RECOMMENDATION(S): (CONT'D)
3. ACKNOWLEDGE that for purposes of Section 147(f) of the Internal Revenue Code of 1986, authorizing the issuance of Multifamily Housing Revenue Bonds (the "Bonds") to finance the costs of the acquisition and construction of Riviera Family Apartments is subject to Board of Supervisors approval of all documents related to the Bonds to which the County is a party.
4. ACKNOWLEDGE that adoption of this resolution does not relieve or exempt the borrower from obtaining required permits or approvals, nor obligate the County to incur any obligation or provide financial assistance with respect to the Bonds or the Development; and
5. AUTHORIZE and DIRECT any authorized officer of the County to do any and all things, take any and all actions, and execute and deliver any and all certificates, agreements, and other documents, which the officer may deem necessary or advisable in order to effectuate the intent of the Resolution. Authorized officers include the Chair of the Board of Supervisors, the Vice-Chair of the Board of Supervisors, County Administrator, the County Director of Conservation and Development, the County Assistant Deputy Director of Conservation and Development, the County’s Community Development Bond Program Manager, County Counsel, and other officers of the County.
FISCAL IMPACT:
No impact to the General Fund. 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 ensuring units in the Development will be rented to low income households are accommodated in the bond issue. The bonds will be solely secured by and payable from revenues (e.g. Development rents, reserves, etc.) pledged under the bond documents. No County funds are pledged to secure the bonds.
BACKGROUND:
The recommended action is the adoption of a Resolution by the Board, as the legislative body of the County, authorizing the issuance of Multifamily Housing Revenue Bonds, which will be used to finance the acquisition and construction of Riviera Family Apartments, a 58-unit rental housing development located at 1515 and 1738 Riviera Avenue (APN Nos. 174-150-076, 174-140-019, 174-140-025) in the City of Walnut Creek, California (the "Development").
The Bonds, when issued, will be used to finance the development of Riviera Family Apartments by Riviera Family Apartments, LP, the Managing General Partner of which is RCD. A to-be-named tax credit investor will be the limited partner.
The proposed financing would implement City of Walnut Creek and County policies to maintain and increase the supply of affordable housing. The City Council passed a resolution acknowledging that the County will assist in the financing of the project. At its December 8, 2015 meeting, the Board of Supervisors approved a Reimbursement (Inducement) Resolution for the Development. The Reimbursement Resolution conditionally provided for the issuance of housing revenue bonds.
The main purpose of the proposed Resolution is to acknowledge that a public hearing was held by the Community Development Bond Program Manager on January 4, 2016, with no public comment, and to meet other bond issuance requirements which are specified in Section 147(f) of the Internal Revenue Code. The proposed bonds cannot be issued until a separate resolution is adopted by the Board of Supervisors specifically authorizing the sale of the bonds. Such separate resolution to authorize the sale of bonds would come before the Board after receipt of an allocation from the State of California for Private Activity Bond Authority. An application for Private Activity Bond Authority will be submitted to the California Debt Limit Allocation Committee on January 15, 2016. The expected timing for a Bond Sale Resolution would be May, 2017.
The proposed resolution would not relieve Riviera Family Apartments, LP or RCD from obtaining other required permits or approvals required by law, nor obligate the County to incur any obligation or provide financial assistance with respect to the Bonds or the Development. Annual expenses of the County related to the monitoring of the Regulatory Agreement are accommodated in the bond issue.
CONSEQUENCE OF NEGATIVE ACTION:
Negative action would prevent the County from meeting the public approval requirement of the Internal Revenue Code for issuing Multifamily Housing Revenue Bonds. As a result, the Multifamily Housing Revenue Bonds could not be issued by the County.
CHILDREN'S IMPACT STATEMENT:
The Riviera Family Apartments provide 58 units of affordable rental housing appropriate for families. This supports outcome #3: Families are Economically Self Sufficient.