HomeMy WebLinkAboutMINUTES - 07271993 - 1.55 rev
Contra
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TO: BOARD OF SUPERVISORS '. ' Costa
FROM: Harvey E. Bragdon J` County
Director of Community Development
DATE: July 27 , 1993
SUBJECT: Bond Sale Resolution - Byron Park Senior Citizen Housing
SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
ADOPT resolution authorizing the sale of Multi-Family Mortgage Revenue
Refunding Bonds for the Byron Park Senior Housing Development, Walnut
Creek area, and actions related thereto.
FISCAL IMPACT
None. County is compensated for costs incurred in issuance process
and for costs of monitoring compliance with Regulatory Agreement.
BACKGROUND/REASONS FOR RECOMMENDATIONS
In 1989 the County issued its 1989-A Multi-Family Mortgage Revenue
Bonds to finance Byron Park, a 187-unit residential care facility for
the elderly. Thirty-eight of the units are reserved for and occupied
by very low income seniors. Byron Park has since been constructed and
is open and occupied. The project is located at 1700 Tice Valley
Boulevard in the unincorporated Walnut Creek rea. Th owner is a
CONTINUED ON ATTACHMENT: YES SIGNATURE: Qui
RECOMMENDATION OF COUNTY ADMINISTRATOR RO ENDATI N OF BOAR COMMITTEE .
APPROVE OTHER
SIGNATURE(S) .:
ACTION OF BOARD ON q 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.
Source: Jim Kennedy
646-4208
cc: Community Development ATTESTED
1JK/jb/bpsenhsg.bos PHIY BATLYHELOR, CLERK OF
THE BOARD OF SUPERVISORS
AND COUNTY ADMINISTRATOR
BY DEPUTY
41
partnership involving A. F. Evans Company of Alamo. The 1989-A
bonds were secured by a guarantee of the Government National
Mortgage Association (GNMA) and FHA insurance. The mortgage rate
is approximately 84%.
Byron Park has been unable to achieve full occupancy due to the
recession. The owner has defaulted on their mortgage payment, and
the Note has been assigned to FHA. The 1989 Bondholders are fully
secured and not in jeopardy. The owner and the FHA approved lender
have been negotiating with FHA to modify the Note rate to under 7%
through the issuance by the County of tax exempt refunding bonds.
The lower rate will permit the mortgage to be brought current,
permit break-even cash flow at much lower occupancy levels, and
establish a debt service reserve fund.
The underwriter for this transaction is Newman & Associates as
Senior Manager and Smith-Mitchell as Co-Managing Underwriter. The
underwriter was determined pursuant to adopted Board policy for the
selection of underwriters and the County's MBE/WBE goals and
policies. Smith-Mitchell is a WBE firm.
The bond sale resolution authorizes a number of actions, a summary
of which is provided in Attachment A.
ATTACHMENT A
The attached resolution authorizes a number of actions, a summary
of which follows:
1. Authorizes the issuance of revenue bonds in an amount not to
exceed $21 million;
2 . Approves the form of Indenture between the County and the
Trustee;
3 . Approves the form of Bond Purchase Agreement between the
County, Developer and Newman & Associates and Smith-Mitchell
as Underwriter;
4 . Approves form of Loan Agreement between County, Trustee,
Developer and TRI Capital Corporation, the FHA Co-insurance
Lender;
5. Approves form of First Amendment to Regulatory Agreement
between County, Trustee and Developer;
6. Approves form of Official Statement;
7 . Designates Newman & Associates and Smith-Mitchell as
Underwriters;
8. Designates Orrick, Herrington, & Sutcliffe as Bond Counsel;
9. Designates Litten Financial Consulting as financial advisor;
10. Authorizes the Chair, Vice-Chair, County Administrator,
Director of Community Development, Deputy Director-
Redevelopment to take such other actions necessary to complete
the sale of bonds and assistance related thereto.
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