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HomeMy WebLinkAboutMINUTES - 12022003 - C167 Contra Costa County TO: BOARD OF SUPERVISORS FROM: Bennis M. Barry, A1CP Community Development Director DATE: December 2, 2003 SUBJECT: Chesley Mutual Housing Financing, Richmond SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ADOPT Resolution authorizing the issuance of tax-exempt bonds for the construction of the Chesley Mutual Housing Apartments, Richmond and actions related thereto. FISCAL IMPACT None. The bonds are entirely secured by a revenue pledge and reserve accounts. The County is compensated for its cost of issuance and annually for monitoring expenses. CONTINUED ON ATTACHMENT: X YES SIGNATURE: ,.--RECOM'MEN'DATION OF COUNTY ADMINISTRATOR RECO ENDATION gr BOARS COMMITTEE ~'APPROVE OTHER f ' SIGNATURE(S): C ACTION OF BOA N APPROVED AS RECOMMENDED OTHER s� ll VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A -` UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Contact: Jim Kennedy 3-1255 orifi: Community Development ,,} r cc: County Administrator ATTESTED - - ' x " County Counsel JOHN SWEETEN, CLERK OF THE BOARD OF SUPERVISORS Redevelopment Agency AND THE COUNTY ADMINISTRATOR via: Community Development * Eden Housing BY - , DEPUTY Quint& Thimmig * City of Richmond CHDC of No. Richmond \\fs-cd\users$\lnoble\Personal\Board Orders and Greenies\B©ARD.chesley.12.03.doc BACKGROUND/REASONS FOR RECOMMENDATIONS On June 24, 2003 the Board of Supervisors approved an inducement Resolution conditionally stating its intent to issue multi-family mortgage revenue bands for the construction of the Chesley Mutual Housing Apartments, Richmond. Since that time the County has received the necessary authority from the California Debt Limit Allocation Committee to issue private activity bonds for the project. The property is to be owned by Chesley Avenue,L.P.,a California limited partnership. The Chesley Street Apartments are a 30-unit project located at 802 Chesley Avenue,Richmond. The project is a new construction affordable housing project with a plan of finance as set forth below: Construction Period Financing: Tax Exempt Bond Loan $ 5,574,000 City Redevelopment/HOME Funds $ 3,594,217 Federal Home Loan Bank $ 180,000 Developer Equity& Deferred Developer Fees $ 704,598 $ 9,872,8'15 Permanent Financing: Tax Exempt Bond Loan $ 1,360,000 City Redevelopment Funds $4,741,492 City/HOME loan $ 223,500 Federal Home loan Bank $ 180,000 Deferred Developer Fee $ 361,469 Tax Credit Equity investor $ 3,006,354 $ 9,872,815 The proposed financing is consistent with County and the City of Richmond's policies to increase the supply of affordable housing. The resolution before you provides the necessary authority to sell such bonds. The bond sale resolution authorizes a number of actions, a summary of which is provided as Attachment A. The following is additional background on the project and the financing. The Bond Regulatory Agreement as well as Regulatory Agreements for the other financing sources will result in the following distribution of affordable units for fifty-five years: Timet Group No of Units Very low Income 9 @ 50%AMI Low Income 21 60%AMI The proposed financing and the credentials of Chesley Avenue Apartments, L.P., a California limited partnership have been thoroughly evaluated by staff. Eden Housing in conjunction with Community Housing Development Corporation(CHDC)of North Richmond is the non-profit developer of the project. W ith t he C ounty a nd/or i is R edevelopment Agency, Eden and CHDC has completed Parkway Estates, North Richmond; Community Heritage Senior Housing, North Richmond;Victoria Family Apartments, Hercules;Virginia Lane Apartments, Concord; Kirker Court, Clayton and West Rivertown, Antioch. The bonds to be issued will finance the development of the Chesley Mutual Apartments. The bonds will be secured by a pledge of rents and reserve accounts. The bonds will be sold on a private placement basis. The bonds will be unrated. The proposed issuance of unrated bonds complies with the County's adopted polices for the issuance such bonds, including independent financial review of the real estate, large denomination bonds only, sophisticated investor requirements,and continuing investor requirements. The bonds are to be issued in two series totaling $5,574,000. No pledge of County revenues is involved in securing the bonds. \\rs-cd\users$\!noble\Personal\Beard orders and Greenies\Bo .chesley.12.03.doc ATTACHMENT"A The Bond Sale Resolution authorizes a number of actions, a summary of which follows: 1. Authorizes the issuance of revenue bonds in an amount not to exceed $5,574,000; 2. Approves the form of Master Pledge and Assignment between the County, and U.S. Sank National Association as Agent and Pledge