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TO: BOARD-OF SUPERVISORS
FROM: ANTHONY A. DEHAESUS Contra
DIRECTOR OF COMMUNITY DEVELOPMENT Costa
DATE: AUGUST 69 1985 Courty
SUBJECT: APPROVING THE ISSUANCE OF MULTI-FAMILY REVENUE BONDS BY THE HOUSING
AUTHORITY - PROJECT AND OWNER: Delta Square/Delta Square Apartments Limited .
and Willow Pass/Willow Pass - 120 Ltd.
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION '
I. RECOMMENDATION
Approve, as the applicable elected representatives of the Housing Authority of the County of
Contra Costa (the "Authority"), the issuance of multi-family revenue bonds by said Authority in
accordance with Section 103(k) of the Internal Revenue Code of 1954, as amended for the Project
described on Exhibit A; and express the intent of the Board of Supervisors that the Project as
described on Exhibit A be acquired and constructed and determine that it is appropriate for the
Authority to finance such acquisition and construction.
II. BACKGROUND
The Board of Supervisors adopted a resolution conditionally providing for the issuance of bonds to
finance a multi-family rental housing project as described on Exhibit A (the Project). Due to
certain State law limitations, the County of Contra Costa (the "County") is unable to issue bonds to
finance the Project. The Housing Authority intends to sell and issue multi-family mortgage,
revenue bonds (the 'Bonds") in an amout not to exceed the amount specified on Exhibit A in order
to finance the Project. The interest on the Bonds may qualify for tax exemption under Section
103(b) of the Internal Revenue Code of 1954, as amended (the "Code"), only if the Bonds are
approved in accordance with Section 103(k) of the Code. The Project is located wholly within the
County of Contra Costa and the Authority has no elected legislative body, officers or other
officials. The Board of Supervisors is the elected legislative body of the County of Contra Costa
and is the applicable elected representative required to approve the issuance of Bonds within the
meaning of Section 103(k) of the Code. Pursuant to Section 103(k), the Board of Supervisors has
held a public hearing regardng the issuance of such Bonds, and may approve the issuance of such
Bonds.
III. FINANCIAL IMPACT
None. The revenue bonds do not constitute an obligation of the County or the Authority.
CONTINUED ON ATTACHMENT: _ YES SIGNATURE'
RECOMMENDATION OF COUNTY ADMINISTRATORREC MEND 10 OF BOARD COMMITTEE
APPROVE OTHER
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SIGNATURE S : 44_7 z
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
XUNANIMOUS (ABSENT _ AND CORRECT COPY OF AN ACTION TAKEN
AYES'. NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
cc: County Administrator ATTESTED
County Counsel PHIL BATCHLOR, CLERK OF THE BOARD OF
Community Development SUPERVISORS AND COUNTY ADMINISTRATOR
M382/7-83 BY �� DEPUTY
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1114
RESOLUTION NO. 85/500
RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF
CONTRA COSTA AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF
COUNTY OF CONTRA COSTA MULTIFAMILY MORTGAGE REVENUE BONDS
(DELTA SQUARE PROJECT)` 1985 ISSUE C, AUTHORIZING THE
EXECUTION AND DELIVERY OF AN INDENTURE, LOAN AGREEMENT,
REGULATORY AGREEMENT; OFFICIAL STATEMENT AND PURCHASE
CONTRACT AND, APPOINTING AN INVESTMENT FIRM, AUTHORIZING THE
EXECUTION AND DELIVERY OF AND APPROVING OTHER RELATED
DOCUMENTS AND APPROVING OTHER RELATED ACTIONS IN CONNECTION
THEREWITH
WHEREAS, Chapter 7 of Part 5 of Division 31 of the
Health and Safety Code of the State of California (the "Act" )
authorizes counties to incur indebtedness for the purpose of
financing the construction or development of multifamily
rental housing and for the provision of capital improvements
in connection with and determined necessary to such
multifamily housing, and the Act provides a complete,
additional and alternative method for doing the things
authorized thereby;
WHEREAS, the Board of Supervisors (the "Board of
Supervisors" ) of the County of Contra Costa (the "County" )
hereby finds and declares that it is necessary, essential and
a public purpose for the County to engage in a program (the
"Program" ) of financing the construction and development of
multifamily rental housing, and has determined to borrow
money for such purpose by the issuance of revenue bonds as
authorized by the Act;
WHEREAS, the City of Antioch (the "City" ) has
requested that the County issue bonds to finance a rental
housing development in its community and has approved a
cooperative agreement with the City for said purpose;
WHEREAS, this Board of Supervisors hereby finds and
declares that this resolution is being adopted pursuant to
the powers granted by the Act;
WHEREAS, Delta Square-Oxford Limited Partnership
( the "Partnership" ) , a Maryland limited partnership, has
requested that the County issue and sell the Bonds
(hereinafter defined) for the purpose of financing the
construction and development of a multifamily rental housing
project (the "Project" ) located on San Jose Drive between
Delta Fair Boulevard and Buchanan Road, in the City of
Antioch;
WHEREAS, a notice of a public hearing with respect
to the proposed issuance of the Bonds has been published;
WHEREAS, on May 21, 1985 said public hearing was
held before this Board of Supervisors, and an opportunity was
provided for interested parties to present arguments for and
against the issuance of the Bonds;
WHEREAS, all conditions, things and acts required
to exist, to have happened and to have been performed
precedent to and in the issuance of the Bonds and the
implementation of the Program as contemplated by this
resolution and the documents referred to herein exist, have
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happened and have been performed in due time, form and manner
as required by the laws of the State of California, including
the Act; and
WHEREAS, since rent subsidies or other financial
aid from the federal or state government are not available
for the Project, the Board of Supervisors hereby finds that
it is not feasible to reserve at least one-half of the
Lower-Income Units for occupancy on a priority basis by
. individuals or families whose adjusted gross income does not
exceed 50 percent of the median adjusted gross income for the
area, as median adjusted gross income may from time to time
be determined pursuant to Section 8 of the United States
Housing Act of 1937 .
