HomeMy WebLinkAboutMINUTES - 02141989 - 1.46 1-046
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on February 14 , 1989 by the following vote:
AYES: Supervisors Powers , Fanden, Schroder, MCPeak, Torlakson.
NOES: None .
ABSENT: None .
ABSTAIN:None .
SUBJECT:
Resolution of the County of Contra ) RESOLUTION NO. 89/100
Costa Conditionally Providing for )
the Issuance of Revenue Bonds to )
Finance the Construction of a )
Multi-Family Housing Developments )
WHEREAS, the County of Contra Costa ( the "County" ) is a
legal subdivision and body corporate and politic of the State of
California, duly organized and existing under the Constitution and
laws of the State of California; and
WHEREAS, the Board of Supervisors of the County, after
careful study and consideration, has determined that there is a
shortage of safe and sanitary housing within the County, and that
it is in the best interest of the residents of the County and in
furtherance of the health, safety and welfare of the public for the
County to assist in the financing of housing developments; and
WHEREAS, pursuant to Division 31 of the Health and Safety
Code of the State of California, and particularly Chapter 7 of Part
5 thereof (the "Act" ) , the County is empowered to issue and sell
bonds for the purpose of making mortgage loans or otherwise
providing funds to finance the development of multi-family rental
housing including units for lower income households and very low
income households; and
WHEREAS, the Board of Supervisors has now determined to
provide financing for the multi-family developments identified in
Exhibit A hereto ( the "Developments" ) , and in order to finance the
Developments the County intends to issue, at one time or from time
to time, revenue bonds pursuant to the Act;
NOW, THEREFORE, BE IT RESOLVED, by the Board of
Supervisors of the County of Contra Costa as follows:
1. The Board of Supervisors hereby determines that it
is necessary and desirable to provide construction and permanent
financing for the Developments pursuant to the Act or other
appropriate -authority, by the issuance of mortgage revenue bonds
(the "Bonds" ) , in an aggregate principal amount not to exceed the
amounts set forth in Exhibit A, subject to the conditions that ( i)
the County by resolution shall have first agreed to acceptable
terms and conditions for the bonds (and for the sale and delivery
thereof) , and for an indenture and all other agreements with
respect to any of the foregoing; ( ii) all requisite governmental
approvals shall have first been obtained; ( iii) the bonds shall be
payable solely from revenues received with respect to loans_ or
other investments made with the p-ro_ceeds of such bonds, and neither
Page 2
the full faith nor the credit of the County shall be pledged to the
payment of the principal of or interest on any such bond; ( iv) the
County and the Owner shall have entered into a preliminary
agreement concerning the financing, in substantially the form
attached hereto as Exhibit B, with such additions or deletions as
are considered necessary or appropriate by the County Director of
Community Development or the County Administrator, and the Owner,
and the Chair of the Board, the County Administrator, and the
Director of Community Development are hereby authorized to execute
said preliminary agreement for in the name and on behalf of the
County; _._(_v-) either-ther -(a)- -at _least- twenty .percent ( 20 0) of the - Project
units are to be occupied by individuals whose income is fifty
percent ( 50%) or less of area median gross income or (b) at least
forty percent ( 400) of the Project units are to be occupied by
individuals whose income is sixty percent ( 600) or less of area
median gross income, . as defined in Section 142 (d) of the Internal
Revenue Code of 1986, as amended (the "Code" ) for at least the
period required by Section 142 (d) and the Project shall otherwise
meet any federal requirements for exclusion of interest on the
bondsfrom gross income for the purposes of federal income taxes ;
(vi)___at least twenty percent ( 20%) ( fifteen percent ( 15% ) in
targeted areas) of the Project units are to be occupied by lower
income - households (as defined in the Act) and not less than ten
percent. (10%) of the Project units . are to be occupied by very low
income tenants as required by the Act; and (vii) any occupancy
requirements of the County applicable to such financings are met.
2.. The Chair of the Board of Supervisors, the County
Administrator and ex-officio Clerk of the Board, the County
Director . of Community Development; County Counsel and their
deputies and other officers of the County are hereby authorized and
,directed. . to take whatever further action consistent _ with . this
resolution may be deemed reasonable and desirable, including
participating in the preparation of any resolution, indenture, bond
purchase agreement, official statement and/or other documents or
agreements. necessary or appropriate to effect such financing.