Holder; 3. Approves the form of Master Agency between the County, and U.S. Sank National Association; 4. Approves form of Regulatory Agreements between the County,and Chesley Avenue, L.P., and the Borrower; 5. Designates Quint & Thimmig, A Professional.Law Corporation, as Bond Counsel; 6. Authorizes the Chair, Vice-Chair, County Administrator, Director of Community Development, Deputy Director-Redevelopment to execute documents and to take such other actions necessary to complete the sale of bonds, and actions related thereto. \\fs-cd\users$\lnoble\Personal\Board Orders and Greenies\BOARD.chesley.12.03.doc RESOLUTION NO. 2003/733 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF COUNTY OF CONTRA COSTA MULTIFAMILY HOUSING REVENUE BONDS (CHESLEY APARTMENTS) 2443 SERIES E AND 2443 SERIES F, AND APPROVING=, AND AUTHORIZINGTHE EXECUTION AND DELIVERY OF OTHER RELATED DOCUMENTS AND APPROVING OTHER RELATED ACTIONS IN CONNECTION THEREWITH. WHEREAS, the County of Contra Costa (the "County") is authorized pursuant to Chapter 7 of Part 5 of Division 31 of the Health and Safety Code of the State of California (the "Act") to issue revenue bonds to provide funds to finance multifamily rental housing facilities; and WHEREAS, Chesley Avenue Limited Partnership, a California limited partnership (the "Developer") has requested that the County issue and sell revenue bonds (the "Bonds") to assist in the financing of the acquisition and construction of a 29 unit (plus one manager's unit) multifamily residential rental housing development(the"Project")to be located at 802 Chesley Avenue in Richmond, California; and WHEREAS, the Deputy Director-Redevelopment of the Community Development Department of the County(the "Deputy Director-Redevelopment")held a public hearing on the proposed issuance of the Bonds and the financing, ownership and operation of the Project, as required under the provisions of the Internal Revenue Code of 1986, as amended (the"Code") applicable to tax-exempt bonds, following published notice of such hearing, and has communicated to the Board of Supervisors all written and oral testimony received at the hearing; and WHEREAS, on August 5, 2003, the Board of Supervisors adopted Resolution No. 2003/493 authorizing the issuance of the Bonds for purposes of Section 147(f)of the Code; and WHEREAS, there have been prepared various documents with respect to the issuance of the Bonds, copies of which are on file with the Deputy Director — Redevelopment, and this Board of Supervisors now desires to approve the issuance of the Bonds and the execution and delivery of such documents by the County;and WHEREAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in connection with the issuance of the Bonds as contemplated by this Resolution and the documents referred to herein exist, have happened and have been performed in due time, form and manner as required by the laws of the State of California, including the Act. NOW, THEREFORE,BE IT RESOLVED by the Board of Supervisors of the County of Contra Costa, as follows: 1. The County hereby finds and declares that the above recitals are true and correct. 2. Pursuant to the Act and the Indenture (hereinafter defined), two series of revenue bonds of the County designated as "County of Contra Costa Multifamily Housing Revenue Bonds (Chesley Apartments), 2003 Series E" and "County of Contra Costa Multifamily Housing Revenue Bonds (Chesley Apartments), 2003 Series F" in an aggregate principal amount of not to exceed $5,574,000 (collectively, the "Bonds"), are hereby authorized to be issued. The Bonds shall be executed by the manual or facsimile signature of the Chair of the Board of Supervisors (the"Chair"),the facsimile of the seal of the County shall be reproduced thereon and attested by the manual or facsimile signature of the County Administrator and Clerk of the Board of Supervisors (the"County Administrator"), in the forms set forth in and otherwise in accordance with the Indenture. 3. The indenture relating to the Bonds (the "Indenture") by and between the County and U.S. Bank National Association, as Bond owner Representative (the "Bond owner Representative"), in the form on file with the Deputy Director—Redevelopment,is hereby approved. Any one of the Chair of \\fs-cd\usersS\lnob#etPemna]\Documents\Reso.chesicy.t f.03.doe the Board of Supervisors, the Vice-Chair of the Board of Supervisors, the County Administrator, the Director of Community Development and the Deputy Director-Redevelopment (collectively, the "Designated Officers") is hereby authorized and directed, for and in the name and on behalf of the County, to execute and deliver the Indenture in said form, together with such, additions thereto or changes therein as are recommended or approved by the Designated Officer executing the Indenture upon consultation with the Deputy Director-Redevelopment and Bond Counsel to the County (including such additions or changes as are necessary or advisable in accordance with Section 8 hereof, provided that no additions or changes shall authorize an aggregate principal amount of the Bonds in excess of the amount set forth in Section 2 above), the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Indenture by the County. The principal amount of the Bonds of each series, and the date,maturity dates, interest rate or rates, privileges, manner of execution, place of payment, terms of redemption and other terms of the Bonds shall be as provided in the Indenture as finally executed. 