Agenda

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C.126

To:	Board of Supervisors
From:	Catherine Kutsuris, Conservation & Development Director
Date:	December 14, 2010

Contra

Costa

County

Subject:

Inducement Action for Multifamily Project - Riley Court Apartments, Concord

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 12/14/2010

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
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: December 14, 2010
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2010/604 conditionally providing for the issuance of revenue bonds to finance the development of Riley Court Apartments, a multifamily rental housing development in the City of Concord.

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. 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:

Contra Costa County, through the Conservation and 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.

Resources for Community Development (RCD) has requested to participate in the County's multifamily mortgage bond financing program. They propose to renovate the Riley Court Apartments, an existing 48 unit affordable rental housing development in the City of Concord. 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 will be a limited partnership between RCD, or one of its affiliates, as managing general partner, and a to-be-named tax credit investor as limited partner.

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.

CONSEQUENCE OF NEGATIVE ACTION:

Without the Inducement Resolution, Resources for Community Development will not be able to commence with the process of applying to the California Debt Limit Allocation Committee for multifamily mortgage revenue bonds through the County.

CHILDREN'S IMPACT STATEMENT:

Not Applicable.