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Home My WebLink AboutMINUTES - 08052003 - C.123 TO: BOARD OF SUPERVISORS FROM: Dennis M. Barry, AICD " Community Development Director DATE: August 5, 2003 SUBJECT: Multi-Family Mortgage Revenue Bonds— Chesley Street Apartments Project, Richmond. SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ADOPT Resolution authorizing issuance of Multi-Family Housing Revenue Bonds in an amount not to exceed $12.5 million to finance the development/construction of the Chesley Street Apartments, Richmond. FISCAL IMPACT No General Fund obligation is involved. County costs associated with issuance of bonds are covered, as are annual administrative costs. CONTINUED ON ATTACHMENT: X YES SIGNATURE: ,RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMM8 DATION OF rD COMMITTEE ---APPROVE OTHER r , SIGNATURE(S)r"✓ ACTION OF BOAR6/6N MGM 5, 2003 APPROVED AS RECOMMENDED x OTHER f,. VOTE OF SUPE VISORS I HEREBY CERTIFY THAT THIS IS A x UNANIMOUS (AIASENT Nm 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. Contact: Jim Kennedy 3-1255 prig: Community Development cc: County Administrator ATTESTEDALum 5, 20(a County Counsel JOHN SWEETEN, CLERK OF THE Housing Authority BOARD OF SUPERVISORS Redevelopment Agency AND THJE COUNTY ADMINISTRATOR via: Community Development Eden Housing BY = - DEPUTY 7 CHDC of North Richmond Personal\Boardorders\HOARD.chesley street apartments.8.03 t BACKGROUND/REASONS FOR RECOMMENDATIONS Chesley Street Apartments is a 30-unit project located at 802 Chesley Ave., Richmond. The project is to contain 22 three-bedroom and 8 two-bedroom units. The ownership entity is to be a limited partnership. The managing General Partner of which will be a non-profit corporation formed by Eden Housing and Community Housing Development Corporation of North Richmond. The proposed financing would result in 1010% of the units being reserved as affordable units for 55 years. Seventy-two percent (72%)of the affordable units would be reserved for extremely low income or very low income households earning 35-50%of the area median income or less,and twenty-eight percent(28%)of the affordable units would be reserved for low income households earning 60% of the area median income or less. Project rents are expected to be: Rent Range* Extremely Low Income 486-555 (3 units) Very Low Income 664-972 (18 units) Low Income 847-972 (8 units) Manager Unit (1 unit) *Variable based on household size and unit size. An application for Private Activity Bond Authority has been submitted to the California debt Limit Allocation Committee. If awarded the authority in September the County would proceed to issue the multi-family bonds by December, 2003. The proposed plan of finance would involve the issuance of unenhanced and unrated tax-exempt bonds which adhere to the adopted County policies for such bonds. City of Richmond funds are committed as part of the plan of finance in order to secure the extremely low-income units. The recommended action is the adoption of a Resolution by the Board,as the legislative body of the County, authorizing the issuance of bonds. The Board's action acknowledges that a public hearing has been held by the Deputy Director -- Redevelopment as required by Section 147(f) of the Internal Revenue Code. The recommended action of the Board is not the Bond Sale Resolution. such actions would come back to the Board after receipt of an allocation from the state for Private Activity Bond Authority. Expected timing for a Bund Sale Resolution would be November/December,2003. This action was previously before the Board of Supervisors (July 8, 2003), however a flaw in the legal notice was subsequently determined, therefore the action needs to be redone. JK:in THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on August 5, 2003 by the following vote: AYES: •;'` .,, IPHNISM GIOIA, UnKM, QMM, aOM AND DeSAIINM NOES: Y ' NW � r ABSENT: NM � ABSTAIN: N= SUBJECT: Resolution No. 2003493 RESOLUTION AUTHORIZING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS) IN AN AGGREGAGE PRINCIPAL AMOUNT NOT TO EXCEED$12,500,000 FOR THE FINANCING) OF A MULTIFAMILY RESIDENTIAL RENTAL PROJECT GENERALLY KNOWN AS CHESLEY STREET APARTMENTS.) It is hereby RESOLVED by the Board that: WHEREAS,the County of Contra Costa(the"County")is authorized to issue multifamily housing revenue bonds pursuant to Section 52075 and following of the California Health and Safety Code; WHEREAS,the County desires to participate in financing the development and construction of a 30-unit multifamily residential rental development generally known as Chesley Street Apartments,located at 502 Chesley Avenue, Richmond (the "Project"),which will be owned and operated by Eden blousing and Community Housing Development Corporation of North Richmond or an entity related thereto (collectively, the "Borrower"); WHEREAS,to assist in financing the Project,the County intends to sell and issue not to exceed $12,500,000 aggregate principal amount of its multifamily housing revenue bonds(the"Bonds")and to loan the proceeds thereof to the Borrower, thereby reducing the cost of the Project and assisting in providing housing for low income persons; WHEREAS, pursuant to Section 147(f)of the Internal Revenue Code of 1956 (the"Code"), the financing of the Project and the issuance of the Bonds by the County must be approved by the uapplicable representative of the County" (as defined in the Code); WHEREAS,the Board of Supervisors of the County of Contra Costa(the"Board"),is the elected legislative body of the County and is one of the applicable elected representatives required to approve the financing of the Project and the Bonds under Section 147(f)of the Code; WHEREAS,pursuant to Section 147(f)of the Code,the Deputy Director—Redevelopment has, following notice duly given,held a public hearing regarding the financing of the Project and the issuance of the Bonds at which no public comments were made; and WHEREAS,the Board desires to approve the financing and the issuance of the Bonds; NOW,THEREFORE, BE IT RESOLVED, by the Board of Supervisors of the County of Contra Costa, as follows: Section 1. The Board hereby specifically finds and declares that the statements,findings and determinations of the County set forth above are true and correct. Section 2. For purposes of Section 147(f) of the Code, the Board hereby authorizes the issuance of Bonds by the County to finance the Project. Section 3. The adoption of this Resolution does not(1)relieve or exempt the Borrower from obtaining any other permits or approvals that are required by, or determined to be necessary from, the County in connection with the Project, nor (2) obligate the Country to incur any obligation or provide financial assistance with respect to the Bonds or the Project. Documents\resolution.chesley.apt.7.03 Section 4. All actions heretofore taken by the officers and agents of the County with respect to the financing of the Project and the sale and issuance of Bonds are hereby approved, ratified and confirmed, and any authorized officer of the County is 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 an all certificates, agreements and other documents, which any such officer may deem necessary or advisable in order to effectuate the purposes of this Resolution. Section 5. This Resolution shall take effect upon its adoption. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown ATTESTED.-AUGUST 5, 2003 John Sweeten, Clerk of the Board of Supervisors And County Administrator V BY Deputy cc: Community Development RESOLUTION 2003/493