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HomeMy WebLinkAboutMINUTES - 10092001 - HA.1 .; T, 1 ''. HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS FROM: Robert McEwan, Executive Director DATE: October 9, 2001 SUBJECT: ADOPT RESOLUTION NO. 5011 AUTHORIZING THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO SUPPORT THE FORMATION OF A NONPROFIT HOUSING DEVELOPMENT CORPORATION TO DEVELOP AFFORDABLE HOUSING WITHIN THE COUNTY, APPLICATION TO HUD FOR DISPOSITION OF EXISTING HOUSING UNITS AND RESOLUTION OF INTENT FOR THE FUTURE ISSUANCE OF TAX-EXEMPT OBLIGATIONS SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION 1. RECOMMENDED ACTION: ADOPT Resolution 5011 authorizing the Housing Authority of the County of Contra Costa to support the formation of a nonprofit housing development corporation to enable the development of affordable housing within the County, application to the U.S. Department of Housing and Urban Development for disposition of existing housing at the Los Medanos Pueblo Development (CA 11002) property site, and Resolution of Intent to participate in tax-exempt borrowing. II. FINANCIAL IMPACT: None. Funding for this work is included in the Agency-Wide Budget adopted April 24, 2001. III. REASONS FOR RECOMMENDATION/BACKGROUND Los Medanos Pueblo public housing in Bay Point was built in 1942 and is obsolete, deteriorating, and under-utilizes the site for affordable housing purposes. Replacement with an increase of affordable workforce housing is contemplated using a nonprofit corporation as the developer. The reason for the resolution of intent for tax-exempt borrowing is to provide for inclusion of current expenses should the project proceed on schedule. It is not the intent to incur any tax-exempt borrowing at this time. The Housing Authority's Los Medanos Pueblo public housing in Bay Point is a appropriate site for additional affordable housing for low and moderate-income families. Currently, the 14-acre site has eighty-six, 1 to 4 bedroom apartments built in 1942. As shown in the Strategic Plan component reviewed by the Advisory Housing Commission in March 2001, these apartments have obsolete floor plans, are worn out, energy inefficient, lack the amenities to attract mixed-income tenants, use the land inefficiently, require excessive and costly maintenance, and as a result, have a limited useful life. Modernization costs for the existing units could exceed the cost of new construction and provide no additional housing units. CONTINUED ON ATTACHMENT: YES SIGNATUREyq.,9 RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON October 9 . 2001 APPROVED AS RECOMMENDED XX OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ABSENT None ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. ATTESTED October 9 . 2001 JOHN SWEETEN,CLERK OF THE BOARD OF COMMISSIONERS AND COUNTY ADMINISTRATOR B EPUTY \\I-IOUSAUTI-I_I\USER\iudyhmtz\MSOFFICE\WINWOIZD\BOARD\De Anza Gdns Board Order.doc A plan is being developed to create new mixed-income affordable apartments. Under the existing zoning, up to 180 apartments could be built where there are now only 86 units. Since the Housing Authority owns the property, it has the ability to make a new apartment project work financially. Initial feasibility analysis shows that financing is available and logistics are workable for a new development. The site location and project demographics show that new apartments would be desirable for tax-credit equity investment. De Anza Gardens, the proposed project name, will be self-supporting from scheduled rents with mixed-income tenancy. Low-income families will have reduced rents. Mixed- income tenancy will bring about a more stable community and fit in well with the surrounding community. De Anza Gardens apartments will be operated by a non-profit corporation under a ground lease agreement with the Authority. The Authority used a similar nonprofit corporation and tax credit equity investment to develop the very successful 82 unit Casa del Rio Senior Apartments in Antioch in 1994. A meeting of the Los Medanos Pueblo Public Housing Resident Council was held on September 6'h at which they were informed of the proposed of new development. It was enthusiastically received and many questions concerning relocation and returning to the new development were satisfactorily answered. There was general agreement that the existing units are in need of replacement. Further meetings will be held to inform residents so they can assist in the development of the schematic plans and be knowledgeable about the project processes.. The Housing Authority has hired an architect, engineers, financial and legal advisors to guide the project design, financing, and legal arrangements. At its September 17, 2001 regular meeting, the Advisory Housing Commission recommended the steps herein requested be taken by staff and that their recommendation be forwarded to the Board of Commissioners. IV. CONSEQUENCES OF NEGATIVE ACTION: Should the Board of Commissioners elect not to adopt Resolution No. 5011 approving the formation of a nonprofit corporation and feasibility work for additional affordable housing, the Housing Authority will not be able to plan replacement of obsolete and deteriorating housing at the Los Medanos Pueblo site in Bay Point. \\I-IOUSAUTI-I_l\USER\judyhmtz\MSOFFICE\WINWORD\BOARD\De Anza Gdns Board Order.docbo-ins THE BOARD OF COMMISSIONERS HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA RESOLUTION NO.5011 AUTHORIZING THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO SUPPORT THE FORMATION OF A NONPROFIT HOUSING DEVELOPMENT CORPORATION, DISPOSITION OF EXISTING PUBLIC HOUSING UNITS,AND DECLARING ITS OFFICIAL INTENT TO ISSUE IN THE FUTURE A TAX EXEMPT OBLIGATION WHEREAS, the Housing Authority of the County of Contra Costa(the "HACCC")desires to support the formation of a nonprofit housing development corporation (the "Corporation")to develop affordable housing projects within the County; and WHEREAS, formation of the Corporation is necessary and desirable