 30, 2011,
January 31, 2012 and June 30, 2012. Ascertain that for each period presented, the total of
revenues, expenditures and transfers account fully for the changes in equity from the previous
fiscal period. Compare amounts for the fiscal period ended June 30, 2010 to the state controller's
report filed for the Redevelopment Agency for that period. Compare the amounts for the other
fiscal periods presented to the account balances in the accounting records or other supporting
schedules.
Finding:
This procedure is required by Section 34179.5(c)(4) for the Successor Agency as a whole and
therefore will be addressed in the AUP report associated with all other funds of the Successor
Agency due December 15, 2012.
5. Procedure:
Obtain from the Successor Agency a listing of all assets of the Low and Moderate Income
Housing Fund (excluding assets held by the entity that assumed the housing function previously
performed by the former redevelopment agency) as of June 30, 2012. Agree the assets on listing
to the accounting records of the Successor Agency.
fl
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
5. Finding:
As of June 30, 2012, the Successor Agency's total assets related to the former redevelopment
agency's Low and Moderate Income Housing Fund amounted to $9,730,855 as shown in
Schedule 4.
6. Procedure:
Obtain from the Successor Agency a listing of asset balances related to the former redevelopment
agency's Low and Moderate Income Housing Fund on June 30, 2012 that were restricted for the
following purposes:
• unspent bond proceeds,
• grant proceeds and program income restricted by third parties, and
• other assets with legal restrictions.
6A. Procedure - Unspent Bond Proceeds:
Obtain the Successor Agency's computation of the restricted balances and trace individual
components of this computation to related account balances in the accounting records, or to other
supporting documentation. Obtain the legal document that sets forth the restriction pertaining to
these balances. We agreed the par amount of the bonds, the original issue premium, cost of
issuance and deposits to the reserve fund to the Official Statement prepared on the issuance of the
bonds. We agreed the balances at June 30, 2012 to the Statement of Assets held by BNY Mellon
Trust Company.
Finding:
As of June 30, 2012, the Successor Agency had $1,872,540 in reserve funds from the issuance of
the bonds as detailed in Schedule 5. Attached to the report at Exhibit 2 are pages from the
Official Statement prepared on the issuance of the bonds and page 15 from that statement which
restricts the use of the reserve funds for payment of bond debt service requirements.
6B. Procedure - Grant Proceeds and Program Income Restricted by Third Parties:
Obtain the Successor Agency's computation of the restricted balances and trace individual
components of this computation to related account balances in the accounting records, or to other
supporting documentation. Obtain a copy of the grant agreement that sets forth the restriction
pertaining to these balances.
Finding:
This procedure is not applicable as the Successor Agency's assets related to the former
redevelopment agency's Low and Moderate Income Housing Fund did not have grant proceeds
and program income restricted by third parties as of June 30, 2012.
5
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
6C. Procedure - Other Assets Considered to be Legally Restricted:
Obtain the Successor Agency's computation of the restricted balances and trace individual
components of this computation to related account balances in the accounting records or other
supporting documentation. We obtained the legal document that sets forth the restriction
pertaining to these balances.
Finding:
This procedure is not applicable as the Successor Agency's assets related to the former
redevelopment agency's Low and Moderate Income Housing Fund did not have other assets
considered to be legally restricted as of June 30, 2012.
7. Procedure:
Obtain from the Successor Agency a listing of assets of the former redevelopment agency's Low
and Moderate Income Housing Fund as of June 30, 2012 that are not liquid or otherwise available
for distribution and ascertain if the values are listed at either purchase cost or market value as
recently estimated by the Successor Agency. For assets listed at purchased cost, trace the amount
to a previously audited financial statement or other accounting records of the Successor Agency
and note any differences. For any differences noted, inspect evidence of asset disposal
subsequent to January 31, 2012 and ascertain that the proceeds were deposited into the Successor
Agency's trust fund. For assets listed at recently estimated market value, inspect evidence
supporting the value and note the methodology used.
Finding:
This procedure is not applicable as the former redevelopment agency's Low and Moderate
Income Housing Fund did not have any assets that were not liquid or otherwise available for
distribution as of June 30, 2012.
8A. Procedure:
If the Successor Agency identified that existing asset balances were needed to be retained to
satisfy enforceable obligations, obtain an itemized schedule of asset balances (resources) as of
June 30, 2012 that were dedicated or restricted for the funding of enforceable obligations.
Compare the information on the schedule to the legal documents that formed the basis for the
dedication or restriction of the resource balance in question. Compare all current balances which
needed to be retained to satisfy enforceable obligations to the amounts reported in the accounting
records of the Successor Agency or to an alternative computation. Compare the specified
enforceable obligations to those that were included in the final Recognized Obligation Payment
Schedule (ROPS) approved by the California Department of Finance. If applicable, identify any
listed balances for which the Successor Agency was unable to provide appropriate restricting
language in the legal document associated with the enforceable obligation.
D
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
8A. Finding:
This procedure was not applicable as the Successor Agency did not identify any assets to be
retained to fund enforceable obligations.
8B. Procedure:
If the Successor Agency identified that future revenues together with balances dedicated or
restricted to an enforceable obligation are insufficient to fund future obligation payments and
thus retention of current balances is required, obtain from the Successor Agency a schedule of
approved enforceable obligations that include a projection of the annual spending requirements to
satisfy each obligation and a projection of the annual revenues available to fund those
requirements. Compare the enforceable obligations to those that were approved by the California
Department of Finance for the six month period from January 1, 2012 through June 30, 2012 and
for the six month period July 1, 2012 through December 31, 2012. Compare the forecasted
annual spending requirements to the legal document supporting the enforceable obligation and
obtain the Successor Agency's assumptions relating to the forecasted annual spending
requirements. Obtain the Successor Agency's assumptions for the forecasted annual revenues.
Disclose the major assumptions for the forecasted annual spending requirements and the
forecasted annual revenues in this AUP report.
Finding:
The Successor Agency has identified two enforceable obligations that require the retention of
current available resources.
The first enforceable obligation is required by Reimbursement Agreement between the City of
Tustin and Tustin Community Redevelopment Agency Related to the Affordable Housing
Responsibilities to be assumed by the Agency (Exhibit 1). The enforceable obligation is reported
in line 71 of the ROPS filed for the period January 1, 2013 to June 30, 2013. Exhibit 4 shows the
original amount due under the agreement, total payments made as of June 30, 2012 and
repayment schedule after June 30, 2012.
The second enforceable obligation is the affordable covenants on several affordable
homeownership units. The Agency is required to monitor compliance with the promissory notes
and recorded affordable covenants. In addition, the Agency prepares and executes affordable
housing documents when affordable homeowners refinance or sell their homes.
The Successor Agency has prepared a projection that shows total resources available to satisfy
these enforceable obligations amounting to $14,093,470 (Schedule 6) which includes $7,858,315
in cash and investments held by the Successor Agency. The total estimated spending
requirements are $23,471,344. The total resources available less the estimated spending
requirements results in a projected deficit of $9,377,874 as shown in Schedule 6. Exhibit 3 shows
the annual projected revenues and annual estimated spending requirements until the end of the
latest affordable covenant recorded. The assumptions for the projected revenues and the spending
requirements are shown in Exhibit 3.
7
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
8C. Procedure:
If the Successor Agency identified that projected property tax revenues and other general purpose
revenues to be received by the Successor Agency are insufficient to pay bond debt service
payments (considering both the timing and amount of the related cash flows), obtain a schedule
demonstrating this insufficiency. Compare the timing and amounts of bond debt service
payments to the related bond debt service schedules in the bond agreement. Obtain the
assumptions for the forecasted property tax revenues and other general purpose revenues and
disclose them in this AUP report.
Finding:
This procedure is not applicable as the Successor Agency did not identify any assets to be
retained under this procedure.
8D. Procedure:
If Procedures 8A, 8B and 8C were performed, calculate the amount of unrestricted balances
necessary for retention in order to meet enforceable obligations. Combine the amount identified
as currently restricted balances and the forecasted annual revenues to arrive at the amount of total
resources available to fund enforceable obligations. Reduce the total resources available by the
amount of forecasted annual spending requirements. Include the calculation in this AUP report.
Finding:
The calculation of the amount of unrestricted balances necessary for retention in order to meet
enforceable obligations is shown in Schedule 6. The projected spending requirements exceeds the
resources available which indicates that the unrestricted cash balance of $7,858,315 be retained
by the Successor Agency.
9. Procedure:
If the Successor Agency identified that cash balances as of June 30, 2012 need to be retained to
satisfy obligations on the Recognized Obligation Payment Schedule (ROPS) for the period of
July 1, 2012 through June 30, 2013, obtain a copy of the final ROPS for the period of
July 1, 2012 through December 31, 2012 and a copy of the final ROPS for the period
January 1, 2013 through June 30, 2013. For each obligation listed on the ROPS, the Successor
Agency should identify (a) any dollar amount of existing cash that was needed to satisfy the
obligation, and (b) the Successor Agency's explanation as to why the Successor Agency believes
that such balances were needed to satisfy the obligation. Include this schedule as an attachment
to this AUP report.
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
ATTACHMENT A - AGREED-UPON PROCEDURES AND FINDINGS
RELATED TO THE LOW AND MODERATE INCOME HOUSING FUND
9. Finding:
This procedure is not applicable as the Successor Agency did not identify any assets to be
retained under this procedure.
10. Procedure:
Present a schedule detailing the computation of the Balance Available for Allocation to Affected
Taxing Agencies. Amounts included in the calculation should agree to the results of the
procedures performed above. Agree any deductions for amounts already paid to the County
Auditor -Controller on July 12, 2012 as directed by the California Department of Finance to
evidence of payment.
Finding:
The schedule detailing the computation of the Balance Available for Allocation to Affected
Taxing Agencies is shown in Schedule 7. The computation shows that the Successor Agency
does not have balance available for allocation to affected taxing agencies.
11. Procedure:
Obtain a representation letter from management of the Successor Agency acknowledging their
responsibility for the data provided and the data presented in the report or in any schedules or
exhibits to the report. Included in the representations is an acknowledgment that management is
not aware of any transfers (as defined by Section 34179.5) from either the former redevelopment
agency or the Successor Agency to other parties for the period from January 1, 2011 through
June 30, 2012 that have not been properly identified in this AUP report and its related schedules
or exhibits. Management's refusal to sign the representation letter should be noted in the AUP
report as required by attestation standards.
Finding:
No exceptions were noted as a result of this Procedure.
