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HomeMy WebLinkAboutMINUTES - 06151999 - C67 a Contra TO; BOARD OF SUPERVISORS yt 6,. Cost FROM- Dennis Barry Couriuy Director of Community Development ?ATE: June 15, 1999 SUBJECT: H.R. 664 and 5.459-Federal Legislation to Accelerate the Increase of Private Activity Bond Allocation Cap, and H.R. 175 and S. 1017-Legislation to Increase the Low-Income Housing Tax-Credit SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS AUTHORIZE the Chair of the Board of Supervisors to execute letters to the County's Congressional delegation in support of a) H.R. 664&S. 459, legislation to.accelerate the increase in private activity tax-exempt bond cap, and b) H.R. 175&.S. 1017, legislation to increase the Low-income Housing Tex-Credit from $1.25 per capita per state to $1.75 per capita per state. FISCAL IMPACT No County General Funds are involved. BACKGROUND/REASONS FOR RECCOMMENDATICNS 1. Accelerating the Increase of Private Activity Bond Cap (H.R. 564 & S. 459) Current federal tax lave permits tax-exempt private activity bonds to be issued by local agencies. The amount of private activity bond activity is limited to a cap of$50 per capita, with stepped increases beginning in 2003, arriving at a $75 per capita by 2007. T he County has been an active user of private activity bond cap, particularly for affordable housing. The County has financed over 6,100 mortgages for first time homebuyers, and 4,745 rental units using private activity bonds. The current state cap of approximately$1.6 billion has been sorely undersized in recent years, with demand far exceeding supply. For example, earlier this year the active requests for private activity bond cap filed with the State exceeded $4.6 billion. H.R. 664 and its Senate companion, S. 459, provide for an increase in the private activity bond cap beginning on January 1, 1999 to the greater of$75 per capita and index the cap for inflation in the future. California's private activity bond authority would rise to about$2.4 billion. Congressman biller and Congresswoman Tauscher are both co-sponsors of H.R. 664. Sentators Boxer and Feinstein are both co-sponsors of S. 4 e need to maintain their support. i k CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR REC'OMMENON FOR BOARD COMMITTEE APPROVE OTHER ± ' i SIGNATURE(S): ACTION OF BOARD ON t cl APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A xx UNANIMOUS (ABSENT /k ) TRUE AND CORRECT COPY OF AN AYES: _-- NOES: ACTION TAKEN AND ENTERED ON THE ASSENT: ABSTAIN: MINUTES Of::HE BOAR© OF SUPERVISORS ON THE, DATE SHOWN. Contact: Jim Kennedy 335-1255 ATTESTED Tune 15, 1999 cc: County Administrator PHIL BATCHELOR, CLERK OF County Counsel THE BOARD OF SUPERVISORS Community Deyelopment AND COUNTY ADMINISTRATOR Housing Authority Via Community Development Association of Local Housing Finance Agencies NaCo B? U , DEPUTE' California Housing Finance,AgencyAll il. Increasing the Volume Cap for Low-income Housing Tax Credits (HIS 175 & S. 1017) The Lout-income Housing Tax Credit was enacted at $1.25 per capita in 1956, limiting increases to population increases. Over the past decade, population increased by 5 percent compared to an increase of 45 percent in inflation (as measured by the Consumer Price Index)) resulting in erosion of the tax credits purchasing pourer. Tax credits have been instrumental in producing affordable rental housing in California and Contra Costa County. In the past five years, tax credits have assisted in the financing of 7 projects representing 251 affordable units in Contra Costa County. It is estimated that the current demand for tax credits is three times the supply. H.R. 175, and it's Senate companion, S.1017, would increase the 'Low-Income Housing Tax-Credit from its current$1.25 per capita per state to$1.75 per capita per state. The bill would index the cap in the future to account for inflation. As of May 1999, H.R. 175 had 264 cc-sponsors including Congressman Miller and Congresswoman Tauscher. 