HomeMy WebLinkAboutMINUTES - 07211987 - 1.7 (2) • TO: BOARD OF SUPERVISORS
FROM: Harvey E. Bragdon Cwlra
Director of Community Development l
Costa
DATE: July 8, 1987 Co „,,
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SUBJECT: Inducement Action for Multifamily Projects l�
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Adopt resolution conditionally providing ,for the issuance of
revenue bonds to finance multi-family rental housing developments
to be owned by the parties listed as the ownership entity of
Exhibit A attached.
FISCAL IMPACT
None. In the event that the bonds are issued, the County is
reimbursed for costs incurred in the issuance process. Annual
expenses for monitoring of Regulatory Agreement provisions -ate
accommodated in the bond issue. In the event that no bond issue
occurs, the County has already been paid an "Inducement Fee" to
offset expenses.
BACKGROUND/REASONS FOR RECOMMENDATIONS
The owners of prospective multi-family rental housing developments
desire to be included in a future multi-family revenue bond financ-
ing program. In order to provide financing eligibility for costs
incurred, the development must be induced, i.e. , a conditional
statement of . intent by the Board of Supervisors must be adopted.
The inducement action does not obligate the County or the owner
without future discretionary actions.
CONTINUED ON ATTACHMENT: YES SIGNA 4 g
RECOMMENDATION OF COUNTY ADMINISTRATOR RECONIlENDATION OT11BO COMMITTEE
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS_IS A
UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
cc: Community Development ATTESTED JUL 21 1997
Housing Authority PHIL BATCHELOR, CLERK OF
County Administrator THE BOARD OF SUPERVISORS
County Counsel AND COUNTY ADMINISTRATOR
BY (.G , DEPUTY
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spe3;induce.bdo
PARKING CITATION CONTRACTS 2 July 6, 1987
WEST CONTRA COSTA COUNTY
recognized the differences in 1463 PC revenue splits in this county was needed. As a
result, several cities and districts were exempted from the cost spinoff, two cities
(El Cerrito and Concord) were designated for a three year participation and finally
those cities and districts from which the county derives less than 16% of the parking
citation revenues would authorize the cost spinoff on a permanent basis.
CONSEQUENCES OF NEGATIVE ACTION:
The failure to execute these contracts would result in the county not receiving the
new revenues which would be generated by the parking citation funding plan agreed
upon by the courts, cities and districts.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on July 21 , 1987 , by the following vote:
AYES: Supervisors Powers , Fanden, Schroder , Torlakson, McPeak.
NOES: None .
ABSENT: None.
ABSTAIN: None .
RESOLUTION NO . 87/432
SUBJECT:
Resolution of the County of Contra ) .
Costa Conditionally Providing For The )
Issuance of Revenue Bonds To Finance )
the Construction of a Multi-Family )
Housing Developments )
WHEREAS, the County of Contra Costa (the "County") is a legal subdivision
and body .corporate and politic of the State of California, duly organized and existing
under the Constitution and laws of the State of California; and
WHEREAS, the Board of Supervisors of the County, after careful study and
consideration, has determined that there is a shortage of safe and sanitary housing within
the County, and that it is in the best interest of the residents of the County and in
furtherance of the health, safety and welfare of the public for the County to assist in the
financing of housing developments; and,
WHEREAS, pursuant to Division 31 of the Health and Safety Code of the
State of California, and particularly Chapter 7 of Part 5 thereof (the "Act"), the County is
empowered to issue and sell bonds for the purpose of making mortgage loans or otherwise
providing funds to finance the development of multi-family rental housing including units
for lower income households and very low income households; and
WHEREAS, the Board of Supervisors has now determined to provide
financing for the multi-family developments identified in Exhibit A hereto (the
"Developments"), and in order to finance the Developments the County intends to issue, at
one time or from time to time, revenue bonds pursuant to the Act;
NOW, THEREFORE, BE IT RESOLVED, by the Board of Supervisors of the
County of Contra Costa as follows:
1. The Board of Supervisors hereby determines that. it is necessary and
desirable to provide construction and permanent financing for the Developments pursuant
to the Act or other appropriate. authority, of mortgage revenue bonds (the "Bonds"), in an . .
aggregate principal amounts not to exceed the amounts set forth in Exhibit A, subject .to
the conditions that (i) the County by resolution shall have first agreed to acceptable terms
and conditions for the bonds (apd for the sale and delivery thereof), and for an indenture
and all other agreements with respect to any of the foregoing; (ii) all requisite
governmental approvals•shall have first been obtained; (iii) the bonds shall be payable
solely from revenues received with respect to loans or other investments made with the
proceeds of such bonds, and neither the full faith nor the credit of the County shall be
pledged to the payment of the principal of or interest on any such bond; (iv) the County
and the Owner shall have entered into a preliminary agreement concerning the financing,
in substantially the form attached hereto as Exhibit B, with such additions-or deletions as
are considered necessary or appropriate by the County Director of Community
Development or the County' Administrator, and the-Owner, and the Chair of the Board,
the County Administrator, and the Director of Community Development are hereby
authorized to execute said preliminary agreement for and in the name and on behalf of
the County; (v) at least twentq percent (20%) (fifteen percent (15%) in targeted areas) of
the Project units are to be occupied by individuals or families of low or moderate income
as defined in Section 103(b) for at least the period required by Internal Revenue Code of
1954, as amended, said section,. and the Project shall otherwise meet any federal
requirements for tax exemption of interest on the bonds and any requirements of the
County applicable to such financings.
