HomeMy WebLinkAboutMINUTES - 06042013 - C.108RECOMMENDATION(S):
APPROVE and AUTHORIZE the Director of Conservation and Development, or designee, to execute a closing
agreement to settle an examination by the federal government of County of Contra Costa Multifamily Housing
Revenue Bonds for the Pleasant Hill BART Transit Village Apartments Project, Series 2006A.
FISCAL IMPACT:
None to the County. The $116,592 settlement amount will be paid entirely by PHVP I, LP, developer of the Pleasant
Hill BART Transit Village Apartments Project.
BACKGROUND:
This closing agreement settles an Internal Revenue Service ("IRS") examination of $116 million in tax exempt
private activity bonds issued by Contra Costa County (the “Bonds”). The closing agreement calls for a $116,592
settlement payment to the IRS, which will be paid entirely by PHVP I, LP, developer of the Pleasant Hill BART
Transit Village Apartments Project (“Project”).
In 2006, the County issued $116 million in tax exempt private activity bonds for the Project. The purpose of the bond
issuance was to fund multifamily rental housing with affordable units at the site, located on a portion of the former
BART parking lot at the Pleasant Hill BART station. The debt service on the Bonds is payable from the Project rent
revenues. There is no pledge of County funds.
In the Bond issuance, the County functioned as a pass-through entity under an agreement between the
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 06/04/2013 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,
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 4, 2013
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Stacey M. Boyd, Deputy
cc:
C.108
To:Board of Supervisors
From:Catherine Kutsuris, Conservation and Development Director
Date:June 4, 2013
Contra
Costa
County
Subject:Closing Agreement on County of Contra Costa Multifamily Housing Revenue Bonds
BACKGROUND: (CONT'D)
County and the Project developer. After the Bonds were issued, BART determined that the replacement multi-story
parking garage needed to be completed before BART would authorize the construction of the Project to start. The
proceeds of the bond issuance were placed in an escrow account. Construction of the multifamily housing began in
2008.
In 2009 the IRS began an examination of the Bonds. Under IRS regulations, tax exempt bonds are expected to be
spent within a specified period of time for them to retain their tax exempt status. A closing agreement with the IRS
was reached that requires the developer to pay a $116,592 settlement payment, and determines that there is no change
to the position that interest received by Bondholders is excludable from gross income under the Internal Revenue
Code.
CONSEQUENCE OF NEGATIVE ACTION:
Negative action would prevent the examination of the Bonds to be closed.
CHILDREN'S IMPACT STATEMENT:
N/A