9
SCHEDULE 1
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME HOUSING FUND
LISTING OF ASSETS TRANSFERRED TO SUCCESSOR AGENCY
As of February 1, 2012
Total
Assets
as of
February 1, 2012
ASSETS
Cash and investments $ 7,967,892
Cash with fiscal agent (Bond Trustee) 1,872,526
TOTAL ASSETS $ 9,840,418
NOTE:
(A) For accounting purposes, the following assets recorded in the Low and Moderate Income Housing Fund at
January 31, 2012 were transferred to the Tustin Housing Authority (Housing Successor) on February 1, 2012
pursuant to Health and Safety Code Section 34176(a)(2).
Loans $ 35,515,133
Interest receivable 41,776
Prepaid costs 30,000
Property Held for Sale 362,677
$ 35,949,586
SCHEDULE2
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME HOUSING FUND
TRANSFERS TO THE CITY OF TUSTIN
FOR THE PERIOD JANUARY 1, 2011 THROUGH JANUARY 31,2012:
Date of
Enforceable Obligation/Other
Transfer
Description of Transfer
Purpose of Transfer
Amount
Legal Requirement Supporting Transfer
6/30/2011
Affordable Housing reimbursement
Reimburse the City for assisting the Agency
$ 3,229,742
See Exhibit 1 for Reimbursement Agreement
to City of Tustin
in carrying out its affordable housing
between the City and former redevelopment
obligation
agency
7/1/2011
Affordable Housing reimbursement
Reimburse the City for assisting the Agency
See Exhibit 1 for Reimbursement Agreement
to City of Tustin
in carrying out its affordable housing
between the City and former redevelopment
obligation
3,229,742
agency
TOTAL TRANSFERS
$ 6,459,484
SCHEDULE 3
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME HOUSING FUND
TRANSFERS TO THE HOUSING SUCCESSOR (TUSTIN HOUSING AUTHORITY)
FOR THE PERIOD FEBRUARY 1, 2012 THROUGH JUNE 30,2012:
Date of
Enforceable Obligation/Other
Transfer
Description of Transfer
Purpose of Transfer
Amount
Legal Requirement Supporting Transfer
2/1/2012
Transfer of Loan Receivable of
Transfer Housing Assets to
Health and Safety Code Section 34176(a)(2)
$35,515,133 and accrued interest
the Housing Successor
This amount is reported on Housing Asset
of $41,776 to the Tustin
(Tustin Housing Authority)
$35,556,909
List filed with Department of Finance
Housing Authority
2/1/2012
Transfer of Land Held for
Transfer Housing Assets to
Health and Safety Code Section 34176 (a)(2)
Resale to the Tustin
the Housing Successor
This amount is reported on Housing Asset
Housing Authority
(Tustin Housing Authority)
$ 362,677
filed with Department of Finance
2/1/2012
Transfer of prepaid costs to
Transfer Housing Assets to
Health and Safety Code Section 34176 (a)(2)
to the Tustin Housing
the Housing Successor
This amount is reported on Housing Asset
Authority
(Tustin Housing Authority)
$ 30,000
List filed with Department of Finance
SCHEDULE4
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME HOUSING FUND
LISTING OF ASSETS
As of June 30, 2012
Total
Assets
as of
June 30, 2012
ASSETS
Cash and investments $ 7,858,315
Cash with fiscal agent (Bond Trustee) 1,872,540
TOTAL ASSETS $ 9,730,855
SCHEDULE 5
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME HOUSING FUND
UNSPENT BOND PROCEEDS
Par Amount of 2010 Bonds
$ 26,170,000
Add: Original Issue Premium
104,205
Bond Proceeds
26,274,205
Series 2010 Bond Proceeds per Transcript
26,274,205
Less: Deposit to Reserve Account
(1,827,606)
Less: Deposit to the Cost of Issuance Fund
(946,599)
Net Housing Project Fund
23,500,000
Deposit to Housing Project Fund Date
23,500,000
Repay obligation to City pursuant to
reimbursement agreement (Exhibit 1) 3/1/2010
(23,500,000)
Remaining Project Funds
-
Actual Current Balance (including reserve fund of $ 1,872,540) S 1,872,540
SCHEDULE 6
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME HOUSING FUND
SUMMARY OF AVAILABLE RESOURCES AND ESTIMATED SPENDING REQUIREMENTS
AVAILABLE RESOURCES:
CURRENT RESOURCES:
Cash and investment balances at June 30, 2012 $ 7,858,315
PROJECTED REVENUES:
Proceeds from sale of property $ 362,477
Deferral payments 2,776,042
Proceeds from loan repayments 776,249
Proceeds from second trust deeds (Affordable Housing Covenants) 2,320,387
TOTAL PROJECTED REVENUES 6,235,155
TOTAL RESOURCES AVAILABLE 14,093,470
SPENDING REQUIREMENTS
Affordability covenant compliance monitoring 11,915,580
Repayments to City pursuant to affordable housing
reimbursement agreement 11,555,764
TOTAL SPENDING REQUIREMENTS 23,471,344
NET DEFICIT (SPENDING REQUIREMENTS
EXCEED RESOURCES AVAILABLE) $ (9,377,874)
SCHEDULE 7
SUCCESSOR AGENCY TO THE TUSTIN REDEVELOPMENT AGENCY
AGREED-UPON PROCEDURES RELATED TO THE
LOW AND MODERATE INCOME HOUSING FUND
SUMMARY OF BALANCE AVAILABLE FOR ALLOCATION TO AFFECTED TAXING AGENCIES
As of June 30, 2012
Total amount of assets held by the Successor Agency as of June 30, 2012 - (Procedure 5) $ 9,730,855
Less assets legally restricted for uses specified by debt covenants, grant restrictions,
or restrictions imposed by other governments - (Procedure 6) (1,872,540)
Less assets that are not cash or cash equivalents (e.g., physical assets) - (Procedure 7) -
Less balances that are legally restricted for the funding of an enforceable obligation
(net of projected annual revenues available to fund those obligations) - (Procedure 8) (7,858,315)
Less balances needed to satisfy ROPS for the 2012-13 fiscal year - (Procedure 9) -
Less the amount of payments made on July 12, 2012 to the County Auditor -Controller
as directed by the California Department of Finance -
Add the amount of any assets transferred to the City for which an enforceable
obligation with a third party requiring such transfer and obligating the use of
the transferred assets did not exist - (Procedures 2 and 3) -
Amount to be remitted to County for disbursement to taxing agencies $ -
EXHIBIT 1
REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF TUSTIN
AND TUSTIN COMMUNITY REDEVELOPMENT AGENCY
REIMBURSEMENT AGREEMENT
BETWEEN THE
CITY OF TUSTIN
AND
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
RELATED TO AFFORDABLE HOUSING RESPONSILITIES TO BE ASSUMED
BY THE AGENCY
This Agreement is entered into as of the %) day of ju%.Q. , 2007 ("Effective
Date"), by and between the CITY OF TUSTIN, a municipal corporation ("City") and the
TUSTIN COMMUNITY REDEVELOPMENT AGENCY, a public body corporate and
politic ("Agency").
RECITALS
A. The City adopted a Specific Plan/Reuse Plan for the former Marine Corps
Air Station -Tustin ("Specific Plan/Reuse Plan") on February 3, 2003 by Ordinance
No. 1257, which provides the policies, regulations, implementation strategies and
procedures necessary to guide the civilian reuse of the former Marine Corps Air Station -
Tustin ("MCAS").
B. The City adopted the Redevelopment Plan ("Redevelopment Plan") for the
Marine Corps Air Station Tustin Redevelopment Project ("Project") on June 2, 2003, by
Ordinance No. 1276 which authorizes the use within the Project of the powers contained
in the California Community Redevelopment Law (Health & Safety Code §33000 et
seq.), including, without limitation, the authorization to receive an allocation of a portion
of the property taxes paid in the Project area pursuant to Health and Safety Code Section
33670(b) ("Tax Increment").
C. The City has acquired from the Department of the Navy certain real
property within the Project for re -sale to developers for the development of residential
uses including specified numbers of affordable housing units pursuant to the Specific
Plan/Reuse Plan and the Redevelopment Plan.
D. The Community Redevelopment Law (Health & Safety Code §33334.2)
requires that not less than twenty percent (20%) of the Tax Increment allocated to the
Agency must be used by the Agency for the purposes of increasing, improving, and
preserving the community's supply of affordable housing for persons and families of low
and moderate income. In carrying out the purposes of this section, a redevelopment
agency may exercise any or all of its powers including, but not' limited to, providing
subsides to, or for the benefit of persons and families of low and moderate income, to the
extent those households cannot obtain housing at affordable costs on the open market.
831845v2A 29171/0001(2)
5/2512007
E. In addition, the Community Redevelopment Law requires that at least
fifteen percent (15%) of all new and substantially rehabilitated dwelling units developed
within a redevelopment project area shall be available at affordable housing cost to
persons and families of low or moderate income and shall be occupied by these persons
and families (the "Inclusionary Housing Requirement"). Not less than forty percent
(40%) of these dwelling units must be available at affordable housing cost to very low-
income households and shall be occupied by these persons and families.
F. Dwelling units developed pursuant to the Inclusionary Housing
Requirement are to remain available at affordable housing cost to and occupied by very
low-, low-, and moderate -income persons and families for the longest feasible time, but
for not less than fifty-five (55) years for rental units and forty-five (45) years for owner -
occupied units.
G. To assist in enabling the Agency to provide the required affordable
housing for the benefit of very low -,low-, and moderate -income persons and families in
implementing the Specific Plan/Reuse Plan and the Redevelopment Plan, the City has re-
sold certain property ("Property") and will resell additional Property within the Project
area for residential development at a fair reuse value for the residential use and with the
covenants and conditions under the Specific Plan/Reuse Plan and Redevelopment Plan,
including the required numbers of affordable housing units..
H. To assist the Agency in ensuring that such affordable housing units
developed on such Property are sold and remain available at affordable housing costs to,
and occupied by, persons and families of very low to moderate income at a subsidized
affordable sale price for at least the periods of time prescribed by Health and Safety Code
Section 33334.3(f), and to provide for future ongoing monitoring requirements for such
affordable units under Health and Safety Code Section 33418, the City has encumbered
or will encumber such units with covenants and deeds of trust. The difference between
the market value of such units and the affordable sale price of such affordable housing
units is represented by the gap funding assistance provided to affordable homebuyers
with promissory notes by second deeds of trust in favor of City, hereinafter referred to as
the "Housing Affordability Subsidy".
I. As of the date of this Agreement, the City has resold to developers for
residential development Property on which a total of five hundred sixty-five (565)
housing units will be constructed. Of the five hundred sixty-five (565) housing units to
be constructed, one hundred and seventeen (117) units of the required one hundred and
eighteen (118) units restricted consistent with the Inclusionary Housing Requirement,
pursuant to an Affordable Housing Covenant and an Affordable Housing Deed of Trust
have provided. The City's Housing Affordability Subsidy for the units sold as of the date
of this Agreement is $46,407,736. The City anticipates reselling additional Property to
developers for residential development on which a total of two thousand one hundred
and five (2,105) housing units will be constructed, with two hundred (200) for sale units
to be restricted consistent with the Inclusionary Housing Requirement. The City's
2 5/25/2047
Housing Affordability Subsidy for these additional units in the future is currently
estimated at $62,296,000.
