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HomeMy WebLinkAboutMINUTES - 05052015 - C.85RECOMMENDATION(S): ADOPT Resolution No. 2015/138 conditionally providing for the issuance of revenue bonds in an amount not to exceed $7 million to enable private owners to finance the acquisition and rehabilitation of Golden Oak Manor, a multifamily residential rental housing facility for seniors located at 5000 Kelsey Lane (APN 037-390-101) in the City of Oakley, California. FISCAL IMPACT: None. 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 accommodated in the bond issue. The bonds will be solely secured by revenues (e.g. rents, reserves, etc.) pledged under the bond documents. No County funds are pledged to secure the bonds. BACKGROUND: Contra Costa County, through the Conservation and Development Department, operates a multifamily mortgage revenue bond financing program. The purpose of the program is to increase or preserve the supply of affordable rental housing available to lower income households and very low income households. The County program may be undertaken within the unincorporated County and within the cities. EAH, Inc. (EAH), has requested to participate in the County’s multifamily mortgage revenue bond financing program. Through a limited partnership, EAH currently owns Golden Oak Manor, a 50-unit multifamily rental housing facility for seniors located at 5000 Kelsey Lane (APN 037-390-101) in the City of Oakley, APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 05/05/2015 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 ABSENT: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: May 5, 2015 David Twa, County Administrator and Clerk of the Board of Supervisors By: Stephanie L. Mello, Deputy cc: C. 85 To:Board of Supervisors From:John Kopchik, Director, Conservation & Development Department Date:May 5, 2015 Contra Costa County Subject:Inducement Action for Multifamily Residential Rental Housing Development - Golden Oak Manor, Oakley BACKGROUND: (CONT'D) California. They propose to form a new limited partnership with EAH, or one of its affiliates, as managing general partner, and a to-be-named tax credit investor as a limited partner to acquire and rehabilitate the facility. The proposed development meets the eligibility criteria for bond financing, and the proposed plan of finance is consistent with County policy for this program. The Oakley City Council adopted Resolution #37-15 at its March 24, 2015, meeting expressing their support of the refinance and rehabilitation of Golden Oak Manor and the issuance of tax-exempt bonds facilitated by the County. A requirement of federal tax law is that the prospective financing be subject to a conditional statement of intent to issue bonds, i.e. an inducement resolution must be adopted by the Board of Supervisors. The inducement action does not obligate the County or the owner without future discretionary actions. CONSEQUENCE OF NEGATIVE ACTION: Without the Inducement Resolution, EAH will not be able to commence with the process of applying to the California Debt Limit Allocation Committee for multifamily mortgage revenue bond authority through the County in an amount not to exceed $7 million. CHILDREN'S IMPACT STATEMENT: No applicable. ATTACHMENTS Resolution No. 2015/138