The URL can be used to link to this page

Home My WebLink AboutMINUTES - 02252003 - C124 TO: BOARD OF SUPERVISORS FROM: Dennis M. Barry, AICP Community Development Director DATE: February 25, 2003 SUBJECT: Multi-Family Mortgage Revenue Bonds — Hidden Cove Apartments Project, Bay Poiret. SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ADOPT Resolution authorizing issuance of Multi-Family Housing Revenue Bonds in an amount not to exceed $10 million to finance the acquisition/rehabilitation of the Hidden Cove Apartments, Bay Point. FISCAL IMPACT No General Fund obligation is involved. County costs associated with issuance of bonds are covered, as are annual administrative costs. CONTINUED ON ATTACHMENT: X YES SIGNATURE: 1t1' ,--RECOMMENDATION OF COUNTY ADMINISTRATOR ECOMM ATION OF B ARD COMMITTEE _,�,APPROVE OTHER SIGNATURE(S): v-- ACTION OF BOAlko ON February 25. 2003 APPROVED AS REC+C3MMENDEDx OTHER VOTE OF SUPERVISORS 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 SUPERVISORS ON THE DATE SHOWN. Contact: Jim Kennedy 3-1255 orifi: Community Development cc: County Administrator ATTESTED February 25, 2003 County Counsel JOHN SWEETEN, CLERIC OF THE Housing Authority BOARD OF SUPERVISORS Redevelopment Agency AND THE COUNTY ADMINISTRATOR via: Community Development Steadfast Properties BY , DEPUTY Newman & Associates Orrick Herrington Goldfarb & Lipman W: \Personal\BoardOrders\BOARD.hiddencove.2 . 03 BACKGROUND/REASONS FOR RECOMMENDATIONS Hidden Cave Apartments is a 88-unit project located at 2901 Mary Ann Lane in the unincorporated Bay Point community. The property was built in the mid-1980's and contains 28 one-bedroom and 80 two-bedroom units. The ownership entity is Steadfast Hidden Cove is a limited partnership. Steadfast Properties is a Southern California based developer who has developed/rehabilitated over 1,200 units in California over the last 5 years,utilizing tax-exempt bonds and/or Low Income Housing Tax Credits. They recently completed the acquisition/renovation of the Hilltop Commons Apartments in West County using County issued tax exempt bonds. The proposed acquisition/rehabilitation of the Hidden Cove Apartments project would result in 100%of the units being reserved as affordable units for 55 years. Twenty percent(20%)of the affordable units would be reserved for very low income households earning 50%of the area median income or less,and eighty percent (80%)of the affordable units would be reserved for low income households earning 60%of the area median income or less. Project rents are expected to be: Rent Rana-! Very Low Income $698.00--838.00 Low Income $838.00 1,006.00 "Variable based on household size and unit size. An application for Private Activity Bond Authority has been submitted to the California Debt Limit Allocation Committee. If awarded the authority in March the County would proceed to issue the multi-family bonds By June 2003. The proposed plan of finance would involve the issuance of unenhanced and unrated tax- exempt bonds which adhere to the adopted County policies for such bonds. The financing would result in $10,000/unit in renovation and upgrades including: painting,appliances,fixtures,and heating improvements. Energy efficiency is a key theme of the renovation program. The recommended action is the adoption of a Resolution by the Board,as the legislative body of the County, authorizing the issuance of bonds. The Board's action acknowledges that a public hearing has been held by the Deputy Director— Redevelopment as required by Section 147(f) of the Internal Revenue Code. The recommended action of the Beard is not the Bond Sale Resolution. Such action would come back to the Board after receipt of an allocation from the State for Private Activity Bond Authority. Expected timing for a Bond Sale Resolution would be spring, 2003. JK:ln W. \Personal\BoardOrders\BOARD.hiddencove. 2 . 03 RESOLUTION NO. 2003/138 OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA, CALIFORNIA RESOLUTION AUTHORIZING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGAGE PRINCIPAL AMOUNT NOT TO EXCEED $10,0100,000 FOR THE FINANCING OF A MULTIFAMILY RESIDENTIAL RENTAL PROJECT GENERALLY KNOWN AS HIDDEN COVE APARTMENTS. WHEREAS, the County of Contra Costa (the "County") is authorized to issue multifamily housing revenue bonds pursuant to Section 52075 and following,of the California Health and Safety Code; WHEREAS, the County desires to participate in financing the acquisition and rehabilitation of a 88-unit multifamily residential rental development generally known as Hidden Cove Apartments and located at 2901 Mary Ann Lane, Say Point, California (the "Project"), which will be owned and operated by Steadfast Hidden Cove LP, a California limited partnership, or an entity related thereto(collectively,the'Borrower'); WHEREAS, to assist in financing the Project, the County intends to sell and issue not to exceed $10,000,000 aggregate principal amount of its multifamilyhousing revenue bonds (the "Bonds") and to loan the proceeds thereof to the Borrower, thereby reducing the cost of the Project and assisting in providing housing for low income persons; WHEREAS, pursuant to Section 147(f) of the. Internal Revenue Code of 1986 (the "Code"), the financing of the Project and the issuance of the Bonds by the County must be approved by the"applicable representative of the County"(as defined in the Code); WHEREAS, the Board of Supervisors of the County of Contra Costa (the "Board"), is the elected legislative body of the County and is one of the applicable elected representatives required to approve the financing of the Project and the Bonds under Section 147(f)of the Code; WHEREAS, pursuant to Section 147(f) of the Code, the Deputy Director - Redevelopment has, following notice duly given, held a public hearing regarding the financing of the Project and the issuance of the Bonds at which no public comments were made; and WHEREAS, the Board desires to approve the financing and the issuance of the Bonds; NOW, THEREFORE, BE IT RESOLVED, by the Board of Supervisors of the County of Contra Costa,as follows. Section 1, The Board hereby specifically finds and declares that the statements, findings and determinations of the County set forth above' are true and correct, personal\documents\reso lution.hiddencove.hous.bond,2,03 Section 2. For purposes of Section 147(f) of the Code, the Board hereby authorizes the issuance of Bonds by the County to finance the Project. Section 3. The adoption of this Resolution does not (1) relieve or exempt the Borrower from obtaining any other permits or approvals that are required by, or determined to be necessary from, the County in connection with the Project, nor (2) obligate the Country to incur any obligation or provide financial assistance with respect to the Bonds or the Project. Section 4. All actions heretofore taken by the officers and agents of the County with respect to the financing of the Project and the sale and issuance of Bonds are hereby approved, ratified and confirmed, and any authorized officer of the County is 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 and deliver any an all certificates, agreements and other documents, which any such officer may deem necessary or advisable in order to effectuate the purposes of this Resolution. Section 5. This Resolution shall take effect upon its adoption. PASSED AND ADOPTED THIS 25th day of February, 2003. AYES: Supervisors Gioia, Uilkema, Gerber, Glover and DeSaulnier NOES: None ABSENT: None Chair of the Board of Supervisors ATTEST: John Sweeten, County Administrator and Clerk of the Board of Supervisors Deputy Clerk cc: Community Development personal\doeuments\resolution.h iddencove.hous.bond.2.03