J. Pursuant to the Health and Safety Code Section 33128, the Agency is
performing a public function of the City and may have access to services and facilities of
the City.
K. The City and the Agency desire to enter into this Agreement:
1. To provide the terms and conditions under which the Agency will
reimburse the City for the Affordable Housing Subsidy.
2. To set forth activities, services and facilities that the City will
render for and make available to the Agency in furtherance of the activities and functions
of the Agency under the Community Redevelopment Law; and
3. To provide that the Agency will reimburse the City for actions
undertaken and costs and expenses incurred by it for and on behalf of the Agency.
AGREEMENT
1. The Agency agrees to reimburse the City for the Affordable Housing
Subsidy from Tax Increment received by the Agency from the Project or other available
Agency sources including funds deposited into the Agency's Low and Moderate Income
Set -Aside Funds for use within the territorial jurisdiction of the Agency. The City and
the Agency agree that as of the date of this Agreement, the amount of the Affordable
Housing Subsidy is $46,407,736.
2. The City agrees to provide for the Agency such staff assistance, supplies,
technical services and other services and facilities of the City as the Agency may require
in carrying out its functions under the Community Redevelopment Law. Such assistance
and services may include the services of officers, employees, attorneys and special
consultants.
3. The City will keep records of: (a) sales of property in the Project and the
amount of the Housing Affordability Subsidy, and (b) activities and services undertaken
pursuant to this Agreement and the costs thereof, in order to ensure that an accurate
record of the Agency's liability to the City can -be ascertained. The City shall
periodically, but not less than annually, submit to the Agency a statement of the costs
incurred by the City in rendering activities and services to the Agency pursuant to this
Agreement. Such statement of costs may include a proration of the City's administrative
and salary expense attributable to services of City officials, employees and departments
rendered for the Agency.
5/25/2007
4. The Agency agrees to reimburse the City for all costs incurred by the City
pursuant to this Agreement from and to the extent that funds are available to the Agency
for such purpose from Tax Increment or from other sources, provided that the Agency
shall have the sole and exclusive right to pledge any such sources of funds to the
repayment of other indebtedness incurred by the Agency in carrying out the Project. The
costs of the City under this Agreement (including, without limitation, the Affordable
Housing Subsidy) will be shown on statements submitted to the Agency pursuant to
Section 3 above. Although the parties recognize that payment may not occur for a few
years and that repayment may also occur over a period of time, it is the express intent of
the parties that the City shall be entitled to repayment of the expenses incurred by the
City under this agreement, consistent with the Agency's financial ability, in order to make
the City whole as soon as practically possible.
5. The obligations of the Agency under this Agreement shall constitute an
indebtedness of the Agency within the meaning of Section 33670 et seq. of the Health
and Safety Code, to be repaid to the City by the Agency with interest at five percent (5%)
per annum.
(SIGNATURES PAGES FOLLOW)
5/25/2007
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
Effective Date.
APPROVED AS FO&M:
Douglas C. Holland, o
CityWtrney
ATTEST:
FEW
•
MN 721
LlfrA LM
"CITY"
CITY OF TU N
By:
Lou Bone, Mayor
"AGENCY"
TUSTINCOMMUNITY
k,EN AGENCY
Board of Directors
5/25/2007
FIRST AMENDMENT TO REIMBURSEMENT AGREEMENT
BETWEEN THE
CITY OF TUSTIN
AND
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
RELATED TO AFFORDABLE HOUSING RESPONSIBILITIES TO BE
ASSUMED
BY THE AGENCY
This First Amendment ("First Amendment") is entered into as of the 5th day of
January, 2010 ("Effective Date"), by and between the CITY OF TUSTIN, a municipal
corporation ("City") and the TUSTIN COMMUNITY REDEVELOPMENT AGENCY, a
public body corporate and politic ("Agency").
RECITALS
A. The City has previously acquired from the Department of the Navy certain
real property within the Marine Corps Air Station -Tustin Redevelopment Project
("MCAS Project") for resale to developers for the development of residential uses
including specified numbers of affordable housing units pursuant to the Specific
Plan/Reuse Plan and the Redevelopment Plan.
B. On June 5, 2007, the City and the Agency entered into an agreement
("Reimbursement Agreement") pursuant to which the Agency agreed to reimburse the
City from Tax Increment received by the Agency from the MCAS Project and other
available Agency sources, including funds deposited into the Agency's low and moderate
income housing fund for the MCAS Project, the difference between the market value of
the affordable units and the affordable sale price of such affordable housing units. This
difference, represented by the gap funding assistance provided to affordable homebuyers
with promissory notes by second deeds of trust in favor of the City, was referred to in the
Reimbursement Agreement as the "Housing Affordability Subsidy."
C. While the repayment obligation under the Reimbursement Agreement
applies s to the MCAS Project and other available Agency sources and was intended to
also apply to the Town Center and South Central Project Area as identified in the
Reimbursement Agreement City Council and Agency staff reports and authorizations
dated June 5, 2009 , the Agency desires to make it explicitly clear that the Agency may
also encumber tax increment deposited into the low and moderate income housing fund
of the City's two other redevelopment projects, Town Center Redevelopment Project
("Town Center Project") and South Central Redevelopment Project ("South Central
Project"), to repay the City its obligation under the Reimbursement Agreement.
1271102v1 29171/0001
D. Though the time limit on incurring indebtedness for both the Town Center
Project and South Central Project has seemingly expired and no ordinance eliminating the
time limit on incurring indebtedness pursuant to California Health and Safety Code
Section 33333.6(e)(2)(b) has been adopted, California Health and Safety Code Section
33333.6(e)(4)(A) provides for a suspension of the time limit on incurring indebtedness as
follows: "A time limit on the establishing of loans, advances, and indebtedness to be paid
with the proceeds of [tax increment] shall not prevent an agency from incurring debt to
be paid from the agency's Low and Moderate Income Housing Fund or establishing more
debt in order to fulfill the agency's affordable housing obligations, as defined in
paragraph (1) of subdivision (a) of Section 33333.8." Section 33333.8(a)(1) goes on to
define an agency's affordable housing obligations as including: (a) the obligation to make
deposits to and expenditures from the low and moderate income housing fund; (b)
eliminate deficits in the housing fund; (c) expend or transfer an excess surplus; (d)
provide relocation assistance; (e) provide replacement housing; (f) provide inclusionary
housing."
E. The Agency has previously adopted resolutions for all three
redevelopment projects finding that the expenditure of monies from the low and moderate
income housing fund outside of each project area will be of benefit to each
redevelopment project. Specifically, Resolution Nos. RDA 05-01 and RDA 05-02
adopted by the Agency on March 21, 2005, for South Central Project and Town Center
Project respectively, each state that such monies will be used to provide low and
moderate income housing at an affordable housing cost to persons and families of low
and moderate income within the territorial jurisdiction of the Agency, and for other
purposes authorized by the California Community Redevelopment Law (Health & Safety
Code §§33000 et seq.). Additionally, the Agency, on page 17 of its Mid -Term Report for
the Town Center and South Central Redevelopment Project Areas' Third Five -Year
Implementation Plan (FY 2005/06 to FY 2009/10) made specific reference to its intention
that the Agency would reimburse the City for its financial assistance to the Agency in
producing affordable housing units, said reimbursement to possibly come from tax
increment generated from the MCAS Project and from housing set aside funds not only
from the MCAS Project, but from Town Center Project and South Central Project as well.
F. Capitalized terms used but not defined herein shall have the meaning
ascribed to them in the Reimbursement Agreement.
THEREFORE, the parties agree as follows:
1. Proiect: All references to the defined term "Project" in the
Reimbursement Agreement shall be deemed to refer to the Marine Corps Air Station -
Tustin Redevelopment Project.
2. Amendment of Recital H: Recital H of the Reimbursement Agreement is
hereby deleted in its entirety and replaced with the following:
1271102v129171/0001
7
"H. To assist the Agency in ensuring that such affordable housing units
developed on such Property are sold and remain available at affordable
housing costs to, and occupied by, persons and families of low or
moderate income at a subsidized affordable sale price for at least the
periods of time prescribed by Health and Safety Code Section 33334.3(f)
and to provide for future ongoing monitoring requirements for such
affordable units under Health and Safety Code Section 33418, the City
has encumbered or will encumber such units with covenants and deeds of
trust. The difference between the market value of such units and the
affordable sale price of such affordable housing units (which difference
includes the discounted sale price of the Property received by the City) is
represented by promissory notes and secured by second deeds of trust in
favor of City, hereinafter referred to as the "Housing Affordability
Subsidy."
3. Amendment of Recital I: Recital I of the Reimbursement Agreement is
hereby deleted in its entirety and replaced with the following:
"I. As of the date of this Agreement, the City has resold to developers
for residential development Property on which a total of Five Hundred
Sixty Five (565) housing units will be constructed. Of the Five Hundred
and Sixty Five (565) housing units to be constructed, One Hundred
Eighteen (118) units are restricted consistent with the Inclusionary
Housing Requirement, pursuant to an Affordable Housing Covenant and
an Affordable Housing Deed of Trust. The City's Housing Affordability
Subsidy for the units sold as of the date of this Agreement is Forty Six
Million Four Hundred Seven and Seven Hundred and Thirty Six
DOLLARS ($46,407,736) which amount has not yet been repaid to the
City.
The City also anticipates reselling additional Property to developers for
residential development on which a total of two thousand one hundred
and five (2,105) housing units will be constructed, with two hundred
(200) additional for sale units currently to be restricted with the
Inclusionary Housing Requirement. The City's Housing Affordability
Subsidy for these additional units in the future is currently estimated at
$62,296,000."
4. Amendment of Paragraph l: Paragraph l of the Reimbursement
Agreement is hereby deleted in its entirety and replaced with the following:
1. The Agency agrees to reimburse the City for the Affordable
Housing Subsidy from (a) Tax Increment received by the Agency from
the MCAS Project or other available Agency sources, and (b) tax
increment deposited into the low and moderate income housing fund from
the MCAS Project, Town Center Project and South Central Project for
1271102v1 29171/0001 3
use within the territorial jurisdiction of the Agency. The City and the
Agency agree that as of the date of this Agreement, the amount of the
Affordable Housing Subsidy is Forty Six Million Four Hundred Seven
and Seven Hundred and Thirty Six DOLLARS ($46,407,736) which
amount has not yet been repaid to the City."
