HomeMy WebLinkAboutMINUTES - 03221994 - 1.88 Contra
Costa
TO: BOARD OF SUPERVISORS Coon
J 1 "y
FROM: Harvey E. Bragdon
Director of Community Development
DATE: March 22 , 1994
SUBJECT: Multi-Family Mortgage Revenue Bonds
SPECIFIC REQUEST(S) OR RECOMMENDATIONS) .& BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
1
l
AUTHORIZE the Deputy Director - Redevelopment to prepare and submit
necessary applications and certifications to the California Debt Limit
Allocation Committee for up to $1 million in Private Activity Bond
Authority to be used in the issuance of the County's 1994-A Multi-
Family Mortgage Revenue Refunding Bonds for the Del Norte Apartments
Project (E1 Cerrito) .
FISCAL IMPACT
None. No General Fund dollars are involved. All costs associated
with the issuance and administration of this program are paid from
bond proceeds.
BACKGROUND/REASONS FOR RECOMMENDATIONS
The Federal Government has placed a limit on the volume of "Private
Activity Bonds" (single and multi-family bonds, Mortgage Credit
Certificates, Industrial Development Bonds, etc. ) which may be sold
in each state. In California the task of apportioning this limit
among issuers is assigned to the California Debt Limit Allocation
Committee (CDLAC) , a unit of the State Treasurer's Office.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
� 0
RECOMMENDATION OF COUNTY ADMINISTRATOR RE NDATION BOARD COMM TEE
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON March 22 , 1994 APPROVED AS RECOMMENDED x_ OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
x 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.
Jim Kennedy
646-4076
CC: Community Development
County Administrator ATTESTED March 22 , ,1994
County Counsel PHIL BATCHELOR, CLERK OF
Housing Authority THE BOARD OF SUPERVISORS
via Community Development AND COUNTY ADMINISTRATOR
Newman & Associates
Jones Hall Hill & White
Vaca & Vaca BY , DEPUTY
Ibex Group
El Cerrito Redevelopment
JK:1h
sral2/delnort2.bos
In 1990 the County issued its $11 million Multi-Family Mortgage
Revenue Bonds for the Del Norte Apartments, a 135 unit development
in E1 Cerrito. The project carries FHA insurance. The project is
in default under the terms of the FHA insured mortgage (the bonds
are not in default, i.e. , all principal and interest due has been
paid) . To cure the mortgage default the sale of refunding bonds is
being proposed. The refunding bonds will permit the mortgage to be
rewritten at a significantly lower interest rate.
To cover the costs of the refunding bonds and funding necessary
reserves, an additional .. allocation of Private Activity Bond
authority needs to be secured from CDLAC.