Loading...
HomeMy WebLinkAboutMINUTES - 03281989 - 1.6 (2) THE BOARD OF SUPERVISORS' OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on March 26, 1989 by the following vote AYES: Supervisors Powers,' Fanden, Schroder, McPeak, Torlakson. NOES: None. ABSENT: None . ABSTAIN: None. SUBJECT: Resolution of the County of Contra ) RESOLUTION NO. 89/203 Costa Conditionally Providing for ) the Issuance of Revenue Bonds to ) Finance the Construction of a ) 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 ( i) 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 RESOLUTION NO , 89/203 _ Page 2 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 Owner shall have entered into a preliminary agreement concerning the financing, in . substantially the form attached hereto 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, _a44-. 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 units are to be occupied by individuals whose income is fifty percent ( 50%) or less of area median gross income or (b) at least forty percent ( 400) of the Project units are to be occupied by individuals whose income is sixty percent ( 600) or less of area median gross income, as defined in Section 142(d) of the Internal .Revenue Code of 1986, as amended (the "Code" ) for at least the period required by Section 142(d) and the Project shall otherwise meet.- any. federal requirements for exclusion of interest on the {- bonds fromgross_ income for the, purposes of federal income taxes; (vi) at least twenty percent ( 20%) ( fifteen percent ( 15%) in targeted areas) of the Project units are to be occupied by lower income households (as defined in the Act) and not less than ten percent .( 10%) of the Project units are to be occupied by very low income tenants as -required by the - Act; and (vii) any occupancy requirements of- the- County applicable to such financings are met. 2; The Chair- of. the Board of Supervisors, the County Administrator and ex.-officio= Clerk of­the Board, the County Di-rector 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, including 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- 3 . It is the purpose and intent of the County that this Resolution constitute official action toward the issuance of obligations by the County in accordance with Section 1.103-8(a) (.5) (iii) - of the Regulations of the United States Department of the Treasury, or any successor regulation promulgated under the Code.. 4. -This Resolution shall take effect immediately upon its. passage and adoption. n reby certify that this Is a true and carreOt copy of an action taken and entered on the mimes of the Board of Supewi oia on>M dstie i110M111. cc: Director of_. Community.Development ATTESTED: ZL9=4a ..�r�.�ww�•.�� :.County Counsel_ ._:..:_ PHIL GA OKdi ofthsBoard _ County Administrator 40SapmyismwWCoantyAdministrator by ./, /f�.l�' .Deputy JK/mb la:mfdev.rsn i b L � � C •r C) r J 1Z M ro•r • •r ..0 4 N S_ S- C O a) 4- 1= r 4-) L r S- co ro CL U a O to N O C o S_ (10 4- 0 O s✓ N O E S- M > Z m L O 00 r-I L N E Q I C rt >, rr (0 a) 0) C) S_ r- t n I _ 4- +-) r0 NI Y X O C tD M O a) w E CD C) a) a)-0 I O I S. O d U > .- O •r r. CO r0 N M —1 0-1 M 4- u U > p N -It a O Q) O t1 O CO r- -) cl n Q O r-I ra C Q D 7 O 'n O E rn O — O E -0 O M C O E O p - m •X C) rD L:- M O b4 �I C G• E a 0 > Y > S- 0 p � - i O O O U S- E O r; OL1 r EXHIBIT B Harvey E Bragdon... Director of-Community Development"_ . J 651 Pine Street 4tHr-Fl oor, North Wing_, Martinez, CA 94553, Dear_-Mr. Brragdon:." Re: Preliminary Agreements - Multi-Family MortgagEf-Revenue Bond Financing The purpose of this Ag_reeinent, 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 prof ect- for persons of low income (the "Project") for LL (the "Owner") or .for a related entity, 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 hereby 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 costs, 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 1/10 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 I J! Page 2 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 of the 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. The Owner further understands and agrees that the issuance of any Bonds by the County is contingent upon the County being satisfied with all of the terms and conditions of the Bonds and of the issuance thereof and that such issuance is in the best interests of the County, and that the County shall not be liable to the Owner or to any other person if -the County shall determine for any reason not to issue the Bonds. IN WITNESS WHEREOF, the parties have executed this Agreement on 198 (Owner) By: Date: ACCEPTED: COUNTY OF CONTRA COSTA By: Harvey E. Bragdon Director of Community Development JK/mb 1perm/exhibitb.ltr