5. Incorporation of Recitals: Each recital set forth in the Reimbursement
Agreement and above in this First Amendment shall be deemed a part of the
Reimbursement Agreement as amended by this First Amendment.
6. First Amendment. This First Amendment constitutes a part of the
Reimbursement Agreement and any reference in any document to the Reimbursement
Agreement shall be deemed to include a reference to such Reimbursement Agreement as
amended hereby.
7. Full Force and Effect: Except as otherwise amended hereby, all terms,
covenants, conditions and provisions of the Reimbursement Agreement shall remain in
full force and effect.
IN WITNESS WHEREOF, the parties have executed this First Amendment as of
the Effective Date.
CITY OF TUSTIN, a municipal corporation
ATTES `•CITY"
BYw571 By:-
PAMSTOKERell
William A. Huston
CITY CLERK City Manager
... WSIF R M
DOUG ,HOLLAND
CITY ATTORNEY
1271102vl29171/0001
TUSTIN COMMUNITY REDEVELOPMENT
AGENCY, a public body corporate and politic
"AGENCY"
By:
William A. Huston
Executive Director
1271102v1 29171/0001
EXHIBIT 2
BOND DOCUMENTS
NEW ISSUE -BOOK -ENTRY ONLY
RATINGS:
S&P: "AAA" (negative outlook)
(Assured Guaranty Municipal Corp. -insured)
S&P: "A" (Underlying)
See "RATINGS" herein.
In the opinion of Quint & Thimmig LLP, San Francisco, California, Bond Counsel, subject, however, to certain qualifications described in this
Official Statement, under existing law, interest on the Bonds (i) is excludable from gross income of the owners thereof for federal income tax
purposes, (ii) is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations, and
(iii) is not taken into account in computing adjusted current earnings, which is used as an adjustment in determining the federal alternative
minimum tax for certain corporations. In addition, in the opinion of Bond Counsel, interest on the Bonds is exempt from personal income taxation
imposed by the State of California. See "TAX MATTERS" herein.
TUSTIN
$26,170,000
TUSTIN COMMUNITY
REDEVELOPMENT AGENCY
s (Orange County, California)
a,n Tax Allocation Housing Bonds, Series 2010
BUILDING OUR FUTURE
HONORING OUR PAST
Dated: Date of Delivery
Due: September 1, as shown on the inside cover
Proceeds from the sale of the $26,170,000 Tustin Community Redevelopment Agency Tax Allocation Housing Bonds, Series 2010 (the "Bonds"), will be used by
the Tustin Community Redevelopment Agency (the "Agency") to (a) refinance low and moderate income housing activities throughout the geographic
boundaries of the City and, in particular, to repay a reimbursement obligation from the Agency to the City, relating to the City's write down of land for use for
affordable housing purposes, (b) fund a reserve account for the Bonds, and (c) provide for the costs of issuing the Bonds. See "FINANCING PLAN" herein.
Interest on the Bonds will be payable semi-annually on each March 1 and September 1, commencing September 1, 2010 (each, an "Interest Payment Date"). The
Bonds will be issued in fully registered form without coupons and will be registered in the name of Cede & Co., as nominee for The Depository Trust Company,
New York, New York ("DTC"). DTC will act as securities depository for the Bonds. Purchases of beneficial interests in the Bonds will be made in book -entry form
only in denominations of $5,000 or any integral multiple thereof. Purchasers of such beneficial interests will not receive physical certificates representing their
interests in the Bonds. Payment of principal of, interest and premium, if any, on the Bonds will be made directly to DTC or its nominee, Cede & Co., so long as
DTC or Cede & Co. is the registered owner of the Bonds. Disbursement of such payments to the DTC Participants (as defined herein) is the responsibility of DTC
and disbursement of such payments to the Beneficial Owners (as defined herein) is the responsibility of the DTC Participants, as more fully described herein. See
"THE BONDS—Book-Entry System" herein.
The Bonds will be issued under and pursuant to an Indenture of Trust, dated as of March 1, 2010 (the "Indenture"), by and between the Agency and The Bank of
New York Mellon Trust Company, N.A., as trustee (the "Trustee"). The Bonds are special obligations of the Agency and are payable solely from and secured by a
pledge of the Housing Tax Revenues (as defined herein), subject to the provisions of the Indenture permitting the application thereof for other purposes, and by a
pledge of amounts in certain funds and accounts established under the Indenture, as further discussed herein.
The Bonds are subject to optional and mandatory sinking account redemption prior to maturity. See "THE BONDS—Redemption" herein.
THE BONDS ARE SPECIAL OBLIGATIONS OF THE AGENCY PAYABLE SOLELY FROM THE HOUSING TAX REVENUES, AS DESCRIBED HEREIN, AND
AMOUNTS IN CERTAIN FUNDS AND ACCOUNTS MAINTAINED UNDER THE INDENTURE AND ARE NOT A DEBT OF THE AUTHORITY, THE CITY OR
THE STATE OF CALIFORNIA (THE "STATE") OR ANY POLITICAL SUBDIVISIONS THEREOF (OTHER THAN THE AGENCY, TO THE LIMITED EXTENT
SET FORTH IN THE INDENTURE), AND NONE OF THE AUTHORITY, THE CITY OR THE STATE OR ANY POLITICAL SUBDIVISIONS THEREOF (OTHER
THAN THE AGENCY) IS LIABLE THEREFOR. THE BONDS ARE NOT PAYABLE FROM, AND ARE NOT SECURED BY, ANY FUNDS OF THE AGENCY,
OTHER THAN THE HOUSING TAX REVENUES PLEDGED PURSUANT TO THE INDENTURE. THE BONDS DO NOT CONSTITUTE AN INDEBTEDNESS
WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR RESTRICTION. NEITHER THE MEMBERS OF THE
AGENCY NOR ANY PERSONS RESPONSIBLE FOR THE EXECUTION OF THE BONDS IS LIABLE PERSONALLY FOR PAYMENT OF THE BONDS BY
REASON OF THEIR ISSUANCE.
The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under an insurance policy to be issued concurrently
with the delivery of the Bonds by ASSURED GUARANTY MUNICIPAL CORP. (formerly known as Financial Security Assurance Inc.)
ASSURED
GUSTY®
MUNICIPAL
MATURITY DATES, PRINCIPAL AMOUNTS, INTEREST RATES, PRICES OR YIELDS AND CUSIPS
SEE INSIDE FRONT COVER
This cover page is not intended to be a summary of the Bonds or the security therefor. Investors are advised to read the Official Statement in its entirety to obtain
information essential to the making of an informed investment decision with respect to the Bonds.
The Bonds are offered when, as and if issued and accepted by the Underwriter, subject to the approval as to their legality by Quint & Thimmig LLP, San Francisco,
California, Bond Counsel. Certain other legal matters related to this offering will be passed upon for the Authority and the Agency by Woodruff, Spradlin &
Smart, P.C., Costa Mesa, California, Agency Counsel, and by Quint & Thimmig LLP, San Francisco, California, as Disclosure Counsel. Certain legal matters related
to this offering will be passed upon for the Underwriter by Stradling Yocca Carlson & Rauth, Newport Beach, California, as Underwriter's Counsel. It is expected
that the Bonds in definitive form will be available for delivery to DTC in New York, New York on or about March 4, 2010.
Piperjaff ray®
February 24,2010
TUSTIN
$26,170,000
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
(Orange County, California)
_ Tax Allocation Housing Bonds, Series 2010
BUIrm GOURFUruRf
HONORING OUR PASr
$4,620,000 5.00% Term Bonds due September 1, 2030, Price: 98.362%, to Yield 5.13%; CUSIP: 901048 DN5t
$6,770,000 5.25% Term Bonds due September 1, 2039, Price: 98.087%, to Yield 5.38%; CUSIP: 901048 DPOt
4 Copyright 2010, American Bankers Association. CUSIPOO is a registered trademark of the American Bankers Association. CUSIP data herein is provided by the CUSIP Service Bureau, operated by
Standard & Poor's, a division of The McGraw-Hill Companies, Inc. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services Bureau. CUSIP
numbers have been assigned by an independent company not affiliated with the Agency and are included solely for the convenience of the registered owners of the Bonds. The Agency is not responsible
for the selection or uses of these CUSIP numbers, and no representation is made as to their correctness on the Bonds or as included herein. The CUSIP number for a specific maturity is subject to being
changed after the issuance of the Bonds as a result of various subsequent actions including, but not limited to, a refunding in whole or in part or as a result of the procurement of secondary market
portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of certain maturities of the Bonds.
c Priced to the September 1, 2020, par call date.
MATURITY DATES, PRINCIPAL AMOUNTS, INTEREST RATES, PRICES OR YIELDS AND CUSIPS
$14,780,000 Serial Bonds
CUSIP Prefix: 9010481
Maturity
Principal
Interest
CUSIP Maturity
Principal
Interest
CUSIP
(September 1)
Amount
Rate
Yield
Suffixt (September 1)
Amount
Rate
Yield
Suffixt
2010
$1,255,000
2.00%
0.65%
CY2 2018
$ 880,000
4.00%
3.67%
DGO
2011
695,000
3.00
0.97
CZ9 2019
920,000
4.00
3.94
DH8
2012
715,000
3.00
1.39
DA3 2020
955,000
4.00
4.14
DJ4
2013
735,000
3.00
1.68
DBl 2021
995,000
4.125
4.30
DK1
2014
760,000
3.50
2.02
DC9 2022
1,035,000
4.25
4.44
DL9
2015
785,000
4.00
2.46
DD7 2023
1,080,000
4.25
4.53
DQ8
2016
815,000
4.00
2.95
DE5 2024
1,125,000
5.00
4.57c
DR6
2017
850,000
4.00
3.32
DF2 2025
1,180,000
5.00
4.67c
DM7
$4,620,000 5.00% Term Bonds due September 1, 2030, Price: 98.362%, to Yield 5.13%; CUSIP: 901048 DN5t
$6,770,000 5.25% Term Bonds due September 1, 2039, Price: 98.087%, to Yield 5.38%; CUSIP: 901048 DPOt
4 Copyright 2010, American Bankers Association. CUSIPOO is a registered trademark of the American Bankers Association. CUSIP data herein is provided by the CUSIP Service Bureau, operated by
Standard & Poor's, a division of The McGraw-Hill Companies, Inc. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services Bureau. CUSIP
numbers have been assigned by an independent company not affiliated with the Agency and are included solely for the convenience of the registered owners of the Bonds. The Agency is not responsible
for the selection or uses of these CUSIP numbers, and no representation is made as to their correctness on the Bonds or as included herein. The CUSIP number for a specific maturity is subject to being
changed after the issuance of the Bonds as a result of various subsequent actions including, but not limited to, a refunding in whole or in part or as a result of the procurement of secondary market
portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of certain maturities of the Bonds.
c Priced to the September 1, 2020, par call date.
