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HomeMy WebLinkAboutMINUTES - 04252006 - C.118 _ Contra Costa SrA County TO: BOARD OF SUPERVISORS EotiU9 FROM: Dennis M. Barry, AICP Community P Develo ment Director DATE: April 25, 2006 SUBJECT: Multi-Family Mortgage Revenue Bonds — Muirlands at Windemere Apartments, Dougherty Valley, San Ramon area. 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$10 million to finance the development/construction of the Muirlands at Windemere Apartments, Dougherty Valley, San Ramon area. FISCAL IMPACT No General Fund obligation is involved. Neither the County's credit or any of its revenues are pledged to repay the subject bonds. County costs associated with issuance of bonds are covered, as are annual administrative costs. CONTINUED ON ATTACHMENT: X YES SIGNATURE: --R€COMMENDATION OF COUNTY ADMINISTRATOR _ RECOM ENDATION BOARD COMMITTEE L.—APPROVE OTHER SIGNATURE(S): S1 ACTION OF BOA ON APPROVED AS RECOMMENDED_OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A _ UNANIMOUS (ABSENT B z"e ) 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 3-7225 orig: Community Development cc: County Administrator ATTESTED�/� County Counsel JOHN CULLEN, CLERK OF THE Housing Authority BOARD OF SUPERVISORS Redevelopment Agency AND THE COUNTY ADMINISTRATOR via: Community Development Fairfield Residential BY , DEPUTY Jones Hall Litten Financial Consulting G:I noble/kpersonal/boardorders/board.muirlands.windemere.4.06 BACKGROUND/REASONS FOR RECOMMENDATIONS Muirlands at Windemere Apartmel is is a 350-unit project located at Bollinger Canyon Road and Harcourt Way, San Ramon area (128 one-bedroom, 130 two-bedroom, 92 three-bedroom) on a 11.3 acre site. The ownership entity is Fairfield Creekview, LP, a limited partnership of Fairfield Residential, a San Diego based developer/rehabilitated over 19,000 units in California and elsewhere over the last 6 years. Many of these transactions used tax-exempt bonds and/or Low Income Housing Tax Credits. The County has already issued$29 million of tax exempt multi-family bonds for this project in July 2003. The project has now been built and is partially occupied. Full completion of the project is expected in May,2006. During the construction process the developer incurred significant increases in materials(wood and steel)and labor costs. As a result the project owner is requesting the county issue up to an additional $10 million in bonds for the project. The issuance of such supplementary bonds was contemplated in the June 17, 2003 Bond Sale Resolution. The proposed of the Muirlands at IWindemere Apartments project have resulted in 100%of the units being reserved as affordable units for 55 years. Twenty-nine percent(29%or 100 units)of the affordable units are reserved for very low income households earning 50%of the area median income or less, and seventy-one percent(71%or 250 units)of the affordable units are reserved for low income households earning 60%of the area median income or less. Project rents are expected to be: lent Range" Very Low Income $730.00— 1,045.00 Low Income $880.00— 1,245.00 "Variable based on household size and unit size. An application for Private Activity Bond Authority is to be submitted to the California Debt Limit Allocation Committee. If awarded the authority in July the County would proceed to issue the multi-family bonds by mid- October, 2006. The proposed plan of finance would involve the issuance of Freddie Mac enhanced tax exempt and taxable bonds. 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 come back 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 August, 2006. G:Inoble/kpersonal/boardorders/board.mui rlands mindemere.4.06 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on April 25, 2006 by the following vote: s AYES: Uilkema,Piepho,DeSaulnier, Glover and Gioia NOES: None ABSENT: None 0. +'I#lege s ABSTAIN: Noneo COUti' SUBJECT: RESOLUTION AUTHORIZING THE ISSUANCE ) Resolution No. 2006/ o?/eP OF MULTIFAMILY HOUSING REVENUE BONDS IN AN ) AGGREGAGE PRINCIPAL AMOUNT NOT TO EXCEED ) $10,000,000 FOR THE FINANCING OF A MULTIFAMILY ) RESIDENTIAL RENTAL PROJECT GENERALLY KNOWN ) AS MUIRLANDS AT WINDEMERE 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 development and construction of a 350-unit multifamily residential rental development generally known as Muirlands at Windemere Apartments and located at Harcourt Way and Bollinger Canyon Road, San Ramon/Dougherty Valley area (the"Project"), which will be owned and operated by Fairfield Creekview, LP, a California limited partnership, or entity related thereto (collectively, the"Borrower"); WHEREAS, to assist in financing the Project, the County intends to sell and issue not to exceed $10,000,000 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 at which no public comments were made; 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. 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. RESOLUTION 2006/ 02�� C:\DOCU M E-1\jenea\LOCALS-1\Temp\c.lotus.notes.data\resolution.revised.creekview.hous.bonds.4.06.doc 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: April 25, 2006 John Cullen, Clerk of the Board of Supervisors And County Administrator By_ Deputy cc: Community Development RESOLUTION 2006/o2�d RESOLUTION NO. 2006/0?/f C:\DOCUME—I\enea\LOCALS-1\Temp\c.lotus.notes.data\resolution.revised.creekview.hous bonds.4.06.doc RESOLUTION NO. oZ�� OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA, CALIFORNIA RE50LUTION AUTHORIZING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGAGE PRINCIPAL AMOUNT NOT TO EXCEED $10,000,000 FOR THE FINANCING OF A MULTIFAMILY RESIDENTIAL RENTAL PROJECT GENERALLY KNOWN AS MUIRLANDS ATIWINDEMERE 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 development and construction of a 350-unit multifamily residential rental development generally known as Muirlands at Windemere Apartments and located at Harcourt Way and Bollinger Canyon Road, San Ramon/Dougherty Valley area (the "Project"), which will be owned and operated by Fairfield Creekview, LP, a California limited partnership, or entity related thereto (collectively, the"Borrower"); WHEREAS, to assist in financing the Project, the County intends to sell and issue not to exceed $10,000,000 a ggregate 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 thel 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 at which no public comments were made; 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. personal\documents\resolution.creekview.hous.bond.4.06 RESOLUTION NO. 20061�Z/� 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 25th day of April, 2006. AYES: lover Piepho,DeSanlnier, Glover and Gioia NOES: None ABSENT: None ABSTAIN: None C r of the Board of Supervisors r o jf >I/ o� o2d0(e ATTEST: Tahn Cullen, County Administrator and Clerk of the Board of Supervisors By: �— Deputy Clerk cc: Community Development personal\documents\resolution.creekview.hous.bond.4.06 RESOLUTION NO. 20061 ,414?