The URL can be used to link to this page

Home My WebLink AboutMINUTES - 07222008 - C.108 TO: BOARD OF SUPERVISORS y Contra FROM: Dennis M. Barry,AICP, Interim Director Costa Department of,Conservation and Development °sra o county DATE: July 22,2008 SUBJECT: Inducement Action for Multifamily Projects �O SPECIFIC REQUEST(S)OR RECOMMENDATIONS(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 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. 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 are accommodated in the bond issue. The bonds will be solely secured by a pledge of revenues(rents, reserves,etc.)pledged under the bond documents. No County funds are pledged to secure the bonds. BACKGROUND/REASONS FOR RECOMMENDATIONS Contra Costa County,through the Department of Conservation and,Development,operates a multifamily mortgage bond financing program. The purpose of the program is to increase or preserve the supply of affordable rental housing available to lower income households. The County program may be undertaken within the unincorporated County and within the cities. The owners of a prospective 293- unit multifamily rental housing development in Dougherty Valley area of San Ramon have requested to participate in the multifamily bond financing,program._The project is part of the Dougherty Valley Affordable Housing Program.W indemere BLC is proposing to sell the subject property to an affiliate of St.Anton's Partners,a Sacramento based non-profit developer.The proposed development meets the eligibility criteria for bond financing, and the proposed plan of finance appears to be consistent with County policy for this program. A requirement of federal tax1aw is that the prospective financing be subject to a conditional statement of intent to issue bonds, i.e., an inducement resolution must be adopted by the Board of Supervisors. The inducement action does not obligate the County or the owner without future discretionary actions. CONTINUED ON ATTACHMENT: _X_ SIGNATURE: e RECOMMENDATION OF COUNTY ADMINISTRATOR ECOMMtNDATION OF BOAR COMMITTEE v /� APPROVE _OTHER SIGNATURE(S): ACTION OF BOARD ON LLW APPROVED AS,\RE OMMENDED ✓ VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A _UNANIMOUS(ABSENT 10t ) 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. as Source: Jim Kennedy '_ ll 335-7225 ATTESTED)U-N 22., o20PS/ orig: Department of Conservation and Development JOHN CULLEN,CLERK OF THE Cc: County Administrator's Office BOARD OF SUPERVISORS AND County Counsel COUNTY ADMINISTRATOR Community Development, Redevelopment Agency j Housing Authority via Dept.of Conservation and Development„ BY " CU DEPUTY City of San Ramon St.Anton Capitol' G:\CDBC-REDEV\Mr MRB\Wuidemere\Windemere.Inducement.7.22.08.doe i EXHIBIT A • Name of Development: Windemere Apartments • Maximum Amount of Bond Issue: $75,000,000 • Location of Development: Ivy Hill Way at Albion Road,San Ramon (APN#223-010-017) • Number of Units: 293 • Name of Developer/initial Owner A Limited Partnership to be formed by St.Anton Capital, LLC as the co-General Partner;and Pacific Housing Inc. as the Managing General Partner.The partnership will include a to be named tax credit investor. G:\CDBC,-RRDGV\MP MRB\Windemere\Windemere.Inducement.7.22.08.doc THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on July 22,2008,by the following vote: se L r� c�E=_----•-_off,' AYES: NOES: �1✓ o ,Iunda iS ABSENT: -Ptep610 rptht-Ua, ` � �qY 0 j Sra courz'� ABSTAIN: �10 � Resolution No.2008/537 SUBJECT: Resolution of the County of Contra Costa Conditionally Providing for the Issuance of Revenue Bonds to Finance the Construction of 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 ofthe residents of the County and in fiutherance 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 development identified in Exhibit A hereto(the"Development'),and in order to finance the Development 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 Development pursuant to the Act or other appropriate authority,by the issuance of Mortgage Revenue Bonds(the'Bonds"),in an aggregate principal amount notto 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 thereol), 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 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 on file with the Deputy Director-Redevelopment,with such additions or deletions as are considered necessary or appropriate by the Deputy Director-Redevelopment, and the Owner, and the Chair of the Board, the County Administrator, the Director of Conservation and Development,and the Deputy Director-Redevelopment 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 Conservation and Development,the Deputy Director-Redevelopment,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 i 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 Stale 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 Development in accordance with Sections 1.103-8(a)(5)(iii),and l.150-2 of the Regulations of the United States Department of the Treasury,or any successor regulation promulgated under the Code. The County hereby declares its official intent to use proceeds ofthe Bonds to reimburse the Owner for,certain expenditures made prior to the issuance of the Bonds. 4. This Resolution shall take effect immediately upon its passage and 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: JOHN CULLEN, Clerk of the Board of Supervisors and County Administrator Deputy RESOLUTION NO.2008/X37 Orig.Dept: Dept.of Conservation and Development-Redevelopment&Housing Division Contact: James Kennedy 335-7225 cc: County Administrator County Counsel