No dealer, broker, salesperson or other person has been authorized by the Agency to give any information
or to make any representations in connection with the offer or sale of the Bonds other than those contained herein
and, if given or made, such other information or representations must not be relied upon as having been authorized
by the Agency. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor
shall there be any sale of the Bonds by a person in any jurisdiction in which it is unlawful for such person to make
such an offer, solicitation or sale.
This Official Statement is not to be construed as a contract with the purchasers of the Bonds. Statements
contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly
so described herein, are intended solely as such and are not to be construed as representations of fact.
The information set forth herein has been obtained from sources which are believed to be reliable but such
information is not guaranteed as to accuracy or completeness. The information and expressions of opinions herein
are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder
shall, under any circumstances, create any implication that there has been no change in the affairs of the Agency since
the date hereof. The Underwriter has provided the following sentence for inclusion in this Official Statement: The
Underwriter has reviewed the information in this Official Statement in accordance with and as part of this
transaction but the Underwriter does not guarantee the accuracy or completeness of such information. All summaries
of the Indenture and other documents are made subject to the provisions of such documents and do not purport to be
complete statements of any or all such provisions.
While the City of Tustin maintains an internet website for various purposes, none of the information on
such website is incorporated by reference herein or intended to assist investors in making any investment decision or
to provide any continuing information with respect to the Bonds.
This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not
be reproduced or used, in whole or in part, for any other purpose.
IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVER-ALLOT OR EFFECT
TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL
ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF
COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE
BONDS TO CERTAIN DEALERS AND DEALER BANKS AND BANKS ACTING AS AGENT AT PRICES LOWER
THAN THE PUBLIC OFFERING PRICES STATED ON THE INSIDE COVER PAGE HEREOF AND SAID PUBLIC
OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER.
This Official Statement contains forward looking statements by the Agency concerning future conditions
affecting the Agency, the City, the State and the United States which may relate to its business operations and
financial condition of the Agency. The Official Statement contains the words or phrases "will likely result," "are
expected to," "will continue," "is anticipated," "estimate," "project," "forecast," "expect," "intend" or variations of
those terms to identify "forward looking statements" within the meaning of the U.S. Private Securities Litigation
Reform Act of 2000 Section 21E of the U.S. Securities and Exchange Act of 1934, as amended, and Section 27A of the
U.S. Securities and Exchange Act of 1933, as amended. You should not rely on these forward-looking statements
which speak only as to the Agency's expectations as of the date of this Official Statement. Such statements are subject
to risks and uncertainties that could cause actual results to differ materially from those contemplated in such
forward-looking statements. Except as required by law, neither the Agency, the City or the Underwriter undertake
any duty to update any forward looking statements after the date of this Official Statement, either to confirm any
statement to reflect actual results or to reflect the occurrence of unanticipated events.
THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
IN RELIANCE UPON AN EXCEPTION FROM THE REGISTRATION REQUIREMENTS CONTAINED IN SECTION
3(a)(2) OF SUCH ACT. THE BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES
LAWS OF ANY STATE. THE INDENTURE HAS NOT BEEN QUALIFIED UNDER THE TRUST INDENTURE ACT
OF 1939, AS AMENDED, IN RELIANCE UPON AN EXEMPTION CONTAINED IN SUCH ACT.
Municipal Bond Insurance. Assured Guaranty Municipal Corp. (formerly known as Financial Security
Assurance Inc.) ("AGM") makes no representation regarding the Bonds or the advisability of investing in the Bonds.
In addition, AGM has not independently verified, makes no representation regarding, and does not accept any
responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained
herein, or omitted herefrom, other than with respect to the accuracy of the information regarding AGM supplied by
AGM and presented under the heading "MUNICIPAL BOND INSURANCE" and APPENDIX H—"SPECIMEN
MUNICIPAL INSURANCE POLICY."
TABLE OF CONTENTS
Page
INTRODUCTION..................................................................................1
General..............................................................................................
General................................................................................................1
Description of the Town Center Redevelopment Project ..........
Purpose of Issuance..........................................................................1
Redevelopment Activity ................................................................
TheCity..............................................................................................1
Redevelopment Plan Limitations ..................................................
TheAgency........................................................................................1
AssessedValuation.........................................................................36
The Redevelopment Projects...........................................................2
Appeals of Assessed Values..........................................................38
Tax Allocation Financing.................................................................3
Housing Tax Revenue Projections................................................39
TheBonds...........................................................................................3
Adjustments to Tax Increment Revenues....................................40
Source of Payment for the Bonds....................................................3
THE SOUTH CENTRAL REDEVELOPMENT PROJECT..............40
Municipal Bond Insurance...............................................................4
General..............................................................................................
Reserve Account................................................................................4
Assessed Valuation..........................................................................52
ParityDebt.........................................................................................4
Appeals of Assessed Values...........................................................55
Fiscal Consultant's Report...............................................................
4
RiskFactors........................................................................................
4
Continuing Disclosure......................................................................
5
TaxMatters.........................................................................................5
Limited Obligations.........................................................................58
Professionals Involved in the Offering..........................................5
No Acceleration on Default............................................................58
Forward -Looking Statements..........................................................5
Bankruptcy........................................................................................58
OtherMatters.....................................................................................6
Federal Tax -Exempt Status of the Bonds......................................59
Other Information.............................................................................6
InvestmentRisk................................................................................59
ESTIMATED SOURCES AND USES OF FUNDS .............................
7
FINANCING PLAN..............................................................................
7
DEBT SERVICE SCHEDULE................................................................
8
THEBONDS...........................................................................................
8
General Provisions............................................................................
8
Redemption........................................................................................
9
Book -Entry System..........................................................................11
Assessment Appeals........................................................................62
TAX ALLOCATION FINANCING...................................................12
Additional Obligations...................................................................62
General..............................................................................................12
Proposition 8 Adjustments.............................................................62
Allocationof Taxes..........................................................................12
Levy and Collection of Taxes.........................................................63
SECURITY FOR THE BONDS...........................................................13
Real Estate and General Economic Risks.....................................63
Pledge of Housing Tax Revenues.................................................13
Future Land Use Regulations and Growth Control
Security of Bonds; Equal Security.................................................13
Initiatives........................................................................................63
Special Fund; Deposit of Housing Tax Revenues .......................
14
Deposit of Amounts by Trustee....................................................14
Hazardous Substances....................................................................65
Issuance of Parity Debt...................................................................16
Seismic Risk and Flood Risk..........................................................66
Issuance of Subordinate Debt........................................................17
StateBudgets....................................................................................66
MUNICIPAL BOND INSURANCE..................................................18
Educational Revenue Augmentation Fund Transfers................67
The Municipal Bond Insurance Policy.........................................18
CONSTITUTIONAL AND STATUTORY PROVISIONS
AGM..................................................................................................18
AFFECTING TAX REVENUES..........................................................69
THECITY..............................................................................................20
Property Tax Limitations -Article XIIIA........................................69
THEAGENCY......................................................................................20
Challenges to Article XIIIA............................................................69
Agency Members............................................................................
20
Agency Administration..................................................................
21
AgencyPowers................................................................................21
Property Tax Collection Procedures.............................................70
Redevelopment Projects.................................................................22
Appropriations Limitations -Article XIIIB....................................72
Outstanding Indebtedness of the Agency...................................24
State Board of Equalization and Property Assessment
Agency Financial Statements.........................................................24
Practices..........................................................................................72
Redevelopment Plans.....................................................................24
Exclusion of Housing Tax Revenues for General Obligation
Redevelopment Plan Limits...........................................................25
Annual Tax Receipts to Tax Levy .................................................
26
Appeals of Assessed Values..........................................................28
Proposition 13 Inflationary Adjustments....................................28
ALL REDEVELOPMENT PROJECTS...............................................29
Assessed Valuation.........................................................................29
THE TOWN CENTER REDEVELOPMENT PROJECT..................31
General..............................................................................................
32
Description of the Town Center Redevelopment Project ..........
33
Redevelopment Activity ................................................................
34
Redevelopment Plan Limitations ..................................................
36
AssessedValuation.........................................................................36
Adjustments to Tax Increment Revenues....................................48
Appeals of Assessed Values..........................................................38
THE MCAS TUSTIN REDEVELOPMENT PROJECT.....................48
Housing Tax Revenue Projections................................................39
General..............................................................................................48
Adjustments to Tax Increment Revenues....................................40
Description of the MCAS Tustin Redevelopment Project .........49
THE SOUTH CENTRAL REDEVELOPMENT PROJECT..............40
General..............................................................................................
40
Page
Description of the South Central Redevelopment Project .........41
Redevelopment Activity.................................................................42
Redevelopment Plan Limitations..................................................44
Assessed Valuation..........................................................................44
Appeals of Assessed Values...........................................................46
Housing Tax Revenue Projections.................................................47
Adjustments to Tax Increment Revenues....................................48
THE MCAS TUSTIN REDEVELOPMENT PROJECT.....................48
General..............................................................................................48
Description of the MCAS Tustin Redevelopment Project .........49
Redevelopment Activity .................................................................50
Redevelopment Plan Limitations..................................................52
Assessed Valuation..........................................................................52
Appeals of Assessed Values...........................................................55
Housing Tax Revenue Projections.................................................56
Adjustments to Tax Increment Revenues....................................57
BONDOWNERS' RISKS......................................................................58
Limited Obligations.........................................................................58
No Acceleration on Default............................................................58
Bankruptcy........................................................................................58
Federal Tax -Exempt Status of the Bonds......................................59
InvestmentRisk................................................................................59
Secondary Market............................................................................60
Reduction in Taxable Values..........................................................60
Risks to Real Estate Market............................................................61
Development Risks..........................................................................61
Changes in the Law.........................................................................61
Reductions in Inflationary Rate.....................................................61
Assessment Appeals........................................................................62
Additional Obligations...................................................................62
Proposition 8 Adjustments.............................................................62
Levy and Collection of Taxes.........................................................63
Real Estate and General Economic Risks.....................................63
Future Land Use Regulations and Growth Control
Initiatives........................................................................................63
Estimates of Housing Tax Revenues.............................................64
Hazardous Substances....................................................................65
Seismic Risk and Flood Risk..........................................................66
StateBudgets....................................................................................66
Educational Revenue Augmentation Fund Transfers................67
CONSTITUTIONAL AND STATUTORY PROVISIONS
AFFECTING TAX REVENUES..........................................................69
Property Tax Limitations -Article XIIIA........................................69
Challenges to Article XIIIA............................................................69
Implementing Legislation...............................................................69
UnitaryProperty..............................................................................70
Property Tax Collection Procedures.............................................70
Appropriations Limitations -Article XIIIB....................................72
State Board of Equalization and Property Assessment
Practices..........................................................................................72
Exclusion of Housing Tax Revenues for General Obligation
Bonds Debt Service........................................................................72
Proposition218.................................................................................72
AB1290..............................................................................................73
FutureInitiatives..............................................................................73
Low and Moderate Income Housing............................................73
Statement of Indebtedness..............................................................73
CERTAIN LEGAL MATTERS............................................................74
ENFORCEABILITY OF REMEDIES..................................................74
RATINGS...............................................................................................74
CONTINUING DISCLOSURE............................................................75
ABSENCE OF LITIGATION...............................................................75
TAXMATTERS.....................................................................................75
UNDERWRITING................................................................................78
MISCELLANEOUS..............................................................................79
APPENDIX A - SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE
APPENDIX B - GENERAL INFORMATION REGARDING THE CITY
APPENDIX C - AUDITED FINANCIAL STATEMENTS OF THE AGENCY FOR THE FISCAL YEARENDEDJUNE 30,2009
APPENDIX D - FISCAL CONSULTANT'S REPORT
APPENDIX E - FORM OF BOND COUNSEL'S OPINION
APPENDIX F - FORM OF CONTINUING DISCLOSURE CERTIFICATE
APPENDIX G - BOOK -ENTRY ONLY SYSTEM
APPENDIX H - SPECIMEN MUNICIPAL BOND INSURANCE POLICY
ESTIMATED SOURCES AND USES OF FUNDS
The following table sets forth a summary of the estimated sources and uses of funds
associated with the issuance and sale of the Bonds.