to take advantage of financing available to non profit housing developers and to qualify such developments for tax exemptions; and WHEREAS, the HACCC desires to provide funds to the Corporation to assist in its formation and applications for tax exemptions, and hiring by the Corporation of certain consultants (the "Consultants")to provide technical, legal, financial, development consulting an other services to the Corporation; and WHEREAS, the HACCC desires to appoint a portion of the board of the directors of the Corporation and to have the rest of the directors be independent and self-perpetuating; and WHEREAS, HACCC desires that the funds advanced by HACCC to assist in the formation and tax exemption of the Corporation be reimbursed to HACCC upon the Corporation securing financing; and WHEREAS, the HACCC desires to dispose of eighty-six(86) units of housing in the Los Medanos Pueblo Public Housing Project, HUD project number CA011002 (the "Public Housing Units") in anticipation of the construction by the Corporation of a new housing development on the site; and WHEREAS, the HACCC desires to expend funds necessary to obtain HUD approval of the disposition of the Public Housing Units; and WHEREAS,the HACCC has determined that it is in the best interest of the HACCC to aid in the financing of certain capital expenditures on the Project by the Corporation; and WHEREAS,the HACCC currently intends and reasonably expects to issue a tax-exempt obligation and loan the proceeds to the Corporation, in an amount not to exceed $25,000,000,to finance such capital expenditures, including an amount not to exceed $25,000,000, which will be used by the Corporation to reimburse itself for the portion of such capital expenditures incurred or to be incurred subsequent to the date which is 60 days prior to the date hereof but before the issuance of such obligations, and within 18 months of the dated of such capital expenditures or the placing in service of the Project as hereinafter defined, whichever is later(but in no event more than 3 years after the date of the original expenditure of such moneys); and WHEREAS,the HACCC hereby desires to declare its official intent, pursuant to §1.103-8(a)(5) and 26 C.F.R. §1.150-2,to issue a tax-exempt obligation the proceeds of which shall be loaned to the Corporation, and a portion of which shall be used by the Corporation to reimburse certain capital expenditures by the Corporation prior to issuance of the HACCC's obligations. NOW THEREFORE BE IT RESOLVED,that the HACCC is authorized to support and assist in the formation of the Corporation to develop affordable housing within the County; BE IT FURTHER RESOLVED,that HACCC shall provide funds required or deemed necessary or desirable to form the Corporation and shall pay filing fees in an amount not to exceed $5,000 to be paid to the Secretary of State for formation of the Corporation and to the Internal Revenue Service and the Franchise Tax Board to apply for tax exempt status; BE IT FURTHER.RESOLVED,that the Executive Director of HACCC is authorized to(l) advance funds to the Consultants to perform necessary legal, advisory, development consulting and other services, file any and all agreements and documents required or deemed necessary or desirable to form .the Corporation, apply for tax exemptions and fulfill the purposes of this resolution; and(2)cause the required fees to be paid to the public agencies listed above. \\HOUSAUTTI_l\USER\judylimtz\MSOI-'FICE\WINWORD\BOARD\De Ann Gardens Resolution.doc BE IT FURTHER RESOLVED, that the HACCC shall appoint a portion of the board of directors of the Corporation not to exceed thirty three percent(33%); BE IT FURTHER RESOLVED,that the HACCC shall be repaid by the Corporation for all funds advanced by the HACCC for the Corporation's formation and applications for tax exemptions, to the extent the Corporation is able to obtain funds to repay the HACCC; BE IT FURTHER RESOLVED, that the HACCC expresses its support of the request to dispose of the Public Housing Units with its accompanying relocation plan; BE IT FURTHER RESOLVED,that the Executive Director is authorized to execute documents and provide certification and submit to HUD for approval a request to dispose of the Public Housing Units; and BE IT FURTHER RESOLVED, that the Executive Director is authorized to expend funds necessary to obtain HUD approval of the disposition of the Public Housing Units. BE IT FURTHER RESOLVED, that the HACCC presently and reasonably expects to aid the Corporation in the financing of the Project; BE IT FURTHER RESOLVED, the all of the capital expenditures of the Corporation covered by this Resolution were made not earlier than 60 days prior to the date of this Resolution; BE IT FURTHER RESOLVED, that the HACCC presently intends and reasonably expects to participate in tax-exempt borrowing not to exceed $25,000,000 and to loan the proceeds of such borrowing to the Corporation with 18 months of the date of expenditure of the money on the Project or the date upon which the related Project is place in service or abandoned,whichever is late(but in no event more than 3 years after the date of the original expenditure of such moneys), and the Corporation shall allocate an amount not to exceed $25,000,000 of the proceed thereof to reimburse itself for capital expenditure made in connection with the Project prior to the issuance of HACCC's obligations. NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the County of Contra Costa that this resolution shall take effect immediately. PASSED AND ADOPTED ON Odtober 9, 2001 by the following vote of the Commissioners. AYES: Gioia, Uilkema, Gerber, DeSaulnier, Glover and Medina NOES: None ABSENT:None ABSTAIN:None, I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON THE MINUTES OF THE BOARD OF COMMISSIONERS ON THE DATE SHOWN. ATTESTED October 9, 2001 JOHN SWEETEN, CLERK OF THE BOARD OF COMMISSIONERS AND COUNTY ADMINISTRATOR BY \\HOIJSAUn1_1\USF.R\judylimtz\MSOFFICF\WINWORD\BOARD\De Anza Gardens Resolution.doc