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HomeMy WebLinkAboutMINUTES - 09142010 - C.142RECOMMENDATION(S): APPROVE and AUTHORIZE the Conservation & Development Director, or designee, to execute a First Amendment to Regulatory Agreement and Declaration of Restrictive Covenants by and between the County of Contra Costa, Bollinger Crest Apartment Investors, LLC, and Wells Fargo Bank National Association for the Bollinger Crest Apartments, San Ramon. FISCAL IMPACT: None. The bonds issued in 1998 are secured solely by pledged revenues from the project, reserve funds, and a Federal Home Loan Corporation guarantee. Costs of the County in processing this First Amendment will be reimbursed by the owner. BACKGROUND: In 1998 the County issued $7 million in multi-family housing revenue bonds to finance the Bollinger Crest Apartments in San Ramon. The project contained 65 rental units. As a result of the financing, the developer, Bollinger Crest Apartment Investors, LLC ( an affiliate of Claremont Homes), agreed to reserve 20% of the units (13 units) for Very Low Income households for 15 years from occupancy of the project. The current Regulatory Agreement APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 09/14/2010 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Mary N. Piepho, District III Supervisor Susan A. Bonilla, District IV Supervisor Federal D. Glover, District V Supervisor ABSENT:Gayle B. Uilkema, District II Supervisor Contact: Jim Kennedy, 335-7225 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: September 14, 2010 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C.142 To:Board of Supervisors From:Jim Kennedy, County Redevelopment Director Date:September 14, 2010 Contra Costa County Subject:First Amendment to Regulatory Agreement--Bollinger Crest Apartments, San Ramon and Declaration of Restrictive BACKGROUND: (CONT'D) Covenants are effective through April, 2015. The property owner is refinancing the project to take advantage of current lower rates in the conventional financing market. The housing revenue bond loan will be retired and replaced with a Federal Home Loan Corporation (“Freddie Mac”) guaranteed loan. The current Regulatory Agreement will remain in place through its termination in April, 2015. The property owner and the new Freddie Mac lender have requested that the Regulatory Agreement be amended to reflect the presence of the new loan, and the new Freddie Mac lender—Centerline Mortgage Capital, Inc. The recommended action accomplishes this purpose. CONSEQUENCE OF NEGATIVE ACTION: CHILDREN'S IMPACT STATEMENT: