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HomeMy WebLinkAboutMINUTES - 07092013 - C.96RECOMMENDATION(S): ADOPT Resolution No. 2013/298 authorizing the County, in its capacity as housing successor to the former Contra Costa County Redevelopment Agency, to consent to the documents evidencing the remarketing and reissue of Multifamily Housing Revenue Bonds in the amount of $134.5 million to refinance the acquisition and construction of a multifamily rental housing project generally known as Avalon Walnut Creek at Contra Costa Centre and to execute those documents and take such actions as may be necessary to consent to and facilitate such remarketing and reissue. FISCAL IMPACT: No impact to the General Fund. At transaction closing, the County, in its capacity as housing successor to the former Redevelopment Agency, will be reimbursed for costs incurred in the issuance process. BACKGROUND: Resolution No. 2013/298 of the Board of Supervisors, in its capacity as housing successor to the former Contra Costa County Redevelopment Agency, provides the Board's consent to the documents evidencing the remarketing and reissue of County of Contra Costa Multifamily Housing Revenue Bonds, (the “Bonds”) in the amount of $134.5 million and authorizes other actions as may be necessary. The remarketing and reissuance of the Bonds is described in Resolution No. 2013/298. The former Contra Costa County Redevelopment Agency (the "Agency") also made a loan to PHVP I LP (the “Borrower”) in connection with the construction of Avalon Walnut Creek at Contra Costa Centre (the "Project"). In connection with that loan, the Agency recorded a deed of trust (the "Deed APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 07/09/2013 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: Maureen Toms, 674-7878 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: July 9, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C. 96 To:Board of Supervisors From:Catherine Kutsuris, Conservation and Development Director Date:July 9, 2013 Contra Costa County Subject:Refinancing Multifamily Mortgage Revenue Bonds - Avalon Walnut Creek at Contra Costa BACKGROUND: (CONT'D) of Trust") and regulatory agreement (the "Regulatory Agreement"). The Regulatory Agreement has been identified as a housing asset pursuant to California Health and Safety Code Section 34176 and is therefore an asset of the County, as housing successor. Under the terms of the bond documents, the County, in its capacity as housing successor, is required to consent to the modification of the bond documents. The Deed of Trust and Regulatory Agreement will not be modified or subordinated in connection with the remarketing and reissuance. Moreover, the County as housing successor, lender and regulator will not be placed in a worse position in connection with the remarketing and reissuance because the transaction will provide for a more cost effective structure and thereby lead to an even more financially sound Project. CONSEQUENCE OF NEGATIVE ACTION: Negative action would prevent the Bonds from being remarketed and reissued, and the Borrower will be denied access to the lowest available financing rates. CHILDREN'S IMPACT STATEMENT: Refinancing of this apartment project includes 85 affordable apartment units, thereby helping families to be economically self sufficient, which is one of the desired outcomes in the Contra Costa County Children's Report Card. ATTACHMENTS Resolution No. 2013/298