HomeMy WebLinkAboutMINUTES - 06242003 - C.92 TO: BOARD OF SUPERVISORS
FROM: Dennis M. Barry, AICD, Director of Community Development
DATE: June 24, 2003 01
n for Multifamily Projects
SUBJECT: inducement Actio Y 1ects
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 in "Inducement Fee" to offset expenses.
BACKGROUND/REASONS FOR RECOMMENDATIONS
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: �X� SIGNATURE: f
,—RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMgqDATION OF OARD
COMMITTEE ..--APPROVE OTHER �
SIGNATURE(S):
ACTION OF BqAqb ON June 24 , 2003 APPROV AS RECOMMENDED x
VOTE OF SU RVISORS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT Glover ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE .
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
Note : Bis tri.ct III Seat Vacant SUPERVISORS ON THE DATE SHOWN.
Source: Jim Kennedy
335-1255 ATTESTED .June 24, 2003
orlg: Community Development
JOHN SWEETEN, CLERK OF THE
Cc: County Administrator's Office BOARD OF SUPERVISORS AND
County Counsel COUNTY ADMINISTRATOR
Community Development
Redevelopment Agency
Housing Authority
via Community Development BY DEPUTY
Eden Housing
CHDC of North Richmond
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EXHIBIT A
Maximum Amount Name of
Name of of Bond Location of Number of Developer/Initial
Development Issue Development Units Owner
Chesley Strut $12,500,000 8€72 Chesley Avenue 30 A California limited
Apartments Richmond partnership to be formed
(APN 581-251-003) by Eden Housing and
Community Housing
Development Corporation
of North Richmond
(CHDC) in which Eden
Housing will be the
initial managing general
partner. Prior to the project
becoming operational Eden
Housing and CHDC will form
a 501(c)(3)non-profit corporation,
which will serve as managing
general partner with a to be
determined tax credit investor as
the limited partner.
\Personal\BOARDORDERS\BOARD,6.03.lndueeementacdon
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Resolution on by the following vote:
r,• t.+M
AYES: Supervisors Gioia, Uilkema and DeSaulnie
NOES: Mone
ABSENT: Supervisor Glover -------
ABSTAIN: None
Note. District III Seat Vacant
RESOLUTION NO. 2003/421
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 respect to any development to be
financed, (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 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
Personal\documents\boardresolution.6.03
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 amended (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, 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, 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 towner 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 the date
shown
ATTESTED: June 24 2003
John Sweeten, Clerk of the Board of
Supervisors and County Administrator
BY Deputy
4 �;3
Orig. Dept: Redevelopment Agency
Contact: Jim Kennedy
co: Director of Community Development
County Counsel
County Administrator
RESOLUTION 2003/421
EXHIBIT A
Maximum Amount Name of
Name of of Bond Location of Number of Developer/initial
Development Issue Development Units Owner
Chesley Street $12,500,000 802 Chesley Avenue 30 A California limited
Apartments Richmond partnership to be formed
(APN 561-251-003) by Eden Housing and
Community Housing
Development Corporation
of North Richmond
(CHDC) in which Eden
Housing will be the
initial managing general
partner. Prior to the project
becoming operational Eden
Housing and CHDC will form
a 501(c)(3) non-profit corporation,
which will serve as managing
general partner with a to be
determined tax credit investor as
the limited partner.
Tersonal\BOARDOR DERS\BOARD.6.03.Tnduecementacrion
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 a nd d isbursements o f b and c ounsel,t he C aunty,u nderwriters, 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 a ssurne 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 i ncurred b y t he C ounty i n c onneetion w ith a ny l egai
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 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 fFuther 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 interest 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.
Personalldocumentsiprelim.agree.mort.rev,bond.6.03
IN WITNESS NESS WHEREOF,the parties have executed this Agreement on
200__
(Owner)
By:
Date:
ACCEPTED:
COUNTY OF CONTRA COSTA
By:
James Kennedy
Deputy Director-Redevelopment
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