RECOMMENDATION(S): (CONT'D)
3) approving any other actions necessary in order to consummate the sale and transfer of the project.
FISCAL IMPACT:
No fiscal impact. The new owner will continue operating the project in compliance with the existing Regulatory Agreement, including payment of annual issuer fees to cover staff costs associated with monitoring the project for compliance with affordability requirements.
BACKGROUND:
In October of 2004, the County issued Multifamily Housing Revenue Bonds (Marina Heights Apartments Project) Series 2004-C and the proceeds to the bonds were used to provide financing for Marina Heights Apartments, a 200 unit residential rental project located in Pittsburg (the "Project") with 80 units reserved for low-income households earning at or below 60% of the area median income. The County entered into a Regulatory Agreement with Steadfast Marina Heights, L.P. (the "Current Owner") to maintain the project's affordability for a term of 55 years.
The Current Owner wishes to sell the Project to FFAH Marina Heights, LLC, a limited partnership with Foundation for Affordable Housing (FFAH) as the managing general partner. FFAH is a tax-exempt 501(c)(3) located in southern California that has developed affordable housing throughout the United States for over 25 years. Within the Bay Area, they have developed 25 multifamily projects and 12 senior projects. FFAH will use Hyder and Company to provide property management services. Hyder’s Property Management Professionals have over 20 years’ experience in managing affordable rental housing including HUD, California Housing and Community Development (HCD) and Tax Credit projects. References were checked for both companies with positive responses.
This action is to approve the sale and transfer of the Project from the Current Owner to FFAH Marina Heights, LLC, including the execution of an Assignment and Assumption Agreement that transfers the Regulatory Agreement to FFAH. The action also approves the services of our bond counsel, Quint & Thimmig. Quint & Thimmig has served as bond counsel for the County’s Multifamily Housing Revenue Bond Program since 2011. The bonds will be fully defeased as part of the property sale transaction.
CONSEQUENCE OF NEGATIVE ACTION:
If not approved, Marina Heights would not be able to be sold to FFAH Marina Heights, LLC.
CHILDREN'S IMPACT STATEMENT:
Multifamily affordable housing supports all five of the following children's outcomes:
(1) Children Ready for and Succeeding in School;
(2) Children and Youth Healthy and Preparing for Productive Adulthood;
(3) Families that are Economically Self Sufficient;
(4) Families that are Safe, Stable and Nurturing; and
(5) Communities that are Safe and Provide a High Quality of Life for Children and Families.