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Home My WebLink AboutMINUTES - 05062008 - C.91 TO: BOARD OF SUPERVISORS FROM: Dennis M. Barry, AICP, Director of Community Development DATE: May 6, 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 San Pablo and the prospective owners of an existing 54-unit multifamily rental housing development for seniors in San Pablo 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 Ecumenical Association for Housing(EAH),which is based in San Rafael. 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 owner without future discretionary actions. The inducement action does permit the County to submit an application to the California Debt LimXATION on Committee for the necessary Private Activity Bond Authority. CONTINUED ON ATTACHMENT: _X_ SIGNATURE:✓RECOMMENDATION OF COUNTY ADMINISTRATOR ECOMME OF BO D COMMITTEE LAPP E _ OTHER SIGNATURE(S): >tz�_ _ ACTION OF BOARD ON APPROVED ASR COMMENDED VOTE OF SUPERVISORS / I HEREBY CERTIFY THAT THIS IS A V1, UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NO S: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. Source: Jim Kennedy 335-7225 ATTESTEDMail,- 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 B R, DEPUTY City of San Pablo EAH G'1.CD13G-1ZFDFV`1.MF MR131,Casa Adobe\Casa.Adobe.[tidLICCIIICflt.5.I,.OR.doc EXHIBIT A • Name of Development: Case Adobe Senior Apartments • Maximum Amount of Bond Issue: $6,000,000 • Location of Development: 1924 Church Lane, San Pablo (APN #417-150-017 and 417-140-011) • Number of Units: 54 Name of Developer/Initial Owner San Pablo Senior Associates II, a California Limited Partnership. EAH-San Pablo, a California non-profit Public benefit corporation will be the managing general partner. The partnership will include a to be named tax credit investor. G:\C1)13G-KI-UI:V\M1-'MItl3\C:asa Adobc\C'asa.Adobe.Induccmcnt.5.13.Ob.doc THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Resolution on by the following vote: AYES: GIOIA, UILKEMA, PIEPHO, BONILLA&GLOVER NOES: NONE ABSENT: NONE ABSTAIN: NONE i i RESOLUTION NO. 2008/.51� 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, satiety 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 financingg 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 ol'Supervisors of the County of Contra Costa as follows: 1. Tile 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 oftlic 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 G:\CDBG-REDEV\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)(111),and 1.150-2 of the Rei-ulations 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 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: Conununity Development County Counsel County Administrator I hereby certify that this is a true and correct copy o art action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: JOHN T1 L. i, Cier of the Board Of upervisors and CountvA m inistrator gy lit iA��,.ear 1J Deputy Copy I certify that this is a M.truue dcocorrecl onp/of the ori final document which is on file in rn1� office. ATTEST, JOHN CULLEN, C�erk of the Board of Su erviso s and Cegnty Admi 'strator b;�r;puty Clerk. Aq4to G:\CDBG-REDEV\MF MRB\Inducement.Resolution.Master.3.07.doc EXHIBIT A • Name of Development: Case Adobe Senior Apartments • Maximum Amount of Bond Issue: $6,000,000 • Location of Development: 1924 Church Lane, San Pablo (APN #417-150-017 and 417-140-011) • Number of Units: 54 Name of Developer/Initial Owner San Pablo Senior Associates II, a California Limited Partnership. EAH-San Pablo, a California non-profit Public benefit corporation will be the managing general partner. The partnership will include a to be named tax credit investor. G:\CDCiG-REDEV\Mf MRB\Casa Adobe\Casa.Adobe.Ind ucement.5.13.08.doc