5.1017 has 45 co-sponsors,including Senators Boxer and Feinstein. This support needs to be maintained. Phil Ikfth*lW The Board of Supervisors ContraCW*Of ft SWd W-W county Adminlention Building Costa 651 Pine Street,Room 106 0-% MAMrlez,Calftm 1293 uounty ,Ma: ,9 iDWO g .ttsr tests :=- f,f y DWO ice,411:DiWidi ; June 15, 1999 The Honorable Barbara Boxer United States Serrate Washington,DC 20515 RE: S. 1017 Bear Senator Boxer: I arra writing to thank you for co-sponsoring S. 1017 and to request your continued support of increasing the Low-income Housing Tax Credit bap from$1,25 to$14.75 per capita. in addition to increasing the cap,this legislation will also index the cap in the future to account for inflation. As your support demonstrates,this bill is desperately needed to help greet the critical rental housing needs in Contra Costa County and California. Although unemployment has decreased significantly in California,tete demand for affordable housing remains high and is expected to grow with the phasing out of Section 8 subsidies. This year California has seer waiting lists for affordable housing that reach up to ten years. In the past five years,Low-Income HD=.rsing Tax Credits in Contra Costa County have beer.used to help finance seven affordable housing projects representing 251 rental units for low,very low,and moderate income families. Similar to the private activity bond bap,the tax credit cap has more demand than can be stet. It is esti)-Hated that in 1998 demand for credits exceeded supply by more than 3 to 1. An increase in the cap will help offset this demand,as well as the incrming demand for affordable housing created by the phasing out of Section 8. Your support of this legislation is appreciated by County staff,as well as the thousands of lowerainconie families that will benefit from,the affordable housing oppor ftxdties presented by the additional tax credits. If you have any questions,please call Kathleen Hamm at(925)335-1257. Sir^ ly, " r c Ma h ; ,Board of Supervisors f cc: John Murphy,Association of•Local Housing Finance Agencies National Association of Counties Linda Braunschweiger,California Housing Finance Authority Claude Van darter,County Administrator's Office Jim Kennedy,Director of Redevelopment File G16CIo) The Board of Supervisors Contra County Adminl tion Building std ��ra�r Iszc3 -1 1 Flee Street,Boom 108 .rtlr*z,Cafff ml 53-1County it. 10M" June 15, 1999 The Honorable dare Feinstein United Mates Senate Washirngton,IAC 20515 REP: S. 10317 Dear Senator Feinstein: I am writing to thank you for co-sponsoring S. 1017 and to request your continued support sof increasing the Low-income Housing Tax Credit cap from,$1.25 to$1.75 per capita. In addition to increasing the cap,this legislation will also index the cap in the future to account for inflation. As your support demonstrates,this bili is desperately needed to Yelp meet the critical rental housing needs in Contra Costa County and CaliforM. a. Although unemployment has decreased significantly in California,the demand for affordable housing remains high and is expwed to grow with the phasing out of Section S subsidies. This year California has seen waiting lists for affordable housing that reach up to tern years. 1n the past five years,Low-'ncotne Housing Tax Credits in Contra Costa County have been used to help finance seven affordable-housing projects representing 751 rental x1its for love,very low,and,moderate income farzilies. Similar to the private activity bond cap,the tax credit cap has more demand than cim be met. It is estimated that in 1998 demand for credits exceeded supply by more than 3 to 1. An increase in the cap will help offset tis demand,as well as the increasing demand for affordable housing created by the phasing out of Section 8. Yoz r support of this legislation is appreciated by Com+,y staff,as well as the thousands of lower-income families that will benefit(Torn the affordable housing opportunities presented by the additional tax credits. 