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RESOLUTION NO 87/432
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Page 2
2. The Chair of the Board of Supervisors; The County Administrator and ex-
officio Clerk of the Board, the County Director of Community Development; County
Counsel and their deputies and other officers of the County are hereby authorized and
directed to participate in the preparation of any resolution, indenture, bond purchase
agreement, official statement and/or other documents or agreements necessary or
appropriate to effect such financing.
3. It is the purpose and intent of the County that this Resolution constitute
official action toward the issuance of obligations by- the County in accordance with'' " "
Section 1.103-8(a)(5)(iii) of the Regulations .of the United States Department of the
Treasury.
4. This Resolution shall take effect immediately upon its passage and
adoption.
cc: Director of Community Development t hereby certify that this is a true andcorrectcopy of
County Counsel an action taken and entered or. the minutes of the
County Administrator Board of Supe ors on the date shown.
ATTESTEM9 8 77
PHIL BA CHEL R, Clerk of the Board
Of Supervisors and County Administrator
BY , peputy
f
RESOLUTION NO.. 87 432 � �t
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Exhibit B
Harvey E. Bragdon
Director of Community Development
Contra Costa County
651 Pine Street, 4th floor, North Wing
Martinez, CA 94553
Dear Mr. Bragdon:
Re: Preliminary Agreements-
Multi-Family Mortgage Revenue Bond Financing
The purpose of this Agreement is to set forth certain terms and conditions under
which the County of Contra Costa, a legal subdivision and body corporate and
politic of the State of California (the "County"), will agree to assist in the
financing of a housing project for persons of low income (the "Project") for or
(the "Owner") or for a related entity, by issuing bonds
(the "Bonds") , subject to the conditions set forth herein and in Resolution No.
of the County.
In consideration of the County's expression of willingness to provide
such financing, the Owner hereby agrees as follows:
1. The Owner agrees to pay, or make arrangements for persons other
than the County to pay, all costs involved in the issuance of the Bonds, includ-
ing by way of example and not limitation, fees and disbursements of bond coun-
sel , the County, underwriters, or financing advisors and any other experts en-
gaged by the Owner or by the County in connection with the issuance of the
Bonds, bond printing and other printing costs, publication costs and costs in-
curred in order to obtain a rating for the Bonds. Such costs may be paid from
proceeds of sale of the Bonds. In the event that the Bonds are not issued for
any reasons, the Owner agrees to pay all of such costs and assume the County's
obligations, if any, for payment of such costs. Pursuant thereto, the Owner
agrees to pay a fee upon demand of the County in an amount equal to the lesser
of 1/10 of one percent of the amount of the proposed Bond issue or $20,000, as
consideration for the County conditionally expressing its intent to issue Bonds
for the Project. Any amount so paid is to be credited toward the County's cost
of issuance.
2. The Owner agrees to pay the cost of preparation of any studies,
reports or other documents necessary to be prepared by or for the County to com-
ply with the California Environmental Quality Act.
3. The Owner agrees to pay any and all costs incurred by the County
in connection with any legal action challenging the issuance or validity of the
Bonds or use of the proceeds thereof, or challenging proceedings or determina-
tions by the County under the California Environmental Quality Act.
The County agrees to proceed, and to direct bond counsel to proceed,
with the planning and preparation of the necessary proceedings for the offering
of the Bonds for sale to finance the Project. The Owner understands that this
Agreement does not exempt it from any requirements of the County or any depart-
ment or agency thereof or other governmental body that would apply in the ab-
sence of the proposed Bond financing, and compliance with such requirements is
an express precondition to the issuance of Bonds by the County.
EXHIBIT B
Paget
The Owner further understands and agrees that the issuance of any
Bonds by the County is contingent upon the County being satisfied with all of
the terms and conditions of the Bonds and of the issuance thereof and that such
issuance is in the best interests of the County, and that the County shall not
be liable to the Owner or to any other person if the County shall determine for
any reason not to issue the Bonds.
IN WITNESS WHEREOF, the parties have executed this- Agreement on
198_
(Owner)
By:
Date:
ACCEPTED:
COUNTY OF CONTRA COSTA
By:
Harvey E. Bragdon
Director of Community Development
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