Agenda

Return

C. 95

To:	Board of Supervisors
From:	John Kopchik, Director, Conservation & Development Department
Date:	December 8, 2015

Contra

Costa

County

Subject:

Reimbursement Resolution for Multifamily Residential Rental Housing Developments

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 12/08/2015

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Kristen Lackey (925) 674-7888

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 8, 2015
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2015/455 conditionally providing for the issuance of revenue bonds to finance the following Multifamily Residential Rental Housing Developments (the "Developments"), and approving related actions.

1) Riviera Family Apartments located at 1515 and 1738 Riviera Avenue in the City of Walnut Creek, in an amount not to exceed $25,000,000;

RECOMMENDATION(S): (CONT'D)

2) Carena Scattered Site Renovation, including Riley Court located at 2050, 2051 and 2061 Riley Court in the City of Concord, Elaine Null Apartments located at 112 Alves Lane and 300-310 Water Street in Bay Point, and Camara Circle located at 2501, 2513, 2525, 2530, 2531, 2536, 2537, 2549, 2554, 2555 and 2566 Camara Circle in the City of Concord, in an amount not to exceed $20,000,000;

3) St. Paul's Commons located at 1860 Trinity Avenue in the City of Walnut Creek, in an amount not to exceed $15,000,000;

4) Tabora Gardens located at the southeast corner of James Donlon Boulevard and Tabora Drive in the City of Antioch, in an amount not to exceed $35,000,000; and

5) Virginia Lane Apartments located at 1121 and 1140 Virginia Lane in the City Concord, in an amount not to exceed $25,000,000.

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 ensuring certain units in the Developments 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 General Funds are pledged to secure the bonds.

BACKGROUND:

Contra Costa County, through the Conservation and Development Department, operates a multifamily mortgage revenue bond financing program. The purpose of the program is to increase or preserve the supply of affordable rental housing available to low and very low income households. The County program may be undertaken within the unincorporated County and within the cities located in the County that have agreed to let the County operate the program in their jurisdiction.

The Sponsors listed in Exhibit A of the attached resolution requested to participate in the County's multifamily mortgage revenue bond financing program. Each of the Sponsors propose to form a new limited partnership with a to-be-named tax credit investor as a limited partner to develop the facility. The proposed developments meet the eligibility criteria for bond financing and the County policy for this program. Additional information regarding each project is included in Exhibit A.

A requirement of federal tax law is that the prospective financing be subject to a conditional statement of intent to issue bonds to reimburse expenses incurred prior to the date the bonds are issued, i.e. a reimbursement resolution must be adopted by the Board of Supervisors. Also, the California Debt Limit Allocation Committee, that allocates tax-exempt bond authority to the bond issue, requires that a reimbursement resolution be adopted before an application may be made for such an allocation. The adoption of a reimbursement resolution will not obligate the County or the owner without future discretionary actions, but will indicate the intent of the County to issue the bonds if all conditions in the reimbursement resolution have been satisfied.

CONSEQUENCE OF NEGATIVE ACTION:

Without the reimbursement resolution, the Sponsors will not be able to commence with the process of applying to the California Debt Limit Allocation Committee for multifamily housing revenue bond authority through the County.

CHILDREN'S IMPACT STATEMENT:

Riviera Apartments, Carena Scattered Site Renovations, St. Paul's Commons, and Virginia Lane provide affordable rental housing appropriate for families. This supports outcome #3: Families are Economically Self Sufficient.