HomeMy WebLinkAboutMINUTES - 06262012 - C.68RECOMMENDATION(S):
APPROVE and AUTHORIZE County Counsel or her designee to execute on behalf of the County a form
acknowledging a potential conflict of interest and consenting to Goldfarb & Lipman LLP representing Lao Park
Housing Corporation (LPHC) in connection with LPHC’s acquisition and refinancing of an affordable housing
project to which the County loaned $90,000 of CDBG funds and $515,000 of HOME funds in 1993.
FISCAL IMPACT:
There is no fiscal impact. CDBG and HOME funds are provided to the County on a formula allocation basis through
the U.S. Department of Housing and Urban Development (HUD).
BACKGROUND:
Over the years, the County has entered into contracts with Goldfarb for specialized services in connection with
redevelopment projects and certain affordable housing matters. Because Goldfarb’s concentration of work is in
affordable housing and development, it is not uncommon for the firm to have an attorney-client relationship with
more than one party to a complicated
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 06/26/2012 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor
Contact: Kate Andrus, Deputy County
Counsel, (925) 335-1824
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: June 26, 2012
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Carrie Del Bonta, Deputy
cc: Kathleen Andrus, Deputy County Counsel, Kara Douglas, Conservation and Development
C. 68
To:Board of Supervisors
From:Sharon L. Anderson, County Counsel
Date:June 26, 2012
Contra
Costa
County
Subject:Approve and Authorize Conflict Waiver with Goldfarb & Lipman LLP
BACKGROUND: (CONT'D)
affordable housing transaction.
Attached is a letter from Goldfarb that requests that the County acknowledge and waive the potential conflicts that
exist in Goldfarb’s representation of LPHC in a transaction through which LPHC will acquire and refinance an
affordable housing project to which the County has lent a total of $605,000 of CDBG and HOME funds. The letter
sets forth the attorney-client relationships that could affect the firm’s ongoing duty of loyalty to the County. The
proposed consent to Goldfarb’s representation of a party that is adverse to the County in this transaction is attached
to Goldfarb’s letter.
In the proposed transaction, the current owner of Rumrill Place apartments (the borrower under the County’s
outstanding loans) will sell the project to LPHC and assign the outstanding CDBG and HOME loans to LPHC.
LPHC will then refinance the currently-outstanding senior debt. The new senior lender will require that the
County subordinate the CDBG and HOME loans to the new senior debt. If the County agrees to subordinate, the
relative priority of the CDBG and HOME loans will be unchanged. The County will be represented by County
Counsel in the transaction.
Staff for the Conservation and Development Department have advised that they do not object to the potential
conflict and recommend its waiver.
CONSEQUENCE OF NEGATIVE ACTION:
Goldfarb would not be able to continue to represent LPHC in connection with the transaction. The result would
likely be a delay in the completion of the transaction, which could cause the current owner to default under the
existing senior loan and the project to be at risk of foreclosure.
CHILDREN'S IMPACT STATEMENT:
Not applicable.
ATTACHMENTS
Consent to Potential Conflict of Interest