'If you have any questions,please call Kathleen Harte at(925')335-1257. Si<n Iy, lla h ,Board of Supervisors cc: John bzzrphy,Association of local Housing Finance Agencies 'National Association of Counties Linda Braunschweiger,California.Mousing Finance Authority Claude Sian barter,County Administrator's Office a itn Kennedy,Di for of Redevelopment File G2.5(b) The Board of Supervisors Contra CWrk of#W Board and County Adminl€3ttra mon Buildingi 4 335-ISM 11f6®t�tEt, CBr?t 106 Martinez, lifornia i��1293 L =tatt�i& _ , --- _ art#D*W& f _ !!n - fit, t�' ,�, AM June 15, 1959 The Honorable Ellen Tauscher United States House of Representatives Washington.,Iii. 20515 RE: H.R. 175 Dear Congresswoman a auscher: I am Ming to thank you for co-sponsoring H.R. 175 and to request your continued support of increasing the Low-Income Housing Tax Credit cap from$1.25 to$1.75 per capita. In addition to increasing the can,tl?.is legislation will also index the cap in the future to account for inflation. As your support demonstrates,this bill is desperately needed to help meet the critical rental housing needs in Contra Costa County and California. Although unemployment has decreased significantly in California,the demand for affordable;housing remains high and is expected to grow with the pleasing out of Section 8 subsidies. This year California'has seen waiting lists for affordable housing that reach up to ten years. In the past five years,Low-Income Housing Tax Credits in Contra Costa County have beer,used to help finance seven afi`ordable housing projects representing 251 rental units for low,very low,and moderate income families. Similar to the private activity bored cap,1he tax credit cap has more demand than can be met. It is estimated that in 1998 demand for credits exceeded supply by more that,3 to 1. An increase in the cap will help offset this demand,as well as the increasing demand for affordable housing created by the phasing out of Section 8. Your support of this legislation is appreciated by County staff,as well as the thousands of louver-income farrdhes that will benefit from the affordable housing opportunities presented by the additional tax credits. If you have any questions,please call Kathleen Hamra at(925)335-1257. S ly, t Cancaaanaala hair,Board of Supervisors cc: John Murphy,Association of Local lousing Finance Agencies National Association of Counties Linda Brauikaweiger,California Housing Finance Authority Claude Van Marterr,County Administrator's office Jura Kermedy,Director of Redevelopment File G2.6(b`> Phil Satchel" The Board of Supervisory ContraCW*of 9A fterd County minist ton Building ata )335-1900 651 Pine L Room 1 Martinez,Uffornia iKW3-1 M uounty Dom Q~ 3W OM'iW ? OWWW400 ,a Oft-414VOW 6#t}NOWi�i. .. ,. T he Honorable George Miller I nited States House of Representatives Was ington,DC 2€7515 lP: HR.864 Bear Congressman Miller: ;am writing`o thank yvu for co-sponsoring H.12.864 and to request your continued support of creasing the private activity bond cap ftorn$50 to$75 per capita. For the past several years,the demand for privatte activity bonds has exceeded the allocation amount available,this year reaching an all time high of over 3 to 1. As you know,the funds are used to build affordable Dousing,protect the envirommert,begin small businesses,and, provide student loans. 'I uou s the issuance of over-S 1 billion o�tax-exempt private activity bonds,the oFanty of contra ossa has provided f{znarcing for over 4,745 affordable rental units,and 6,100 first time hornebuyers. Currently the County is preparing to issue another$53.9 million in private activity bonds representing five development projects and 684 rental units. Four of the five projects received allocations for less than the County requested, requiring their sponsors to pursue alternative financing vehicles to cover the shortfall, thus increasing the time demands and complexity of the issuance process. As indicated above,the overwhelnsing demand for allocation demonstrates the need for an immediate cap inc r ease. Thank you again for your continued support of legislation that provides the County with a means to achieving affordable housing opportunities for lower income families. If you have any questions,please call.'ins Remedy at(925)335-1255, Since: y, f4ciarrdRa 0 ,Board of Supervisors / r,,c: John Murphy,Association of Local Dousing Finance Agencies National Association of Counties Linda Braunsch.veiger,California Housing Finance Authority Claude Van Marter,County Administrator's Office Jirn Kennedy,Director of Redevelopment File G2.6(b) The BoardSupervisory Contra Clarkofft Board arld County Administration Buildingqty *N Rogers, (510)335-19W 651 Pine Street,Room 106 A-% Marfinez,Caldomia M53-12M L;ounty tat DWUkA ftyW IL s 2nd OWM Donna Garber 3rd pct DWW41 J** flat SthDistrict ` .wd '�••• 8 /r e4 Cs•.