HomeMy WebLinkAboutMINUTES - 12071993 - 1.159 REVISED
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1.159
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS DATE: December 7, 1993
FROM: Richard J. Martinez, Executive Director cc:
SUBJECT: CASA DEL RIO SENIOR HOUSING DEVELOPMENT:
AUTHORIZE PARTICIPATION IN THE FEDERAL LOW INCOME HOUSING TAX CREDIT
(LIHTC) PROGRAM
1. RECOMMENDED ACTION:
AUTHORIZE the Housing Authority to enter into the Federal Low Income Housing Tax Credit (LIHTC)
program for Casa del Rio Senior Housing Development and to establish a separate non-profit corporation controlled
by the Housing Authority to act as General Partner for a Limited Partnership with a qualified investor,as the Limited
Partner,for the project;AUTHORIZE the Executive Director to select the governing body of the non-profit corporation;
and AUTHORIZE the Executive Director to expend the required State Tax Credit Allocation Committee (TCAC) fees
and to take all actions and execute all necessary documents related to the formation of the non-profit and required for
participation in the LIHTC program.
II. FINANCIAL IMPACT:
No General Funds required. Payments are charged to the project budget.
III. REASONS FOR RECOMMENDATION/BACKGROUND
In September 1993,the Authority applied for the competitive Federal Low Income Housing Tax Credit(LIHTC)
program for the Casa del Rio Senior Housing Development in Antioch, CA. Under the LIHTC program, tax credits
are sold to investorsflimited partners to provide substantial syndication proceeds for selected low income housing
projects. On November 4, 1993,the Authority received notification from the State's Tax Credit Allocation Committee
(TCAC) that Casa del Rio was allocated tax credits. It is anticipated that the project could receive approximately$3
Million in equity from syndicating the allocated tax credits. With these proceeds, we would be able to cover any
additional unforseen cost overruns during construction and to restructure the existing financing to make the project
more financially secure during its operations.
At this point,the Authority must begin repackaging the project financing and project ownership structure in
order to take advantage of these anticipated syndication proceeds. The Authority must establish a non-profit affiliate
corporation of the Authority to act as the managing general partner of the limited partnership and establish the limited
partnership. Through an agreement between the Authority and the Limited Partnership,the Partnership will acquire
and own the project. The Authority will have an option to buy back the project at the end of the 15 year tax credit
compliance period.
CONTINUED ON ATTACHAflR SIGNATURE '
RI�rnN 4ENDATION OF EXECUTIVE DIRECTOR RECON NIE WATION OF BOARD COMNII =
APPROVE OTHER
SIGNATURE(S)
ACTION OF BOARD ON �,4-r o�,..n w o �_ �q 3 APPROVI3D AS RECoMmE SIDED OTHER
VOTE OF COMMISSIONERS
_ZJJNANIMOUS(ABSENT I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT
AYES: NOES: COPY OF AN ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: NI N TIES OF THE BOARD OF COMMISSIONERS ON THE
DATE SHOWN.
,
ATTESTED •L>s-4=A -7 19 9 1
Phil Batchelor,Clerk of the Board of Commissioners
BY DEPUTY
Staff is requesting authorization to establish the non-profit general partner and to establish the governing body
for this non-profit. This entity will be the general partner in a Limited Partnership which will acquire the project
around the time of completion of construction in March 1994.
Additionally,TCAC requires that project sponsors advance performance,allocation,and monitoring fees (to
be ultimately paid by the limited partnership) in order to participate in the LIHTC program. The total TCAC fees
for Casa del Rio are$79,680, of which $26,515 will be refunded to the Authority at the end of construction.
At its regular meeting on November 22,1993,the Advisory Housing Commission recommended that the Board
of Commissioners authorize Housing Authority participation in the LIHTC program for Casa del Rio.
IV. CONSEQUENCE OF NEGATIVE ACTION:
A decision by the Board of Commissioners not to approve these actions will mean that the Housing Authority
will not be able to participate in the LIHTC program and will not be able to restructure the project financing, using
the syndication proceeds,to make the project more financially sound and will not be reimbursed for Housing Authority
funds expended on the project and for its administrative fees.
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