Sources of Funds
Par Amount of Bonds $26,170,000.00
Plus: Original Issue Premium 104,204.70
Total Sources $26,274,204.70
Uses of Funds
Deposit to Housing Project Fund (1) $23,500,000.00
Deposit to Reserve Account (2) 1,827,606.26
Costs of Issuance (3) 946,598.44
Total Uses $26,274,204.70
(1) Represents amount required to prepay a portion of the City Obligation. See "FINANCING PLAN."
(2) Represents an amount equal to the initial Reserve Account Requirement for the Bonds.
(3) Includes Underwriter's discount, fees and expenses of the Trustee, the Financial Advisor, the Fiscal
Consultant, Bond Counsel and Disclosure Counsel, printing expenses, the premium for the Municipal Bond
Insurance Policy and other costs of issuance.
FINANCING PLAN
The City has written down the cost of land that has been re -sold and developed with
affordable housing in the WAS Tustin Redevelopment Project. Those units ("Affordable
Units") are encumbered with covenants and deeds of trust that will ensure they remain
affordable for the periods of time required by the Redevelopment Law.
On June 5, 2007, the City and the Agency entered into an agreement, as amended on
January 5, 2010 ("Reimbursement Agreement"), pursuant to which the Agency has agreed to
reimburse the City for the difference between the market price of the land on which the
Affordable Units have been developed and the actual subsidized price for which the land was
sold from money deposited in the Agency's low and moderate income housing fund (the "City
Obligation"). At the time the Reimbursement Agreement was entered into, the amount of the
City Obligation was over $46 million. The Agency has made payments to the City and the
current obligation is $39,604,360.
Proceeds from the sale of the Bonds will be used to (a) prepay a portion of the City
Obligation, (b) fund a reserve account for the Bonds, and (c) provide for the costs of issuing
the Bonds.
-7-
series, issue, number, dated date, sale date, date of execution or date of delivery. Except for
the Housing Tax Revenues and such other moneys on deposit in the funds and accounts
established under the Indenture, no funds or properties of the Agency shall be pledged to, or
otherwise liable for, the payment of principal of or interest or redemption premium (if any) on
the Bonds.
In consideration of the acceptance of the Bonds by those who shall hold the same from
time to time, the Indenture shall be deemed to be and shall constitute a contract between the
Agency and the Owners from time to time of the Bonds, and the covenants and agreements set
forth in the Indenture to be performed on behalf of the Agency shall be for the equal and
proportionate benefit, security and protection of all Owners of the Bonds without preference,
priority or distinction as to security or otherwise of any of the Bonds over any of the others by
reason of the number or date thereof or the time of sale, execution and delivery thereof, or
otherwise for any cause whatsoever, except as expressly provided therein.
Special Fund; Deposit of Housing Tax Revenues
The Indenture establishes in the Low and Moderate Income Housing Fund a special
fund to be known as the "Special Fund," which shall be held by the Agency. The Agency shall
transfer all of the Housing Tax Revenues received in any Bond Year to the Special Fund
promptly upon receipt thereof by the Agency, until such time during such Bond Year as the
amounts on deposit in the Special Fund equal the aggregate amounts required to be
transferred to the Trustee for deposit into the Interest Account, the Principal Account, the
Sinking Account and the Reserve Account in such Bond Year.
All Housing Tax Revenues received by the Agency during any Bond Year in excess of
the amount required to be deposited in the Special Fund during such Bond Year, including
delinquent amounts if any, shall be released from the pledge and lien under the Indenture for
the security of the Bonds and may be applied by the Agency for any lawful purposes of the
Agency, including but not limited to the payment of Subordinate Debt, or the payment of any
amounts due and owing to the United States of America. Prior to the payment in full of the
principal of and interest and redemption premium (if any) on the Bonds and the payment in
full of all other amounts payable under the Indenture and under any Parity Debt Instrument,
the Agency shall not have any beneficial right or interest in the moneys on deposit in the Special
Fund, except as may be provided in the Indenture and in any Parity Debt Instrument
Deposit of Amounts by Trustee
There is established in the Indenture a trust fund to be known as the Debt Service Fund,
which shall be held by the Trustee in trust. Moneys in the Special Fund shall be transferred by
the Agency to the Trustee in the following amounts, at the following times, and deposited by
the Trustee in the following respective special accounts, which are established in the Debt
Service Fund, and in the following order of priority; provided, however, that if amounts to be
so deposited are insufficient to fund the full amount required for the Bonds and any Parity
Debt, such amounts shall be allocated pro rata among the Bonds and any Parity Debt:
Interest Account. On or before the fifth Business Day preceding each Interest Payment
Date, the Agency shall withdraw from the Special Fund and transfer to the Trustee, for deposit
in the Interest Account an amount which when added to the amount contained in the Interest
Account on that date, will be equal to the aggregate amount of the interest becoming due and
payable on the Outstanding Bonds on such Interest Payment Date. No such transfer and
deposit need be made to the Interest Account if the amount contained therein is at least equal
to the interest to become due on the next succeeding Interest Payment Date upon all of the
-14-
Outstanding Bonds. All moneys in the Interest Account shall be used and withdrawn by the
Trustee solely for the purpose of paying the interest on the Bonds as it shall become due and
payable (including accrued interest on any Bonds redeemed or purchased prior to maturity
pursuant to the Indenture).
Principal Account, Sinking Account. On or before the fifth Business Day preceding each
principal payment date in each year, or date on which any Outstanding Term Bonds become
subject to mandatory Sinking Account redemption, beginning September 1, 2010, the Agency
shall withdraw from the Special Fund and transfer to the Trustee for deposit (i) in the Principal
Account an amount which, when added to the amount then contained in the Principal
Account, will be equal to the principal becoming due and payable on the Outstanding Bonds
on the next September 1, and (ii) in the Sinking Account an amount which, when added to the
amount then contained in the Sinking Account, will be equal to the aggregate principal amount
of the Term Bonds subject to mandatory Sinking Account redemption on such date. In the
event that the amount then in the Special Fund, following the transfer described in the
preceding paragraph, is not sufficient to fully fund the amounts described in the preceding
clauses (i) and (ii), the Trustee shall deposit the available funds in the Special Fund pro rata to
the Principal Account and the Sinking Account, based on the aggregate principal and Sinking
Account payments then due on the Bonds. No such transfer and deposit need be made to the
Principal Account if the amount contained therein is at least equal to the principal or sinking
fund installment to become due on the next September 1 on all of the Outstanding Bonds. All
moneys in the Principal Account shall be used and withdrawn by the Trustee solely for the
purpose of paying the principal of the Bonds as it shall become due and payable.
Reserve Account. In the event that the Trustee has actual knowledge that the amount on
deposit in the Reserve Account at any time is less than the Reserve Requirement, the Trustee
shall promptly notify the Agency of such fact. Promptly upon receipt of any such notice, the
Agency shall transfer to the Trustee, Housing Tax Revenues sufficient to maintain the Reserve
Requirement on deposit in the Reserve Account. If there shall then not be sufficient Housing
Tax Revenues to transfer an amount sufficient to maintain the Reserve Requirement on deposit
in the Reserve Account, the Agency shall be obligated to continue making transfers as Housing
Tax Revenues become available in the Special Fund until there is an amount sufficient to
maintain the Reserve Requirement on deposit in the Reserve Account. No such transfer and
deposit need be made to the Reserve Account so long as there shall be on deposit therein a sum
at least equal to the Reserve Requirement.
Amounts in the Reserve Account shall be used and withdrawn by the Trustee solely for
the purpose of making transfers to (i) the Interest Account (and any interest account created
for Parity Debt), and (ii) the Principal Account (and any principal account created for Parity
Debt) and the Sinking Account (and any sinking account created for Parity Debt) in such order
of priority (pro rata to the Principal Account (and any principal account created for Parity
Debt) and the Sinking Account (and any sinking account created for Parity Debt), based upon
the principal and sinking account payments then due, if the amount then in the Reserve
Account, after satisfying any deficiency in the Interest Account (and any interest account
created for Parity Debt), is not sufficient to fully satisfy any then deficiencies in the Principal
Account (and any principal account created for Parity Debt) and the Sinking Account (and
any sinking account created for Parity Debt)), in the event of any deficiency at any time in any
of such accounts or for the retirement of all the Bonds or Parity Debt then Outstanding, except
that so long as the Agency is not in default under the Indenture, any amount in the Reserve
Account in excess of the Reserve Requirement (as determined by the Trustee based upon a
valuation of investments held in such account) shall be withdrawn from the Reserve Account
semiannually on or before the Business Day preceding each March 1 and September 1 by the
-15-
EXHIBIT 3
PROJECTED REVENUES AND SPENDING REQUIREMENTS
ON ANNUAL BASIS - 2012 TO 2067 AND ASSUMPTIONS MADE
TUSTIN HOUSING AUTHORITY
Sources
Prior Year Balance Forward
List revenue sources
14554 Newport Ave #3
CRL 33334.6(g) - Deferred LMIHF for TC
Loan Repayment ( Minh Luong )
Loan Repayment ( An Bao Tran & Marcos Hernandez )
Loan Repayment ( Taryn Tang & Philip Sagun )
Loan Repayment ( Ming Hong & Zheng Chen )
Loan Repayment ( Martha Patarroyo )
Loan Repayment ( Veronica Velazquez )
Loan Repayment ( Ernest Heyer & Madeline Heyer )
Loan Repayment ( Yibin Zheng & Xiaoning Ge )
Loan Repayment ( Najibullah Najib & Ramin Sidigi )
Loan Repayment ( Tustin Heritage Place, L.P. )
Loan Repayment ( Steve Heermann )
Loan Repayment ( Stephanie Quesada )
Loan Repayment ( Honglan Mori )
Loan Repayment ( Mohammed & Nusrat Ali )
Loan Repayment ( Lam Nguyen )
Loan Repayment ( Phong Lu )
Loan Repayment ( Kathleen Houston )
Loan Repayment ( Allison Thomas -Bagley )
Loan Repayment ( Norma Sandberg )
Loan Repayment ( Marian & Theresa Hoang )
Loan Repayment ( Robert & Luisita Austin )
Loan Repayment ( Bing & Eleanor Wong )
Loan Repayment ( John & Margaret Preample )
Loan Repayment ( Michiko Jordan )
Loan Repayment ( Mutsuko Kostof )
Loan Repayment ( J. Michael Guerena )
Loan Repayment ( Alfonso & Daisy Escalera )
Affordable Housing Covenant - 2nd Trust
Uses
Administration
Affordable Housing Agreement with City
Sale of property @ purchase price
Assumes finding of completion for Due Diligence review
5% of loan amount - remainder forgiven
5% of loan amount - remainder forgiven
5% of loan amount - remainder forgiven
5% of loan amount - remainder forgiven
5% of loan amount - remainder forgiven
5% of loan amount - remainder forgiven
5% of loan amount - remainder forgiven
5% of loan amount - remainder forgiven
5% of loan amount - remainder forgiven
Loan forgiven if in compliance with affordability restrictions -forgiven on 7/15/2015
Loan forgiven if in compliance with affordability restrictions -forgiven on 7/15/2015
Loan forgiven if in compliance with affordability restrictions -forgiven on 7/15/2015
Loan forgiven if in compliance with affordability restrictions -forgiven on 7/15/2015
Loan forgiven if in compliance with affordability restrictions -forgiven on 7/15/2015
Loan forgiven if in compliance with affordability restrictions -forgiven on 7/15/2015
Loan forgiven if in compliance with affordability restrictions -forgiven on 7/15/2015
Loan forgiven if in compliance with affordability restrictions -forgiven on 7/15/2015
Loan forgiven if in compliance with affordability restrictions -forgiven on 7/15/2015
Loan forgiven if in compliance with affordability restrictions -forgiven on 7/15/2015
Due upon title transfer of property (Assumes payment in 30 yrs)
Due upon title transfer of property (Assumes payment in 30 yrs)
Due upon title transfer of property (Assumes payment in 30 yrs)
Due upon title transfer of property (Assumes payment in 30 yrs)
Due upon title transfer of property (Assumes payment in 30 yrs)
Due upon title transfer of property (Assumes payment in 30 yrs)
5% of loan amount (silent 2nd) due in 45 years
7,858,315 8,609,237 8,843,026
362,477
900,000 900,000
24,862
TOTAL SOURCES 8,758,315 8,996,576 9,743,026
TOTAL USES
BALANCE
Monitoring, Resale, and Refinance expense (Assumes annual 3% inflation adjustment) 149,078 153,550 158,157
Repayment schedule per agreement 2,888,941
149,078 153,550 3,047,098
8,609,237 8,843,026 6,695,928
TUSTIN HOUSING AUTHORITY
Sources
Prior Year Balance Forward
List revenue sources
14554 Newport Ave #3
CRL 33334.6(g) - Deferred LMIHF for TC
Loan Repayment ( Minh Luong )
Loan Repayment ( An Bao Tran & Marcos Hernandez )
Loan Repayment ( Taryn Tang & Philip Sagun )
Loan Repayment ( Ming Hong & Zheng Chen )
Loan Repayment ( Martha Patarroyo )
Loan Repayment ( Veronica Velazquez )
Loan Repayment ( Ernest Heyer & Madeline Heyer )
Loan Repayment ( Yibin Zheng & Xiaoning Ge )
Loan Repayment ( Najibullah Najib & Ramin Sidigi )
Loan Repayment ( Tustin Heritage Place, L.P. )
Loan Repayment ( Steve Heermann )
Loan Repayment ( Stephanie Quesada )
Loan Repayment ( Honglan Mori )
Loan Repayment ( Mohammed & Nusrat Ali )
Loan Repayment ( Lam Nguyen )
Loan Repayment ( Phong Lu )
Loan Repayment ( Kathleen Houston )
Loan Repayment ( Allison Thomas -Bagley )
Loan Repayment ( Norma Sandberg )
Loan Repayment ( Marian & Theresa Hoang )
Loan Repayment ( Robert & Luisita Austin )
Loan Repayment ( Bing & Eleanor Wong )
Loan Repayment ( John & Margaret Preample )
Loan Repayment ( Michiko Jordan )
Loan Repayment ( Mutsuko Kostof )
Loan Repayment ( J. Michael Guerena )
Loan Repayment ( Alfonso & Daisy Escalera )
Affordable Housing Covenant - 2nd Trust
6,695,928 4,544,086 1,563,398 (1,491,452) (1,662,339) (1,838,352) (2,019,646) (2,206,378)
900,000 76,042
TOTAL SOURCES 7,595,928 4,620,128 1,563,398 (1,491,452) (1,662,339) (1,838,352) (2,019,646) (2,206,378)
Uses
Administration 162,902 167,789 165,909 170,887 176,013 181,294 186,732 192,334
Affordable Housing Agreement with City 2,888,941 2,888,941 2,888,941
TOTAL USES 3,051,842 3,056,730 3,054,850 170,887 176,013 181,294 186,732 192,334
BALANCE 4,544,086 1,563,398 (1,491,452) (1,662,339) (1,838,352) (2,019,646) (2,206,378) (2,398,713)
TUSTIN HOUSING AUTHORITY
Sources
Prior Year Balance Forward
List revenue sources
14554 Newport Ave #3
CRL 33334.6(g) - Deferred LMIHF for TC
Loan Repayment ( Minh Luong )
Loan Repayment ( An Bao Tran & Marcos Hernandez )
Loan Repayment ( Taryn Tang & Philip Sagun )
Loan Repayment ( Ming Hong & Zheng Chen )
Loan Repayment ( Martha Patarroyo )
Loan Repayment ( Veronica Velazquez )
Loan Repayment ( Ernest Heyer & Madeline Heyer )
Loan Repayment ( Yibin Zheng & Xiaoning Ge )
Loan Repayment ( Najibullah Najib & Ramin Sidigi )
Loan Repayment ( Tustin Heritage Place, L.P. )
Loan Repayment ( Steve Heermann )
Loan Repayment ( Stephanie Quesada )
Loan Repayment ( Honglan Mori )
Loan Repayment ( Mohammed & Nusrat Ali )
Loan Repayment ( Lam Nguyen )
Loan Repayment ( Phong Lu )
Loan Repayment ( Kathleen Houston )
Loan Repayment ( Allison Thomas -Bagley )
Loan Repayment ( Norma Sandberg )
Loan Repayment ( Marian & Theresa Hoang )
Loan Repayment ( Robert & Luisita Austin )
Loan Repayment ( Bing & Eleanor Wong )
Loan Repayment ( John & Margaret Preample )
Loan Repayment ( Michiko Jordan )
Loan Repayment ( Mutsuko Kostof )
Loan Repayment ( J. Michael Guerena )
Loan Repayment ( Alfonso & Daisy Escalera )
Affordable Housing Covenant - 2nd Trust
(2,398,713) (2,596,817) (2,800,865) (3,011,034) (3,227,508) (3,450,476) (3,680,134) (3,916,681)
TOTAL SOURCES (2,398,713) (2,596,817) (2,800,865) (3,011,034) (3,227,508) (3,450,476) (3,680,134) (3,916,681)
Uses
Administration 198,104 204,048 210,169 216,474 222,968 229,657 236,547 243,644
Affordable Housing Agreement with City
TOTAL USES 198,104 204,048 210,169 216,474 222,968 229,657 236,547 243,644
BALANCE (2,596,817) (2,800,865) (3,011,034) (3,227,508) (3,450,476) (3,680,134) (3,916,681) (4,160,324)
TUSTIN HOUSING AUTHORITY
Sources
Prior Year Balance Forward
List revenue sources
14554 Newport Ave #3
CRL 33334.6(g) - Deferred LMIHF for TC
Loan Repayment ( Minh Luong )
Loan Repayment ( An Bao Tran & Marcos Hernandez )
Loan Repayment ( Taryn Tang & Philip Sagun )
Loan Repayment ( Ming Hong & Zheng Chen )
Loan Repayment ( Martha Patarroyo )
Loan Repayment ( Veronica Velazquez )
Loan Repayment ( Ernest Heyer & Madeline Heyer )
Loan Repayment ( Yibin Zheng & Xiaoning Ge )
Loan Repayment ( Najibullah Najib & Ramin Sidigi )
