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Home My WebLink AboutMINUTES - 03202001 - C.131 Y Contra TO: BOARD OF SUPERVISORS Costa J County FROM: Dennis M. Barry, AICP '" °"`' Community Development Director DATE: March 20, 2001 SUBJECT: Multi-Family Mortgage Revenue Bonds — Hilltop Commons Project 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 $34 million to finance the acquisition/rehabilitation of the Hilltop Commons Apartments, San Pablo area. FISCAL IMPACT No General Fund obligation is involved. County costs associated with issuance of bonds are covered, as are annual administrative costs. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BO7 ON March 20, 2001 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. Contact: Jim Kennedy 3-1255 orig: Community Development cc: County Administrator ATTESTED March 20, 2001 County Counsel JOHN SWEETEN, CLERK OF THE Housing Authority BOARD OF SUPERVISORS Building Inspection AND THE C UNTY INISTRATOR via: Community Development Steadfast Properties BY o , DEPUTY Newman & Associates Orrick & Herrington & Sutcliffe Klein Financial ARCS Mortgage W: \Personal\BoardOrders\BOARD.hilltopcommons.rev.bonds. 3 . 20 BACKGROUND/REASONS FOR RECOMMENDATIONS Hilltop Commons is a 324-unit project located at 15690 Crestwood Drive in an unincorporated area North of Hilltop,in the San Pablo/Richmond area(project is at Northeast quadrant of San Pablo Ave.and the Richmond Parkway). The property was built in 1987,and contains 324-units(204 one-bedroom and 120 two-bedrooms) on a 14.7 acre site. The ownership entity is limited partnership of Steadfast Properties, and Foundation for Social Resources. Steadfast is a Southern California based developer who has developed/rehabilitated over 8,100 units in California over the last 5 years, including over 4,900 utilizing tax exempt bonds and/or Low Income Housing Tax Credits. The President of Steadfast Properties is Rodney Emery. Foundation for Social Resources is a non-profit partner,who will act as managing general partner,and undertake after school and adult education programs on site. The proposed acquisition/rehabilitation of the Hilltop Commons project would result in 52%of the units(169 of 324 units) being reserved as affordable units for 55 years. Half of the affordable units would be reserved for very low income households earning 50%of the area median income or less, and half of the affordable units would be reserved for low income households earning 60%of the area median income or less. The remaining 48% of the project would be market rate units. Project rents are expected to be: Rent Range" Very Low Income $586.00—760.00 Low Income $713.00--851.00 Market Rate Units $959.00—1,328.00 *Variable based on household size and unit size. An application for Private Activity Bond Authority. has been submitted to the California Debt Limit Allocation Committee. If awarded the authority in April the County would proceed to issue the multi-family bond prior to the end of July. The proposed plan of finance would involve the issuance of Fannie Mae enhanced tax exempt and taxable bonds. The County has been requested to consider a short-term loan to the project during the rehabilitation and project stabilization period. Staff is reviewing the basis for this request. The financing would result in $7,500/unit in renovation and upgrades including: painting, appliances, fixtures, and heating improvements. Energy efficiency is a key theme of the renovation program. The County's Building Inspection Department has been involved in developing the proposed rehabilitation program. 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 action would comeback 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 late spring or early summer. JK:ln W: \Personal\BoardOrders\BOARD..hilltopcommons.rev.bonds. 3 . 20 RESOLUTION NO. 2001/120 OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA, CALIFORNIA RESOLUTION AUTHORIZING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGAGE PRINCIPAL AMOUNT NOT TO EXCEED $34,000,000 FOR THE FINANCING OF A MULTIFAMILY RESIDENTIAL RENTAL PROJECT GENERALLY KNOWN AS HILLTOP COMMONS APARTMENTS. 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 acquisition and rehabilitation of a 324-unit multifamily residential rental development generally known as Hilltop Commons and located at 15690 Crestwood Drive, San Pablo, California (the "Project"), which will be owned and operated by Steadfast Hilltop Commons, L.P.,a California limited partnership,and entities related thereto (collectively, the"Borrower"); WHEREAS, to assist in financing the Project, the County intends to sell and issue not to exceed $34,000,000 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; 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. W:persona I\documents\resoIution.housingbonds.2.26 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. 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. PASSED AND ADOPTED THIS 20th day of March, 2001. AYES: Supervisors Gioia, Gerber, DeSaulnier, Glover and Uilkema NOES: None ABSENT: None Cha of the Board of Supervisors ATTEST: John Sweeten, County of Administrator and Clerk of the Board of Supervisors (LOBy: ° De uty Clerk W:persona l\documents\resolution.housingbonds.2.26