• .lune 15, 1999 The Honorable Ellen Tauscher United States House of Representatives Washington,DC 20515 RE: H.R. 864 Dear Congresswom n I auscher: x am writing to thank you for co-sponsoring g H.R. 854 and to request your continued support of increasing the private activity bond cap fi orr$50 to$75 per capita. For the past several years,the demand for private activity bonds has exceeded the allocation mount available,this year reaching an all time high of over 3 to 1. As you know,the finds are used to build affordable housing,protect the environment,begin small businesses,and provide student loans. Through the issuance of over$1 billion of tax-exernpt private activity bonds,tl:e County of Contra Costa has provided financing for over 4,745 affordable rental units,and 6,100 first time homebuyers. Cur:entry the County is preparing to issue another$53.9 million in private activity bonds representing five development projects and 684 rental units. Four of the five projects received allocations for less than the County requested, requiring their sponsors to pursue alternative financing vehicles to cover the shortfall, thus increasing the time demands and complexity of the issuance process. As indicated above,the overwhelming demand for allocation demonstrates the need for an mediate cap increase. Thank you again for your continued support of legislation that provides the County with a means to achieving affordable housing opportunities for lower income families. of you have any questions,please call Jim Kennedy at(925)335-1255. sincere , f J tart l a h ' ,Board of Supervisors : Joan Murphy,Association of Local Housing Finance Agencies ;rational Association of Counties Linda Erauhweiger,California Housing Finance Authority Claude Van Marter,County Administrator's Office yin:Kennedy,Director of Redevelopment File C2.6(b) The Board of Supervisors Contra �i BOW County Aftinistmbon WidingCosta ear ftr Room Pine t, 106 t510D I Martinez,CaMomia 94553-1293 County jkn ,ISt Distrw J Dorm Owt(w,3rd NoWd :4th DWWd - . Joe t y•. 4 June 15, 1999 The Honorable Diane Feinstein United States Serrate Washington,DC 20515 RE: 5.459 Dear Senator Feinstein: I am writing to thank you for co-sponsoring S.459 and to request your continued support of increasing the private activity bond cap from$50 to$75 per capita. For the past several years,the demand for private activity bonds has exceeded the allocation,amount available,this year reaching an all time high of over 3 to 1. As you know,the funds are used to build affordable housing,protect the environment,begin small businesses,and provide student loans. hrough&.e issuance of over$1 billion of tax-exempt private activity bonds,the County of Contra Costa has provided financing for over 4,745 affordable rental units,and 6,100 first time horrebuyers. 0mently the County is preparing to issue another$53.9 million in private activity bonds representing five development projects and 684 rentalunits. Four of the five projects received allocations for less than the County requested, requiring their sponsors to pursue alternative financing vehicles to cover the short—fall, thus increasing the time demands and complexity of the issuance process. As indicated above,the overwhelming demand for allocation demonstrates the meed for an immediate cap increase. 'Thank you again for your continued support of legislation that provides the County with a means to achieving affordable housing opportunities for lower income families. if you have any questions,please call Jinn.Kennedy at(925)335-1255. Sincerely, pf r y E fj ncta.