HomeMy WebLinkAboutMINUTES - 06092015 - C.195RECOMMENDATION(S):
ADOPT Resolution No. 2015/194 authorizing the issuance of Multifamily Housing Revenue Bonds in an amount not
to exceed $8 million to finance the acquisition and rehabilitation of The Oaks, a 37-unit residential rental housing
development located at 3073 North Main Street (APN 170-100-029) in Walnut Creek, California (the
"Development"), including:
1) finding and declaring that the recitals 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
Multifamily Housing Revenue Bonds (the "Bonds") to finance the costs of the acquisition and rehabilitation of
The Oaks subject to Board of Supervisors approval of all documents related to the Bonds to which the County
is a party;
3) adoption of this resolution does not relieve or exempt the borrower from obtaining required permits or
approvals, nor obligate the County to incur any obligation or provide financial assistance with respect to the
Bonds or the Development; and
4) 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 intent of the Resolution.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 06/09/2015 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: June 9, 2015
David Twa, County Administrator and Clerk of the Board of Supervisors
By: Stepahnie L. Mello, Deputy
cc:
C.195
To:Board of Supervisors
From:John Kopchik, Director, Conservation & Development Department
Date:June 9, 2015
Contra
Costa
County
Subject:Multifamily Housing Revenue Bonds - The Oaks, Walnut Creek
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.
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.
The recommended action is the adoption of a Tax Equity and Fiscal Responsibility Act (TEFRA) Resolution by
the Board, as the legislative body of the County, authorizing the issuance of Multifamily Housing Revenue Bonds,
which will be used to finance the acquisition and rehabilitation of The Oaks, a 37-unit rental housing
development located at 3073 North Main Street (APN 170-100-029) in Walnut Creek.
EAH, Inc., currently owns The Oaks and proposes the use of housing revenue bonds to refinance and rehabilitate
the project with a new limited partnership. EAH, Inc., or a related entity will be the Managing General Partner
with a tax credit investor as the limited partner.
The proposed financing would implement City of Walnut Creek and County policies to increase the supply of
affordable housing. At its May 5, 2015 meeting, the Board of Supervisors approved an Inducement Resolution for
The Oaks. The Inducement Resolution conditionally provided for the issuance of housing revenue bonds. The
approved Inducement Resolution contained a technical error and is being resubmitted for approval at this June 9,
2015 meeting.
The main purpose of the proposed Resolution is to acknowledge that a public hearing was held by the Community
Development Bond Program Manager on May 26, 2015, with no public comment, and to meet other bond
issuance requirements, which are specified in Section 147(f) of the Internal Revenue Code. The proposed bonds
cannot be issued until a separate, future resolution is adopted by the Board of Supervisors specifically authorizing
the sale of the 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 17,
2015. The expected timing for a Bond Sale Resolution would be November, 2015.
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.
ATTACHMENTS
Resolution No. 2015/194
Oaks Hearing Transcript