4. The loan agreement relating to the Bonds (the "Loan Agreement") among the County, the Bond owner Representative and the Developer, in the formm on file with the Deputy Director- Redevelopment, is hereby approved. Any one of the Designated Officers is hereby authorized and directed to execute and deliver the Loan Agreement in said forin, together with such additions thereto or changes therein as are recommended or approved by the Designated Officer executing the Loan Agreement upon consultation with the Deputy Director-Redevelopment and Bond Counsel to the County (including such additions or changes as are necessary or advisable in accordance with Section 8 hereof), the approval of such changes to be conclusively evidenced by the execution and delivery of the Loan Agreement by the County. 5. The regulatory agreement and declaration of restrictive covenants relating to the Bonds, among the County, the Bond owner Representative and the Developer (the "Regulatory Agreement"), in the form on file with the Deputy Director-Redevelopment, is hereby approved. Any one of the Designated Officers is hereby authorized and directed, for and in the name and on behalf of the County, to execute and deliver the Regulatory Agreement in said form, together with such additions thereto or changes therein as are recommended or approved by the Designated Officer executing the Regulatory Agreement upon consultation with the Deputy Director-Redevelopment and Bond Counsel to the County (including such additions or changes as are necessary or advisable in accordance with Section 8 hereof), the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Regulatory Agreement by the County. b. The Bonds, when executed, shall be delivered to the Bond owner Representative for authentication. The Bond owner Representative is hereby requested and directed to authenticate the Bonds by executing the Bond owner Representative's certificate of authentication and registration appearing thereon, and to deliver the Bonds, when duly executed and authenticated, to the purchaser thereof in accordance with written instructions executed on behalf of the County by any one of the Designated Officers of the County, which instructions said officers are hereby authorized and directed, for and in the name and behalf of the County, to execute and deliver to the Bond owner Representative. Such instructions shall provide for the delivery of the Bonds to the purchaser thereof upon payment of the purchase price therefore. T The law firm of Quint & Thimmig LLP is hereby designated as Bond Counsel to the County for the Bonds. The fees and expenses of such firm for matters related to the Bonds shall be payable solely from the proceeds of the Bonds or contributions by the Developer. 8. All actions heretofore taken by the officers and agents of the County with respect to the sale and issuance of the Bonds are hereby approved, confirmed and ratified,and the proper officers of the County, including the Designated Officers, are hereby authorized and directed, for and in the name and on behalf of the County, to do any and all things and take any and all actions and execute any and all certificates, agreements and other documents (including but not limited to any assignment of the Notes, as defined in the Indenture, and of any subordination or other agreements referenced in the Loan Agreement), which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with this Resolution, including but not limited to any certificates, agreements and other documents described in the Indenture, the Loan Agreement or -2- C the Regulatory Agreement, or otherwise necessary to issue the Bonds and consummate the transactions contemplated by the documents approved by this Resolution. 9. This Resolution shalt take effect immediately upon its adoption. PASSED AND ADOPTED this 2"d day of December,2003 by the fallowing vote: AYES: SUPERVISORS GIOIA, UILKEMA, GREENBERG, GLOVER AND DESAULNIER NOES: NONE ABSTAINING: NONE ABSENT: NONE a ATTEST: County Administrator and Clerk of the Board of Supervisors �r ByI7jt clerk ' -~ _