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HomeMy WebLinkAboutMINUTES - 11042003 - C104 TO: BOARD OF SUPERVISORS FROM: Dennis M. Barry, AICP Community Development Director DATE: November 4, 2003 SUBJECT: Multi-Family Mortgage Revenue Bonds — Lakeside Apartments Project, Concord 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 $23 million to finance the acquisition/rehabilitation of the Lakeside Apartments, Concord. 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. ECOMMENDATION OF COUNTY ADMINISTRATOR ECOM DATION OF OARD COMMITTEE ,.,-APPROVE OTHER SIGNATURE(S): ACTION OF BOA N �Zo,eldg---­APPROVED AS RECOMMENDED 2e-e�ffl�. 11b 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 cc: County Administrator ATTESTED County Counsel JOHN SWEETEN, CLERK OF THE Housing Authority BOARD OF SUPERVISORS Redevelopment Agency AND THE COUNTY ADMINISTRATOR via: Community Development * Resources for Community Development B Y DEPUTY mon..am.. * City of Concord H:\Personal\Board Orders and Greenies\BOARD.lakeside-10.03-doc A .. BACKGROUND/REASONS FOR RECOMMENDATIONS Lakeside Apartments is a 124-unit project located at 1897 Oakmead Drive,Concord. The property was built in 1961 and contains 59 one-bedroom,53 two-bedroom units,and 12 three-bedroom units. The ownership entity is to be a limited partnership, the managing General Partner of which will be Resources for Community Development (RCD). Resources for Community Development is an Alameda County based non-profit developer who has developed/rehabilitated over 500 units in the Bay Area over the last 5 years, utilizing tax- exempt bonds and/or Low Income Housing Tax Credits. They recently completed the acquisition/renovation of the Camara Circle Apartments in Concord,and Pinecrest Apartments in Antioch. They have also completed new construction projects recently in Pinole (Alvarado Court) and Concord (Bonifacio Place), and have undertaken development of the Bay View Apartments in Bay Point. The proposed acquisition/rehabilitation of the Lakeside Apartments project would result in rental housing opportunities for working families with very-low and low incomes. The average affordability will be 52% of Area Median Income(approximately$41,650 per year). An application for Private Activity Bond Authority will be submitted to the California Debt Limit Allocation Committee late in 2003, or in 2004. If awarded the authority, the County would proceed to issue the multi- family bonds in 2004. 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. County HOME funds are being considered for inclusion in the plan of finance in order to secure very low-income units. The City of Concord, through its Redevelopment Agency, has committed over $3.4 million to the transaction. The financing would result in$27,800/unit in renovation and upgrades including: correction of code deficiencies, roof replacement,replacement of floor coverings,interior painting,appliances,fixtures,heating/air conditioning improvements, and deck/balcony repair replacement. 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 Board is not the Bond Sale Resolution nor an allocation of HOME funds. Such actions would come back to the Board after receipt of an allocation from the State for Private Activity Bond Authority, and after submittal/review/recommendation for HOME funds. Expected timing for a Bond Sale Resolution would be in the first half of 2004. JK:In H:\Personal\Board Orders and Greenies\BOARD.lakeside.10.03.doc lley dy THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on November 4, 2003 by the following vote: ,.. , , AYES: SUPERVISORS GIOIA UIZKEMA, GREENBERG, GLOVER AND '+ .- DESAULNIER .r NOES: NONE r t ABSENT: NONE c'o•:. = ,,,r•`` ABSTAIN: NONE SUBJECT: Resolution No. 2003/ 681 RESOLUTION AUTHORIZING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS) IN AN AGGREGAGE PRINCIPAL AMOUNT NOT TO EXCEED$23,000,000 FOR THE FINANCING) OF A MULTIFAMILY RESIDENTIAL RENTAL PROJECT GENERALLY KNOWN AS LAKESIDE APARTMENTS, CONCORD). It is hereby RESOLVED by the Board that: 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 124-unit multifamily residential rental development generally known as Lakeside Apartments and located at 1897 Oakmead Drive, Concord, California (the "Project'), which will be owned and operated by Lakeside Apartments, L.P., a limited partnership with Resources for Community Development as Managing General Partner, 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 $23,000,000 aggregate principal amount of its multifamily housing 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 1988 (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. 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. Personalldocu mentslresolution.lakeside.10.03 2003/681 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. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown ATTESTED: November 4, 2003 John sweeten, Jerk of the Board of Supervisors And County ministrator :;000,0� By Deputy cc: Community Development RESOLUTION 2003/ 681 Personandocuments\resolution.lakeside.10.03 THE-BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA illIIIIIIIIIIIIIIIIII, Adopted this Resolution on November 4, 2003 by the following vote: ,+$ ,1 111111111111111 AYES: SUPERVISORS GIOIA, UILKEMA, GREENBERG., GLOVER AND DESAULNIER NOES: NONE ABSENT: NONE OU ABSTAIN: -NONE" SUBJECT: Resolution No. 2003/ 681 RESOLUTION AUTHORIZING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS) IN AN AGGREGAGE PRINCIPAL AMOUNT NOT TO EXCEED$23,000,000 FOR THE FINANCING) OF A MULTIFAMILY RESIDENTIAL RENTAL PROJECT GENERALLY KNOWN AS LAKESIDE APARTMENTS, CONCORD). It is hereby RESOLVED by the Board that: 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 124-unit multifamily residential rental development generally known as Lakeside Apartments and located at 1897 Oakmead Drive, Concord, California (the "Project"), which will be owned and operated by Lakeside Apartments, L.P., a limited partnership with Resources for Community Development as Managing General Partner, 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 $23,000,000 aggregate principal amount of its multifamily housing 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. 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. Personal\documents\resolution.lakeside.10.03 2003/681 a 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. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown ATTESTED: November 4, 2003 John Sweeten, Clerk of the Board of Supervisors And Coun Administrator Beputy cc: Community Development RESOLUT 2003/ 681 Personal\documents\resolution.lakeside.10.03