+n a C :r,Hoard of Supervisors W: John Murphy,Association of Local Housing Finance Agencies National Association of Counties inda Hraunschweiger,California Housing Finance Authority Claude Van barter,County Administrator's Office Jim Kennedy,Director of Redevelopment File G2.6(b) Otftholw The Board Supervisory ContraOf County MmInlembon Bu€k#ingCosta 651 Pini Strtwt,Room 106 Martir*z,CWHornia "&5�1293 County to Mwd , Mwk ,4th Mftid Jm ,at Disbid `r,�•� a xK"s June 15, 1999 The Honorable Barbara Boxer United Mates Senate Washington,DC 20515 REP: S.459 Dear Senator Boxer: I am writing to thank you for co-sponsoring S.459 and to request your continued support of increasing the private activity bond cep from$50 to$75 per capita. For the past several years,the dem. arnd for private activity bonds has exuded the allocation amount available,this year reaching an all time high of over 3 to 1. As you know,flee fiords are used to build affordable housing,protect the environment,begin small businesses,and provide student loans. Throw the issuance of over$1 billion of tax-exempt private activity bonds,the County of Contra Costa has provided financing for over 4,745 affordable rental units,and 6,100 first time homebuyers. Currently the County is preparing to issue another$53.9 million in private activity bonds representing five development projects and 584 rental units. Four of the five projects received allocations for less than the County requested, requiring their sponsors to pursue alternative financing vehicles to cover the shortfall, thus increasing the time demands and complexity of the issuance process. As indicated above,the overwhehning demand for allocation demonstrates the need for an iinmediate cap increase. Thank you again for your continued support of legislation,that provides the County with a means to achieving affordable housing opportunities for louver income families. If you have any questions,please call Jiro Kennedy at(925)335-1255. S' ly y arctanulla hair,Board of Supervisors cc: John_Murphy,Association of Local Housing Finance Agencies National Association of Counties Linda Braunschweiger,California Housing Finance Authority Claude Van Marter,County Adrmmi strator's Office Jim Kennedy,Director of Redevelopment File C2.6(b) The Board of SupervisorsMI sswhw"Contra Ciark of the Board AM County Administration Bu dni Yicruiilding tyA -W ' 651 Pi Street, Roofqh Martinez,Califomia 1293County Jft ftWa,Ia3 DMild IL ,VW Dftid = - Tom. Mark ,ft DWW1 JW Cmgamft,aas,Diftia ty . 46 June 15, 1999 The'Honorable merge Miller United States House of representatives Washington,DC 20515 RE: H.R. 175 Dea-Congressman N iller: I am writing to thark you for co-sponsoring H.R. 175 and to request your continued support of increasing tete Law-Income Housing Tax Credit cap from$1.25 to$1.75 per capita, in addition to increasing the cap,&l s legislation,will also index the cap in the f ata.�re to account for inflation. As your support demonstrates,this bill is desperately needed to help meet the critical rental housing needs in Contra Costa County and California. Although unemployment has decreased significantly in California,the demand for affordable housing remains high and is expected to grow with the phasing out of Section S subsidies. This year California has seen waiting lists for affordable housing that reach up to ten years. In the past five years,Low-Income Housing Tax Credits in Contra Costa County have been used to help finance seven affordable housing projects representing 251 rental units for low,very lore,and moderate income families. Similar to the private activity bond cap,the tax credit cap has more demand than can be Feet. It is estimated that in 1995 demand for credits exceeded supply by more than 3 to 1. An increase in the cap will help offset this demand,as well as the increasing demand for affordable housing created by the phasing out of Section S. Yaa support of this legislation is appreciated by County staff,as well as the thousands of lower.-income families that will benefit from the affordable housing opportunities presented by the additional tax edits. 'If you have any questions,please call Kathleen Hamm at(925)335-1257. S' ly, ancaaxn: a .fair,Board of Supervisors cc: John Murphy,association of Local Housing Finance Agencies National association of Counties Linda Braunschweiger,California Housing Finance Authority Claude Van Marter,County Administrator's Office Jim Kennedy,Director of Redevelopment File G2.6(b)