3 . It is the purpose and intent of the County that this
Resolution constitute official action toward the issuance of
obligations by the County in accordance with Section
1. 103-8( a) ( 5) ( iii) of the Regulations of the United States
Department of the Treasury, or any successor regulation promulgated
under the Code.
4. This Resolution shall take effect immediately upon
its passage and adoption.
cc: Director of Community Development
County Counsel
County Administrator Ihereby certify that thIsIsaIrUeandcorrectCopyOf
an action taken and entered on the minutes of the
Board of Supervlso the date shown.
ATTESTED: B 14 1989
PHIL BATCHELOR, Clerk of the Board
JK/mb of Supervisors and County Administrator
la:mfdev.rsn
By � . 13eputy
RESOLUTION NO. 89/100
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ATTCHMT. RESOLUTION 89/100
v C.
EXHIBIT B
Harvey E. Bragdon
Director of Community Development
651 Pine Street
4th Floor, North Wing
Martinez, CA 94553
Dear Mr. Bragdon:
Re: Preliminary Agreements -
Multi-Family Mortgage Revenue Bond Financing
The purpose of this Agreement is to set forth certain terms and conditions under
which the County of Contra Costa, a legal subdivision and body corporate and
politic of the State of California (the "County") , will agree to assist in the
financing of a housing project for persons of low income (the "Project") for
(the "Owner") or for a related entity, by issuing
bonds (the "Bonds") , subject to the conditions set forth herein and in
Resolution No. of the County.
In consideration of the County's expression of willingness to provide
such financing, the Owner hereby agrees as follows:
1. The Owner agrees to pay, or to make arrangements for persons
other than the County to pay, all costs involved in the issuance of the Bonds,
including by way of example and not limitation, fees and disbursements of bond
counsel , the County, underwriters, or financing advisors and any other experts
engaged by the Owner or by the County in connection with the issuance of the
Bonds, bond printing and other printing costs, publication costs and costs
incurred in order to obtain a rating for the Bonds. Such costs may be paid from
proceeds of sale of the Bonds. In the event that the Bonds are not issued for
any reasons, the Owner agrees to pay all of such costs and assume the County' s
obligations, if any, for payment of such costs. Pursuant thereto, the Owner
agrees to pay a fee upon demand of the County in an amount equal to the lesser
of 1/10 of one percent of the amount of the proposed Bond issue or $2,000, as
consideration of the County conditionally expressing its intent to issue Bonds
for the Project. Any amount so paid is to be credited toward the County' s cost
of issuance.
2. The Owner agrees to pay the cost of preparation of any studies,
reports or other documents necessary to be prepared by or for the County to
comply with the California Environmental Quality Act.
3. The Owner agrees to pay any and all costs incurred by the County
in connection with any legal action challenging the issuance or validity of the
Bonds or use of the proceeds thereof, or challenging proceedings or
Page 2
determinations by the County under the California Environmental Quality Act.
The County agrees to proceed, and to direct bond counsel to proceed,
with the planning and preparation of the necessary proceedings for the offering
of the Bonds for sale to finance the Project. The Owner understands that this
Agreement does not exempt it from any requirements of the County or any
department or agency thereof or other governmental body that would apply in the
absence of the proposed Bond financing, and compliance with such requirements
is an expressed precondition to the issuance of the Bonds by the County.
The Owner further understands and agrees that the issuance of any
Bonds by the County is contingent upon the County being satisfied with all of
the terms and conditions of the Bonds and of the issuance thereof and that such
issuance is in the best interests of the County, and that the County shall not
be liable to the Owner or to any other person if the County shall determine for
any reason not to issue the Bonds.
IN WITNESS WHEREOF, the parties have executed this Agreement on
198
(Owner)
By:
Date:
ACCEPTED:
COUNTY OF CONTRA COSTA
By:
Harvey E. Bragdon
Director of Community Development
JK/mb
1perm/exhibitb.ltr