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HomeMy WebLinkAboutMINUTES - 06262012 - C.159RECOMMENDATION(S): ADOPT Resolution No. 2012/287 authorizing the issuance of Multi-Family Housing Revenue Bonds in an amount not to exceed $18 million to finance the development of Berrellesa Palms, Martinez, including: 1) finding and declaring that the statements, findings and determinations contained in the proposed Resolution are true and correct; 2) for purposes of Section 147(f) of the Internal Revenue Code of 1986, authorizing the issuance of Multi-Family Housing Revenue Bonds (the "Bonds") in an aggregate amount not to exceed $18 million to finance the costs of the development of Berrellesa Palms located at 310 Berrellesa Street (also known as 301 Buckley) in Martinez (the "Project"); 3) declaring that the Resolution will not relieve or exempt Berrellesa Palms, L.P. (the "Borrower") from obtaining other permits or approvals required by the County in connection with the Project, nor obligate the County to incur any obligation or provide financial assistance with respect to the Bonds or the Project; 4) approving, ratifying, and confirming all actions heretofore taken by 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: Kristen Lackey, 925-674-7888 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: June McHuen, Deputy cc: C.159 To:Board of Supervisors From:Catherine Kutsuris, Conservation and Development Director Date:June 26, 2012 Contra Costa County Subject:Multifamily Housing Revenue Bonds - Berrellesa Palms, Martinez RECOMMENDATION(S): (CONT'D) the officers and agents of the County with respect to the financing of the Project and the sale and issuance of Bonds; and 5) authorizing and directing any authorized officer of the County to do any and all things, take any and all actions, and execute and deliver any and all certificates, agreements, and other documents which the officer may deem necessary or advisable in order to effectuate the purposes of the Resolution. FISCAL IMPACT: No impact to the General Fund. 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 provided for in the bond issue. The bonds will be secured solely by revenues (rents, reserves, etc.) pledged under the bond documents. No County funds are pledged to secure the bonds. The Project has received and expended $1.525 million in Community Development Block Grant funds. The Project has also received an allocation of $2.95 million in HOME Investment Partnerships Act funds, $600,000 of which has already been expended. BACKGROUND: The recommended action is the adoption of a Resolution by the Board, as the legislative body of the County, authorizing the issuance of Multi-Family Housing Revenue Bonds, which will be used to finance the development of Berrellesa Palms, a 49-unit multifamily rental housing development located at 310 Berrellesa Street (also known as 301 Buckley Street, APN 373-243-001) in Martinez. The Bonds, when issued, will be used to finance the development of Berrellesa Palms by Berrellesa Palms, L.P., a California Limited Partnership, the Managing General Partner of which is RCD Housing LLC, an affiliate of Resources for Community Development, Inc. (“RCD”). A to-be-named tax credit investor will be the limited partner. The proposed financing would implement City of Martinez and County policies to increase the supply of affordable housing. The City of Martinez approved the Use Permit for Berrellesa Palms in 2009. Subsequent to the approval, a CEQA based lawsuit was brought against the City. In 2010, a ruling in favor of the City was awarded, and RCD acquired the site with financing from the County Community Development Block Grant program. Anticipated HUD funding for the project was not received in 2011, requiring RCD to pursue other funding sources, including State Housing and Community Development (“HCD”), County HOME Investment Partnerships Act, Multifamily Mortgage Revenue Bonds, and 4% Tax Credits. The change in funding sources required the project to change its population from low-income seniors to extremely-low income frail seniors. City Council directed staff to determine if the change in population constituted a change in use. City Staff concluded that there was no change in use. At its May 8, 2012 meeting, the Board of Supervisors approved an Inducement Resolution for Berrellesa Palms after receiving a letter from the Mayor confirming the City’s approval of the project and appreciation of the County’s investment in the community. Also at the meeting, a member of the City Council presented a summary of the City’s approval, and numerous comments from the public were received in support of the project. The Inducement Resolution conditionally provided for the issuance of revenue bonds. The main purpose of the proposed Resolution is to acknowledge that a public hearing has been held by the Community Development Bond Program Manager and to meet other bond issuance requirements which are specified in Section 147(f) of the Internal Revenue Code. The recommended action of the Board is not the Bond Sale Resolution. The proposed bonds could not be issued until a separate resolution is adopted by the Board of Supervisors specifically authorizing the sale of bonds. Such separate resolution to authorize the sale of bonds would come before the Board after receipt of an allocation from the State of California for Private Activity Bond Authority. An application for Private Activity Bond Authority will be submitted to the California Debt Limit Allocation Committee on July 27, 2012. The expected timing for a Bond Sale Resolution would be October, 2012. The proposed resolution would not relieve the Borrower from obtaining other required permits or approvals required by law, nor obligate the County to incur any obligation or provide financial assistance with respect to the Bonds or the Project. Annual expenses of the County related to the monitoring of the Regulatory Agreement are provided for in the bond issue. CONSEQUENCE OF NEGATIVE ACTION: Negative action would prevent the County from meeting the public approval requirement of the Internal Revenue Code for issuing Multifamily Housing Revenue Bonds, and prior actions of officers and agents of the County would not be confirmed and ratified. As a result, the Multifamily Housing Revenue Bonds could not be issued by the County. CHILDREN'S IMPACT STATEMENT: No impact. ATTACHMENTS Resolution No. 2012/287