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Home My WebLink AboutMINUTES - 03182008 - C.83 TO: BOARD OF SUPERVISORS FROM: Dennis M. Barry, AICP, Director of Community Development DATE: March 18, 2008 SUBJECT: Inducement Action for Multifamily Projects 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 an Inducement Fee to offset expenses. The bonds will be solely secured by a pledge of revenues (rents, reserves, etc.) pledged under the bond documents. No County funds are pledged to secure the bonds. BACKGROUND/REASONS FOR RECOMMENDATIONS Contra Costa County, through the Community Development Department, operates a multifamily mortgage bond financing program. The purpose of the program is to increase or preserve the supply of affordable rental housing available to lower income households. The County program may be undertaken within the unincorporated County and within the cities. The City of Pittsburg and the prospective owners of a new 71-unit multifamily rental housing development in Pittsburg have requested to participate in the multifamily bond financing program. The proposed development meets the eligibility criteria for bond financing,and the proposed plan of finance appears to be consistent with County policy for this program. The prospective owner of the project is an affiliate of Resources for Community Development, Berkeley. A requirement of federal tax law is that the prospective financing be subject to a conditional statement of intent to issue bonds, i.e., an inducement resolution must be adopted by the Board of Supervisors. The inducement action does not obligate the County or the o ner without future discretionary actions. I CONTINUED ON ATTACHMENT: _X_ SIGNATURE: ,I t / � —RECOMMENDATION OF COUNTY ADMINISTRATOR ^ RIIfCOMMENDA ZION OF BOARD OMMITTEE ✓APPR E _ OTHER SIGNATURE(S): r ACTION OF BOARD ON APPROVED AS REFOMMENDED �O _ VOTE OF SUP VISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT Z2= ) 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. Source: Jim Kennedy 335-7225 ATTESTED orig: Community Development JOHN CULLEN, 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 UTY City of Pittsburg Resources for Community Development D:UKcnnedy\MF MR13\Los Medanos Village\Los.Medanos.Village.Ind ucement.3.18.08.doc EXHIBIT A • Name of Development: Los Medanos Village • Maximum Amount of Bond Issue: $30,000,000 • Location of Development: Crestview Drive at Frontage Road, Pittsburg (APN # 087-195-024, 087-030-079, 087-030-081, and 087- 400-018) • Number of Units: 71 • Name of Developer/Initial Owner A California limited partnership in which Resources for Community Development will be the managing general partner. The partnership will include a tax credit investor that is to be named. D:UKcnnedy\MF MRB\L.os Medanos Villagc\Los.Medanos.Village.Inducemcnt.3.18.08.doc THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on i kv the following vote: AYES: J NOES: ABSENT: ABSTAIN: RESOLUTION NO. 2008/ J 8 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 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 on file with the Deputy Director-Redevelopment,with such additions or deletions as are considered necessary or appropriate by the Deputy Director-Redevelopment,and the Owner,and the Chair of the Board,the County Administrator,the Director of Community Development,and the Deputy Director-Redevelopment 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 D:\JKennedy\MF MRB\Inducement.Resolution.Master.3.07.doc 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, the Deputy Director-Redevelopment, 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. Tile County hereby declares its official intent to use proceeds of the Bonds to reimburse the Owner for certain expenditures made prior to the issuance of the Bonds. 4. This Resolution shall take effect immediately upon its passage and adoption. Orig. Dept: Community Development-Redevelopment&Housing Division Contact: James Kennedy cc: Community Development . County Counsel I hereby certify that this is a true and correct County Administrator copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: JOHN CULLEN,Clerk of the Board of Supervisors and County Administrator By Deputy D:\JKennedy\MF MRB\Inducement.Resolution.Master.3.07.doc EXHIBIT A • Name of Development: Los Medanos Village • Maximum Amount of Bond Issue: $30;000,000 • Location of Development: Crestview Drive at Frontage Road, Pittsburg (APN #087-195-024, 087-030-079, 087-030-081, and 087- 400-018) • Number of Units: 71 • Name of Developer/Initial Owner A California limited partnership in which Resources for Community Development will be the managing general partner. The partnership will include a tax credit investor that is to be named. D:UKennedy\MF MRR\l.os Medanos Villagc\Los.Medanos.Village.inducement.3.18.08.doc