NOW, THEREFORE, BE IT RESOLVED by the Board of
Supervisors of the County of Contra Costa, as follows:
1 . This Board of Supervisors does hereby find and
declare that the above recitals are true and correct.
2 . Pursuant to the Act and the Indenture
(hereinafter defined) , revenue bonds of the County,
designated as "County of Contra Costa Multifamily Mortgage
Revenue Bonds (Delta Square Project) 1985 Issue C" in an
aggregate principal amount not to exceed $13, 500, 000 (the
"Bonds" ) , are hereby authorized to be issued. The Bonds
shall be executed by the manual or facsimile signature of the
Chairwoman of the Board of Supervisors (the "Chairwoman" ) ,
the seal or facsimile of the seal. of the County shall be
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reproduced thereon and attested by the manual or facsimile
signature of the County Administrator and Ex Officio Clerk of
the Board of Supervisors (the "County Administrator" ) , in the
form set forth in and otherwise in accordance with the
Indenture.
3 . The proposed form of indenture (the
"Indenture" ) between the County and Security Pacific National
Bank (the "Trustee" ) , in substantially the form presented to
this meeting, is hereby approved. The Chairwoman, the
Vice-Chair of the Board of Supervisors (the "Vice-Chair" ) ,
i
the County Administrator, the Director of Community
Development and the Senior Housing Planner (the "Designated
Officers" ) are hereby authorized and directed, for and in the
name and on behalf of the County, to execute and deliver the
Indenture, and the County Administrator is hereby authorized
and directed, for and in the name and on behalf of the
County, to attest the Indenture, in substantially said form,
with such additions thereto or changes therein as are
recommended or approved by either of them upon consultation
with the Director of Community Development and Bond Counsel
to the County (including such additions or changes as are
necessary or advisable in accordance with Section 10,
provided that no additions or changes shall authorize an
aggregate principal amount of Bonds in excess of $13, 500, 000
or result in a true interest cost on the Bonds in excess of
12% per annum) , the approval of such additions or changes to
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be conclusively evidenced by the execution and delivery of
said Indenture. The date, maturity dates, interest rate or
rates, interest payment dates, denominations, form,
registration privileges, manner of execution, place of
payment, terms of redemption and other terms of the Bonds
shall be as provided in the Indenture as finally executed.
4. The proposed form of loan agreement (the "Loan
Agreement" ) between the County and the Partnership, in
substantially the form presented to this meeting, is hereby
approved. The Designated Officers of the County are hereby
authorized and directed for and in the name of and on behalf
of the County to execute and deliver the Loan Agreement in
substantially said form, with such additions thereto or
changes therein as are recommended or approved by such proper
officers upon consultation with the Director of Community
Development and Bond Counsel to the County including such
additions or changes as are necessary or advisable in
accordance with Section 10, the approval of such changes to
be conclusively evidenced by the execution and delivery of
said Loan Agreement.
5. The proposed form of regulatory agreement (the
"Regulatory Agreement" ) among the County, the Trustee and the
Partnership, in substantially the form presented to this
meeting, is hereby approved. The Designated Officers of the
County are hereby authorized and directed for and in the name
of and on behalf of the County, to execute and deliver the
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040511-0033-214-7539b
Regulatory Agreement in substantially said form, with such
additions thereto or changes therein as are recommended or
approved by such proper officers upon consultation with the
Director of Community Development and Bond Counsel to the
County including such additions or changes as are necessary
or advisable in accordance with Section 10, the approval of
such changes to be conclusively evidenced by the execution
and delivery of said Regulatory Agreement.
