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Home My WebLink AboutRESOLUTIONS - 01012000 - 2000-218 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on Mav 2. 2000 by the fallowing vote: AYES: SUPERVISORS GIOIA, UILKEMA, DESAULNIER and GERBER NOES: NONE ABSENT: SUPERVISOR CANCIAMILLA ABSTAIN: NONE RESOLUTION NO.2000/218 SUBJECT: Resolution of the County of Contra) Costa Conditionally Providing for } the Issuance of Revenue Bonds to } Finance the Construction of } Multi-Family Housing Developments ) ) WHEREAS, the County of Contra Costa (the "County") is a legal subdivision and body corporate and politic of the State of California, duly organized and existing under the Constitution and laws of the State of California; and WHEREAS, the Board of Supervisors of the County, after careful study and consideration, has determined that there is a shortage of safe and sanitary housing within the County, and that it is in the best interest of the residents of the County and in furtherance of the health, safety and welfare of the public for the County to assist in the financing of housing developments; and WHEREAS, pursuant to Division 31 of the Health and Safety Code of the State of California, and particularly Chapter 7 of Part 5 thereof (the "Act") , the County is empowered to issue and sell bonds for the purpose of making mortgage loans or otherwise providing funds to finance the development of multi-family rental housing, including units for lower-income households and very-low income households, and WHEREAS, the Board of Supervisors has now determined to provide financing for the multi-family developments identified in Exhibit A hereto (the "Developments") , and in order to finance the Developments the County intends to issue, at one time -or from time to time, revenue bonds pursuant to the Act; NOW, THEREFORE, BE IT RESOLVED, by the Board of Supervisors of the County of Contra Costa as follows: 1 . The Board of Supervisors hereby determines that it is necessary and desirable to provide construction and permanent financing for the Developments pursuant to the Act or other appropriate authority, by the issuance of Mortgage Revenue Bonds (the "Bonds" ) , in an aggregate principal amount not to exceed the amounts set forth in Exhibit A, subject to the conditions that with RESOLUTION NO. 2000/215 4 respect to any development to be financed, (1) the County by resolution shall have first agreed to acceptable terms and conditions for the bonds (and for the sale and delivery thereof) , and for an indenture and all other agreements with respect to any of the foregoing, (ii) all requisite governmental approvals shall have first been obtained, (iii ) the bonds shall be payable solely from revenues received with respect to loans or other investments made with the proceeds of such bonds, and neither the full faith nor the credit of the County shall be pledged to the payment of the principal of, or interest on any such bond; (iv) the County and the respective developer/initial owner thereof identified on Exhibit A hereto, or any partnership, corporation or other entity to be formed by such developer/initial owner or by any principal thereof, or any successor to the interests thereof approved by the County (in any such case, the "Owner" ) , shall have entered into a preliminary agreement concerning the financing, in substantially the form attached thereto as Exhibit B, with such additions or deletions as are considered necessary or appropriate by the County Director of Community Development or the County Administrator, and the Owner, and the Chair of the Board, the County Administrator, and the Director of Community Development are hereby authorized to execute said preliminary agreement for in the name and on behalf of the County; (v) any occupancy and other requirements of the Internal Revenue Code of 1986, as amen ed (the "Code" ) are satisfied with respect to bonds, the interest on which is intended to be excluded from gross income for federal tax purposes; (vi) any occupancy and other requirements of the Act are satisfied; and (vii) any occupancy and other requirements of the County applicable to such financing are satisfied. 2 . The Chair of the Board of Supervisors, the County Administrator and ex-officio Clerk of the Board, the County Director of Community Development, County Counsel and their deputies and other officers of the County are hereby authorized and directed to take whatever further action consistent with this resolution may be deemed reasonable and desirable, includina participating in the preparation of any resolution, indenture, bond purchase agreement, official statement and/or other documents or agreements necessary or appropriate to effect such financing, and any actions necessary to obtain an allocation of the volume cap for the State of California to the extent required by the Code for the issuance of bonds, the interest on which is intended to be excluded from gross income for federal tax purposes. 3. It is the purpose and intent of the County that this Resolution constitute official action toward the issuance of obligations by the County to finance the Developments in accordance with Sections 1 . 103-8 (a) (5) (iii) , and 1 . 150-2 of the Regulations of the United States Department of the Treasury, or any successor regulation promulgated under the Code. The County hereby declares its official -intent to use proceeds of the Bonds to reimburse the Owner for certain expenditures made prior to the issuance of the Bonds. 