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Home My WebLink AboutMINUTES - 10162007 - C.89 1 COUK TO: BOARD OF SUPERVISORS FROM: Dennis M. Barry, AICP I Community Development Director DATE: October 16, 2007 SUBJECT: Multi-Family Mortgage Revenue Bonds — East Leland Family Apartments, Pittsburg 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 $30 million to finance the construction of the East Leland Family Apartments, Pittsburg. FISCAL IMPACT No General Fund obligation is involved. In the event bonds are issued, the County is reimbursed for costs associated with issuance of bonds. Annual expenses related to monitoring of the Regulatory Agreement are accommodated in the bond issue. The bonds to be issued will be solely secured by a pledge of revenues (rents, reserves, etc.) pledged under the bond documents. No County funds are pledged to secur the bonds CONTINUED ON ATTACHMENT: X YES SIGNATURE: -'U RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMM ATION OF 7RD COMMITTEE _4.,"PROVE OTHER SIGNATURE(S . ACTION OF BOA7N APPROVED AS RECOMMENDED OYHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A f 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 5-7225 orig: Community Development cc: County Administrator ATTESTED Com" BCr County Counsel JOHN CULLEN, CLERK OF THE Housing Authority BOARD OF SUPERVISORS Redevelopment Agency AND THE COUNTY ADMINISTRATOR via: Community Development *Mercy Housing BY c, , DEPUTY D:\JY.ennedy\MF MRB\Leland Family Apts\Sectionl47.Board.Order.10.16.07.doc .A BACKGROUND/REASONS FOR RECOMMENDATIONS East Leland Family Apartments is a 63-unit project located at 2555 East Leland Road, Pittsburg. The ownership entity is Mercy Housing California XXXVIII, a California Limited Partnership.. The development entity is related to Mercy Housing California,an experienced non-profit owner/manager of affordable housing projects. The City of Pittsburg is supportive of the development of the East Leland Family Apartments. The Pittsburg Redevelopment Agency currently owns the site. The Pittsburg Redevelopment Agency and Mercy Housing California have entered into a Disposition and Development Agreement that provides, among other things, financial assistance from Redevelopment Housing Set Aside funds in an amount up to $5.375 million. The County has committed $1.5 million in HOME funding to the project. The proposed financing would implement policy of the City and the County to increase the supply of affordable housing. The site is near Los Medanos College, and near retail services in the area. The 3-acre site is currently vacant. Multifamily development abuts the site to the east and west. The development will include the affordable housing project along with a day care facility for 50 children. An application for Private Activity Bond Authority was submitted to the California Debt Limit Allocation Committee in October 2007. 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. Such actions 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 in December, 2007 or January, 2008. JK:dk D:\JKennedy\MF MRB\Leland Family Apts\Sectionl47.Board.Order.10.16.07.doc THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on October 16, 2007 by the following vote: AYES: SUPERVISORS CIOIA, •%1` := UILKEMA, BONILLA,AND PIEPHO NOES: NONE ' ABSENT; SUPERVISOR CLOVER ABSTAIN: NONE - — - --- - e6UK SUBJECT: Resolution No. 2007/5gD RESOLUTION AUTHORIZING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGAGE PRINCIPAL AMOUNT NOT TO EXCEED$30,000,000 FOR THE FINANCING OF A MULTIFAMILY RESIDENTIAL RENTAL PROJECT GENERALLY KNOWN AS EAST LELAND FAMILY APARTMENTS, PITTSBURG. 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 development of a 63-unit multifamily residential rental development generally known as East Leland Family Apartments and located at 2555 East Leland Road, Pittsburg, California (the "Project"), which will be owned and operated by Mercy Housing California XXXVIII,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 $30,000,000 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. D:\JKennedy\MF MRB\Leland Family Apts\Section147.Resolution.10.16.07.doc 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: October 16, 2007 John Cullen, Clerk of the Board of Supervisors And County Administrator By �. Deputy cc: Community Development RESOLUTION 2007/5qO D:\JKennedy\MF MRB\Leland Family Apts\Section 147.Resolution.10.16.07.doc TO: BOARD OF SUPERVISORS rev2 FROM: Dennis M. Barry, AICP, Director of Community Development DATE: September 25, 2007 rn eve SUBJECT: Inducement Action for Multifamily Projects oil SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS ADOPT resolution conditionally providing for the issuance of revenue bonds to finance multifamily rental housing developments to be owned by the parties listed as the ownership entity of Exhibit A attached. FISCAL IMPACT None. In the event that the bonds are issued, the County is reimbursed for costs incurred in the issuance process. Annual expenses for monitoring of Regulatory Agreement provisions are accommodated in the bond issue. In the event that no bond issue occurs,the County has already been paid an Inducement Fee to offset expenses. The bonds will be solely secured by a pledge of revenues (rents, reserves, etc.)pledged under the bond documents. No County funds are pledged to secure the bonds. BACKGROUND/REASONS FOR RECOMMENDATIONS Contra Costa County, through the Community Development Department, operates a multifamily mortgage bond financing program. The purpose of the program is to increase or preserve the supply of affordable rental housing available to lower income households. The County program may be undertaken within the unincorporated County and within the cities. The City of Pittsburg and the owners of a prospective 63-unit multifamily rental housing development in Pittsburg have requested to participate in the multifamily bond financing program. The proposed development meets the eligibility criteria for bond financing, and the proposed plan of finance appears to be consistent with County policy for this program. A requirement of federal tax law is that the prospective financing be subject to a conditional statement of intent to issue bonds, i.e., an inducement resolution must be adopted by the Board of Supervisors. The inducement action does not obligate the County or the owner without future discretionary actions. CONTINUED ON A ACHMENT: _X_ SIGNATURE: �RECOMMENDATIO F COUNTY ADMINISTRATOR _ OMMEN T OF BOARD COM EE _APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON PROVED AS R MENDED VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: TION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: M{ ES OF THE BOARD OF SUPERVISORS ON TH ATE SHOWN. Source: Jim Kennedy 335-7225 ATTESTED orig: Community Developmen JOHN CULLEN, CLER F THE Cc: County Administr or's Office BOARD OF SUPERVISOR ND County Coun COUNTY ADMINISTRATOR Communit evelopment Redev opment Agency Ho Ing Authority a Community Development BY , DEPUTY City of Pittsburg Mercy Housing California D:UKennedy\MF MRB Uland Family Apts\East.Leland.lnducement.9.25.07.doc f' D EXHIBIT A • Name of Development: East Leland Family Apartments • Maximum Amount of Bond Issue: $30,000,000 • Location of Development: 2555 East Leland Road, Pittsburg (APN #088-152-009) • Number of Units: 63 • Name of Developer/Initial Owner Mercy Housing California XXXVIII, a California Limited Partnership. The partnership will include a to be named tax credit investor. D:UKcnncdy\MF MRH\Leland Family Apts\Gast.Ixland.lnduccmcnt.9.25.07.doc