RECOMMENDATION(S): (CONT'D)
(2) finding and declaring that certain findings, statements and declarations contained in the proposed Resolution are true and correct;
(3) declaring that the Resolution will not relieve the borrower of Bond funds 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 Project concerned;
(4) approving, ratifying, and confirming all actions heretofore taken by officers and agents of the County with respect to the financing of the Project and the sale and issuance of Bonds; and,
(5) authorizing and directing 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 purposes of the Resolution.
FISCAL IMPACT:
No General Fund obligation is involved. In the event that the bonds are issued, the County will be reimbursed for costs associated with the issuance of bonds. The bonds to be issued will be solely secured by revenues (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 Multi-Family Housing Revenue Bonds which will be used to finance the costs of acquisition and rehabilitation of the Riley Court Apartments, a 48-unit multifamily rental housing development located at 2050, 2051 and 2061 Riley Court (APNs 128-200-062 and 128-200-063) in Concord.
The bonds, when issued, will be used to finance the acquisition and rehabilitation of the Riley Court Apartments by the ownership entity. The ownership entity will be a California Limited Partnership, the Managing General Partner of which will be Resources for Community Development (a local non-profit housing developer) or a related entity.
The proposed financing would implement City of Concord and County policies to preserve the supply of affordable housing. The City of Concord is supportive of the acquisition and renovation of Riley Court Apartments.
The main purpose of the proposed Resolution is to acknowledge that a public hearing has been held by the Deputy Director – Redevelopment and to meet other bond issuance requirements which are specified in Section 147(f) of the Internal Revenue Code.
The recommended action of the Board is not the Bond Sale Resolution. The proposed bonds could not be issued until a separate resolution is adopted by the Board of Supervisors specifically authorizing the sale of bonds. Such a separate proposed resolution to authorize the sale of bonds would come back to 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 in the summer of 2011. The expected timing for a Bond Sale Resolution would be in the fourth quarter of calendar year 2011.
The proposed resolution would not relieve the borrower of bond funds 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 project concerned.
Annual expenses 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 Multi-family Housing Revenue Bonds, and prior actions of officers and agents of the County would not be confirmed and ratified. As a result, the Multi-family Housing Revenue Bonds could not be issued and funds would not be available to refinance the Riley Court Apartments located at 2050, 2051 and 2061 Riley Court in Concord.
CHILDREN'S IMPACT STATEMENT:
Not Applicable.