4 . This Resolution shall take effect immediately upon its passage and 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 tjjejdate shown. ATTESTED: AV1 Phil Batc r.C'ler•ofthe Board Orig. Dept: Redevelopment Agency of Supervisors and County Administrator Contact: By eput� cc: Director of Community D lopment County Counsel County Administrator JK:1h/c:bosres.sh1 RESOLUTION NO. 2000121$ EXRMrr A Name of Maximum Location Number of Name of Development Amount of Units _ Developer/ of Bond Develo2ent, Initial Issue Owner. Pinecrest $2.0 million 1949 & 1945 24 A limited partner- Apts Cavallo, Rd. , ship to be formed Antioch with Resources for Community Development as managing General Partner Carrara Circle $4.0 million 2501, 2513, 2525, 52 A limited partner- 2530, 2531, 2536, ship to be formed 2537, 2549, 2554, with Resources for 2555, & 2566 Comamity Development Camara Circle, as managing General Concord Partner RESOLUTION NO. 2000/218 EXHIBIT B James Kennedy, Deputy Director Contra Costa County Community Development Development 651 Pine Street, 4th Floor, N. Wing Martinez, CA 94553 Dear Mr. Kennedy: RE: Preliminary Agreements- Multi-Family Mortgage Revenue Bond Financing The purpose of this Agreement is to set forth certain terms and conditions under which the County of Contra Costa, a legal subdivision and body corporate and politic of the State of California (the "County"), will agree to assist in the financing of a housing project for persons of low income(the "Project")for (the "Owner") or for a related entity, or for a successor to the interests thereof approved by the County, by issuing bonds (the "Bonds"), subject to the conditions set forth herein and in Resolution No. of the County. In consideration of the County's expression of willingness to provide such financing, the Owner agrees as follows: 1. The Owner agrees to pay, or to make arrangements for persons other than the County to pay, all costs involved in the issuance of the Bonds, including by way of example and not limitation, fees and disbursements of bond counsel, the County, underwriters, or financing advisors and any other experts engaged by the Owner or by the County in connection with the issuance of the Bonds,bond printing and other printing casts, publication costs and costs incurred in order to obtain a rating for the Bonds. Such costs may be paid from proceeds of sale of the Bonds. In the event that the Bonds are not issued for any reasons, the Owner agrees to pay all of such costs and assume the County's obligations, if any, for payment of such costs. Pursuant thereto, the Owner agrees to pay a fee upon demand of the County in an amount equal to the lesser of 1110 of one percent of the amount of the proposed Bond issue or $2,000, as consideration of the County conditionally expressing its intent to issue Bonds for the Project. Any amount so paid is to be credited toward the County's cost of issuance. 2. The Owner agrees to pay the cost of preparation of any studies, reports or other documents necessary to be prepared by or for the County to comply with the California Environmental Quality Act. 3. The Owner agrees to pay any and all costs incurred by the County in connection with any legal action challenging the issuance or validity of the Bonds or use of the proceeds thereof, or challenging proceedings or determinations by the County under the California Environmental quality Act. The County agrees to proceed, and to direct bond counsel to proceed, with the planning and preparation ofthe necessary proceedings for the offering of the bonds for sale to finance the Project. The Owner understands that this Agreement does not exempt it from any requirements of the County or any department or agency thereof or other governmental body that would apply in the absence of the proposed Bond financing, and compliance with such requirements is an expressed precondition to the issuance of the Bonds by the County. TYT'O^T TT—r^kT %T^ nnnn / h ff Centra TO: BOARD OF SUPERVISORS Costa FROM: Dennis M. Barry, AICP U 1 Community Development Director DATE: May 2, 2000 SUBJECT: Inducement Action for Multifamily Projects 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. BACKGROUND/REASONS FOR RECOMMEN12ATIQNS The owners of prospective multifamily rental housing developments desire to be included in a future multifamily revenue bond financing program. In order to provide financing eligibility for costs incurred, the development must be induced, i.e., a conditional statement of intent by the Board of Supervisors must be adopted. The inducement action does not obligate the County or the owner without future discretionary actions. CONTINUED ON ATTACHMENT: YES SIGNATURE: ECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE _",,.-A-PPROVE OTHER SIGNATURE(S): r ACTION OF BOA N _ APPROVED AS RECOMMENDED, GTHE 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. Source: Jim Kennedy 335-1255 orifi: Community Development ATTESTED cc: County Administrator PHIL BATCH ELQ13,'CL RK OF County Counsel THE BOARD OF SUPERVISORS Redevelopment Agency AND COUNTY ADMINISTRATOR Housing Authority via Community Development BY DEPUTY JK:Ih vinducbos.shl EXHIBIT'A Name of Maximum Location Number of Name of Dcye]Qpme,nt Amount of nits Developer/ of Bond Development Initial Issue Owner Pinecrest $2.0 million 1949 & 1945 24 A limited partner- Apts Cavallo, Rd. , ship to be formed Antioch with Resources for Community Development as managing General Partner Camara Circle $4.0 million 2501, 2513, 2525, 52 A limited partner- 2530, 2531, 2536, ship to be formed 2537, 2549, 2554, with Resources for 2555, & 2566 Community Development Camara Circle, as managing General Concord Partner JKk