Agenda

Return

C.85

To:	Board of Supervisors
From:	Catherine Kutsuris, Conservation & Development Director
Date:	April 21, 2009

Contra

Costa

County

Subject:

Multi-Family Mortgage Revenue Refunding Bonds – Willow Pass Apartments, Bay Point

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 04/21/2009

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Gayle B. Uilkema, District II Supervisor
Mary N. Piepho, District III Supervisor
Susan A. Bonilla, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Jim Kennedy 5-7225

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 21, 2009
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2009/164 authorizing the issuance of Multi-Family Housing Revenue Refunding Bonds in an amount not to exceed $5.4 million to refinance a portion of the acquisition and rehabilitation of a multifamily residential rental project generally known as Willow Pass Apartments, as recommended by the Conservation and Development Director.

FISCAL IMPACT:

No General Fund obligation is involved. Annual expenses related to monitoring of the Regulatory Agreement are accommodated in the bond issue. No County funds are pledged to secure the bonds.

BACKGROUND:

On April 6, 1999, the Board of Supervisors approved the issuance of multi-family housing revenue bonds and to finance the acquisition and rehabilitation of the Willow Pass Apartments in Bay Point. On May 13, 1999, the County issued $5.4 million in tax-exempt bonds and $2.5 million in taxable bonds for the project. The proposed restructuring of the bonds will lower the interest rate on the tax-exempt portion of the prior bonds. The lowering of interest rates will result in lower debt service payments and increased operating income.

Willow Pass Apartments, which is now referred to as the Mission Bay Apartments, is a 120-unit multifamily rental development located at 1056 Weldon Lane, Bay Point. The County’s Regulatory Agreement for this project designates 40% of the units in the project to be affordable for forty years. Another 40% of the units are affordable as a result of Low Income Housing Tax Credits received at the time the original bonds were issued.

The ownership entity is Willow Partners, L.P., a California Limited Partnership, an affiliate of KDF Communities, a Newport Beach real estate firm with extensive experience in owning and managing affordable housing projects.

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 a Bond Sale Resolution.