HomeMy WebLinkAboutMINUTES - 10221985 - 1.68 BOARD OF SUPERVISORS '
FROM: Anthony A. Dehaesus, D�'rector of Community DevelopmentCwtra
Perfecto Villarreal, Exe utive Director, Housing Authority C )sta
DATE: October 8, 1985 C ^
SUBJECT: Inducement Action for ( ulti-Family Projects
i
SPECIFIC REQUEST(S) OR RECOMMENt6ATION(S) & BACKGROUND AND JUSTIFICATION
1. RECOMMENDATION
As the Board of Supervisors' and the Housing Authority Board of Commissioners, adopt
resolution conditionally providing for the issuance of revenue bonds to finance multi-.family
rental housing developments Ito be owned by the parties listed as the ownership entity of
Exhibit A attached; Actic}n by the Housing Authority Board of Commissioners as
recommended by the Advisor Housing Commission.
II. FINANCIAL IMPACT
None. In the event that the bonds are issued, the County/Authority 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/Authority has already been paid an "Inducement Fee" to offset expenses.
III. BACKGROUND
The owners of all prospect ve multi-family rental housing developments desire to be
included in a future multi-f mily 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 Burd of Supervisors must be adopted. The inducement action
does not obligate the County% 'authority or the owner without future discretionary actions.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
_ RECOMMENDATION OF COUNTY ADMINISTRATOR F/ COMMINDATi N F B ARD COMMITTEE
APPROVE OTHER
SIGNATURE S :
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER _
VOTE OF SUPERVISORS
_ 1 HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS (ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVIgRS r
THE DATE SHOWN.
cb: ommwnitY Dovulopment ATTRorao (`lam/// h �" s
C
F1Rualrig Authority PHIL BATCHELOR, CLERK OF THE BOARD OF
County Administrator SUPERVISORS AND COUNTY ADMINISTRATOR
County Counsel /�
BY C . I
X68
RESOLUTION NO. 3474
OF THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
RESOLUTION CONCERNING THE ISSUANCE OF
_REVENUE BONDS TO FINANCE THE CONSTRUCTION
OF MULTIFAMILY HOUSING DEVELOPMENT(S)
WHEREAS, the Commissioners of the Housing Authority of the County of"Contra -
Costa (the "Authority"), after careful study and consideration, has-determined that-there .is
a shortage of safe and sanitary housing within the County of Contra Costa (the "County"),
particularly for low or moderate income persons, 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 Authority to assist in the financing of multifamily rental housing units;
WHEREAS, pursuant to Division 24 of the Health and Safety Code of the State of
California, -and particularly Chapter 1 of Part 2 thereof (the "Act"), the Authority -is
empowered to issue and sell bonds, notes and other obligations for the purpose of making . --
mortgage loans or otherwise providing funds to finance the development of multifamily .:
rental housing including units for lower income households and very low income househ(>Idc_y
and
WHEREAS, the Authority has now determined to provide financing for the
multifamily rental housing development(s) identified in Exhibit -A hereto (the
"Development"), and in order to finance the Development the Authority intends to issue one
or more issues of revenue bonds, notes or other obligations pursuant to the Act;
NOW, THEREFORE, BE IT RESOLVED by the Commissioners of the Housing
Authority of the County of Contra Costa as follows:
1. The Authority hereby determines that it is necessary and desirable to
.provide construction and permanent financing for the Development by the issuance, pursuant
to the Act or other appropriate authority, of one or more issues of mortgage revenue bonds,
notes or other obligations (the 'Bonds") in an aggregate principal amount not to exceed the
amount set forth on Exhibit A hereto, subject to the conditions that (i) the Authority 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 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 Authority shall be pledged to the payment of the principal of or interest on any such
bond; (iv) the Authority and 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 Executive Director
of the Authority, or the County Director of Community Development or the County .
Administrator, and the Owner, and the Chair of the Board of Commissioners, the Executive
Director of the Authority and the County Director of Community Development are hereby
authorized to execute-said preliminary agreement for and in the name and on behalf of the
Authority; (v) at least .twenty percent (20%) (fifteen percent (15%) in targeted areas) of the
Project units are to be occupied by individuals or families of low or moderate income as
defined in Section 103(b) for at least the period required by Internal Revenue Code of 1954,
as amended, said section, and the Development shall otherwise meet any federal
requirments for tax exemption of interest on the bonds and any requirements of the
Authority applicable to such financings.. The Development is to be located at the site and is
to consist of approximately the number of units set forth in said Exhibit A, and is to be
developed and owned by the Developer described therein or by a related entity or an entity
to be created by persons- comprising said developer. , Subject to final approval by the
Commissioners of the Authority, the Executive Director of the Authority,other officers of
the Authority, and the Director of Community Development for the County of Contra Costa
are hereby authorized and directed, for and in the name and on behalf of the Authority, to
take all necessary actions to finance the Development, including the actions necessary for
the issuance of the Bonds.
Page 2
2. It is intended that this resolution shall constitute"some other official
action" toward the issuance of the Bonds to finance the Development within the meaning of
Section 1.103-8(a)(5) of the Treasury Regulations promulgated under Section 103 of the
Internal Revenue code of 1954, as amended.
3. The Executive Director of the Authority and other off icers,of:the
Authority and the Director of Community Development for the County of Contra'Costa are
hereby authorized and directed, for and in the name and on behalf of the Authority, to take
all actions and to sign all documents necessary or desirable to effectuate the purposes of
this resolution.
4. Nothinghereincontained shall bedeemed tocreate any liability onthe
part of the Authority if the Auth.ority, in its so.e discretion; determines at any time and.for
any reason not to issue such Bonds or to finance the Development.
This resolution shall take effectimmediately upon its passage and adoptiom
PASSED F F'D ADOPTED by the C-0 �missioner .qf the r..ou;zm- Authority of the
County of Contra Costa, this 2nd day of October, 1985, by the following vote
AYES: Commissioners Powers , McPeak, Schroder , Torlakson , _
Fanden.
NOES: None .
ABSENT: None,
ABSTAIN: None .
y
Chair man of the Authority
ATTEST:
Execut.i a Director of the Authority
le _
RESOLUTION NO.
RESOLUTION NO.
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EXHIBIT B
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 or (the "Owner")
or for a related entity, 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 e.J. r t han
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 financial 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 & ;=&Ling i�r the F-on"is. suc!� I.
costs may be paid from proceeds.of sale of the Bonds. In the event that the Bonds are not
issued for any reason, 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 the County conditionally expressing its intent to issue Bonds for the Project in "
an amount equal to the lesser of 1/10 of one-percent of the amount of the proposed Bond
issue or $2,000; said amount 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 determinations by the County under
the California Environmental Quality Act.
The County agrees to proceed, and to direct bond"counsel to proceed, v ith 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 express 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_____
COUNTY OF CONTRA COSTA
Anthony A. Dehaesus
Director of Community Development
(OWNER)
By:
AAD/mblc
1. MULTIFAMILY INDUCEMENT ACTION PROJECTS
2. REVENUE BONDS RUTH ISSUANCE RES 95/614