6. The proposed form of bond purchase contract
(the "Purchase Contract" ) among the County, Bankers Trust
Company and FISER, Investment & Financial Services (the
"Underwriters" ) , in substantially the form presented to this
meeting, is hereby approved. The Designated Officers of the
County are hereby authorized and directed, for and in the
name and on behalf of the County, to accept the offer of the
Underwriters to purchase the Bonds contained in the Purchase
Contract (when such offer is made and if such offer is
consistent with Section 3) and to execute and deliver said
Purchase Contract in substantially said form, with such
additions thereto or changes therein as are recommended or
approved by him upon consultation with the Director of
Community Development and Bond Counsel to the County, the
approval of such additions or changes to be conclusively
evidenced by the execution and delivery of said Purchase
Contract.
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7 . The proposed form of official statement
relating to the Bonds (the "Official Statement" ) , in
substantially the form presented to this meeting, is hereby
approved. The Designated Officers . are hereby authorized and
directed, for and in the name and on behalf of the County, to
execute the Official Statement in substantially said form,
with such additions thereto or changes therein as are
recommended or approved by him upon consultation with the
Director of Community Development and Bond Counsel to the
County, the approval of such additions or changes to be
conclusively evidenced by the execution and delivery of said
Official Statement. The Underwriters are hereby authorized
to distribute copies of said Official Statement to persons
who may be interested in the purchase of the Bonds and are
directed to deliver such copies to all actual purchasers of
the Bonds. Distribution by the Underwriters of a preliminary
official statement relating to the Bonds, if any, is hereby
,approved and authorized.
S. The Bonds, when executed, shall be delivered
to the Trustee for authentication. The Trustee is hereby
requested and directed to authenticate the Bonds by executing
the Trustee' s certificate of authentication and registration
appearing thereon, and to deliver the Bonds, when duly
executed and authenticated, to the Underwriters in accordance
with written instructions executed on behalf of the County by
the Designated Officers, which instructions said officer is
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040511-0033-214-7539b
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hereby authorized and directed, for and in the name and on
behalf of the County, to execute and deliver to the Trustee.
Such instructions shall provide for the delivery of the Bonds
to the Underwriters in accordance with the Purchase Contract,
upon payment of the purchase price therefor.
9 . It is the purpose and intent of this Board of
Supervisors that this resolution constitute approval of the
Bonds by the applicable elected representative in accordance
with Section 103 (k) of the Internal Revenue Code of 1954, as
amended (the "Code" ) .
10. All actions heretofore taken by the officers
and agents of the County with respect to the establishment of
the Program and the sale and issuance of the Bonds are hereby
approved, confirmed and ratified, and the proper officers of
the County, including the Designated Officers, are hereby
authorized and directed, for and in the name and on behalf of
the County, to do any and all things and take any and all
actions and execute and deliver any and all certificates,
agreements and other documents which they, or any of them,
may deem necessary or advisable in order to consummate the
lawful issuance and delivery of the Bonds in accordance with
this resolution and resolutions heretofore adopted by the
County and in order to carry out the Program, including but
not limited to those certificates, agreements and other
documents described in the Indenture, the Loan Agreement, the
Regulatory Agreement, the Purchase Contract, and the other
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040511-0033-214-7539b
documents herein approved and any certificates, agreements or
documents as may be necessary to further the purpose hereof
or evidence credit support or additional security for the
Bonds, but which shall not create any obligation or liability
of the County other than with respect to the revenues and
assets derived from the proceeds of the Bonds.
11 . The Director of Community Development is
hereby authorized to retain an investment firm to the County
for purposes of compliance with Section 52032 . 5 of the Act.
12 . The Community Development Department is hereby
designated as administrator of the Program.
13 . Orrick, Herrington & Sutcliffe is hereby
retained as bond counsel to the County.
14. Bankers Trust Company and FISER Financial and
Investment Services are hereby appointed as underwriters to
the County.
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15 . This resolution shall take effect immediately
upon its adoption.
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040511-0033-214-7539b
-PASSED AND ADOPTED this 20th day of August, 1985,
by the following vote: .
AYES: Supervisor Powers , Torlakson and Fanden
NOES: lione
ABSTAINING: Supervisor McPeak
ABSENT: Supervisor Schroder
Chairwoman
ATTEST: August 20, 1985
Phil Batchlor
County Administrator and Ex-Officio
Clerk of the Board of Supervisors
By Omrn
Deputy Clerk
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