HomeMy WebLinkAboutMINUTES - 08221989 - 1.38 f
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1-®38
TO BOARD OF SUPERVISORS
FROM: Contra
1tra
Harvey E. Braddon
Director of Community Development Costa
DATE: August 22, 1989 County
SUBJECT;
Inducement Action for Multifamily Projects
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
I. RECOMMENDATION
Adopt resolution conditionally providing for the issuance of revenue bonds
to finance multifamily rental housing developments to be owned by the
parties listed as the ownership entity of Exhibit A attached.
II. FINANCIAL 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 are 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.
III. BACKGROUND
The owners of prospective multi-family rental housing developments desire
to be included in a future multi-family revenue bond financing 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 SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEN AJ1\0N OF BOAR COMMITTEE
APPROVE OTHER
SIGNATURE S
ACTION OF BOARD ON August 22 , 1989 APPROV AS RECOMMENDED OTHER
ADOPT RESOLUTION No . 89/566
VOTE OF SUPERVISORS
1 HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS (ABSENT - I IV 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: Housing Authority ATTESTED August 22 , 1989
County Administrator PHIL BATCHELOR, CLERK OF THE BOARD OF
County Counsel SUPERVISORS AND COUNTY ADMINISTRATOR
Via Community Development
E1 Cerrito Redevelopment Agency C' ��
John Stewart Company BY DEPUTY
M382/7-83
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THE BOARD OF SUPERVISORS OF .CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on August 22, 1989by the following vote:
AYES: Supervisors Fanden, Schroder, Torlakson
NOES: None
ABSENT: Supervisors Powers , McPeak
ABSTAIN: None
SUBJECT:
Resolution of the County of Contra ) RESOLUTION NO. 89/566
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, by the issuance of mortgage revenue bonds
(the "Bonds" ) , in an aggregate principal amount not to exceed the
amounts set forth in Exhibit A, subject to the conditions that with
respect to any Development to be financed, ( i) the County by
resolution shall have first agreed to acceptable terms and
conditions for the bonds ( and 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
RESOLUTION NO. 89/566
Page 2
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
respective developer/initial owner thereof identified on Exhibit A
hereto, or any partnership, corporation or other entity to be
formed by such developer/initial owner or by any principal thereof ,
or any successor to the interests thereof approved by the County
( in any such case, 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 in the name and on behalf of
the County; (v) any occupancy and other requirements of the
Internal Revenue Code of 1986, as amended (the "Code" ) are
satisfied with respect to bonds, the interest on which is intended
to be excluded from gross income for federal tax purposes ; (vi) any
occupancy and other requirements of the Act are satisfied; and
(vii) any occupancy and other requirements of the County applicable
to such financing are satisfied.
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 take whatever further action consistent with this
resolution may be deemed reasonable and desirable, including
participating 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, and
any actions necessary to obtain an allocation of the volume cap for
the State of California to the extent required by the Code for the
issuance of bonds, the interest on which is intended to be excluded
from gross income for federal tax purposes.
3 . It is the purpose and intent of the County that this
Resolution constitute official action toward the issuance of
obligations by the County to finance the Developments in accordance
with Section 1. 103-8(a) ( 5) ( iii) of the Regulations of the United
States Department of the Treasury, or any successor regulation
promulgated under the Code.
4 . This Resolution shall take effect immediately upon
its passage and adoption.
cc: Director of Community Development
County Counsel
County Administrator
I hereby certify that this is a true and correct copy of
an action taken and entered on the minutes of the
JK/j b Board of Superviso on the date• own,
jk5 :mfdev.res ATTESTED: C;? . I9F,
PMIL BATCHELOR C1&*of the Board
of Supervisors and County Adminiatratot
By Deputy
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EXHIBIT B
Harvey E. Bragdon
Director of Community Development
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
(the "Owner") or for a related entity, or for a
successor to the interests thereof approved by the County, 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 to make arrangements for persons
other than the County to pay, all costs involved in the issuance of the Bonds,
including by way of example and not limitation, fees and disbursements of bond
counsel , the County, underwriters, or financing advisors and any other experts
engaged 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
incurred 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 $2,000, as
consideration of 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
comply 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 deter-
minations by the County under the California Environmental Quality Act.
Page 2
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
department or agency thereof or other governmental body that would apply in the
absence of the proposed Bond financing, and compliance with such requirements
is an expressed precondition to the issuance of the Bonds by the County.
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
JK/mb
1perm/exhibitb.ltr