Agenda

Return

C. 89

To:	Board of Supervisors
From:	Catherine Kutsuris, Conservation & Development
Date:	February 26, 2013

Contra

Costa

County

Subject:

Inducement Action for Multifamily Project - Oak Ridge, Oakley

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 02/26/2013

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, 4-7888

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: February 26, 2013
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2013/111 to conditionally provide for the issuance of revenue bonds in an amount not to exceed $8 million to finance the development of Oak Ridge Family Apartments, a multifamily rental housing development to be located at 73 Carol Lane in the City of Oakley (a portion of APN 037-100-061 and APN 037-100-063) as recommended the Director of Conservation and Development.

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 revenues (e.g. rents, reserves, etc.) pledged under the bond documents. No County funds are pledged to secure the bonds. County staff is recommending that this project be allocated $1.3 million in County HOME Investment Partnerships Act funds and $250,000 from the Summer Lake trust account on separate Board actions being considered at the February 26, 2013 Board of Supervisors meeting.

BACKGROUND:

Contra Costa County, through the Department of Conservation and Development, 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 lower income households. The County program may be undertaken within the unincorporated County and within the cities.

Corporation for Better Housing has requested to participate in the County’s multifamily mortgage revenue bond financing program. They propose to construct Oak Ridge Family apartments, a 30-unit multifamily rental housing project located at 73 Carol Lane in the City of Oakley. 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 Corporation for Better Housing, or one of its affiliates, as managing general partner, and a to-be-named tax credit investor as a limited partner. A description of the project can be found 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, 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 of the Board of Supervisors.

CONSEQUENCE OF NEGATIVE ACTION:

Without the Inducement Resolution, Corporation for Better Housing will not be able to commence with the process of applying to the California Debt Limit Allocation Committee for an allocation of multifamily mortgage revenue bond authority through the County in an amount not to exceed $8 million.

CHILDREN'S IMPACT STATEMENT:

Not applicable.