Loan Repayment ( Tustin Heritage Place, L.P. )
Loan Repayment ( Steve Heermann )
Loan Repayment ( Stephanie Quesada )
Loan Repayment ( Honglan Mori )
Loan Repayment ( Mohammed & Nusrat Ali )
Loan Repayment ( Lam Nguyen )
Loan Repayment ( Phong Lu )
Loan Repayment ( Kathleen Houston )
Loan Repayment ( Allison Thomas -Bagley )
Loan Repayment ( Norma Sandberg )
Loan Repayment ( Marian & Theresa Hoang )
Loan Repayment ( Robert & Luisita Austin )
Loan Repayment ( Bing & Eleanor Wong )
Loan Repayment ( John & Margaret Preample )
Loan Repayment ( Michiko Jordan )
Loan Repayment ( Mutsuko Kostof )
Loan Repayment ( J. Michael Guerena )
Loan Repayment ( Alfonso & Daisy Escalera )
Affordable Housing Covenant - 2nd Trust
(4,160,324) (4,411,277) (4,669,758) (4,281,562) (4,555,785) (4,838,234) (5,129,157) (5,428,808)
597,665
10,256
10,700
5,531
10,700
12,840
6,741
TOTAL SOURCES (4,160,324) (4,411,277) (4,015,326) (4,281,562) (4,555,785) (4,838,234) (5,129,157) (5,428,808)
Uses
Administration 250,953 258,481 266,236 274,223 282,450 290,923 299,651 308,640
Affordable Housing Agreement with City
TOTAL USES 250,953 258,481 266,236 274,223 282,450 290,923 299,651 308,640
BALANCE (4,411,277) (4,669,758) (4,281,562) (4,555,785) (4,838,234) (5,129,157) (5,428,808) (5,737,448)
TUSTIN HOUSING AUTHORITY
Sources
Prior Year Balance Forward
List revenue sources
14554 Newport Ave #3
CRL 33334.6(g) - Deferred LMIHF for TC
Loan Repayment ( Minh Luong )
Loan Repayment ( An Bao Tran & Marcos Hernandez )
Loan Repayment ( Taryn Tang & Philip Sagun )
Loan Repayment ( Ming Hong & Zheng Chen )
Loan Repayment ( Martha Patarroyo )
Loan Repayment ( Veronica Velazquez )
Loan Repayment ( Ernest Heyer & Madeline Heyer )
Loan Repayment ( Yibin Zheng & Xiaoning Ge )
Loan Repayment ( Najibullah Najib & Ramin Sidigi )
Loan Repayment ( Tustin Heritage Place, L.P. )
Loan Repayment ( Steve Heermann )
Loan Repayment ( Stephanie Quesada )
Loan Repayment ( Honglan Mori )
Loan Repayment ( Mohammed & Nusrat Ali )
Loan Repayment ( Lam Nguyen )
Loan Repayment ( Phong Lu )
Loan Repayment ( Kathleen Houston )
Loan Repayment ( Allison Thomas -Bagley )
Loan Repayment ( Norma Sandberg )
Loan Repayment ( Marian & Theresa Hoang )
Loan Repayment ( Robert & Luisita Austin )
Loan Repayment ( Bing & Eleanor Wong )
Loan Repayment ( John & Margaret Preample )
Loan Repayment ( Michiko Jordan )
Loan Repayment ( Mutsuko Kostof )
Loan Repayment ( J. Michael Guerena )
Loan Repayment ( Alfonso & Daisy Escalera )
Affordable Housing Covenant - 2nd Trust
(5,737,448) (6,055,348) (6,382,784) (6,720,044) (7,067,421) (7,425,220) (7,793,753) (8,173,341)
TOTAL SOURCES (5,737,448) (6,055,348) (6,382,784) (6,720,044) (7,067,421) (7,425,220) (7,793,753) (8,173,341)
Uses
Administration 317,900 327,436 337,260 347,377 357,799 368,533 379,589 390,976
Affordable Housing Agreement with City
TOTAL USES 317,900 327,436 337,260 347,377 357,799 368,533 379,589 390,976
BALANCE (6,055,348) (6,382,784) (6,720,044) (7,067,421) (7,425,220) (7,793,753) (8,173,341) (8,564,318)
TUSTIN HOUSING AUTHORITY
Sources
Prior Year Balance Forward
List revenue sources
14554 Newport Ave #3
CRL 33334.6(g) - Deferred LMIHF for TC
Loan Repayment ( Minh Luong )
Loan Repayment ( An Bao Tran & Marcos Hernandez )
Loan Repayment ( Taryn Tang & Philip Sagun )
Loan Repayment ( Ming Hong & Zheng Chen )
Loan Repayment ( Martha Patarroyo )
Loan Repayment ( Veronica Velazquez )
Loan Repayment ( Ernest Heyer & Madeline Heyer )
Loan Repayment ( Yibin Zheng & Xiaoning Ge )
Loan Repayment ( Najibullah Najib & Ramin Sidigi )
Loan Repayment ( Tustin Heritage Place, L.P. )
Loan Repayment ( Steve Heermann )
Loan Repayment ( Stephanie Quesada )
Loan Repayment ( Honglan Mori )
Loan Repayment ( Mohammed & Nusrat Ali )
Loan Repayment ( Lam Nguyen )
Loan Repayment ( Phong Lu )
Loan Repayment ( Kathleen Houston )
Loan Repayment ( Allison Thomas -Bagley )
Loan Repayment ( Norma Sandberg )
Loan Repayment ( Marian & Theresa Hoang )
Loan Repayment ( Robert & Luisita Austin )
Loan Repayment ( Bing & Eleanor Wong )
Loan Repayment ( John & Margaret Preample )
Loan Repayment ( Michiko Jordan )
Loan Repayment ( Mutsuko Kostof )
Loan Repayment ( J. Michael Guerena )
Loan Repayment ( Alfonso & Daisy Escalera )
Affordable Housing Covenant - 2nd Trust
Uses
Administration
Affordable Housing Agreement with City
(8,564,318) (8,967,023) (9,381,810) (9,809,040) (10,152,134) (10,605,382) (8,751,841) (8,785,501)
4,600
7,054
4,700
4,800
17,700
17,750
17,700
17,700
4,950
2,320,387
TOTAL SOURCES (8,564,318) (8,967,023) (9,381,810) (9,712,086) (10,152,134) (8,284,995) (8,751,841) (8,785,501)
402,706 414,787 427,230 440,047 453,249 466,846 33,660 34,669
TOTAL USES 402,706 414,787 427,230 440,047 453,249 466,846 33,660 34,669
BALANCE (8,967,023) (9,381,810) (9,809,040) (10,152,134) (10,605,382) (8,751,841) (8,785,501) (8,820,170)
TUSTIN HOUSING AUTHORITY
Sources
Prior Year Balance Forward
List revenue sources
14554 Newport Ave #3
CRL 33334.6(g) - Deferred LMIHF for TC
Loan Repayment ( Minh Luong )
Loan Repayment ( An Bao Tran & Marcos Hernandez )
Loan Repayment ( Taryn Tang & Philip Sagun )
Loan Repayment ( Ming Hong & Zheng Chen )
Loan Repayment ( Martha Patarroyo )
Loan Repayment ( Veronica Velazquez )
Loan Repayment ( Ernest Heyer & Madeline Heyer )
Loan Repayment ( Yibin Zheng & Xiaoning Ge )
Loan Repayment ( Najibullah Najib & Ramin Sidigi )
Loan Repayment ( Tustin Heritage Place, L.P. )
Loan Repayment ( Steve Heermann )
Loan Repayment ( Stephanie Quesada )
Loan Repayment ( Honglan Mori )
Loan Repayment ( Mohammed & Nusrat Ali )
Loan Repayment ( Lam Nguyen )
Loan Repayment ( Phong Lu )
Loan Repayment ( Kathleen Houston )
Loan Repayment ( Allison Thomas -Bagley )
Loan Repayment ( Norma Sandberg )
Loan Repayment ( Marian & Theresa Hoang )
Loan Repayment ( Robert & Luisita Austin )
Loan Repayment ( Bing & Eleanor Wong )
Loan Repayment ( John & Margaret Preample )
Loan Repayment ( Michiko Jordan )
Loan Repayment ( Mutsuko Kostof )
Loan Repayment ( J. Michael Guerena )
Loan Repayment ( Alfonso & Daisy Escalera )
Affordable Housing Covenant - 2nd Trust
Uses
Administration
Affordable Housing Agreement with City
(8,820,170) (8,855,880) (8,892,661) (8,930,545) (8,969,566) (9,009,757) (9,051,154) (9,093,793)
TOTAL SOURCES (8,820,170) (8,855,880) (8,892,661) (8,930,545) (8,969,566) (9,009,757) (9,051,154) (9,093,793)
35,709 36,781 37,884 39,021 40,191 41,397 42,639 43,918
TOTAL USES 35,709 36,781 37,884 39,021 40,191 41,397 42,639 43,918
BALANCE (8,855,880) (8,892,661) (8,930,545) (8,969,566) (9,009,757) (9,051,154) (9,093,793) (9,137,711)
TUSTIN HOUSING AUTHORITY
Sources
Prior Year Balance Forward
List revenue sources
14554 Newport Ave #3
CRL 33334.6(g) - Deferred LMIHF for TC
Loan Repayment ( Minh Luong )
Loan Repayment ( An Bao Tran & Marcos Hernandez )
Loan Repayment ( Taryn Tang & Philip Sagun )
Loan Repayment ( Ming Hong & Zheng Chen )
Loan Repayment ( Martha Patarroyo )
Loan Repayment ( Veronica Velazquez )
Loan Repayment ( Ernest Heyer & Madeline Heyer )
Loan Repayment ( Yibin Zheng & Xiaoning Ge )
Loan Repayment ( Najibullah Najib & Ramin Sidigi )
Loan Repayment ( Tustin Heritage Place, L.P. )
Loan Repayment ( Steve Heermann )
Loan Repayment ( Stephanie Quesada )
Loan Repayment ( Honglan Mori )
Loan Repayment ( Mohammed & Nusrat Ali )
Loan Repayment ( Lam Nguyen )
Loan Repayment ( Phong Lu )
Loan Repayment ( Kathleen Houston )
Loan Repayment ( Allison Thomas -Bagley )
Loan Repayment ( Norma Sandberg )
Loan Repayment ( Marian & Theresa Hoang )
Loan Repayment ( Robert & Luisita Austin )
Loan Repayment ( Bing & Eleanor Wong )
Loan Repayment ( John & Margaret Preample )
Loan Repayment ( Michiko Jordan )
Loan Repayment ( Mutsuko Kostof )
Loan Repayment ( J. Michael Guerena )
Loan Repayment ( Alfonso & Daisy Escalera )
Affordable Housing Covenant - 2nd Trust
Uses
Administration
Affordable Housing Agreement with City
TOTAL SOURCES
TOTAL USES
BALANCE
EXHIBIT 4
REIMBURSEMENT AGREEMENT WITH CITY OF TUSTIN
REPAYMENT SCHEDULE
AFFORDABLE HOUSING REIMBURSEMENT AGREEMENT
Original Principal 46,407,736
Original Interest 5.00%
Original terms /year 25
Prior FY Activity
Fiscal Year
Principal
Interest
(i) 2007-2008
($3,614,375)
($2,500,000)
2008-2009
($961,605)
($2,139,668)
2009-2010
($25,438,579)
($2,091,588)
2010-2011
($2,410,083)
($819,659)
2011-2012
$2,530,588
$699,155
Total:
($34,955,230)
($8,250,069)
Future FY Activity
ayment to Cit
($6,114,375)
($3,101,273)
($27,530,167)
($3,229,742)
($3,229,742)
($43,205,300)
Principal 11,452,506
Interest (LAIF) 0.36% - Qtr end: June 2012
Original terms /year 4
Fiscal Year
Principal
Interest
Payment to Ci
2012-2013
($2,847,712)
($41,229)
($2,888,941)
2013-2014
($2,857,964)
($30,977)
($2,888,941)
2014-2015
($2,868,252)
($20,689)
($2,888,941)
2015-2016
($2,878,578)
($10,363)
($2,888,941)
Total: ($11,452,506) ($103,258) 1 ($11,555,764)
Princinal After FY
$42,793,361
$41,831,756
$16,393,177
$13,983,093
$11,452,506
Ending Princinal After FY
$8,604,794.08
$5,746,830.40
$2,878,578.06
$0.00